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.

SB 2326 requires Tennessee homeowners' associations (HOAs) that collect regular assessments for common expenses to obtain and maintain a blanket fidelity bond. This bond must cover losses from theft or dishonesty by HOA officers, directors, employees, or their managing agents, with coverage calculated as the HOA's reserve balances plus 25% of annual assessment income (minimum $10,000). The bill applies to all HOAs operating under Tennessee law that collect regular dues, effective July 1, 2026. It mandates this insurance to protect HOA funds, with the board or managing agent responsible for securing the bond.