Tennessee Senate Bill SB2150

Tennessee 2023-2024 Regular Session

• Introduced: 1/29/24
• Engrossed: 3/7/24
• Enrolled: 4/3/24
• Passed: 4/11/24
• Chaptered: 4/17/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 13 and Title 66, relative to property.

Impact

The enactment of SB2150 is likely to have significant implications for local property laws and community governance in Tennessee. It aims to provide a safeguard for homeowners against potential financial overreach by HOAs when it comes to funding amenities that are not essential for the operation of their communities. By requiring a two-thirds majority vote for assessments and restricting foreclosure actions for non-payment, the bill promotes greater fairness and transparency in how homeownership is managed within these communities. It supports financial planning for homeowners and could help in maintaining community stability.

Summary

Senate Bill 2150 aims to amend the Tennessee Code by introducing new regulations regarding homeowners' associations (HOAs) and their ability to levy assessments for nonessential amenities. This includes amenities typically considered noncritical to the community's operations, such as swimming pools, tennis courts, and clubhouses. The bill defines 'nonessential amenity' and stipulates that any special assessment related to such amenities must receive approval from at least a two-thirds majority of the HOA members. Furthermore, it mandates that payment plans or financing options be provided to the members for such assessments, ensuring that financial burdens are manageable.

Sentiment

The sentiment surrounding SB2150 appears to be predominantly positive among homeowners' advocates who view it as a protective measure that empowers residents and offers them more control over their financial obligations concerning nonessential amenities. On the other hand, some HOA boards may express concern over the increased difficulty in levying assessments, which could lead to challenges in funding and maintaining community facilities. Overall, the sentiment reflects a balance between protecting individual homeowners' rights while ensuring adequate management of community resources.

Contention

Notable points of contention around SB2150 include debates on the extent of financial control that homeowners should possess over HOAs, especially in relation to amenities that serve broader community interests. Some critics argue that the bill may limit the ability of HOAs to effectively manage their facilities due to the new voting requirements for nonessential assessments, potentially leading to reduced maintenance of community amenities. Consequently, the dialogue surrounding this bill reflects broader themes of governance, resident autonomy, and the evolving relationship between homeowners and their associations.