TN HB1134

Counties and municipalities may adopt an affordable housing program that grants property tax exemptions to joint ventures with qualified nonprofit partners providing permanent affordable housing, where at least 30% of units serve homeless veterans

Projects exceeding 12 units must make payments in lieu of taxes to local jurisdictions, negotiated to cover service costs, with a minimum of 25% of what normal property taxes would be

All units in qualifying properties must be rented at rates affordable to low-income households (80% or less of area median income) per HUD income limits

Qualified general partners must be 501(c) nonprofits focused on homelessness or veteran housing, with unpaid officers and directors and strict nonprofit dissolution requirements

Effective July 1, 2025