TN HB0753

Multi-unit rental housing (4+ units) with government restrictions for low-income tenants must be assessed using income-based valuation methods that account for actual rental income and operating expenses rather than unrestricted market value

Low-income housing tax credits and other federal/state program subsidies must be excluded when determining property value for tax assessment purposes

Capitalization rates for restricted properties must be 50 to 150 basis points above national average multifamily rates, with the Division of Property Assessments publishing annual rates beginning tax year 2026

Property owners must notify assessors by December 31 of any year when a property becomes or ceases to be subject to government use restrictions, or faces foreclosure; failure to notify results in liability for delinquent taxes with interest and penalties

Applies to properties developed on or after January 1, 2026, and covers properties receiving LIHTC, exempt facility bond financing, HUD low-interest loans, rent subsidies, grants, guaranteed loans, or PILOT agreements