HB 930 - SB 857
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 14, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
HB 930 - SB 857
SUMMARY OF BILL: Authorizes any participating county in the Homebuyers’ Revolving
Loan Fund Pool (Pool), which has made loans in excess of the amount of funds in the initial
capitalization of the Pool, to terminate its participation in the Pool and retain all funds, including any
funds used for initial capitalization or interest earnings on repayments.
FISCAL IMPACT:
OTHER FISCAL IMPACT
Any impact upon the Homebuyers’ Revolving Loan Fund Pool or local governments cannot be
reasonably determined.
Assumptions:
• Pursuant to Tenn. Code Ann. § 13-23-301, the Pool was established to make loans to low
and moderate-income persons in areas which have critical housing needs for the purpose of
securing residential housing for such persons.
• The Pool is administered by the Tennessee Housing Development Agency (THDA) and
any cost it incurs in administration of the Pool must come out of its administrative budget.
• Pursuant to Tenn. Code Ann. § 13-23-306, the THDA may accept only one application per
county to participate in the Pool; however, an incorporated municipality may file an
individual application, or a joint application with other municipalities located within the
respective county of jurisdiction, but only with such county’s sponsorship.
• To participate in the Pool, a county must appropriate, reserve, or dedicate revenues to fund
its respective local portion prior to its acceptance by the THDA.
• Pursuant to Tenn. Code Ann. § 13-23-303, funds for the initial capitalization of the Pool
was required to consist of a $2,500,000 appropriation by the General Assembly, or 70
percent of total capitalization funds, and the remaining 30 percent from appropriations,
reserves, or dedications by any county where the property is located which has agreed to
participate in the pool.
• According to the Comptroller of the Treasury’s 2024 Financial and Compliance Audit
Report for the THDA, there is a restricted amount of $3,153,000 currently in the Pool.
• Based on information provided by the THDA, it is unable to determine which, if any,
counties will choose to exercise the authority established by this legislation.
• Any impact upon the Pool or local governments cannot be determined with reasonable
certainty.
HB 930 - SB 857 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director