Real Property - As enacted, requires a homeowners' association that collects assessments for common expenses to obtain and maintain a blanket fidelity bond to insure the homeowners' association against losses resulting from theft or dishonesty committed by the officers, directors, or persons employed by the homeowners' association, or committed by any managing agent or employees of the managing agent. - Amends TCA Title 66.

HB 2338 requires Tennessee homeowners' associations (HOAs) that collect regular assessments for common expenses to obtain and maintain a fidelity bond. This bond protects HOAs against financial losses from theft or dishonesty by HOA officers, directors, employees, or their managing agents. The bond must cover the HOA's reserve balances plus one-fourth of its annual assessment income, with a minimum coverage of $10,000. The law applies to both incorporated and unincorporated HOAs managing residential subdivisions. It takes effect July 1, 2026.