Official Summary Text
ON APRIL 16, 2026, THE SENATE
ADOPTED AMENDMENTS #1 AND #2 AND PASSED SENATE BILL 1849, AS AMENDED.
AMENDMENT #1 rewrites the bill to, instead, redefine "regional retail tourism development district," for purposes of
the
Regional Retail Tourism Development District Act
, to mean one or more parcels of real property located
within the following counties,
and
where it borders a county that has two border region retail tourism
development districts certified under present law, and for which some boundary of the district is no more than 1/2 mile from an existing federally designated interstate exit, is no mor
e than 20 miles from the state border of two neighboring states as measured by a straight line, is no larger than a total area of 950 acres, and is designated as a regional retail tourism development district by a municipal ordinance and certified by the
commissioner
:
Blount County
Davidson County
Hamilton County
Knox County
Montgomery County
Rutherford County
Shelby County
Sullivan County
Sumner County
Washington County
Williamson County
Wilson County
AMENDMENT #2 revises the bill to also enact the "Essential Governmental Employee Housing Act of 2026," which authorizes local governments to engage in all of the following:
Acquire, own, develop, lease, operate, and maintain one or more essential housing developments primarily within the jurisdiction of the local government.
Lease essential housing developments from one or more persons determined by the governing body to have demonstrated the ability to develop, operate, and maintain housing developments of a similar nature.
Enter into contracts providing for the operation and maintenance of essential housing developments with private entities or other persons determined by the governing body to have demonstrated the capacity to provide such services for similarly situated properties.
Provide for the payment of, and security for, its lease payment obligations related to an essential housing development by and through (i) a pledge of the local government's ad valorem tax revenue or other funds of the local government; (ii) a pledge of the local government from the operations of the essential housing development; or (iii) an agreement to annually appropriate funds of the local government. However, such a lease term must not exceed 55 years.
Provide for the rental of the units of an essential housing development to essential employees. However, the local government may also rent units to persons other than essential employees during periods in which such units are not needed by essential employees.
Adopt, implement, and enforce any and all policies, rules, and regulations regarding the operations of an essential housing development. This includes (i) setting rental rates; (ii) establishing the terms and conditions of rental agreements; and (iii) the enforcement of rental agreements.
Enter into any ancillary agreements necessary to the essential housing development.
As used in this amendment, an "essential employee" means
an employee of a local government or public school system whose duties and responsibilities to the local government or public school system are determined by the governing body to be critical to the effective delivery of services by the local government o
r public school system
. Also, an "essential housing
development" means any development consisting of at least 100 single or multi-family dwelling units, located on one or more contiguous parcels of property suitable for the provision of housing to essential employees. A "local government" means a county,
municipality, or metropolitan government rated in the highest rating category for general obligation long-term debt instruments by a nationally recognized rating agency for municipal securities.
This amendment requires all actions of the governing body of a local government to effectuate this amendment to be accomplished by resolution. A local government, an industrial development board, or a housing authority is not empowered with the authorit
y to exercise imminent domain for the creation of an essential housing development.
Best Interests Determination
This amendment prohibits a local government from acquiring, leasing, or developing an essential housing development unless the local government first submits a plan for the funding, financing, and operation of the essential housing development to the com
ptroller of the treasury. Such a plan must describe the nature and feasibility of the project, how the public-private partnership for the project is structured, the risks to the local government, how those risks are mitigated, and a description of how th
e
plan is in the best interest of the state. The comptroller of the treasury must provide the local government with a written determination within 60 days. The plan is deemed approved if such written determination is not rendered within 60 days.
FINANCING
This amendment authorizes a local government that is otherwise authorized to issue bonds and notes pursuant to the Local Government Public Obligations Act of 1986 to issue its bonds and notes to fund the acquisition or improvement of an essential housing
development, and to issue relating refunding bonds. Further, an essential housing development constitutes a project for the purposes of the Public Building Authorities Act of 1971, a public works project for purposes of the Local Government Public Oblig
at
ions Act of 1986, and the exercise of a power of a housing authority.
CONFLICTS
This amendment prevails in the event of a conflict between this amendment and another law.