Bill > HB1837

This bill, known as the "Tennessee Private Property Vesting Rights of 2026," establishes that a property owner is entitled to just compensation from a public entity if a land use regulation enacted by that entity reduces the fair market value of their private real property. Just compensation is defined as the amount of the reduction in fair market value, and the property owner must make a written demand for compensation within three years of the regulation's enactment or the submission of a relevant land use application. However, this right to compensation does not apply to regulations that prohibit public nuisances, protect public health and safety (like building codes), are required by federal law, restrict the sale of pornography or nude dancing, or were in place before the current owner or their family acquired the property. The public entity has the burden of proving any exemption, and if compensation isn't paid within 90 days of a demand, the owner can sue for compensation and recover attorney fees. Alternatively, the public entity can choose to modify or waive the regulation instead of paying compensation, and such a waiver would remain with the property. The bill also defines terms like "family member," "land use regulation," "property owner," and "public entity," and clarifies that this remedy is in addition to any other existing legal rights.