Part 1
Regional Planning Commission

13-4-101. Creation of planning commission — Compensation — Appointment of members — Term of office — Vacancies — Training and continuing education.

1. 1. The chief legislative body of any municipality, whether designated board of aldermen, board of commissioners or by other title, may create and establish a municipal planning commission. Such planning commission shall consist of not less than five (5) members and not more than ten (10) members, the number of members within the limits to be determined by the chief legislative body. One (1) of the members shall be the mayor of the municipality or a person designated by the mayor and one (1) of the members shall be a member of the chief legislative body of the municipality selected by that body. All other members shall be appointed by such mayor, except as otherwise provided in subsection (b). In making such appointments, the mayor shall strive to ensure that the racial composition of the planning commission is at least proportionately reflective of the municipality's racial minority population. The chief legislative body may determine whether, and in what amount, to compensate members of the planning commission. Any such compensation authorized is in addition to any other compensation received from the municipality. The compensation authorized by this section does not apply to members of a planning commission who also serve as members of a board of zoning appeals. The compensation authorized by this section may not be counted against a salary limitation established by charter or otherwise. The terms of appointive members shall be of such length as may be specified by the chief legislative body; provided, that they shall be so arranged that the term of one (1) member will expire each year. Any vacancy in an appointed membership shall be filled for the unexpired term by the mayor of the municipality, who shall also have authority to remove any appointed member at the mayor's pleasure.
   2. Notwithstanding subdivision (a)(1), any member of a planning commission created by a municipality incorporated under a private act and having a population of not less than seven thousand four hundred (7,400) nor more than seven thousand five hundred (7,500), according to the 2000 federal census or any subsequent federal census, shall be appointed by a majority vote of the legislative body of the municipality.
2. All appointive members of the municipal planning commission created pursuant to subsection (a) in any municipality incorporated pursuant to title 6, chapter 18, having a population of not less than one thousand six hundred twenty-five (1,625) nor more than one thousand six hundred thirty-five (1,635) which lies within a county having a population of not less than thirty-four thousand four hundred (34,400) nor more than thirty-four thousand five hundred (34,500), both according to the 1970 federal census or any subsequent federal census, or in any municipality having a population of not less than twenty-three thousand nine hundred (23,900) nor more than twenty-four thousand (24,000), according to the 2000 federal census or any subsequent federal census, shall be appointed only by the chief legislative body of the municipality, and likewise any vacancy in an appointive membership shall be filled for the unexpired term only by the chief legislative body of the municipality, which shall also have the authority to remove any appointive member at its pleasure. In making such appointments, the chief legislative body shall strive to ensure that the racial composition of the planning commission is at least proportionately reflective of the municipality's racial minority population. Except as modified by this subsection (b), the provisions of subsection (a) shall remain in force.
3. 1. Each planning commissioner shall, within one (1) year of initial appointment and each calendar year thereafter, attend a minimum of four (4) hours of training and continuing education in one (1) or more of the subjects listed in subdivision (c)(5).
   2. Each full-time or contract professional planner or other administrative official whose duties include advising the planning commission shall, each calendar year, attend a minimum of eight (8) hours of training and continuing education in one (1) or more of the subjects listed in subdivision (c)(5). A professional planner who is a member of the American Institute of Certified Planners (AICP) shall be exempt from this requirement.
   3. Each of the individuals listed in subdivisions (c)(1) and (2) shall certify by December 31 of each calendar year such individual's attendance by a written statement filed with the secretary of such individual's respective planning commission. Each statement shall identify the date of each program attended, its subject matter, location, sponsors, and the time spent in each program. A professional planner who is a member of the AICP shall be exempt from this requirement.
   4. The legislative body of the municipality shall be responsible for paying the training and continuing education course registration and travel expenses for each planning commissioner and full-time professional planner or other administrative official whose duties include advising the planning commission.
   5. The subjects for the training and continuing education required by subdivisions (c)(1) and (2) shall include, but not be limited to, the following: land use planning; zoning; flood plain management; transportation; community facilities; ethics; public utilities; wireless telecommunications facilities; parliamentary procedure; public hearing procedure; land use law; natural resources and agricultural land conservation; economic development; housing; public buildings; land subdivision; and powers and duties of the planning commission. Other topics reasonably related to the duties of planning commission members or professional planners or other administrative officials whose duties include advising the planning commission may be approved by majority vote of the planning commission prior to December 31 of the year for which credit is sought.
   6. Each local planning commission shall keep in its official public record originals of all statements and the written documentation of attendance required to comply with these provisions for three (3) years after the calendar year in which each statement and appurtenant written documentation is filed.
   7. Each planning commissioner and each professional planner or other administrative official whose duties include advising the planning commission shall be responsible for obtaining written documentation signed by a representative of the sponsor of any continuing education course for which credit is claimed, acknowledging the fact that the individual attended the program for which credit is claimed. A member of the AICP shall be exempt from this requirement.
   8. If a planning commissioner fails to complete the requisite number of hours of training and continuing education within the time allotted by this subsection (c) or fails to file the statement required by this subsection (c), then this shall constitute a cause for the removal of the planning commission member from the planning commission.
   9. The legislative body of the municipality may, at any time, opt out of this subsection (c) by passage of an ordinance. Further any such legislative body that has opted out may, at a later date, opt in by passage of an ordinance.

