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HB2340 • 2026

Housing

AN ACT to amend Tennessee Code Annotated, Title 6; Title 7 and Title 13, relative to municipal housing.

Housing
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Behn, Yarbro
Last action
2026-03-18
Official status
Action Def. in s/c Cities & Counties Subcommittee to January 2027 Calendar
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on funding or the extent of voluntary compliance by municipalities.

Encouraging Municipal Housing Studies

This bill encourages Tennessee cities and towns to study their housing needs and create guidelines for building medium-density homes.

What This Bill Does

  • It tells municipalities to look at how many houses they have, what types of houses there are, the age of such units, and where the houses are located.
  • It asks them to figure out if people can afford to live in these houses now and in the future by considering population trends, income distribution, and housing costs relative to household incomes.
  • It requires cities to make a book with designs for medium-density homes that developers can use easily.

Who It Names or Affects

  • Municipalities in Tennessee
  • Home builders and developers

Terms To Know

Medium-Density Housing
Homes built between single-family houses and large apartment buildings, like townhouses or small apartment complexes.
Pattern Book
A book with designs and instructions for building specific types of homes to make the process easier and faster.

Limits and Unknowns

  • The bill does not specify how municipalities will fund these studies.
  • It is unclear if all municipalities will choose to follow this advice or have the resources to do so.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to SB2516

Plain English: The amendment adds new laws that make it illegal for large companies to buy and rent out many single-family houses in big cities unless those houses are affordable.

  • Adds a new law (13-3-703) making it unlawful for individuals or business entities owning over 100 single-family homes in qualifying municipalities to purchase additional such properties for rental purposes, with exceptions for affordable housing.
  • Establishes penalties and legal actions that can be taken against violators of the new law.
  • The amendment text does not specify how 'qualifying municipality' is defined beyond population criteria, which may require additional context to fully understand its scope.

Bill History

  1. 2026-03-18 Tennessee General Assembly

    Action Def. in s/c Cities & Counties Subcommittee to January 2027 Calendar

  2. 2026-03-18 Tennessee General Assembly

    Sponsor(s) Added.

  3. 2026-03-17 Tennessee General Assembly

    Sponsor(s) Added.

  4. 2026-03-17 Tennessee General Assembly

    Sponsor change.

  5. 2026-03-17 Tennessee General Assembly

    Sponsor(s) withdrawn.

  6. 2026-03-17 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 8, Nays 1 PNV 0

  7. 2026-03-16 Tennessee General Assembly

    Sponsor(s) withdrawn.

  8. 2026-03-16 Tennessee General Assembly

    Sponsor change.

  9. 2026-03-12 Tennessee General Assembly

    Sponsor(s) Added.

  10. 2026-03-11 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 3/18/2026

  11. 2026-03-11 Tennessee General Assembly

    Action Def. in s/c Cities & Counties Subcommittee to 3/18/2026

  12. 2026-03-11 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/17/2026

  13. 2026-03-05 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate State and Local Government Committee

  14. 2026-03-04 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 3/11/2026

  15. 2026-03-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  16. 2026-03-02 Tennessee General Assembly

    Approved by Delayed Bills Committee

  17. 2026-02-05 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  18. 2026-02-05 Tennessee General Assembly

    P2C, ref. to State & Local Government Committee

  19. 2026-02-04 Tennessee General Assembly

    Intro., P1C.

  20. 2026-02-02 Tennessee General Assembly

    Filed for introduction

  21. 2026-02-02 Tennessee General Assembly

    Refer to Senate Delayed Bills Committee

  22. 2026-02-02 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text
SENATE BILL 2516
By Yarbro

HOUSE BILL 2340
By Behn
HB2340
012632
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 6;
Title 7 and Title 13, relative to municipal housing.

WHEREAS, the availability and the accessibility of housing remain out of reach for many
working Tennessee families; and
WHEREAS, local housing inventory studies evaluate the supply, affordability, and future
demand of housing, which serve to support comprehensive planning, guide land use policies,
processes, and decisions, and inform public investment, thereby assisting a local government to
address affordability; and
WHEREAS, medium-density housing, commonly referred to as "missing middle"
housing, is a category of residential development falling between detached single-family
housing and multi-family developments containing more than twelve units; and
WHEREAS, missing middle housing, if done appropriately, can provide additional
housing choices and housing affordability within established neighborhoods without negatively
impacting neighborhood character; and
WHEREAS, the creation of a modern pattern book can encourage more attainable
housing types in response to the housing needs determined by the municipality by creating pre-
approved designs and layouts that can enable small scale developers to more easily build such
needed dwellings; and
WHEREAS, the potential for expediting and streamlining the construction of missing
middle or other identified housing types will help to increase attainable housing and make the
purchase or renting of housing units more affordable; now, therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1.

- 2 - 012632

The general assembly encourages municipalities to:
(1) Conduct, as part of their comprehensive planning process, an
inventory of their housing stock. Such an inventory should identify the total
number of housing units, the types of units, the age of such units, and the
location and distribution of such units. The inventory should also describe
vacancy rates, sales prices and rents, construction activity and permits, and an
analysis of the current development capacity, availability of infrastructure, and
land use ordinances and policies;
(2) Assess, as part of their comprehensive planning process, current and
future housing needs in the municipality in association with any housing
inventory. Such assessments should consider population trends and projections,
size and composition of households, income distribution, and the number of
households by age, cohort, or other appropriate populations. The assessment
should also identify any gaps that may exist between housing costs and
household incomes, the availability of housing units at various prices and terms,
and the average percentage of household income required to purchase or rent a
dwelling within the municipality. In conducting such an assessment,
consideration should be given to projecting future demand, demographics, and
housing needs; and
(3) Draft and adopt a pattern book for medium-density housing. Such
pattern book should include an outline of the processes for building medium-
density housing types within the municipality and varied design guides, including
floor plans, conceptual elevations, and a step-by-step description of the building
permit process to get such housing plans approved for construction.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.