Latest news with #StarterHomeRevolvingLoanFund
Yahoo
21-04-2025
- Business
- Yahoo
TN desperately needs more housing. Why would lawmakers sabotage a good solution?
America's housing crisis is neither a Republican nor a Democratic issue. Too many families in urban and rural communities and red and blue cities are being priced out of homes because of inflation, high demand, low supply of housing, and, in states like Tennessee, rapid growth year-over-year. None of this should be a surprise, especially to the Volunteer State's elected leaders, but what is shocking and baffling is that when Tennessee lawmakers passed a $59.8 billion state budget on April 16, they stripped it of a key tool that would have invested in housing that fits the budget of middle-income Tennessean home seekers. Gov. Bill Lee proposed the $60 million Starter Home Revolving Loan Fund as one of his budget priorities. The plan would have provided 0% interest construction loans to build new homes. He laid out the idea during his Feb. 10 State of the State address before legislators, saying, "... starter home demand is completely outpacing supply. Today, Tennessee is ranked 5th worst in the nation for the loss of starter homes." Moreover, he used conservative buzz words such as "fiscally responsible" and "innovation, not ... regulation" to make the concept more enticing to the super majority Republican-dominated legislature. While lawmakers must balance the budget and cannot pay for every initiative, this is one that should have remained because it would have improved the quality of life and economic independence of so many first-time Tennessee home buyers. The nonpartisan Nashville-based think tank ThinkTennesee has conducted extensive research on the dearth of housing affordable to middle-income earners. According to its "Breaking Ground" policy brief, while Tennessee grew by 200,000 residents from 2020 to 2023, the state faces a 120,000-unit housing shortage. Meanwhile, the Tennessee Housing Development Agency's 2025-2029 Consolidated Plan lays out a needs assessment with these six findings: "Tennesseans are feeling the impacts of a statewide housing shortage." "Tennessean renters face higher prices and are increasingly at-risk of housing insecurity." "Many Tennesseans are priced out of homeownership." "Populations with special housing needs are increasingly vulnerable." "The number of people experiencing homelessness in Tennessee is high." "Tennessee needs repairs and upgrades of its existing housing and infrastructure." Opinion: Trump's deportations emboldened GOP. But they're going after kids, not criminals With all this data, Tennessee lawmakers surely should have made the starter home fund a key priority because the private sector alone cannot fix the affordable housing crisis. The most recent Vanderbilt Poll released April 4 showed that Nashville residents say they want Mayor Freddie O'Connell to make rent more affordable as one of their top three priorities. Nashville's boom over the last decade has created a bigger gap between the rising costs of housing and more modest increases in wages. Home ownership is out of reach for residents who make less than the median household income of $75,664, according to the U.S. Census. When I wrote a column about the 2015 NashvilleNext city planning document, residents considered affordable housing a top issue then. The need for affordable rental units has only skyrocketed since. In 2018, the need was 31,000 units by 2025. In 2021, that grew to 54,000 units by 2030. Now, in 2025, it is 90,000 affordable units required over the next decade to meet the demand. While there are important local public and private efforts to build more units accessible to middle-income earners, it is simply not enough. But it should be no surprise that a majority of lawmakers ignore the people's wishes, at least when it comes to the Vanderbilt Poll. Despite broad support for Medicaid expansion, lawmakers have rejected calls to cover hundreds of thousands of working poor Tennesseans for over a decade. In spite of more calls for greater access to reproductive care and exemptions to the state's draconian policies, Tennessee's abortion laws are getting stricter. Now, regardless of the growing housing needs of residents across all three Grand Divisions, a key tool to help them gain financial stability and build wealth is gone. This is part of a self-destructive pattern that may seem politically smart, but every-day Tennesseans of all stripes are worse for it. David Plazas is the director of opinion and engagement for the USA TODAY Network Tennessee. He is an editorial board member of The Tennessean. Call him at (615) 259-8063, email him at dplazas@ or find him on X at @davidplazas or BlueSky at This article originally appeared on Nashville Tennessean: Tennessee lawmakers nixed Gov. Bill Lee's key housing idea | Opinion
Yahoo
25-02-2025
- Business
- Yahoo
