Senate Bill 2341, also known as the "First-Time Homebuyer Assistance Program," amends Tennessee Code Annotated to establish a new program aimed at providing financial support to first-time homebuyers. The bill defines key terms such as "first-time homebuyer," "qualifying residential unit," and "program funds," and outlines the eligibility criteria for participants. The program will be administered by the housing development agency, which will distribute funds to assist with down payments, closing costs, or interest rate reductions on qualifying mortgage loans. The maximum assistance amount is set at $20,000 per recipient, and the agency is authorized to adjust the maximum purchase price of qualifying residential units based on market conditions.

Additionally, the bill includes provisions for the repayment of program funds if a recipient sells or refinances their home before the end of the original mortgage term, with specific conditions outlined for such repayments. The agency is tasked with creating rules for the application process and will report annually on program disbursements and any adjustments to purchase prices. The act will take effect upon becoming law for rule promulgation purposes, while other provisions will be effective starting January 1, 2027.