Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0298 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	SENATE BILL 242
3	3	By Oliver
4	4
5	5	HOUSE BILL 298
6	6	By Behn
7	7
8	8
9	9	HB0298
10	10	001995
11	11	- 1 -
12	12
13	13	AN ACT to amend Tennessee Code Annotated, Title 13;
14	14	Title 47 and Title 66, relative to housing market
15	15	manipulation.
16	16
17	17	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	18	SECTION 1. This act is known and may be cited as the "Homes not Hedge Funds Act."
19	19	SECTION 2. Tennessee Code Annotated, Title 13, Chapter 3, is amended by adding
20	20	the following as a new part:
21	21	13-3-701.
22	22	The general assembly finds that:
23	23	(1) This state has experienced urban growth at levels significantly higher
24	24	than many states;
25	25	(2) It does not wish to inhibit the ownership of property but recognizes
26	26	that it is becoming increasingly common for business entities to purchase
27	27	substantial numbers of single-family homes for use as rental properties, both
28	28	lowering the supply of, and increasing the costs of, such homes;
29	29	(3) Home ownership is recognized as one (1) of the most reliable ways to
30	30	build wealth, permitting owners to build equity, which can serve as reserves in
31	31	times of need, and in terms of passive income and increases in market value of
32	32	owned property; and
33	33	(4) It is necessary to balance the interests of building wealth through the
34	34	use of business entities acquiring properties for rental purposes against the state,
35	35	local, and individual economic benefits that result from having a citizenry broadly
36	36	engaged in and accruing the advantages attendant to home ownership.
37	37
38	38
39	39	- 2 - 001995
40	40
41	41	13-3-702.
42	42	As used in this part:
43	43	(1) "Affiliate" means a person, other than an individual, that wholly or
44	44	substantially owns, is wholly or substantially owned by, or is under common
45	45	ownership with another person;
46	46	(2) "Individual" means a natural person;
47	47	(3) "Person":
48	48	(A) Means a fiduciary, a firm, an association, a partnership, a
49	49	limited liability company, a corporation, or other business entity or group
50	50	acting as a unit;
51	51	(B) Includes an officer or employee of a corporation, a member, a
52	52	manager, or an employee of a limited liability company, and a member or
53	53	employee of a partnership who, as officer, employee, member, or
54	54	manager, acts on behalf of the business entity with whom they are
55	55	associated or an affiliate of that business entity; and
56	56	(C) Does not include a governmental entity;
57	57	(4) "Qualifying county" means a county with a population greater than
58	58	one hundred fifty thousand (150,000), according to the 2020 or a subsequent
59	59	federal census; and
60	60	(5) "Single-family home" means a residential structure that is either a fully
61	61	detached or semi-detached building or that is a row or town home that is
62	62	separated from the adjacent unit by a ground-to-roof wall; does not share heating
63	63	or air-conditioning systems or utilities; and does not have units located above or
64	64	below.
65	65	13-3-703.
66	66
67	67
68	68	- 3 - 001995
69	69
70	70	It is unlawful for a person, including an affiliate of the person, to purchase a
71	71	single-family home in a qualifying county for a purpose other than use by the person as
72	72	a residence if the person, including an affiliate of the person, owns one hundred (100) or
73	73	more single-family homes in qualifying counties that are used primarily for rental
74	74	purposes.
75	75	13-3-704.
76	76	(a) The attorney general and reporter may bring a civil action in a court of
77	77	competent jurisdiction against a person or affiliate that violates this part.
78	78	(b) An individual aggrieved by a violation of this part may bring a civil action
79	79	against a person or affiliate that acquires a single-family home in violation of this part.
80	80	(c) In an action brought under this section, a court may impose a civil penalty of
81	81	up to one hundred dollars ($100) per day for each single-family home acquired in
82	82	violation of this part and may award to the attorney general and reporter or a plaintiff
83	83	who prevails in an action brought pursuant to this section one (1) or more of the
84	84	following remedies:
85	85	(1) Equitable relief;
86	86	(2) Compensatory damages;
87	87	(3) Costs and fees, including reasonable attorneys' fees; and
88	88	(4) Punitive damages in an amount not to exceed fifty thousand dollars
89	89	($50,000) or three (3) times the total of compensatory damages, costs, and fees,
90	90	whichever is greater.
91	91	(d) A court may award to a defendant who prevails in an action brought pursuant
92	92	to this section costs and fees, including reasonable attorneys' fees, if the court finds the
93	93	action was not well-grounded in fact or law, or if the action was frivolous.
94	94
95	95
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97	97
98	98	(e) In an action brought under this section, a court may order the joinder of
99	99	parties, if joinder is for the purpose of ensuring a proper accounting regarding the total
100	100	number of single-family homes owned by the named defendant and any affiliates of the
101	101	defendant, and for the purpose of permitting proper enforcement, remedies, and
102	102	damages under this part.
103	103	(f) If a party is unable to pay an amount awarded by the court pursuant to this
104	104	section, the court may find an interested party joined pursuant to subsection (e) jointly
105	105	and severally liable for violations of this part and make the award recoverable against
106	106	one (1) or all of the joined interested parties.
107	107	(g) This part does not limit rights and remedies available to this state or an
108	108	individual under another applicable state law.
109	109	SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it,
110	110	and applies to contracts for single-family homes entered into on or after such date.