A RESOLUTION relative to home affordability and impact fees.
Impact
The resolution emphasizes the role of impact fees, which are taxes levied on new developments to cover the cost of necessary infrastructure due to population growth. As these fees rise, they can exacerbate housing affordability issues, potentially making new developments more expensive and limiting access to housing, particularly in less wealthy communities. This situation may lead to regional inequalities, where only affluent areas can sustain the increased costs associated with development, reducing the available land for potential new housing.
Summary
House Joint Resolution 139 (HJR0139) addresses the pressing issue of home affordability in Tennessee, which has become increasingly difficult for many residents due to rising housing costs and stagnant incomes. According to the resolution, the median value of existing homes is $191,000, while new homes are priced significantly higher at $387,961. The document outlines how the combination of high real estate prices and predatory lending practices has made it challenging for low- to moderate-income households to find secure and affordable housing options.
Contention
HJR0139 calls for the Tennessee Advisory Commission on Intergovernmental Relations (TACIR) to conduct a comprehensive review of existing impact fee policies, focusing on the challenges posed by increasing fees and seeking input from local governments and economic experts. There is potential contention regarding how state authorities might balance the need for infrastructure investment with the pressure of keeping housing affordable. Critics of rising impact fees may argue that retaining local control over housing policies and affordability strategies is essential to meet the unique needs of different communities.
Requesting The Department Of Taxation To Establish A Vacant Homes Surcharge Task Force To Research And Report On The Impacts And Implementations Of A General Excise Tax Surcharge On Vacant Homes.
Requesting The Department Of Taxation To Establish A Vacant Homes Surcharge Task Force To Research And Report On The Impacts And Implementations Of A General Excise Tax Surcharge On Vacant Homes.