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 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.
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.
HB 1306 clarifies that Tennessee's definitions of housing facilities for economic development include affordable and workforce housing, explicitly expanding eligibility for industrial development corporation projects. It modifies housing definitions in multiple statutes to cover multifamily, single-family, condo, and townhome developments intended for low-to-moderate-income, elderly, or disabled residents. The bill also streamlines approval processes by allowing municipalities to amend economic impact plans without new public hearings, reducing administrative barriers for housing projects. This directly affects local governments, housing developers, and residents of affordable housing developments across Tennessee.
SB 1079 requires developers (called "declarants") to hold the first 10% of a condo buyer's deposit in a state-licensed escrow account until construction is complete. Developers can access these funds only if they provide a surety bond or letter of credit guaranteeing full repayment to the buyer if construction delays prevent unit delivery. Deposits exceeding 10% may be used for actual construction costs (like materials and labor), but not for salaries, commissions, or advertising. The law applies to new condo contracts signed or amended on or after July 1, 2025.
SB 480 (the "Tennessee Property Rights Protection Act") revises Tennessee housing law to protect non-blighted properties from eminent domain. It deletes the broad definition of "blighted areas" and replaces it with a property-by-property standard for "blighted property," ensuring only properties meeting specific safety/code violations (and not fixed within a reasonable time) can be targeted. Housing authorities can now acquire property without eminent domain through negotiated sales and pay above fair market value for non-blighted properties located in areas designated as blighted. These changes aim to prevent well-maintained properties from being taken while preserving housing authorities' ability to redevelop truly blighted properties. The law took effect on April 3, 2025.
HB 323 would change the standard of proof required for homeowners to challenge foreclosure sale prices in Tennessee. Currently, debtors only need to show the sale price was below fair market value by a "preponderance of the evidence" (more likely than not). The bill would raise this standard to "clear and convincing evidence," making it harder for homeowners to rebut the legal presumption that foreclosure sale prices equal fair market value. This change would take effect July 1, 2025, and directly affects homeowners seeking to contest foreclosure sales.
SB 244 would change Tennessee's housing law to require that affordable housing units built under the state's voluntary attainable housing program remain restricted for at least 30 years, rather than indefinitely. This applies specifically to multi-family housing developments constructed through this incentive program. The bill amends existing law by replacing the phrase "in perpetuity" with "for at least thirty (30) years" in the deed restriction requirement. This adjustment shortens the mandatory affordability period while maintaining a significant commitment to long-term accessible housing.
SB 806 changes Tennessee eviction procedures for cases based on nonpayment of rent. It requires eviction trials to occur within 14 days of filing (down from a previous minimum of 6 days), limits court hearings to only rent-related issues like lease terms and payment history, and gives tenants 7 days to move after a judgment. This directly affects tenants facing eviction and landlords filing nonpayment lawsuits. The bill aims to streamline the process while narrowing court focus to rent disputes.
