Shown verbatim: the complete text as captured from the official PDF posted by the Tennessee General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
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PUBLIC CHAPTER NO. 382
SENATE BILL NO. 948
By Powers, Jackson, Reeves, Rose
Substituted for: House Bill No. 1134
By Boyd, Russell, Travis, Love, Crawford, Butler
AN ACT to amend Tennessee Code Annotated, Title 47 and Title 67, relative to veterans.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-207, is amended by adding the
following as a new subsection (f):
(1) Notwithstanding subsections (a) and (b) or another law to the contrary, if the
legislative body of a county or municipality, as applicable, adopts by resolution or ordinance
the affordable housing program provided in this subsection (f), then:
(A) There is also exempted property owned directly or indirectly by a joint
venture in which at least one (1) party of the joint venture is a qualified general partner;
provided, that such property is used solely to provide permanent affordable housing to
low-income households, of which at least thirty percent (30%) of the units at such
property are dedicated to provide permanent, qualified affordable housing for veterans
experiencing homelessness;
(B) An owner or owners of a project that exceeds twelve (12) units must agree
to make payments in lieu of taxes to the tax jurisdictions in which they are located, in
an amount negotiated to cover the cost of improvements, facilities, or services rendered
by the tax jurisdiction, but if an amount is not agreed upon, then the payments must be
not less than twenty-five percent (25%) of the amount of tax that would be due if the
project were not exempt; and
(C) A joint venture will be deemed to provide permanent affordable housing to
low-income households if one hundred percent (100%) of the units available at the
property are leased at rents that are affordable to households that are low-income,
according to the income limits computed and published by the department of housing
and urban development under the United States Housing Act of 1937 (42 U.S.C. §
1437 et seq.).
(2) For purposes of this subsection (f):
(A) "Joint venture" includes limited partnerships and any wholly owned limited
liability companies of the limited partnership that are disregarded for tax purposes in
this state;
(B) "Low income" means eighty percent (80%) or less of the applicable area's
median income;
(C) "Qualified general partner" means a not-for-profit organization exempt from
federal income taxation as a charitable or social welfare organization under Section
501 of the Internal Revenue Code (26 U.S.C. § 501 ), as amended, that:
(i) Has a purpose and mission of addressing homelessness or providing
housing for veterans experiencing homelessness; and
(ii) Has ch~rter provisions that provide that:
SB948
(a) Directors and officers of the organization serve without
compensation;
(b) The organization is irrevocably dedicated to and operated
exclusively for not-for-profit purposes;
(c) No part of the income or assets of the organization are
distributed to nor inure to the benefit of any individual;
(d) In the event of dissolution of the organization or other
liquidation of its assets, the organization's property shall not be
conveyed to any individual for less than the fair-market value of such
property; and
(e) All assets remaining after payment of the organization's
debts must be conveyed or distributed only to an organization or
organizations created and operated for not-for-profit purposes similar
to those of the organization; and
(D) "Veteran experiencing homelessness" means a former member of the
United States armed forces who is in receipt of a Veterans Affairs Supportive Housing
voucher or other form of rental subsidy designated for veterans experiencing or at risk
of homelessness, or who is referred to the subject property through a coordinated
entry system by a local housing placement organization created to assist veterans in
need of housing.
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.
2
SENATE BILL NO. 948
PASSED: Apri I 16, 2025
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' RANDYl\l~
SPEAKER OF THE SENATE
CAMERO~XTON,SPEAKER
HOUSE OF REPRESENTATIVES
Et:_ ~ APPROVED this 2025
day of
BILL Lcc,G?1VERNOREvery fact on this page links to its source, starting with the official bill record.