HB 444 - SB 480
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 16, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
HB 444 - SB 480
SUMMARY OF BILL: Deletes the definition of “blighted area” and defines “blighted
property” for purposes of condemnation by housing authorities.
Establishes that when a housing authority or other condemning authority approves the prospective
or actual acquisition of blighted property, the owner has the right to petition a court to determine if
the taking is to remediate blight and sell the property. Establishes that housing authorities and
community development agencies may only use eminent domain for the acquisition of blighted
property or property that is for public use.
Specifies that a housing authority may: (1) acquire real property through a negotiated sale, without
use of eminent domain, and may pay more than fair market value for a property, if it is not blighted
property; and (2) contract with a third-party agent, at the housing authority’s expense, for the
purpose of negotiating the purchase price of real property within an urban renewal or
redevelopment area if the property is not subject to acquisition by eminent domain.
FISCAL IMPACT:
OTHER FISCAL IMPACT
Due to various unknown variables, any fiscal impact to local government cannot be estimated
with reasonable certainty.
Assumptions:
• Pursuant to Tenn. Code Ann. § 13-20-202(a)(1)-(4), a public housing authority currently has
the authority to:
o Acquire blighted areas;
o Acquire other property for the purposes of removing, preventing, or reducing
blight, blighting factors, or the causes of blight;
o Acquire real property where the condition of the title prevents a proper
development of the property and where the acquisition is necessary to carry out a
redevelopment plan or urban renewal plan; and
o Act on its own or through third parties acting on the authority’s behalf, perform
various tasks for redevelopment.
• Pursuant to Tenn. Code Ann. § 13-20-201(a), a blighted area is an area, including slum
areas, with buildings or improvements that, by reason of dilapidation, obsolescence,
overcrowding, lack of ventilation, light and sanitary facilities, deleterious land use, or any
HB 444 - SB 480 2
combination of factors, are detrimental to the safety, health, morals, or welfare of the
community.
• The proposed legislation replaces “blighted areas” with “blighted property,” which means
an improvement to real property that was inspected by the appropriate local government
authority and cited for one or more enforceable housing, maintenance, or building code
violations that: (1) affect the safety of the occupants or the public; (2) involve one or more
certain housing construction infractions; and (3) have not been remedied within a
reasonable time after two notices to cure noncompliance.
• It is not expected that the proposed legislation will result in a significant change in the
number of eminent domain takings by housing authorities, as housing authorities will still
have the right of eminent domain if agreed by the municipality.
• Authorizing a housing authority to acquire real property through a negotiated sale without
the use of eminent domain and to pay more than fair market value for a property that is not
blighted property may result in an increase in housing authority expenditures, the extent and
timing of which cannot be estimated.
• There will be no significant impact to the caseloads of courts within this state due to
petitions by property owners.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director