Zoning - As introduced, prohibits the adoption or enforcement of zoning regulations that have the effect of diminishing the value of a property; authorizes property owners to seek compensation for such diminished value. - Amends TCA Title 5; Title 6; Title 7 and Title 13, Chapter 7.

HB 2068 prohibits Tennessee local governments from adopting or enforcing zoning changes that reduce a property's value ("downzoning"), such as limiting building density, height, or use. Property owners affected by such changes can seek compensation based on an independent appraisal showing the loss in fair market value. Exceptions allow downzoning for health/safety protections (like flood zones), federal law compliance (e.g., ADA), or compatible zoning overlays that don’t reduce residential capacity. 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.