Tennessee House Bill HB2342

Tennessee 2023-2024 Regular Session

• Introduced: 1/30/24
• Refer: 2/1/24
• Failed: 3/13/24

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

Under HB2342, eligible buyers could receive a grant of at least $15,000 to assist with their home purchase. To qualify, buyers must demonstrate that the purchased home will be their primary residence and adhere to specific income thresholds, which vary depending on filing status. This provision seeks to enable lower and middle-income families to achieve homeownership, potentially leading to economic growth in Tennessee by increasing the number of homeowners and stimulating the housing market.

Summary

House Bill 2342 aims to amend various sections of the Tennessee Code Annotated concerning first-time home buyers. The bill proposes the establishment of a grant program to assist individuals purchasing their first homes. In partnership with the Department of Revenue and the Tennessee Housing Development Agency, the Department of Finance and Administration would develop rules for this program utilizing both federal funds and state appropriations. The intent is to promote homeownership among first-time buyers who meet certain income requirements and have never owned a home before.

Contention

While the bill intends to support first-time home buyers, it may face scrutiny regarding the financial implications for the state and equitable access to the grants. There may be concerns about adequately funding the program and ensuring that it effectively serves the intended demographic. Additionally, there could be debates around the residency requirement, which mandates that grant recipients must reside in the purchased home for at least five years. Critics may argue that this condition could be a barrier to some buyers who may need flexibility due to unforeseen circumstances.