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Committee advances $10 million pilot to spur housing for middle-income Tennesseans
Summary
The Cities and Counties Subcommittee advanced House Bill 2509, amended to create a $10 million pilot grant for developers to produce housing for households above poverty but below middle income; the bill requires a 2027 review of program effectiveness and passed by voice vote.
House Bill 2509, sponsored in committee as addressing housing affordability, was advanced after members adopted amendment 14,834 that frames the measure as a $10 million pilot grant program for developers to build housing for households the sponsor described as “tweener” — those who are not wealthy nor poor but struggling to afford housing.
Chairman Faizon (speaker 3), introduced earlier as the bill sponsor, described the grant as distributed across three grant divisions with a competitive process for cities and counties to apply. He said the program includes a statutory requirement to re-evaluate the pilot in 2027 to determine whether to continue or expand funding. “It’s a program that developers can use to build housing for somebody in that, I’d call it like a tweener,” the sponsor said, outlining both the target population and the grant’s structure (SEG 053–066).
Representative Dixie (speaker 4) asked whether the assistance would be structured as grants or loans; the sponsor clarified the program functions like a zero-interest loan or grant depending on the amendment language and fiscal terms (SEG 085–095). The committee voted in favor of amendment 14,834 and then approved HB 2509 as amended by voice vote (6 ayes, 0 noes), sending it to the next available calendar for state and local government consideration (SEG 110–112).
The bill’s next steps include placement on the calendar; the 2027 review required by the amendment will determine whether the pilot is renewed or revised. The record does not specify detailed eligibility criteria, allocation formulas, or the precise mix of grant versus low-cost loan instruments; those details are to be clarified in implementing language or subsequent fiscal notes.
