HB 2552 requires Tennessee local governments (municipalities, counties, or metropolitan counties) to review development applications, plans, or site inspections within 30 business days. If they identify issues, they must provide a single consolidated report of deficiencies within that timeframe, with a maximum of two such reports allowed before denial. The bill also mandates written contract changes with developers/contractors and requires local governments to release bonds within 30 days after an independent inspector confirms project completion. These provisions directly affect developers, contractors, and local government agencies by streamlining approval processes and reducing delays.
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Local Government
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.
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Local Government
This legislative resolution honors Liz Reese for her work as executive director of Brooks House, a facility in Lebanon that provides housing and support to women and children. The measure formally commends her leadership since 2007 and acknowledges her community service, including board roles with the Lebanon Housing Authority and University Medical Center. It recognizes her receipt of various awards for humanitarian efforts, such as aiding Hurricane Katrina victims, but does not create new laws or alter existing policies. The final action is the presentation of a signed copy of the resolution to Ms. Reese as a gesture of appreciation.
SB 2582 prohibits Tennessee local governments from adopting or enforcing zoning changes that reduce a property's value (like restricting building height or density), directly affecting property owners whose land value decreases due to such changes. Property owners can sue for compensation equal to the lost fair market value, calculated through an independent appraisal, or seek to stop the zoning change. Exceptions include regulations needed for public health/safety (e.g., flood zones), federal compliance (like the Fair Housing Act), or preventing nuisances. The law takes effect July 1, 2026, and requires local governments to pay compensation if they fail to provide it before a property owner sues.
HB 2236 creates Tennessee's "First-Time Homebuyer Assistance Program," administered by the Tennessee Housing Development Agency. It provides up to $20,000 in assistance to qualifying first-time homebuyers for down payments, closing costs, or permanent interest rate reductions on qualifying mortgage loans for homes priced at or below $450,000. Homebuyers must use the funds within 60 days of purchase, and if they sell or refinance before their mortgage term ends, they must repay 50% of their home equity gain or the assistance amount, whichever is lower. The program applies only to homes in Tennessee that meet specific ownership and construction criteria. The bill is currently pending review by the Cities & Counties Subcommittee.
HB 2235, the "Tennessee Fair Chance Housing Act," prohibits housing providers (like landlords, property managers, and real estate agents) from discriminating against applicants based solely on criminal history. It establishes time limits: housing providers can only consider misdemeanor convictions within the past 3 years and felony convictions within the past 10 years. For sex offense convictions, providers must conduct an individualized assessment to determine if there's a direct safety risk before denying housing. The bill also bans questions about arrests that didn't result in conviction and requires written evaluations considering factors like rehabilitation efforts and the nature of the offense.
HB 2607 limits annual property tax increases for Tennessee counties, cities, and other local taxing entities. It prevents total property tax revenue from exceeding the previous year's total plus 2%, excluding new construction or properties added to tax rolls. To exceed this 2% limit, local governments must hold a referendum requiring 60% voter approval, specify the funding purpose, and limit increases to four years. The bill applies to all local tax jurisdictions and would take effect July 1, 2026, if passed.
SB 2410 establishes Tennessee's Community Workforce Housing Innovation Pilot Program, administered by the Tennessee Housing Development Agency. The program provides loans for constructing or rehabilitating housing affordable to families earning no more than 150% of the area median income (adjusted for household size), prioritizing projects setting aside at least 80% of units for workforce housing and 50% specifically for essential services personnel (like teachers, first responders, and healthcare workers). It requires applicants to form public-private partnerships, meet minimum funding contribution thresholds (10% of costs or $2 million), and demonstrates innovative design or regulatory incentives. The agency must fund at least one project in each of Tennessee’s three grand divisions (East, Middle, West) by March 2027, with interest forgiveness available for projects meeting affordability and set-aside targets.
HB 2306 prevents homeowners' associations from enforcing rules that block licensed family or group child care homes in residential properties, as long as the provider has the required state license and local permits. It also prohibits landlords from refusing to rent to tenants operating licensed child care homes in residential dwellings. The law makes such restrictions invalid and allows providers to seek actual damages plus up to $1,000 in punitive damages if HOAs or landlords violate it. This affects child care providers, homeowners' associations, and landlords across Tennessee, applying to new HOA rules and rental agreements after the law takes effect.
HB 2340 encourages Tennessee municipalities to study housing affordability and inventory by requiring them to: (1) conduct a detailed housing stock inventory, (2) assess current/future housing needs based on demographics and income gaps, and (3) create a pre-approved "pattern book" of medium-density housing designs. This pattern book would include standardized floor plans, building layouts, and streamlined permit processes for "missing middle" housing - mid-sized developments between single-family homes and large apartment buildings (under 12 units). The bill directly affects local governments and developers by aiming to make housing construction more efficient and affordable within existing neighborhoods. It does not mandate adoption but provides a framework for communities to address housing shortages through planning. The bill is currently pending committee review in the Tennessee General Assembly.
