Senate Bill 2410, also known as House Bill 2509, aims to address the affordable housing crisis in Tennessee by establishing a community workforce housing innovation pilot program. This program is designed to provide affordable rental and homeownership options for essential services personnel, defined as individuals employed in critical occupations as determined by local governments. The bill outlines the creation of a loan application process for funding construction or rehabilitation of workforce housing, with a focus on leveraging public-private partnerships and local resources. The program will prioritize projects that demonstrate innovative approaches to housing development and meet specific criteria, including setting aside a significant percentage of units for workforce housing and essential services personnel.

The bill also includes provisions for local governments to utilize state affordable housing funds and encourages them to adopt regulatory incentives to support the development of such housing projects. The agency responsible for administering the program will review applications and may forgive interest on loans if long-term affordability is maintained. Additionally, the agency is required to evaluate the program's effectiveness by January 1, 2029, reporting its findings and recommendations to relevant legislative committees. The act will take effect upon becoming law for rule promulgation purposes, while other provisions will be effective starting July 1, 2026.