Final Installment
Image Credit: TN General Assembly
The Tennessee Conservative [By David Seal] –
Prior to passage of the Tennessee Property Rights Protection Act, housing authorities and community development agencies, along with their parent city or county governments, could easily condemn large areas for private redevelopment.
Tennessee’s eminent domain and blighted area laws were so broadly written that blighted and non-blighted properties could be included in a large redevelopment area and condemned in the aggerate for private development, a threat to property owners of well-kept property.
The blight definition, prior to passage of HB444/ SB480, was so subjective that nearly any property could be considered blighted, adding to the likelihood that code compliant property would be in the crosshairs of private developers with the helping hand of local governments and their housing authorities to forcefully acquire the property through eminent domain.
When the governor signed HB444/SB480 into law on April 3, 2025, the following provisions were adopted as law.
Public Chapter 114 is examined in detail below.
Section 2: The old definition of “blighted area” was deleted from code and replaced with the term “blighted property” which protects non-blighted property from condemnation for private development.
The old subjective definition of “blight” was deleted from code and replaced with objective standards based on public safety and a short list of building codes that cause safety issues for the occupants of a structure or the surrounding community.
Section 3: Property owners now have a right to “have a court of competent jurisdiction determine if the taking is to remediate blight and resell the property.” This is a new provision of the law for redevelopment areas.
Housing authorities and community development agencies can designate redevelopment areas but can only use eminent domain on blighted properties slated for redevelopment.
The act gives municipal governments the ability to establish Tax Increment Financing Zones within or without a redevelopment area and apply for and use grant funding to facilitate a redevelopment or urban renewal plan.
Section 4: Housing authorities may now acquire real property through a negotiated sale paying above fair market value and use third-party agents to facilitate the acquisition.
Sections 5-8 delete “blighted property” from multiple code sections and substitute the term “blighted property” which eliminates the offending “area” definition of blight.
Acquisition of non-blighted property by a housing authority using eminent domain in a redevelopment area is limited to “public use.” This enables a narrow use of the takings power for such things as fire stations, schools, and public libraries.
The legislation was sponsored by Senator Janice Bowling (R-Tullahoma) and Representative Bud Hulsey (R-Kingsport).
About the Author: David Seal is a retired Jefferson County educator, recognized artist, local businessman, 917 Society Volunteer, and past Chairman of the Jefferson County Republican Party. He has also served Jefferson County as a County Commissioner and is a citizen lobbyist for the people on issues such as eminent domain, property rights, education, and broadband accessibility on the state level. David is also a 2024 winner of The Tennessee Conservative Flame Award & has received an accolade from the Institute For Justice for successfully lobbing the TN legislature to protect property rights. David can be reached at david@tennesseeconservativenews.com.
