Tenn. Code Ann. § 13-20-113 (2026)

• (a) In the operation or management of housing projects, an authority shall at all times observe the following duties with respect to rentals and tenant selection:
  • (1) It may rent or lease the dwelling accommodations therein only to persons of low income;
  • (2) It may rent or lease the dwelling accommodations therein only at rentals within the financial reach of such persons of low income;
  • (3) It may rent or lease to a tenant dwelling accommodations consisting of the number of rooms, but no greater number, which it deems necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding; and
  • (4) It shall not accept any person as a tenant in any housing project if the person or persons who would occupy the dwelling accommodations have an annual net income in excess of five (5) times the annual rental of the quarters to be furnished such person or persons, except that in the case of families with three (3) or more minor dependents, such ratio shall not exceed six (6) to one (1). In computing the rental for this purpose of selecting tenants, there shall be included in the rental the average annual cost, as determined by the authority, to the occupants, of heat, water, electricity, gas, cooking range and other necessary services or facilities, whether or not the charge for such services and facilities is in fact included in the rental.

• (b) Nothing contained in this chapter shall be construed as limiting the power of an authority to:
  • (1) Vest in an obligee the right, in the event of a default by the authority, to take possession of a housing project or cause the appointment of a receiver thereof, free from all the restrictions imposed by the law, with respect to rentals, tenant selection, manner of operation, or otherwise; or
  • (2) Pursuant to § 13-20-604, vest in obligees the right, in the event of a default by the authority, to acquire title to a housing project or the property mortgaged by the housing authority, free from all the restrictions imposed by this chapter, except those imposed by §§ 13-20-604 and 13-20-609.

Acts 1935 (Ex. Sess.), ch. 20, § 32, as added by Acts 1937, ch. 234, § 5; 1939, ch. 74, § 2; C. Supp. 1950, § 3647.25 (Williams, § 3647.29b); T.C.A. (orig. ed.), § 13-812.