Tennessee HJR 139: General Assembly, Studies - Directs TACIR to review home affordability and rising costs of impact fees. -

Bill Text

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HOUSE JOINT RESOLUTION 139
By Sparks

HJR0139
003432
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A RESOLUTION relative to home affordability and impact fees.

WHEREAS, home affordability is an increasingly pressing issue for many Tennesseans;
and
WHEREAS, according to statistics from 2020, the median value of existing homes in the
State is $191,000, while a new home price in Tennessee is $387,961; and
WHEREAS, with the cost of living rising faster than incomes, more and more people are
struggling to keep up with the expense of owning or renting a home, especially in areas with
higher than average real estate prices; and
WHEREAS, for low- to moderate-income households, climbing real estate prices, in
addition to issues such as predatory lending practices, make it difficult to access quality housing
options and find secure and affordable homes within their budgets; and
WHEREAS, the increasing rate of impact fees, taxes levied on new developments, is
another factor affecting potential homeowners; and
WHEREAS, commonly assessed to pay for the cost of infrastructure needed as a result
of population growth, impact fees are rising due to increased demand and costs and could have
serious negative consequences, such as increasing housing prices and limiting development in
certain areas; and
WHEREAS, there are additional concerns that impact fees could lead to a decrease in
available land for development or an increase in regional inequality by favoring wealthier
communities that can afford these costs over less wealthy communities that cannot afford the
costs; now, therefore,

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BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED
THIRTEENTH GENERAL ASSEMBLY OF THE STATE OF TENNESSEE, THE SENATE
CONCURRING, that we hereby request TACIR to undertake a comprehensive review of all
existing impact fee policies, with particular focus on any potential challenges caused by
increasing fees, seeking input from local governments in addition to economic experts.
BE IT FURTHER RESOLVED, that the State should work toward developing alternative
approaches where necessary to ensure access to infrastructure is equitable across all
communities while avoiding excessive rate hikes that could place an undue burden on citizens.
BE IT FURTHER RESOLVED, that an appropriate copy of this resolution be transmitted
to the executive director of TACIR.