CHAPTER NO. 647
HOUSE BILL NO. 2116
By Representative Fowlkes
Substituted for: Senate Bill No. 2161
By Senator Womack
AN ACT to amend Tennessee Code Annotated, Section 67-5-2509, relative to disposition of property acquired for nonpayment of property taxes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-2509(d), is amended by designating the existing language as subdivision (1) and by adding the following new subdivision:
(2) In lieu of the sale to private purchasers as provided in subsection (b), the proper officers of the municipality or county may convey property permitted to be used for residential purposes to a private nonprofit entity that meets all conditions specified below, on any terms deemed appropriate to the officers:
(A) The entity is certified as a tax exempt entity under Section 501(c)(3) of the Internal Revenue Code of the United States; and
(B) The entity is chartered to construct or to restore residential dwellings for the purpose of creating affordable and habitable housing for the disadvantaged and needy, and the property conveyed to the entity is used for that purpose; and
(C) The property, once constructed or restored, is conveyed to an individual or family for use as an owner-occupied residence.
SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.
March 11, 1998
APPROVED this 24th day of March 1998