Sen. Joey Hensley offers round-up of bills proposed during legislative session
This week Governor Bill Lee delivered his seventh State of the State address on Monday evening in a joint session of the General Assembly, where he laid out his 2025 budget priorities. Lee's proposed $59.5 billion budget includes strategic investments to secure a prosperous future for Tennessee. It prioritizes economic and educational opportunities, infrastructure, protecting communities and preserving Tennessee's natural resources. Housing + Infrastructure $1 billion to the Tennessee Department of Transportation to address the state's infrastructure needs, including expediting existing road projects and funding new projects across rural and urban Tennessee $60 million to create the Starter Home Revolving Loan Fund to support construction of new, affordable starter homes for hardworking Tennesseans, prioritizing rural communities $30 million to fund the Rural and Workforce Housing Tax Credit, making it easier to build homes and businesses Education This budget continues to prioritize education. From infrastructure funding, to passing legislation to empower parents with the freedom to pick the right school for their child, the General Assembly in partnership with Gov. Lee have made historic investments in public education while providing more choice for parents. Gov Lee's proposed budget includes: Public Education Investments $198.4 million for teacher bonuses in recognition of their hard work and dedication and for leading the nation in student achievement and growth $244 million to strengthen education through the Tennessee Investment in Student Achievement (TISA) formula growth, including teacher pay raises $62.7 million for K-12 infrastructure and facilities funding $27.3 million for summer learning programs to support students between school years $25 million further investment in the Fast Growth Fund, to support fast-growing districts $17 million for Grade A School Grants $10 million to provide paid parental leave for Local Educational Agency employees Expanding Choices for Tennessee Parents In the January special session the General Assembly passed historic legislation to provide Education Freedom Scholarships to empower parents with the freedom to pick the right school for their child and have a say in where their tax dollars are spent – regardless of income or zip code. This school choice initiative invests $145.9 million for Education Freedom Scholarships. Higher Education $12 million to create the TennesseeWORKS Scholarship, a new award that will cover every penny of Tennessee Colleges of Applied Technology (TCAT) tuition and fees for all students while relieving the extra cost burden of tools and equipment for those most in-need $52.8 million to fully fund the outcomes-based funding formula, which may be used for program improvements that assist higher education institutions in meeting outcomes including student progression, degree production, research and service, efficiency metrics, and other measures related to institutional mission $2.27 million to develop Tennessee Board of Regents' Center for Workforce Development to expand workforce training for businesses and industries, including specialized onboarding and apprenticeship programs, in partnership with TN Accelerates $2 million to create a common application system for Tennessee's community colleges, streamline student transfer, and implement a statewide customer relationship management system to enhance student outreach and support Strong + Healthy Families $95.5 million utilizing Shared Savings to enhance long term care services and supports for older adults and people living with disabilities $41 million to support the Department of Children's Services (DCS) with placement of children within the provider network $7.2 million to expand the WAGE$ Program and reduce turnover in Tennessee's childcare workforce by increasing pay and rewarding greater education $5.9 million to cover childcare for more working families through an expansion of the Smart Steps Child Care Program and ease the benefits cliff $24 million to continue a Department of Health pilot program to address unmet dental service needs and increase the number of dentists in Tennessee $11.8 million to reduce waitlists in the OPTIONS and Senior Nutrition programs $10.9 million to expand programming at the Boys & Girls Club of Tennessee $5 million to increase bed capacity at the Middle Tennessee Regional Mental Health Institute $3 million for a partnership between Department of Children's Services (DCS) and Department of Disability and Aging (DDA) to provide additional support services for children in DCS care with intellectual and developmental disabilities Safe Neighborhoods During the special legislative session in January 2025, Gov. Lee and the General Assembly passed a robust legislative agenda and appropriated $5 million to prepare Tennessee