House Bill 2236, 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 eligible homebuyers for purposes such as down payments, closing costs, or reducing mortgage interest rates. The maximum assistance amount is set at $20,000, and the agency is authorized to adjust the maximum purchase price of qualifying 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 must 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.