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.
HB 1326 changes Tennessee law to establish a property owner's development rights (a "vested right") when they submit a development plan or building permit application to local government, rather than waiting for official approval. This right lasts for three years from the submission date, during which the development standards in effect at the time of submission remain fixed. The bill requires plans to substantially comply with local regulations to trigger this right, and it amends multiple sections of Tennessee law to replace "approval" with "submission" throughout. This directly affects property developers, builders, and local governments by altering when development rights become protected under state law.
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.
HB 930 allows counties participating in Tennessee's homebuyers' revolving loan program to end their involvement if they've lent more than their initial capitalization. Specifically, counties can terminate by notifying the Tennessee Housing Development Agency (THDA) and retain all funds in the loan pool, including the original capitalization and interest earned from repayments. This amendment to Tennessee Code Annotated, Title 13, Chapter 23, directly affects participating counties managing these loan funds. The change takes effect July 1, 2025, and provides counties with greater flexibility to manage their financial obligations under the program.
HB 636 amends Tennessee law to raise the minimum capital cost requirement for infrastructure development districts from $500,000 to $1,000,000. This change directly affects developers and local governments creating such districts, requiring projects to meet the higher $1 million threshold. The bill modifies specific sections of Tennessee Code (Titles 7, 9, 12, 13, 66, 67, and 68) to reflect this updated cost standard. It does not create new programs or funding but adjusts an existing eligibility requirement for infrastructure districts. The bill became law as Public Chapter 357 on May 13, 2025.
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.
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.
HB 444 (Tennessee Property Rights Protection Act) redefines "blighted property" to require housing authorities to prove individual properties - not entire neighborhoods - meet specific safety code violations before using eminent domain. It deletes the broad "blighted areas" definition, preventing non-blighted properties from being targeted for condemnation, and mandates housing authorities give owners time to fix violations before acquisition. The bill also allows housing authorities to pay above fair market value for non-blighted properties in redevelopment zones through negotiated sales, without eminent domain. These changes aim to limit eminent domain use to truly blighted properties while preserving housing authority powers for redevelopment.
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.
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).)