to assist in implementation of the Trump Administration's illegal immigration policies. Gov. Lee's proposed FY25-26 budget includes the following additional public safety investments: $130 million further investment in the Violent Crime Intervention Fund to support local law enforcement and local jurisdictions through grants to fund evidence-based strategies to improve public safety $75 million to establish Downtown Public Safety grants to increase public safety in downtown areas with businesses and commercial activity $38 million in funding for an additional 117 State Troopers and related support staff to improve public safety across the state Sen. Joey Hensley, R-Hohenwald, gives a weekly update in legislation in the 114th General Assembly. This article originally appeared on The Daily Herald: Hensley update: Assembly proposes laws for housing, education, families
Yahoo
18-02-2025
- Business
- Yahoo
Affordable housing advocates press lawmakers for change at Tennessee State Capitol
April Riddle's landlord stood on her porch with an ultimatum: Pay $250 more in rent per month, or get out in 30 days. That happened about six years ago and it was a 25% hike for her and her son, who lived in Gallatin on a fixed income and couldn't afford the rent increase. On Tuesday, Riddle joined a coalition of affordable housing and tenant rights advocates at the Tennessee State Capitol for the third annual "Day on the Hill for Housing and Homelessness." It was the first time an organized statewide coalition has officially presented policy recommendations to lawmakers. The coalition includes Open Table Nashville, Tennessee Renters United, the Tennessee Solidarity Network for Housing and Homelessness, Statewide Organizing for Community Empowerment, Memphis Tenants Union and the Greater Memphis Housing Justice Project. Several other grassroots organizations have signed on as supporters of the coalition. Riddle's experience is a common one for Tennessee renters who have helplessly watched costs skyrocket over the past decade. Navigating that rent hike sparked her passion for connecting people with resources like food, transportation and other essentials in times of need or financial insecurity. But for the tens of thousands of people struggling to pay for housing in Tennessee, Riddle said there aren't enough resources. "Housing insecurity is something I'm passionate about because it hit my home," Riddle said. "I had to leave my home and move into a friend's basement. I came to understand there was a gap between the resources that were available and the need." Gov. Bill Lee highlighted the skyrocketing cost of housing in his recent State of the State address before a joint session of the Tennessee General Assembly and proposed a $60 million Starter Home Revolving Loan Fund to incentivize building with 0% interest construction loans. He also suggested funding a 2024-approved housing tax credit for rural and workforce housing development. Advocates argue that action around affordable housing has not encompassed both urban and rural communities though the crisis is dire statewide. The coalition intends to organize a united front to drive change forward. "We're all Tennesseans," said Allie Cohn, of Knoxville. "The issues affect all of us, urban and rural. The housing market is unattainable for people in all parts of Tennessee." Buying or renting a home in Tennessee has become significantly more expensive over the past 10 years. One recent estimate found the cost of buying a home in Tennessee has increased almost 123% over the past decade, with cities Knoxville, Nashville, Franklin, Murfreesboro, Chattanooga and Memphis all seeing prices increase more than 100%. Around half of Davidson County residents are cost-burdened to afford rent, meaning they spend more than 30% of their monthly income on housing, according to Metro Nashville Social Services. Mauri Pinckney, 25, traveled to the Capitol from Memphis to speak out about protections for tenants, which includes advocating for the Affordable Housing and Tenant Protection Act (HB0955/SB0961), introduced this year. The rent-control bill would allow local governments to adopt ordinances and resolutions to limit rent increases for private residential rental units and create an increased housing program and housing fund. It would also authorize the Tennessee Housing Development Agency to make grants to eligible developers and first-time homebuyers. Pinckney is a fifth grade science teacher who recently navigated the rental housing market on her own for the first time since graduating from college. Despite having a full-time, salaried position as a school teacher, finding safe and decent housing affordable for her income level was a challenge. She joined the Memphis Tenants Union after learning how solidarity between renters can help fight bad acting landlords in the rental market. "A lot of people are trying to fix issues