Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0444 Compare Versions

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Version 2 (New)

Old	New		Differences
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7		-	·7 etUte&See Senate
8		-	PUBLIC CHAPTER NO. 114
9		-	SENATE BILL NO. 480
10		-	By Bowling, Seal, Stevens
11		-	Substituted for: House Bill No. 444
12		-	By Hulsey, Davis, Eldridge, Farmer, Capley, Crawford, Powers, Butler, Faison, McCalmon, Warner,
13		-	Reneau, Baum, Rudd, Moon, Sherrell, Burkhart, Barrett, Reedy, Terry, Howell, Rudder, Fritts
14		-	AN ACT to amend Tennessee Code Annotated, Title 13, Chapter 20; Title 13, Chapter 21 and Title
15		-	29, Chapter 17, relative to housing authorities.
	1	+
	2	+	SENATE BILL 480
	3	+	By Bowling
	4	+
	5	+	HOUSE BILL 444
	6	+	By Hulsey
	7	+
	8	+
	9	+	HB0444
	10	+	000686
	11	+	- 1 -
	12	+
	13	+	AN ACT to amend Tennessee Code Annotated, Title 13,
	14	+	Chapter 20; Title 13, Chapter 21 and Title 29,
	15	+	Chapter 17, relative to housing authorities.
	16	+
16	17		WHEREAS, the General Assembly expressed the need to protect private property from
17		-	eminent domain in Public Chapter 863 in 2006 with the following statement: "It is the intent of the
18		-	general assembly that the power of eminent domain shall be used sparingly, and that laws
19		-	permitting the use of eminent domain shall be narrowly construed so as not to enlarge by inference
20		-	or inadvertently the power of eminent domain."; and
21		-	WHEREAS, under Tennessee Code Annotated, Section 13-20-201, the broad definition of
22		-	"blighted areas" places non-blighted real property at risk of acquisition by eminent domain because
23		-	"blighted areas" may contain individual properties that do not meet the definition of "blighted areas"
24		-	under such statute; and
25		-	WHEREAS, this act deletes the "blighted areas" definition in Tennessee Code Annotated,
26		-	Section 13-20-201, and replaces it with a property-by-property definition to protect well-kept, code
27		-	compliant, non-blighted real properties from being taken by the power of eminent domain while
28		-	preserving the ability of housing authorities to use the power of eminent domain to acquire
29		-	properties for redevelopment that are truly blighted properties; and
30		-	WHEREAS, this act improves due process for property owners by providing a reasonable
31		-	amount of time for owners of blighted property to correct code violations that cause their property to
32		-	be deemed as blighted before their property is subjected to acquisition by eminent domain
33		-	proceedings by housing authorities; and
34		-	WHEREAS, this act replaces and narrows the definition of "blighted areas" while preserving
35		-	the ability of housing authorities to acquire property by the power of eminent domain for public use;
36		-	now, therefore,
	18	+	eminent domain in Public Chapter 863 in 2006 with the following statement: "It is the intent of
	19	+	the general assembly that the power of eminent domain shall be used sparingly, and that laws
	20	+	permitting the use of eminent domain shall be narrowly construed so as not to enlarge by
	21	+	inference or inadvertently the power of eminent domain."; and
	22	+	WHEREAS, under Tennessee Code Annotated, Section 13-20-201, the broad definition
	23	+	of "blighted areas" places non-blighted real property at risk of acquisition by eminent domain
	24	+	because "blighted areas" may contain individual properties that do not meet the definition of
	25	+	"blighted areas" under such statute; and
	26	+	WHEREAS, this act deletes the "blighted areas" definition in Tennessee Code
	27	+	Annotated, Section 13-20-201, and replaces it with a property-by-property definition to protect
	28	+	well-kept, code-compliant, non-blighted real properties from being taken by the power of
	29	+	eminent domain while preserving the ability of housing authorities to use the power of eminent
	30	+	domain to acquire properties for redevelopment that are truly blighted properties; and
	31	+	WHEREAS, this act improves due process for property owners by providing a
	32	+	reasonable amount of time for owners of blighted property to correct code violations that cause
	33	+	their property to be deemed as blighted before their property is subjected to acquisition by
	34	+	eminent domain proceedings by housing authorities; and
	35	+
	36	+
	37	+	- 2 - 000686
	38	+
	39	+	WHEREAS, this act replaces and narrows the definition of "blighted areas" while
	40	+	preserving the ability of housing authorities to acquire property by the power of eminent domain
	41	+	for public use; now, therefore,
37	42		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
38	43		SECTION 1. This act is known and may be cited as the "Tennessee Property Rights
39	44		Protection Act."
