Tennessee Senate Bill SB2462

Tennessee 2023-2024 Regular Session

• Introduced: 1/30/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 3, Part 10; Title 39, Chapter 14; Title 47 and Title 66, relative to first-time home buyers.

Impact

If enacted, SB2462 will significantly impact the dynamics of home buying in Tennessee by providing financial assistance to individuals who have not previously owned a home. This may potentially enhance opportunities for lower-income families and individuals to purchase homes and establish stability. Additionally, the bill sets clear conditions that ensure the home purchased becomes the primary residence of the beneficiary for a minimum of five years, which aligns with broader goals of fostering community stability and reducing housing turnover.

Summary

Senate Bill 2462 aims to amend the Tennessee Code Annotated by establishing a grant program designed to assist first-time home buyers. The bill mandates that the department of finance and administration, in coordination with the department of revenue and the Tennessee housing development agency, develop rules to facilitate this program using both federal and state funds. A key feature of this bill is the provision of a minimum grant of $15,000 for eligible first-time home buyers, with specific eligibility criteria outlined for income limits and residency requirements.

Contention

However, the bill's implementation may generate some debate, particularly regarding the income limits set for eligibility. For single applicants, the income cap is set at $100,000, which could be perceived as high by critics who argue that it may exclude lower-income households that are still in need of assistance. Moreover, the residency requirement attached to the grant could also raise concerns among potential recipients about the long-term commitment to the property, especially in a fluctuating housing market.