Senate Bill 2506, also known as the "Tennessee Fair Chance Housing Act," aims to amend existing laws regarding housing discrimination based on criminal history. The bill introduces several definitions related to criminal history, including "conviction," "criminal history," "felony conviction," and "housing provider." It prohibits housing providers from discriminating against individuals solely based on their criminal history, including refusing to rent or lease properties, making discriminatory advertisements, or considering arrests that did not lead to convictions. The bill also establishes guidelines for when housing providers can consider criminal convictions, specifying look-back periods of three years for misdemeanors and ten years for felonies, while allowing for the consideration of sex offense convictions without regard to these periods if an individualized assessment is conducted.

Additionally, the bill mandates that housing providers conduct individualized assessments before denying housing applications based on criminal history, ensuring that any denial is justified by a direct relationship between the conviction and the safety of other residents. It requires housing providers to provide written notice to applicants if their application is denied due to criminal history, detailing the reasons for the denial and the applicant's rights to contest the decision. The Department of Correction is tasked with developing an education and outreach program to inform individuals with criminal convictions of their rights under this act, and the bill establishes enforcement mechanisms through the commission to address violations. Overall, the legislation seeks to enhance housing access for individuals with criminal histories while balancing community safety concerns.