40		-	SECTION 2. Tennessee Code Annotated, Section 13-20-201, is amended by deleting ~~the~~
41		-	section and substituting:
	45	+	SECTION 2. Tennessee Code Annotated, Section 13-20-201, is amended by deleting
	46	+	the section and substituting:
42	47		As used in this part, "blighted property":
43	48		(1) Means an improvement to real property that was inspected by the
44		-	appropriate local governmental authority and cited for one ( 1 ) or more ~~enforceable~~
45		-	housing, maintenance, or building code violations that:
	49	+	appropriate local governmental authority and cited for one (1) or more
	50	+	enforceable housing, maintenance, or building code violations that:
46	51		(A) Affect the safety of the occupants or the public;
47	52		(B) Involve one (1) or more of the following:
48		-	(i) A roof or roof framing element; ~~SB480~~
	53	+	(i) A roof or roof framing element;
49	54		(ii) Support walls, beams, and headers;
50	55		(iii) Foundation, footings, and subgrade conditions;
51	56		(iv) Light and ventilation;
52	57		(v) Fire protection, including egress;
53	58		(vi) Internal utilities, including electricity, gas, and water;
54	59		(vii) Flooring and flooring elements; or
55	60		(viii) Walls, insulation, and exterior envelope; and
56		-	(C) Have not been remedied within a reasonable time after two (2)
57		-	notices to cure the noncompliance; and
58		-	(2) Does not include land used primarily in the production of agriculture, as
59		-	that term is defined in § 1-3-105.
60		-	SECTION 3. Tennessee Code Annotated, Section 13-20-202, is amended by adding the
61		-	following new subsections:
62		-	( d) When a housing authority or other condemning authority approves a prospective
63		-	or actual taking under this part 2, the property owner has a right to have a court of competent
64		-	jurisdiction determine if the taking is to remediate blight and resell the property.
	61	+	(C) Have not been remedied within a reasonable time after two
	62	+	(2) notices to cure the noncompliance; and
	63	+
	64	+
	65	+	- 3 - 000686
	66	+
	67	+	(2) Does not include land used primarily in the production of agriculture,
	68	+	as that term is defined in § 1-3-105.
	69	+	SECTION 3. Tennessee Code Annotated, Section 13-20-202, is amended by adding
	70	+	the following new subsections:
	71	+	(d) When a housing authority or other condemning authority approves a
	72	+	prospective or actual taking under this part 2, the property owner has a right to have a
	73	+	court of competent jurisdiction determine if the taking is to remediate blight and resell the
	74	+	property.
65	75		(e) This section does not preclude:
66		-	(1) A housing authority or community development agency from ~~designating~~
67		-	an area for the purpose of urban renewal or redevelopment, subject ~~to approval by~~
68		-	the governing body of the local government in which the urban ~~renewal or~~
69		-	redevelopment area is located;
70		-	(2) A municipality from establishing a tax increment financing zone within or
71		-	without a redevelopment area or urban renewal area; or
	76	+	(1) A housing authority or community development agency from
	77	+	designating an area for the purpose of urban renewal or redevelopment, subject
	78	+	to approval by the governing body of the local government in which the urban
	79	+	renewal or redevelopment area is located;
	80	+	(2) A municipality from establishing a tax increment financing zone within
	81	+	or without a redevelopment area or urban renewal area; or
72	82		(3) A municipality or housing authority from applying for and using grant
73	83		funding to facilitate a redevelopment or urban renewal plan.
