Bill > HB2236

This bill establishes the "First-Time Homebuyer Assistance Program" to be administered by the housing development agency (referred to as the "agency"). The program aims to help individuals purchase qualifying residential units, which are defined as owner-occupied homes, condos, townhouses, or manufactured/modular homes attached to a permanent foundation, located in Tennessee, and financed by a specific type of mortgage loan called a "qualifying mortgage loan." To be considered a "first-time homebuyer," an individual must meet federal income tax requirements and any additional criteria set by the agency, with a special provision for single parents who previously co-owned a home with a former spouse. The program can provide up to $20,000 per recipient to be used for down payments, closing costs, or to permanently reduce the interest rate on their mortgage. The agency has the authority to adjust the maximum purchase price for qualifying homes based on market conditions, but not more than once a year. If a recipient sells the home or refinances their mortgage before the original loan term ends, they may have to repay a portion of the program funds, specifically the lesser of the amount received or 50% of their home equity. Any repaid funds will be reinvested into the program. The agency can use up to 5% of program funds for administrative costs and must report annually on program disbursements and any price adjustments. The bill takes effect for rule-making purposes immediately upon becoming law, but for all other purposes, it becomes effective on January 1, 2027.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=HB2236&ga=114