HB 444

This bill enacts the "Tennessee Property Rights Protection Act, as described below. BLIGHTED PROPERTY Present law authorizes housing authori ties, including municipal housing authorit ies, certain community development agencies, and certain development authorities, to carry out a "" redevelopment project "" for bl ighted areas and by taking a variety of actions, including, but not limited to, ( i ) a cquir ing the blighted areas; ( ii ) a cquir ing other real property for the purpose of removing, preventing, or reducing blight, blighting factors, or the causes of blight; ( i ii ) a cquir ing real property where the condition of the title, the diverse ownership of the real property to be assembled, the street or lot layouts, or other conditions, prevent a proper development of the property and where the acquisition of the area by the authority is necessary to carry out a redevelopment plan or urban renewal plan; and (iv) selling or leasing land so acquired. Under present law, ""blighted areas"" are areas, including slum areas, with buildings or improvements that, by reason of dilap idation, obsolescence, overcrowding, lack of ventilation, light and sanitary facilities, deleterious land use, or any combination of these or other factors, are detrimental to the safety, health, morals, or welfare of the community. This bill revises the definition of ""blighted property"" to, instead, mean an improvement to real property that was inspected by the appropriate local governmental authority and cited for one or more enforceable housing, maintenance, or building code violations that (i) affect the safety of the occupants or the public, (ii) involve one or more elements that are described in this bill, and (iii) have not been remedied within a reasonable time after two notices to cure the noncompliance. RIGHT TO PETITION A COURT When a housing authority or other condemning authority approves a prospective or actual taking under provisions of present law relative to the redevelopment of blighted areas, this bill provides that the property owner has a right to have a court of competent jurisdicti on determine if the taking is to remediate blight and resell the property. ACTIONS NOT PRECLUDED This bill clarifies that the present law provisions relative to the authority granted above do not preclude any of the following situations:  A housing authority or community development agency from designating an area for the purpose of urban renewal or redevelopment, subject to approval by the governing body of the local government in which the urban renewal or redevelopment area is located .  A municipality from establishing a tax increment financing zone within or without a redevelopment area or urban renewal area .  A municipality or housing authority from applying for and using grant funding to facilitate a redevelopment or urban renewal plan. PERMITTED METHODS TO ACQUIRE BLIGHTED PROPERTY This bill authorizes a housing authority, as described above, to acquire real property through a negotiated sale, without the use of eminent domain. A housing authority may pay more than fair market value for a property that is not a blighted property. A housing authority may contract with a third-party agent, at the housing authority's expense, for the purpose of negotiating the purchase price of real property within an urban renewal or redevelopment are a if the property is not subject to acquisition by eminent domain. ""PUBLIC USE"" RELATIVE TO EMINENT DOMAIN Present law provides that ""public use, as used in present law provisions relative to the power and use of eminent domain, includes the acquisitio n of property by a housing authority or community development agency to implement an urban renewal or redevelopment plan in a blighted area . This bill limits such acquisitions by a housing authority or community development agency to only acquisitions of blighted property or property that is for public use."