74		-	SECTION 4. Tennessee Code Annotated, Section 13-20-203, is amended by adding ~~the~~
75		-	following new subsections:
76		-	(c) A housing authority may acquire real property through a negotiated sale, ~~without~~
77		-	the use of eminent domain. A housing authority may pay more than fair market ~~value for a~~
78		-	property that is not a blighted property.
	84	+	SECTION 4. Tennessee Code Annotated, Section 13-20-203, is amended by adding
	85	+	the following new subsections:
	86	+	(c) A housing authority may acquire real property through a negotiated sale,
	87	+	without the use of eminent domain. A housing authority may pay more than fair market
	88	+	value for a property that is not a blighted property.
79	89		(d) A housing authority may contract with a third-party agent, at the housing
80		-	authority's expense, for the purpose of negotiating th·e purchase price of real property within
81		-	an urban renewal or redevelopment area if the property is not subject to acquisition by
82		-	eminent domain.
83		-	SECTION 5. Tennessee Code Annotated, Section 13-20-202(a)(1 ), is amended by deleting
84		-	the language "blighted areas" and substituting "blighted property".
85		-	SECTION 6. Tennessee Code Annotated, Section 13-20-209, is amended by deleting the
86		-	language "blighted areas" wherever it appears and substituting "blighted property".
87		-	SECTION 7. Tennessee Code Annotated, Section 13-20-216(a), is amended by deleting the
88		-	language "blighted area" and substituting instead the language "blighted property".·
	90	+	authority's expense, for the purpose of negotiating the purchase price of real property
	91	+
	92	+
	93	+	- 4 - 000686
	94	+
	95	+	within an urban renewal or redevelopment area if the property is not subject to
	96	+	acquisition by eminent domain.
	97	+	SECTION 5. Tennessee Code Annotated, Section 13-20-202(a)(1), is amended by
	98	+	deleting the language "blighted areas" and substituting "blighted property".
	99	+	SECTION 6. Tennessee Code Annotated, Section 13-20-209, is amended by deleting
	100	+	the language "blighted areas" wherever it appears and substituting "blighted property".
	101	+	SECTION 7. Tennessee Code Annotated, Section 13-20-216(a), is amended by
	102	+	deleting the language "blighted area" and substituting instead the language "blighted property".
89	103		SECTION 8. Tennessee Code Annotated, Section 29-17-102, is amended by deleting
90	104		subdivision (2)(C) and substituting:
91		-	(C) The acquisition of property by a housing authority or community ~~development~~
92		-	agency to implement an urban renewal or redevelopment plan as ~~authorized by title 13,~~
93		-	chapter 20, part 2; provided, that the power of eminent domain is ~~used only for the~~
94		-	acquisition of:
	105	+	(C) The acquisition of property by a housing authority or community
	106	+	development agency to implement an urban renewal or redevelopment plan as
	107	+	authorized by title 13, chapter 20, part 2; provided, that the power of eminent domain is
	108	+	used only for the acquisition of:
95	109		(i) Blighted property as defined in § 13-20-201; or
96		-	2 S8480
97	110		(ii) Property that is for public use;
98	111		SECTION 9. This act takes effect upon becoming a law, the public welfare requiring it.
99		-	3 PASSED:
100		-	APPROVED this
101		-	SENATE BILL NO. 480
102		-	March 20, 2025
103		-	0-~" 'i \, Nu.,\...a
104		-	-•· ~ RANDY McNALL Y
105		-	SPEAKER OF THE SENATE
106		-	CAMERO"fnSEXTON,SPEAKER
107		-	HOUSE OF REPRESENTATIVES
108		-	~dayof A[>r;I 2025
109		-	~
110		-	BILL LEE, GOVERNOR