Panel approves expanded TIF/PILOT use for affordable housing; open‑government group warns about removing public hearings

House Bill 1306, presented in committee on March 5, 2025 by Leader Cochran, would expand local industrial development tools — including tax increment financing (TIF) and payment‑in‑lieu‑of‑tax (PILOT) programs — to more broadly support the construction of affordable and workforce housing. The Cities & Counties Subcommittee voted 7-0 to move the bill to the next available State and Local Government calendar.

Leader Cochran described the bill as a means "to incentivize the supply of affordable housing by amending the language for industrial development projects," allowing local governments to more broadly use TIF and PILOT programs as tools to increase housing supply amid population growth.

Deborah Fisher, executive director of the Tennessee Coalition for Open Government, testified as a public speaker and asked the committee to retain public‑hearing requirements when an Economic Impact Plan for a TIF is amended. Fisher warned that some amendments can be substantive — for example changing a TIF's geographic boundary or reallocating the share of local taxes used to pay bonds — and that eliminating a public hearing could cut the public out of major post‑approval changes. She cited a prior Chattanooga example where a stadium project expanded a TIF boundary after costs increased.

In response, Leader Cochran pointed to language in the bill stating that governing bodies required to approve an economic impact plan "may approve amendments" and that amendments would be considered at a public meeting, allowing public comment. Representative Dixie asked whether the committee could get a list of Brownfield redevelopment projects affected by the bill; Cochran said that list could be provided, likely through the Department of Economic and Community Development.

The clerk recorded 7 ayes and 0 nos; the chair declared the bill moved to the next available State and Local Government calendar.