Tennessee HOA Laws

Currently, there is no state legislation in Tennessee that specifically regulates homeowners associations. But, there are still a handful of laws that apply to HOAs. Understand what these Tennessee HOA laws are below.

For Homeowners Associations

Senate Bill 405, also known as the Tennessee Homeowners Association Act, is a bill that legislators in Tennessee are still considering. When enacted, this bill will regulate the operations and management of homeowners associations in the state. However, as of now, no specific statute governs homeowners associations. If an HOA is organized as a non-profit corporation, though, it will adhere to the Tennessee Nonprofit Corporation Act.

For Condominiums

There are two Acts that apply to condominium associations in Tennessee. The first is the Tennessee Condominium Act of 2008, which governs condominiums formed after January 1, 2009. Some provisions of this Act also apply to condominiums formed prior to January 1, 2009, but they only apply to situations and events that take place after said date.

The second is the Tennessee Horizontal Property Act. This Act regulates condominium associations formed prior to January 1, 2009.

Tennessee Condominium Act of 2008

The Tennessee Condominium Act of 2008 covers a variety of topics in relation to condominium associations. It discusses the powers of the COA board, meetings, voting rules, insurance requirements, and liens for assessments. Section 66-27-602 also restricts condo associations from prohibiting the display of the U.S. flag.

You can find the Tennessee Condominium Act of 2008 under Title 66, Chapter 27 of the Tennessee Code. It consists of five parts, each one broken down further into sections.

Part 2 – General Provisions

• Short title.
• Applicability.
• Definitions.
• Variation by agreement.
• Separate titles and taxation.
• Applicability of local ordinances, regulations, and building codes.
• Eminent domain.
• Supplemental general principles of law applicable.
• Construction against implicit repeal.
• Severability.
• Enforcement.

Part 3 – Units and Allocation of Common and Limited Elements

• Creation of condominium.
• Unit boundaries.
• Construction and validity of declaration and bylaws.
• Description of units.
• Contents of declaration.
• Leasehold condominiums.
• Allocation of common element interests, votes, and common expense liabilities.
• Allocation of limited common elements.
• Plats and plans.
• Exercise of development rights.
• Alterations of units.
• Relocation of boundaries between adjoining units.
• Subdivision of units.
• Monuments as boundaries.
• Use for sales purposes.
• Easement rights.
• Amendment of declaration.
• Termination of condominium.
• Rights of secured lenders.
• Obligation to complete or restore.
• Master associations.
• Submission of a unit to an additional declaration.
• Merger or consolidation of condominiums.

Part 4 – Unit Owners’ Association

• Organization of unit owners’ association.
• Powers of unit owners’ association.
• Board of directors and officers.
• Transfer of special declarant rights.
• Termination of contracts and leases of declarant.
• Bylaws.
• Upkeep of condominium.
• Meetings.
• Quorums.
• Voting Proxies.
• Tort and contract liability.
• Conveyance or encumbrance of common elements.
• Insurance.
• Assessments for common expenses.
• Lien for assessments.
• Liability for judgments and liens.
• Association records.
• Association as trustee.

Part 5 – Units Restricted to Residential Purposes

• Applicability Waiver.
• Responsibility to provide information.
• Information to be provided General.
• Declarant liability.
• Remedies for noncompliance.
• Escrow of deposits.
• Conversion buildings.

Part 6 – Display of Flags

• Part definitions.
• Display of flags by property owners.
• Applicability of part.

Tennessee Horizontal Property Act

You can find the Horizontal Property Act under Title 66, Chapter 27 of the Tennessee Code. It consists of the following sections:

• Title.
• Chapter definitions.
• Horizontal property regime Planned unit development Establishment.
• Ownership Building code compliance.
• Joint ownership.
• Owner’s rights Exclusive and common.
• Recordation and contents of master deed, lease or declaration.
• Recordation and conveyance of apartments.
• Merger of filial estates with principal property.
• Horizontal property regime following merger.
• Administrative bylaws recorded.
• Contents of bylaws Modification.
• Administrator’s books Examination by co-owners.
• Expenses prorated No exemptions.
• Homestead provisions applicable.
• Prorated expenses and taxes Lien.
• Building insurance.
• Reconstruction of damaged building.
• Costs of reconstruction.
• Identification of estates for taxation, residential ground rent purposes.
• Supplemental rules and regulations.
• Construction with other laws.
• Notice to tenant of intent to convert rental units to units for sale.

Tennessee Condominium Laws on Reserve Studies

According to Section 66-27-403, if the board manages common elements worth more than $10,000, it must follow rules for reserve studies:

• If a reserve study was done on or after January 1, 2020, it must be updated every 5 years.
• If no study has been done since that date, one must be completed by January 1, 2025, and updated every 5 years.
• A copy of the study must be shared with owners, either by email or on the community website.

These rules do not apply if:

• The developer still controls the board;
• The condo is owned by a single person; or
• The condo is jointly owned only by a married couple.

The board must also review reserve funding every year to make sure it is adequate.

Tennessee HOA Laws on Corporate Governance

The Tennessee Nonprofit Corporation Act regulates the corporate procedure, management, and structure of non-profit corporations in the state. A majority of associations in Tennessee are incorporated as non-profits and are, therefore, governed by this Act.

You can find the Tennessee Nonprofit Corporation Act under Title 48, Chapters 51 to 69 of the Tennessee Code. The chapters are listed below.

• General Provisions
• Incorporation
• Purposes and Powers
• Name
• Office and Agent
• Members and Memberships
• Meetings and Voting
• Directors and Officers
• Amendment of Charter and Bylaws
• Mergers, Membership Exchanges, Entity Conversions, and For-Profit Conversions
• Sale of Assets
• Distributions
• Dissolution
• Foreign Corporations
• Records and Reports
• Religious Corporations
• Transition Provisions
• Electric G&t Cooperative Act

Tennessee HOA Laws on Political Signs

Some homeowners associations might prohibit members from displaying political signs on their own property. According to the HOA laws of Tennessee, though, this sort of restriction is unenforceable.

Under the Tennessee Freedom of Speech Act, homeowners associations may not restrict members from displaying political signs or campaign posters on their own private property. But, associations may place reasonable rules that regulate the size and placement of these signs. The section applies to rules executed or modified after July 1, 2017.

Fair Housing

The Tennessee Human Rights Act & Disability Act protects citizens from housing discrimination based on color, race, national origin, sex, creed, religion, familial status, or disability. It is similar in function to the federal Fair Housing Act.

Victims can report discriminatory acts to the U.S. Department of Housing and Urban Development or the Tennessee Human Rights Commission. They may also file a lawsuit in federal district court within 2 years of the act.