Bill > SB2582

This bill establishes new protections for property owners in Tennessee by prohibiting local governments, referred to as "zoning authorities," from enacting or enforcing zoning regulations that decrease a property's value, a process termed "downzoning." Downzoning is broadly defined to include actions that reduce permitted building density, increase regulatory hurdles for development, restrict lawful property uses, or impose design standards that limit a property's potential. While the bill allows for exceptions to these protections in cases where downzoning is necessary to address genuine public health and safety threats, comply with federal or state laws like the Endangered Species Act, or prevent nuisances, it places the burden on the zoning authority to prove these exceptions apply. If a property owner believes their property has been downzoned without proper justification or compensation, they can sue to stop the regulation, seek a court declaration, or claim damages for the loss in fair market value, with prevailing property owners being awarded attorney fees and costs. Furthermore, zoning authorities are required to compensate property owners for any demonstrable reduction in fair market value caused by downzoning, with the compensation amount determined by an independent appraisal, though the jurisdiction can avoid this compensation by waiving the downzone's application to the specific property.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=SB2582&ga=114