separately," Pinckney said. "But people come together, there's strength in numbers. It's better to have 400 people come together and say this is happening to all of us." Another bill garnering support from homelessness advocates is the Free ID Bill (HB0788/SB1136), which would require the Department of Transportation to provide a person with a free photo identification license if the person attests they don't have a valid government-issued photo ID. Allie Cohn, who works with Statewide Organizing for Community Empowerment, said people living on the street or in encampments are at risk of losing identifying paperwork that's necessary to receive rental assistance, access emergency housing, healthcare and more. "We're perpetuating living outside by not giving people the resources they need to prevent that," Cohn said. "In those situations when people are camping or living outside, sweeps of encampments happen. IDs are lost. If you don't have ID, you can't apply for a job, you can't apply for housing." This article originally appeared on Nashville Tennessean: Affordable housing coalition lobbies Tennessee lawmakers for change
Yahoo
11-02-2025
- Business
- Yahoo
Governor Bill Lee addresses plans in State of the State
NASHVILLE, Tenn. (WKRN) — In his 'State of the State' address Monday, governor Bill Lee pledged the state would be a beacon of opportunity for Tennesseans. The speech discussed everything from crime prevention grants, investment in public school facilities and innovation. Lee said this is the time the state needs to rethink, imagine and embrace new ideas. Lee emphasized 2025 is the year to think boldly. Bipartisan bill would make it easier for wrongfully convicted to present new evidence in court 'If Tennessee's led the nation as a beacon of opportunity and security and freedom, then why can't we be the nation's capitol of innovation, too?' Lee said. Lee said in order to grow Tennessee, there has to be a balance between growth and protecting natural resources. As such, Lee said he supported a bill that would establish a farmland preservation fund in the state. 'We can't solve the problems of today with conventional thinking,' Lee added. News 2 previously reported on Tennessee's childcare crisis, with one report finding the state's childcare workers are among the lowest paid in the U.S. Additionally, counties like Davidson County struggle to provide adequate, affordable childcare for all families who need it. Lee supported the addition of daycares across the state. Lee announced a $3 million investment into the Tennessee Emergency Management Agency's (TEMA's) regional response vehicles, which assist in disaster relief. He also proposed the creation of a $60 million Starter Home Revolving Loan Fund, which would provide 0%-interest construction loans for the building of new, single-family homes. ⏩ Lee also proposed a $1 billion transportation grant for projects to the Tennessee Department of Transportation (TDOT), but Tennessee Democrats said that's not enough to fill the debt gap the state already has. 'Seven years into this governor's administration, he continues to say the same old tired agenda items when he's up there trying to talk about being innovative,' Rep. John Ray Clemmons (D-Nashville) said. 'This fiscal recklessness is not benefiting Tennesseans.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
11-02-2025
- Business
- Yahoo
Gov. Bill Lee pledges renewed help for everyday expenses in State of the State address
In his seventh State of the State address on Monday, Gov. Bill Lee pledged to assist Tennesseans with increasingly unaffordable everyday expenses like child care and housing, though his proposed budget includes no direct tax breaks for consumers. Lee highlighted 2025 as a year of innovation, saying it's time to "think bigger and to think boldly about what's possible." "If Tennessee has led the nation as a beacon of opportunity, security and freedom, why can't we be the nation's capital of innovation too?" Lee said in his annual address before a joint session of the Tennessee General Assembly, according to prepared remarks. "Somebody is going to determine what the future looks like. That should be Tennessee." Still, his budget proposal released Monday maintains much of the status quo in Tennessee. Lee's budget proposal, also released Monday, totals $58.4 billion — $2 billion less than last year amid projections of flattening state revenue and waning federal funding. Lee has proposed no new tax breaks for everyday Tennesseans, a year after pushing through a massive corporate tax refund. The governor's budget does not include funding to repeal the state's grocery tax, which has been proposed in two bills on both sides of the political aisle, or even offer a temporary holiday from the tax. In his speech from the Tennessee House chamber, Lee noted a "dramatically" different housing market than when he bought his first