HB 1326

Tennessee House of Representatives bill in Session 114.

Status: enacted. Latest action: May 15, 2025.

AN ACT to amend Tennessee Code Annotated, Title 13, relative to planning.

Bill ID TN-114-HB-1326
Session 114
Status enacted
Committee Finance, Ways, and Means Committee
House of Representatives enacted 2025-05-15
Summary

VESTED PROPERTY RIGHTS Present law requires a vested property right to be established with respect to any property upon the approval, by the local government in which the property is situated, of any of the following:  A preliminary development plan.  A final development plan where no preliminary development plan is required by ordinance or regulation.  A building permit allowing construction of a building where there was no need for prior approval of a preliminary development plan for the property on which that building will be constructed. This bill revises this provision so that a vested property right is established upon the submission of the above plans or permit, as opposed to the time of their approval. This bill also adds that a vested property right is not established unless the plan or permit substantially complies with the requirements of local development ordinances and regulations as described below, under the "local authority"" heading. Present law provides, during the vesting periods, the locally adopted development standards that are in effect on the date of approval of a preliminary development plan or the date of approval of a building permit must remain the dev elopment standards applicable to that property or building during the vesting periods. This bill revises this provision so that the locally adopted development standards that are in effect on the date of the submission of the preliminary development plan or the date of approval of a building permit remain the standards applicable to the property during the vesting period . VESTING PERIODS Approved Construction Projects Unless an extension is granted by the local government, present law requires the vesting period applicable to an approved construction project for which a building permit has been issued to begin on the date of issuance of the building permit by the local government and to remain in effect for the time period authorized by the approved building permit, including any approved renewal obtained by the applicant prior to the expiration or termination of the permit to be renewed. However, the applicant must pur sue site preparation, if applicable, and construction with reasonable diligence. This bill adds that the vesting period applicable to a submitted application for a building permit for a preliminary development plan, or a final development plan where no p reliminary development plan is required, is three years starting on the date of submission of the plan to the local government. Development Plans Present law provides that the vesting period applicable to a development plan must be a period of three ye ars, beginning on the date of the local government's approval of the preliminary development plan. However, the applicant must (i) obtain local government approval of a final development plan, (ii) secure any necessary permits, and (iii) start site prepa r ation within the vesting period. If the applicant accomplishes such tasks within the vesting period, then the vesting period must be extended by an additional two years to start construction from the date of the expiration of the three-year period. Duri n g the two-year period, the applicant must start construction and maintain any necessary permits to remain vested. This bill changes when the vesting period starts; instead of the date of approval, it is the date of submission. If construction starts dur ing the vesting period, present law requires that the development standards applicable during the vesting period remain in effect until the local government has certified final completion of the development or project. However, the total vesting period f o r the project must not exceed 10 years from the date of the approval of the preliminary development plan, excluding any vesting period provided for an energy siting agreement, unless the local government grants an extension in an ordinance or resolution. The applicant must also maintain any necessary permits during the 10-year period. This bill revises the provision that requires the vesting period to not exceed 10 years by changing the start date of the 10-year period to the date of submission of the pr e liminary plan, as opposed to the date of approval of the plan. In the case of developments that proceed in two or more phases as described in the development plan, this bill requires a separate vesting period applicable to each phase. The development st andards that are in effect on the date of approval of the preliminary development plan for the first phase of the development must remain the development standards applicable to all subsequent phases. However, the total vesting period for all phases must not exceed 15 years from the date of the approval of the preliminary development plan for the first phase, excluding any vesting period provided for an energy siting agreement, unless the local government grants an extension in an ordinance or resolution. The applicant must also maintain any necessary permits during the 15-year period. This bill requires the development standards in effect at the date of submission of the plan for the first phase to remain in effect for all phases of the plan, as opposed to the standards that are in effect at the time of approval. This bill also requires the 15-year timeline to start on the date of submission of the plan for the first phase, as opposed to at the date of approval. Preliminary Development Plans and Perm its During the vesting periods described above for approved construction projects and development plans, present law requires that the locally adopted development standards that are in effect on the date of approval of a preliminary development plan or the issuance of a building permit, whichever applies, remain the development standards applicable to the property described in such preliminary development plan or permit, except s uch rights terminate upon a written determination by the local government under certain circumstances, including violating terms or fraud. This bill requires the locally adopted development standards that are in effect on the date of submission of the pl a n or the permit to remain the standards for the duration of the project. Local Authority Present law authorizes a local government to, by ordinance or resolution, specifically identify the type or types of development plans within the local government 's jurisdiction that will cause property rights to vest. However, regardless of nomenclature used in the ordinance or resolution to describe a development plan, a plan that contains certain characteristics must be considered a development plan that will c ause property rights to vest. Any such ordinance or resolution must also specify what constitutes approval of a development plan within its jurisdiction. If a local government has not adopted such an ordinance or resolution specifying what constitutes a development plan that would trigger a vested property right, then rights must vest upon the approval of any plan, plat, drawing, or sketch, however denominated, that is substantially similar to any plan, plat, drawing, or sketch described as a development plan. This bill removes from the above that an ordinance or resolution must specify what constitutes approval of a development plan within its jurisdiction, and, instead, requires that ordinance or resolution to specify what constitutes substantial compl i ance with the requirements of local development ordinances and regulations for the submission of a development plan within its jurisdiction. This bill provides that if the local government does not provide which requirements must be met to constitute sub s tantial compliance for submission, then the property rights will vest upon submission of the plan . All of the above listed changes are made to present law for both regional planning regulations and municipal planning regulations. COUNTY AND MUNICIPAL B OARDS OF ZONING APPEALS Present law provides that t he county and municipal board s of zoning appeals ha ve certain powers, including the power to hear and decide, in accordance with the provisions of any such ordinance, requests for special exceptions or for interpretation of the zoning map or for decisions upon other special questions upon which such board is authorized by any such ordinance to pass. This bill removes such specific power. This bill authorizes a local government to, by ordinance, delegate initial jurisdiction over (i) specified special exceptions, (ii) for interpretation of the map, or (iii) for decisions upon other special questions upon which either board of appeals is authorized by such ordinance to pass, to the local building commissioner or other administrative official. For such delegated matters, this bill provides the following:  Each board's jurisdiction is appellate only .  The local building official or other administrative official must make the initial ruling based on the criteria set forth in the ordinance .  The delegation ordinance must specify which special exceptions have been delegated to the local building commissioner or other administrative official. This bill further requires t he ordinance to include specific and objective standards by which special exceptions are evaluated. A request for a special exception must not be denied on the basis of health, safety, or general welfare, unless those bases are defined in the ordinance. For any request for a special exception, or request for interpretation of the map, the local building commissioner or other administrative official to whom jurisdiction has been delegated must render a decision within 120 days of submission of a complete application, and the applicable board must render a decision within 1 20 days of the filing of an appeal. An applicant may consent to an extension or waive these deadlines. An application is deemed to be approved if the local building commissioner, other administrative official, or board fails to approve, deny, or extend with consent the application within the required time period."

Sponsor
Lamberth, William
Official Source Back to Bills
Actions Timeline
Date Event Detail
2025-02-06 Introduced Bill introduced
2025-05-09 Status enacted
2025-05-15 Latest Action Effective date(s) 07/01/2025
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