Acts 1935, ch. 34, § 1; C. Supp. 1950, § 3493.1; T.C.A. (orig. ed.), § 13-501; Acts 1981, ch. 222, §§ 1-3; 1987, ch. 406, §§ 1, 2; 1994, ch. 611, § 1; 1996, ch. 977, §§ 2, 3; 2002, ch. 862, § 4; 2008, ch. 734, § 1; 2008, ch. 1150, § 16; 2009, ch. 47, §§ 7-9.

Compiler's Notes. Acts 1986, ch. 820 contained the Municipal Development Authority Act of 1986 containing an alternative method of municipal planning; however, this act was amended to be eventually applicable only to Johnson City and is listed in the Uncodified Public Acts Index.

For tables of population of Tennessee municipalities, and for U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Acts 2002, ch. 862, § 1 provided that the act shall be known and may be cited as the “Planning Commission and Board of Zoning Appeals Training and Continuing Education Act of 2002.”

Cross-References. Local regulation of junkyards, § 54-20-122.

Open space, agricultural and forest land preservation, commission duties, §§ 11-15-107, 11-15-108, 67-5-1007.

Utility location, title 13, ch. 24, part 3.

Zoning regulations in metropolitan governments, § 7-3-304.

Textbooks. Tennessee Jurisprudence, 21 Tenn. Juris., Public Service Commissions, § 3; 25 Tenn. Juris., Water Companies and Waterworks, § 3.

Attorney General Opinions. Regional planning commission's authority in urban growth areas.  OAG 13-31, 2013 Tenn. AG LEXIS 32 (4/18/13).

13-4-102. Organization of commission — Rules — Staff — Finances.

Each municipal planning commission shall elect its chair from among its appointed members. The term of the chair shall be one (1) year with eligibility for reelection. Each municipal planning commission shall adopt rules for the transaction of business which shall include, but not be limited to, the selection of additional officers from among its members it deems appropriate to fulfill the organizational needs of the municipal planning commission, the requirements for the municipal planning commission to make findings of fact, statements of material evidence and reasons for its actions as part of each motion or action of the municipal planning commission and the keeping of a record of its resolutions, transactions, motions, actions, and determinations which shall be a public record. Any existing provision relating to the appointment of a planning director contained in any municipal, city or town charter or private act must be used in appointing a planning director. In the absence of such a provision, the chief executive officer of the municipality shall have the power to appoint and fix the compensation, within the funds appropriated by the legislative body for this purpose, of a planning director, who shall be qualified by membership in the American Institute of Certified Planners (AICP), experienced in city, regional or state planning or educated in a related academic field. Any person serving as a planning director on March 31, 2010, shall not be required to meet the aforementioned qualifications. For purposes of this section, “chief executive officer” shall mean city manager or administrator, where one exists. In the absence of a city manager or administrator, “chief executive officer” shall mean mayor. Where allowed under the prevailing local authority, the planning director shall have the power and authority to hire and fix the compensation, within the funds appropriated by the legislative body for this purpose, of such other employees and staff as the director may deem necessary for the work of the planning commission. Where allowed under the prevailing local authority, the municipal planning commission may also contract, within funds appropriated by the legislative body for this purpose, with planners or other experts for such services as it may require. In the absence of such authority, only the municipality may contract for such services. The appropriate financial official of the municipality, city or town, within the funds appropriated by the legislative body for this purpose, will disperse funds for the salary or salaries of the planning director and staff and the operational expenses of the planning office and the contracted services of planners or other experts retained to provide assistance to and studies, plans, reviews and reports for the municipal planning commission. The municipal planning commission may also, through the legislative body, receive and expend funds from grants, gifts, contracts, fees, and appropriations from federal, state, other local governments or private sources for the purpose of carrying on its planning functions.

