Housing

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.

SB 285 changes the legal standard debtors must meet to challenge foreclosure sale prices in Tennessee. It replaces the current "preponderance of the evidence" requirement with a higher "clear and convincing evidence" standard, making it harder for homeowners to prove their property was sold for significantly less than fair market value. This directly affects debtors seeking to rebut the legal presumption that foreclosure sale prices reflect fair market value. The bill amends Tennessee Code Annotated, Title 35, Section 35-5-117(c), and takes effect July 1, 2025.

HB 396 would change Tennessee's housing law by shortening the required deed restriction period for affordable multi-family housing built under voluntary incentive programs. Instead of requiring affordability "in perpetuity," the bill would limit these restrictions to at least 30 years. This directly affects developers and property owners participating in the state's attainable housing incentive program. The bill failed in committee on February 19, 2025, and did not advance further. (Amends TCA Title 13, Chapter 3, Section 13-3-603(f).)