TN HB2236

Summary of HB2236 - First-Time Homebuyer Assistance Program

• Creates a First-Time Homebuyer Assistance Program administered by the Tennessee Housing Development Agency, providing up to $20,000 per recipient for down payments, closing costs, or mortgage interest rate reductions

• Limits eligible properties to new construction or newly constructed homes in Tennessee priced at $450,000 or less, which must be owner-occupied within 60 days of purchase

• Requires recipients who sell or refinance before the end of their original mortgage term to repay the lesser of the program funds received or 50% of their home equity

• Prohibits builders and developers from increasing home prices based on a buyer's participation in the program, and caps administrative costs at 5% of program funds

• Takes effect January 1, 2027, with rulemaking authority effective upon passage