Tennessee Senate Bill SB0413

Tennessee 2023-2024 Regular Session

• Introduced: 1/24/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 13 and Title 67, Chapter 5, relative to a grant program.

Impact

The implementation of SB0413 is designed to encourage local governments to take a more active role in enhancing housing accessibility within their communities. By providing a structured and regulated means of distributing grants, the bill aims to facilitate partnerships between local governments and nonprofit organizations in tackling housing challenges. This could lead to an increase in affordable rental units throughout Tennessee, which is crucial given the rising costs of housing in many regions across the state.

Summary

Senate Bill 0413 amends multiple titles of the Tennessee Code Annotated to establish a grant program aimed at supporting nonprofit organizations that manage residential properties rented at below-market rates. Under this bill, local governments are empowered to create programs that provide financial grants to eligible nonprofits, with a specific aim to promote affordable housing by ensuring that at least 25% of the properties rented are below market rates. The funding available for each grant is capped at the amount of property tax due on the nonprofit's residential property, blending financial incentives with accountability measures.

Contention

The bill’s provisions include checks and balances such as requiring the comptroller of the treasury to evaluate program proposals for constitutional compliance and equitable eligibility criteria. Additionally, nonprofit organizations must recertify their eligibility annually and adhere to clawback provisions to ensure that any funds provided can be reclaimed if the program's standards are not maintained. Some stakeholders may argue about the efficiency of such oversight and whether the stringent conditions may deter smaller nonprofits from applying or participating in the grant program.