Governor proposes starter-home revolving loan fund, rural housing tax credit and water strategy; urges Farmland Conservation Act

Governor Bill Lee said Tennessee faces rapid population growth and a loss of starter homes and proposed several measures to increase housing supply and protect farmland.

"So first, we're proposing a $60,000,000 starter home revolving loan fund. This self sustaining program will provide 0% interest construction loans for the building of a new single family home. Second, we're funding the rural and workforce housing tax credit," Lee said, adding the state must continue to look for fiscally responsible solutions.

Lee also highlighted the Duck River as "the most biologically diverse freshwater river in all of North America" and said he signed an executive order in November to preserve the Duck River. He proposed $100 million in the budget to create a regional water supply strategy to address growing demand in a fast-growing region that relies on the Duck River as a sole water source for more than 250,000 Tennesseans.

The governor said Tennessee is losing "10 acres of farmland per hour" and urged passage of what he called the Farmland Conservation Act to provide grants for farmers who voluntarily preserve and protect land. He cited Noble Springs Farm as an example of a first-generation dairy farm the policy aims to help.

The transcript does not include statutory language, specific program administration details or projected fiscal mechanics for the revolving loan fund, tax credit allocations, or the farmland grants; Lee presented the items as budget and legislative priorities for the upcoming session.