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A resolution urging the Tennessee General Assembly to enact legislation authorizing county governments to collect impact fees and dedicating a portion of the state real estate transfer tax to local infrastructure, all of which would support affordable housing and senior home repair programs.
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WHEREAS, under the County Powers Relief Act, Tennessee counties are preempted from imposing new impact fees or local real estate transfer taxes absent state authorization; and
WHEREAS, Davidson County faces $15.5 billion in documented infrastructure needs, and existing property tax revenues are insufficient to meet this demand; and
WHEREAS, according to non-partisan think tank ThinkTennessee, city and county development taxes raised $58.5 million statewide in 2022, with limited impact on housing costs, demonstrating that modest, well-calibrated fees can generate revenue without discouraging development; and
WHEREAS, Tennessee's real estate-transfer tax revenues have grown by 134 percent over the past decade, from $110.7 million in FY2014 to $258.9 million in FY2024, suggesting capacity to dedicate a portion to infrastructure and affordable housing; and
WHEREAS, states across the country dedicate portions of their transfer taxes to affordable housing-16 of 34 states with such a tax already earmark revenue; and
WHEREAS, in addition, these revenues could also be directed to home repair programs, which would allow seniors to reside in dignity with safe, healthy, and accessible homes; and
WHEREAS, existing home repair programs offered by Metropolitan Development and Housing Agency, the Tennessee Housing Development Agency, and various non-profit partners can serve a limited number of households per year due to funding constraints; and
WHEREAS, additional revenue for senior home repair programs would not only preserve affordable housing, but also reduce public health costs by preventing falls, emergency hospital visits, and displacement of vulnerable seniors; and
WHERE...
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