Fiscal Summary

Other Fiscal Impact – A mandatory impact to local government revenue and increase in local expenditures cannot be estimated with reasonable certainty. *

Bill Summary

This bill requires each municipal and metropolitan government to adopt at least four of the following housing strategies on or before July 1, 2025:

(1) Allow, as a permitted use, for at least a duplex where a single-unit dwelling is permitted;

(2) Eliminate or reduce off-street parking requirements to require no more than one parking space per dwelling unit;

(3) Allow, as a permitted use, for at least one internal or detached accessory dwelling unit on a lot with a single-unit dwelling occupied as a primary residence;

(4) Allow for single-room occupancy developments;

(5) Allow, as a permitted use, a triplex or fourplex where a single-unit dwelling is permitted;

(6) Eliminate minimum lot sizes or reduce the existing minimum lot size required by at least 25 percent;

(7) Eliminate aesthetic, material, shape, bulk, size, floor area, and other massing requirements for multi-unit dwellings or mixed-use developments or eliminate at least 50 percent of those existing requirements;

(8) Provide for zoning that specifically allows or encourages the development of tiny homes;

(9) Eliminate setback requirements or reduce existing setback requirements by at least 25 percent;

(10) Allow multi-unit dwellings or mixed-use development as a permitted use on all lots where office, retail, or commercial are primary permitted uses;

(11) Allow multi-unit dwellings as a permitted use on all lots where triplexes or fourplexes are permitted uses; or

(12) Eliminate impact fees for accessory dwelling units or developments that include multi-unit dwellings or reduce the fees by at least 25 percent.

EFFECT OF NON-COMPLIANCE

For any municipal or metropolitan government that has not adopted such minimum of housing strategies, this bill provides that the municipal or metropolitan government is ineligible to receive, so long as the local government remains out of compliance, (i) community development block grants administered by the department of economic and community development; (ii) downtown improvement grants administered by the department of economic and community development; (iii) historic development grants administered by the department of economic and community development; (iv) local parks and recreation fund grants administered by the department of environment and conservation; (v) Tennessee downtowns administered by the department of economic and community development; (vi) Tennessee main streets administered by the department of economic and community development; (vii) three star program administered by the department of economic and community development; (viii) tourism enhancement grant administered by the department of tourist development; and (ix) tourism marketing grant administered by the department of tourist development.