home, citing skyrocketing home costs in the last four years and increasing mortgage rates. "Meanwhile, starter home demand is completely outpacing supply. Today, Tennessee is ranked 5th worst in thenation for the loss of starter homes," Lee said. "Our state needs a housing plan that makes this key part of the American Dream possible." Lee proposed a $60 million Starter Home Revolving Loan Fund, which will provide 0% interest construction loans, in addition to funding a housing tax credit passed in 2024 intended for rural and workforce housing. Elsewhere, Lee promised to add "tens of thousands" of new day care spots across Tennessee on the heels of a new report that skyrocketing child care costs have raised the average cost at infant child care centers to higher than in-state college tuition. "That is an insurmountable cost for the vast majority of moms and dads who want to be in the workforce," Lee said. "But hear me clearly – we don't need to start a new government program to solve the child care problem. We need to empower tried and true community partners who know what they're doing and are already making a difference." It's not yet clear how exactly the Lee administration could accomplish such a dramatic expansion of day care availability in the state, but Lee pledged to invest $11 million in the Boys and Girls Club to serve 7,500 low-income kids across Tennessee. The organization does not serve children under 5. Lee also said Tennessee will expand the WAGES program, which supplements child care worker salaries based on certain educational requirements, and cover more middle and low-income working families in an existing state subsidized childcare program. The budget includes $80 million in recurring funds and a one-time $1 billion injection for roads improvement, which comes after transportation officials gave Lee a "sobering" financial outlook at a fall budget hearing. Transportation officials, already facing a significant backlog of improvement projects, said state transportation funding was projected to decrease by about $42 million over the next few years. Lee's proposal, which will require legislation to accomplish, would divert tax revenue from tire sales to fund the recurring funds. Lee's budget calls for a $244-million increase for the state's K-12 funding structure that includes schedule pay raises for teachers. The governor on Monday also took a victory lap on school vouchers, which he successfully advanced through a special session last month after failing to pass the proposal in 2024. "We innovated our approach to education with new, creative investments in public school facilities, andwe have finally brought universal school choice to Tennessee families,' Lee said. "These pressing issues could not wait, and yet, we still have a lot of work to do in the legislative session before us." The governor on Monday also touched on agriculture and conservation. Lee plans to take another swing at his proposal to establish a $25 million state Farmland Conservation Fund, plus another $20 million for two additional funds to assist farmers. It's time that we support family farms like Noble Springs Farm in rural Tennessee, owned by first-generationdairy farmers Dustin and Justyne Noble," Lee said. "Together, they source food for their local community to make a living and help drive our economy, all while teaching their children the value of agribusiness. Our strategy will ensure farms just like theirs can be preserved well into the future." Lee also aims to direct more than $120 million to the Duck River region. The biodiverse, endangered river as been at the heart of a tug-of-war between conservationists and utilities that draw water from the river. Lee last year signed an executive order aimed at protecting the natural resource. The state will fund $100 million in "seed money" to kickstart a pipeline plan aimed to bring water into the region and take pressure off the Duck River, Finance and Administration Commissioner Jim Bryson said Monday. Lee also plans to launch an environmental education institute, a "base camp for environmental learning perfectly situated along the main route to the Great Smoky Mountains National Park. The institute will be named in honor of former Tennessee governer and U.S. Sen. Lamar Alexander, who joined Lee in the House chamber on Monday. 'From the Delta to Appalachia, Tennessee is blessed with natural abundance that we have to protect and preserve for future generations," Lee said. "Yet, we also continue to be one of the fastest-growing states in the nation – in rural and urban areas alike. So, how do we balance record growth with a plan to protect our natural resources? You start by rejecting conventional wisdom that says you cannot do both. To grow Tennessee, we have to conserve Tennessee." This article originally appeared on Nashville Tennessean: Gov Lee's State of the State address: Tennessee must 'think bigger'
