Tennessee legislation · 114th General Assembly
Tennessee SB539: AN ACT to amend Tennessee Code Annotated, Title 7; Title 13; Title 48; Title 49; Title 67 and Title 68, relative to low-income housing.
Status: Chaptered, May 27, 2026
Fiscal Summary OTHER FISCAL IMPACT The amount of total recurring foregone local revenue beginning in FY26-27 cannot be quantified with certainty but is reasonably estimated to exceed $100,000. Bill Summary CAPITALIZATION RATE FOR MULTI-UNIT RENTAL HOUSING For residential property and projects developed on or after January 1, 2026, this bill requires multi-unit rental housing that is subject to government restriction on use to be assessed in a manner that is consistent with all of the following methods: Applying an annual net operating income approach to value that uses actual income and stabilized operating expenses that are based on the actual history of the property, when available, and a capitalization rate. Using a methodology to project income, expenses, and a capitalization rate that is consistent with the Uniform Standards of Professional Appraisal Practice. Adjusting the unrestricted market value of the multi-unit rental housing, computed without regard to a government restriction on use applicable to the multi-unit rental housing, based on the ratio of the average annual rent of those units of the property that are subject to government restriction on use to the average annual rent of comparable multi-unit rental housing that is not subject to government restriction on use. Excluding the amount of low-income housing tax credits received under federal law, or from a state or federal program in determining the value attributable to the multi-unit rental housing. As used in this provision, "low-income" means earning at or below 80% of the area median income as defined by the United States department of housing and urban development for the location of the multi-unit rental housing. As used in this bill, "multi-unit rental housing" means residential property or a project consisting of four or more
What the bill says
An act to amend Tennessee Code Annotated, Title 7; Title 13; Title 48; Title 49; Title 67 and Title 68, relative to low-income housing.
From the introduced text:
AN ACT to amend Tennessee Code Annotated, Title 7; Title 13; Title 48; Title 49; Title 67 and Title 68, relative to low-income housing. SECTION 1. Tennessee Code Annotated, Title 67, Chapter 5, Part 6, is amended by adding the following as a new section: 67-5-608. (a) Notwithstanding another law to the contrary, multi-unit rental housing that is subject to government restriction on use must be assessed in a manner that is consistent with the following methods: (1) Applying an annual net operating income approach to value that uses actual income and stabilized operating expenses that are based on the actual history of the property, when available, and a capitalization rate; (2) Using a methodology to project income, expenses, and a capitalization rate that is consistent with the Uniform Standards of Professional Appraisal Practice; (3) Adjusting the unrestricted market value of the multi-unit rental housing, computed without regard to a government restriction on use applicable to the multi-unit rental housing, based on the ratio of the average annual rent of those units of the property that are subject to government restriction on use to the average annual rent of comparable multi-unit rental housing that is not subject to government restriction on use; and SB0539 (4) Excluding the amount of low-income housing tax credits received under Section 42 of the Internal …
Sponsors
- Stevens, Robert (R, 13) · primary sponsor
- Bailey, Paul (R, 15)
- Reeves, Lee (R, 65)
Latest actions
- : Effective date(s) 05/22/2026, 07/01/2026
- : Pub. Ch. 1053
- : Signed by Governor.
- : Transmitted to Governor for action.
- : Signed by H. Speaker
- : Signed by Senate Speaker
- : Enrolled and ready for signatures
- : Sponsor(s) Added.
- : Passed H., Ayes 69, Nays 15, PNV 7
- : Am. withdrawn. (Amendment 1 - HA1162)
Votes
- FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION (April 22, 2026): 69 yea, 15 nay, passed
- FLOOR VOTE: as Amended Third Consideration (April 22, 2026): 30 yea, 0 nay, passed
- HOUSE FINANCE, WAYS, AND MEANS COMMITTEE: Rec. for pass; ref to Calendar & Rules Committee (April 20, 2026): 19 yea, 3 nay, passed
- HOUSE STATE & LOCAL GOVERNMENT COMMITTEE: Rec. for pass. if am., ref. to Government Operations Committee (April 15, 2026): 18 yea, 4 nay, passed
- HOUSE GOVERNMENT OPERATIONS COMMITTEE: Rec. for pass; ref to Finance, Ways, and Means Committee (April 15, 2026): 13 yea, 0 nay, passed
- HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE: Rec. for pass by s/c ref. to Finance, Ways, and Means Committee (April 15, 2026): 12 yea, 1 nay, passed
Subjects: Archives, Publications, My Bills
Common questions
- What is SB539?
- SB539 is a bill in the Tennessee Legislature (114th General Assembly): AN ACT to amend Tennessee Code Annotated, Title 7; Title 13; Title 48; Title 49; Title 67 and Title 68, relative to low-income housing.
- What does SB539 do?
- In its own words: An act to amend Tennessee Code Annotated, Title 7; Title 13; Title 48; Title 49; Title 67 and Title 68, relative to low-income housing.
- What is the status of SB539?
- Chaptered as of May 27, 2026. Latest action: Effective date(s) 05/22/2026, 07/01/2026 (May 27, 2026).
- Who sponsored SB539?
- Stevens, Robert (R, 13), with 2 co-sponsors.
- Where is the official record for SB539?
- On the Tennessee Legislature website: https://wapp.capitol.tn.gov/apps/BillInfo/Default?BillNumber=SB0539&GA=114
Source: official Tennessee record. Tracked by Delilah, AI for legislation across all 50 states and Congress.