Bill > HB2068

This bill, effective July 1, 2026, prohibits any government entity with zoning authority from adopting or enforcing zoning regulations that effectively reduce the value of a property, a process defined as "downzoning" which includes actions like decreasing permitted building density, increasing approval hurdles for development, or restricting property use, division, or sale. Property owners affected by such downzoning, unless the zoning change is necessary to protect public health and safety from imminent threats like natural disasters, comply with federal or state laws such as the Endangered Species Act, or prevent nuisances, can sue to stop the downzoning, seek a court declaration, or recover damages for the loss in their property's fair market value, with the zoning authority bearing the burden of proving an exception applies and the prevailing property owner being awarded attorney fees and costs. Furthermore, zoning authorities must compensate property owners for demonstrable reductions in fair market value caused by downzoning, calculated by the difference in property value before and after the change, unless the authority waives the downzoning's application to that specific property within a set timeframe.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB2068&ga=114