SB 2237 requires local governments in Tennessee (municipalities, counties, or metropolitan counties) to review development applications, plans, or site inspections within 30 business days - either approving them or providing a consolidated written list of deficiencies. If deficiencies aren’t resolved after two written reports, the application must be denied with justification, and 50% of fees paid by the developer must be refunded. The bill also mandates that changes to contracts between local governments and developers/contractors must be in writing, and requires releasing financial bonds within 30 days of an independent inspector confirming project completion. These provisions directly affect developers, contractors, and local government agencies handling development projects.
HB 1892 allows housing authorities, industrial development corporations, and community redevelopment agencies in Tennessee to require property owners in designated redevelopment areas to make payments securing the agencies' bonds. These payments create a recorded lien on the property that takes priority over all existing and future mortgages or liens, treated like property taxes for enforcement. The agreement must include specific details like property description and owner names when filed with the county, and the lien remains with the land even if other debts are paid.
HB 691 changes how Tennessee financial institutions calculate tax credits for loans to housing entities. It shifts the calculation from a single "unpaid principal balance" to a "month-end average unpaid principal balance" over each loan's life. This affects financial institutions providing qualified loans for eligible housing activities, with credits now set at 3% annually for standard loans or 5% for low-rate loans. The change applies to the institution's fiscal year and ends after 15 years or the loan's maturity, whichever comes first. The bill took effect January 1, 2026.
SB 1313 changes Tennessee property development law by establishing a property owner's rights upon *submitting* a development plan or building permit, rather than waiting for local government *approval*. This affects developers and local governments, as it secures rights for three years starting from the submission date. The law requires plans to substantially comply with local ordinances, fixes development standards in place at submission for the entire vesting period, and shifts key terms from "approval" to "submission" throughout the code. The bill is now enacted (effective July 1, 2025), streamlining the timeline for project certainty.
SB 207 creates a new "farmland preservation fund" within Tennessee's state budget to support the long-term protection of agricultural and forested land. The fund provides grants to help farmers and foresters place permanent conservation easements on their property - legal agreements that prevent development while allowing farming or forestry activities. These grants can be awarded directly to landowners or to qualified nonprofit organizations (like 501(c)(3) groups) that hold the easements, with requirements including proof of the easement agreement and ongoing agricultural use. The Tennessee Department of Agriculture will manage the fund, and unspent money will carry forward annually instead of reverting to the general budget.
SB 773 prevents development permits from expiring when lawsuits challenge them. It pauses the "vesting period" (the timeframe protecting approved projects) during ongoing court cases, ensuring developers retain their project rights. This directly affects property developers and construction companies with permits facing legal disputes. The law creates certainty for development timelines by halting the expiration clock while litigation proceeds.
SB 110 expands an existing residential pilot program for people with disabilities to include the eastern part of Tennessee, which previously only covered the western and middle regions. It requires one facility in each grand division (eastern, middle, western) and sets specific eligibility rules for eastern division participants, including a minimum 26-acre property in a county with 108,600-108,700 residents (per 2020 census), offering services for up to 60 additional adults with intellectual/developmental disabilities, and dedicating 25% of homes to inclusive housing. Applications for eastern division participation must be submitted by March 31, 2026, with facilities needing completion by June 30, 2028. The bill modifies licensing and reporting requirements for these facilities under Tennessee’s disability and aging department.
SB 26 amends Tennessee law to raise the minimum required capital cost for infrastructure development districts from $500,000 to $1,000,000. This change directly affects developers and local governments creating such districts by requiring larger initial investment commitments. The bill modifies Tennessee Code Annotated Section 7-84-711(a) to reflect this increased threshold. It became effective May 5, 2025, after being signed by the Governor.
SB 129 increases the Tennessee Housing Development Agency's (THDA) maximum bond limit from $4 billion to $6 billion. This change allows THDA to issue more bonds to fund below-market interest rate loans for low- and moderate-income Tennesseans. The bill directly affects THDA's ability to provide housing assistance programs, addressing rising demand since 2008. It amends Tennessee Code Annotated Section 13-23-121(a) to update the financial cap.
HB 863 requires Tennessee municipalities and counties to post new ordinances and resolutions on a website within one month of adoption. Local governments may choose to post on their own website or the secretary of state's website. The law, effective May 2, 2025, applies to all new ordinances and resolutions adopted after that date.