Acts 1935, ch. 34, § 2; C. Supp. 1950, § 3493.2; T.C.A. (orig. ed.), § 13-502; Acts 2010, ch. 701, § 1.

13-4-103. Powers of commission to promote municipal planning.

The commission may make reports and recommendations relating to the plan and development of the municipality to public officials and agencies, public utility companies, to civic, educational, professional and other organizations and to citizens. It may recommend to the executive or legislative officials of the municipality programs for public improvements and the financing for such programs. All public officials shall, upon request, furnish to the commission, within a reasonable time, such available information as it may require for its work. The commission, its members and employees, in the performance of its work, may enter upon any land and make examinations and surveys and place and maintain necessary monuments and marks on such land. In general, the commission shall have powers as may be necessary to enable it to perform its purposes and promote municipal planning.

Acts 1935, ch. 34, § 6; C. Supp. 1950, § 3493.6; T.C.A. (orig. ed.), § 13-506.

Attorney General Opinions. Sale of land by a city to a private entity, OAG 07-030, 2007 Tenn. AG LEXIS 29 (3/15/07).

13-4-104. Submission of proposed construction to commission — Approval — Failure to approve — Overruling nonapproval.

Whenever the commission shall have adopted the plan of the municipality or any part thereof, then and thenceforth no street, park or other public way, ground, place or space, no public building or structure, or no public utility, whether publicly or privately owned, shall be constructed or authorized in the municipality until and unless the location and extent thereof shall have been submitted to and approved by the planning commission; provided, that in case of disapproval, the commission shall communicate its reasons to the chief legislative body of the municipality, and such legislative body, by a vote of a majority of its membership, shall have the power to overrule such disapproval and, upon such overruling, such legislative body shall have the power to proceed; provided, that if the public way, ground, place, space, building, structure or utility be one the authorization or financing of which does not, under the law governing the same, fall within the province of such legislative body, then the submission to the planning commission shall be by the state, county, district, municipal or other board or official having such jurisdiction, and the planning commission's disapproval may be overruled by such board by a majority vote of its membership, or by such official. The widening, narrowing, relocation, vacation, change in the use, acceptance, acquisition, sale or lease of any street or public way, ground, place, property or structure shall be subject to similar submission and approval, and the failure to approve may be similarly overruled. The failure of the commission to act within thirty (30) days from and after the date of official submission to it shall be deemed approval, unless a longer period be granted by such chief legislative body or other submitting board or official.

Acts 1935, ch. 34, § 7; C. Supp. 1950, § 3493.7; T.C.A. (orig. ed.), § 13-507.

Cross-References. Submission of subdivision plats to commission, § 13-4-302.

13-4-105. Municipal planning commissions under special statutes — Force and effect.

Nothing contained in parts 1 and 2 of this chapter shall be deemed to modify or supplant any provision of any special or private statute providing for a municipal planning commission, and the provisions of any such statute relating to the organization and powers of such commission and all other provisions of any such special or private statutes shall remain in full force and effect, but, insofar as parts 1 and 2 of this chapter grant powers to municipal planning commissions not contained in such special statute, the planning commission created and acting under the special statute shall be deemed to have the additional powers granted in parts 1 and 2 of this chapter; provided, that § 13-4-104, regarding the legal status of the municipal plan, shall apply to every municipality with a planning commission, whether such commission shall have been established under a special or private act or under this chapter.

Acts 1935, ch. 34, § 8; C. Supp. 1950, § 3493.8; T.C.A. (orig. ed.), § 13-508.

Part 2
Municipal Plan

13-7-101. Grant of zoning power.

