Tennessee House Bill HB0955

Tennessee 2025-2026 Regular Session

• Introduced: 2/4/25
• Refer: 2/10/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 7, Chapter 53; Title 9; Title 12; Title 13; Title 66 and Title 67, relative to housing.

Summary

HB0955, titled the “Affordable Housing and Tenant Protection Act,” makes several changes to Tennessee housing law. It would authorize local governments, by a two-thirds vote of the local legislative body, to adopt ordinances or resolutions controlling rents for private residential property, including maximum rents and rental application fees. Before doing so, a local government would have to make findings about local housing supply and conditions, create or designate a local rent agency to administer the program, and establish an administrative appeal process that includes notice, a hearing opportunity, and review in chancery court. The bill also expands the scope of a state law governing local housing incentives by clarifying that local governments may create purely voluntary incentive-based programs to increase construction or rehabilitation of workforce or affordable private commercial rental units, including through tax incentives, subsidized property, or infrastructure assistance. In addition, it creates a new Tennessee Housing Development Agency program, the “increased housing program,” to provide gap financing for developers building single-family and multifamily housing and grants for first-time homebuyers to help with down payments and closing costs. The program would prioritize projects in communities affected by a federally declared disaster within the prior 12 months and would be funded through a new revolving fund in the state treasury.

Impact

If enacted, the bill would significantly alter Tennessee’s housing policy by expressly permitting local rent control under specified procedural conditions, creating a new local administrative framework for rent regulation, and expanding local authority to use voluntary incentives for affordable housing development. It would also establish a new THDA-administered financing and grant program, along with a dedicated revolving fund that carries balances forward and may be used for program administration up to a capped percentage. The bill would affect local governments, landlords, tenants, developers, and first-time homebuyers, and would add new reporting obligations for THDA.

Sentiment

The available voting history suggests the bill has faced resistance and has not advanced smoothly, as shown by its deferral in the House Cities & Counties Subcommittee on a 5-2 vote. No committee transcript is provided, so there is no recorded debate to indicate broad support or opposition in the discussion record. Based on the bill’s substance, it appears designed to address housing affordability concerns, but the rent-control provisions are likely to be the most controversial element.

Contention

The main point of contention is the bill’s authorization of local rent control, which would be a major policy shift and may draw opposition from landlord, property rights, and market-oriented interests concerned about regulation of private residential rents and rental application fees. Supporters are likely to emphasize tenant protections, affordability, and local flexibility in responding to housing shortages. A secondary area of interest is the state-funded THDA housing program, which may be viewed favorably as an affordability tool but could raise questions about funding, administration, and whether the state should prioritize grants and gap financing over other housing approaches.