Bill > HB1134

This bill modifies Tennessee tax law to create a property tax exemption for affordable housing projects that specifically support homeless veterans. Under this legislation, counties or municipalities can adopt a resolution allowing property tax exemptions for joint ventures that develop housing projects where at least 30% of units are dedicated to permanently housing homeless veterans. To qualify, the project must lease 100% of its units at affordable rates (defined as 80% or less of the area's median income), and the joint venture must include a qualified non-profit partner with a mission focused on addressing veteran homelessness. In exchange for the tax exemption, projects with more than 12 units must negotiate payments in lieu of taxes with local jurisdictions, which will be at least 25% of what would normally be owed. A "veteran experiencing homelessness" is specifically defined as a former armed forces member receiving a housing voucher or referred through a coordinated housing placement system. The bill will take effect on July 1, 2025, and aims to incentivize the creation of affordable housing solutions for homeless veterans by providing a tax benefit to developers.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1134&ga=114