HB 1837

If the existing rights to use, divide, sell, or possess private real property or any interest in such property are reduced by the enactment or applicability of a land use regulation enacted by a public entity after the date the property has been acquired by the owner and such enactment or application has the effect of reducing the fair market value of the propert y, then this bill provides that the property owner is entitled to just compensation from the public entity. Such "j ust compensation "" is equal to the reduction in the fair market value of the affected property interest resulting from enactment or application of the land use regulation as of the date the owner makes written demand for compensation as described below. However, these provisions do not apply to land use regulations that do any of the following:  Restrict or prohibit activities commonly and historically recognized as public nuisances under common law. This provision must be construed narrowly in favor of a finding of compensation under this bill.  Restrict or prohibit activities for the protection of public health and safety .  To the extent the land use regulation is required to comply with federal law .  Restrict or prohibit the use of a property for the purpose of selling pornography or performing nude dancing.  Enacted prior to the date of acquisition of the property by the property owner or a family member of the property owner who owned the subject property prior to acquisition or inheritance by the property owner, whichever occurred first. This bill clarifies that the public entity that enacted the land use regulation has the burden of demonstrating that the land use regulation meets such an exemption. STATUTE OF LIMITATIONS – WRITTEN DEMAND This bill requires the property owner to commence an action for just compensation as described above within three years of the enactment of the land use regulation or the date the property owner submits a land use application in which the land use regulation is an approval criterion, whichever is later. A written demand for just compensation made by th e owner of the property pursuant to this bill is an exhaustion requirement that tolls the statute of limitations for 90 days or the length of time that it t akes the public entity that enacted the land use law to deny the written demand, whichever is less. CAUSE OF ACTION IN CIRCUIT COURT If a land use regulation continues to apply to the subject property more than 90 days after the property owner has made written demand for compensation under this bill and compensation has not been paid, then this bill provides that the property owner also has a cause of action for compensation in the circuit court for the county in which the real property is located, and the property owner is entitled to reasonable attorney fees, expenses, and costs reasonably incurred to collect the compensation. This bill clarifies that the failure of a property owner to file an application for a land use permit with the local government is not grounds for dismissal, abatement, or delay of a compensation claim under the paragraph above. IN LIEU OF JUST COMPENSATION In lieu of payment of just compensation, this bill authorizes the public entity responsible for enacting or enforcing the land use regulation to modify, remove, or waive the land use regulation to allow the property owner to use the property for a use permitted at the time the property owner acquired the property. Such a modification, removal, or waiver runs with the land. ADDITIONAL REMEDIES This bill clarifies that the remedy created by this bill is in addition to any other remedy under state law or the Tennessee or United States constitutions and does not modify or replace any other remedy."