1. 1. The county legislative body of any county is empowered, in accordance with the conditions and the procedure specified in this part, to regulate, in the portions of such county which lie outside of municipal corporations, the location, height and size of buildings and other structures, the percentage of lot which may be occupied, the sizes of yards, courts, and other open spaces, the density and distribution of population, the uses of buildings and structures for trade, industry, residence, recreation or other purposes, and the uses of land for trade, industry, residence, recreation, agriculture, forestry, soil conservation, water supply conservation or other purposes, and identify areas where there are inadequate or nonexistent publicly or privately owned and maintained services and facilities when the planning commission has determined the services are necessary in order for development to occur. Special districts or zones may be established in those areas deemed subject to seasonal or periodic flooding, and such regulations may be applied therein as will minimize danger to life and property, and as will secure to the citizens of Tennessee the eligibility for flood insurance under Public Law 1016, 84th Congress, or subsequent related laws or regulations promulgated under such provisions. Protection and encouragement of access to sunlight for solar energy systems may be considered in promulgating zoning regulations pursuant to this section. Quarrying shall be uniformly defined, for purposes of all county zoning regulations, as the extraction, removal and mechanized processing of stone, gravel, phosphate rock, metallic ore, limestone, marble, chert, sand, dimension stone and any other solid mineral or substance of commercial value, except coal and deep metal mining, including, but not limited to zinc, found in natural deposits in the earth, for barter or sale. The definition of quarrying shall not include the reuse of these minerals on the same site from which they are extracted. This definition shall have no effect on the exception contained in § 54-1-128. The removal of borrow material from a site and the placement of the same material on a project site without any mechanized processing shall not be considered quarrying.
   2. 1. 1. The transfer of development rights may be provided for in the promulgation of zoning regulations pursuant to this section. The creation, amendment or repeal of regulations, districts or maps providing for the transfer of development rights shall be in compliance with §§ 13-7-104 and 13-7-105. The transfer of development rights shall not be subject to taxation pursuant to title 67, chapter 4 or 6; provided, that any instruments recorded in the county register's office as the result of the transfer of development rights shall be subject to the fees set out in § 8-21-1001. Any regulations authorizing the transfer of development rights shall provide that conveyances of development rights shall be in writing and shall be recorded in the office of the register of deeds and that whenever transferred development rights are allocated to any property, such allocation shall not become effective until the transferred development rights are noted in an instrument or on a plat and recorded in the office of the register of deeds.
         2. A town, city, county, a county with a metropolitan form of government, the state of Tennessee, or a not-for-profit conservation or preservation organization may be the receiving entity of a development right without allocating or designating the transferred development right to any receiving property under its ownership or control. A town, city, county, a county with a metropolitan form of government, the state of Tennessee, or a not-for-profit conservation or preservation organization shall be allowed to receive all or part of the donating property's development rights notwithstanding any local zoning regulations pertaining to any required ratio or amount of land area a receiving property must contain in relation to the land area of the donating property or of the total amount of density that a receiving property may obtain from the donating property.
      2. This subdivision (a)(2) shall be strictly construed with the specific intent to allow a local government to establish its own plan whereby the owners of property in a restrictive area (historical, agricultural, rural area as designated in the county's growth plan, or environmental) can sell the development rights to a developer or another individual and only with the consent of the property owner and through negotiations of development rights in the free marketplace. A property owner may donate, through gift or through testamentary disposition, all or part of the development rights of the owner's property to a town, city, county, a county with a metropolitan form of government, the state of Tennessee, or a not-for-profit conservation or preservation organization. Any town, city, county, county with a metropolitan government, the state, or any not-for-profit conservation or preservation organization may purchase development rights from a property owner with the consent of the property owner and the purchase shall be through negotiations of the development rights in the free marketplace. Any town, city, county, county with a metropolitan government, the state, or any not-for-profit conservation or preservation organization may preserve the purchased or donated development rights unused for a definite or indefinite period of time and may at any time sell the development rights so held to a property owner in a designated receiving area with the purchase being one negotiated in the free marketplace. In order to accept a donation of development rights or for the purchase or sale of developments rights by a town, city, county, or county with a metropolitan government, the donation, purchase or sale must be approved by that government's legislative body.
      3. It is the legislative intent that the provisions of this section relative to the transfer of development rights are permissive and not mandatory. Such rights shall only be transferred by contract and not by operation of law.
2. The chief legislative body of any county having a population of not less than two hundred eighty-seven thousand seven hundred (287,700) nor greater than two hundred eighty-seven thousand eight hundred (287,800), according to the 1980 federal census or any subsequent federal census, is further authorized and empowered to rezone properties conditionally or based upon contract, where the agreed conditions are designed to ameliorate injuries created by the rezoning to surrounding property interests or to county interests.

Acts 1935, ch. 33, § 1; C. Supp. 1950, § 10268.1; Acts 1957, ch. 306, § 1; impl. am. Acts 1978, ch. 934, §§ 7, 36; Acts 1979, ch. 259, § 7; T.C.A. (orig. ed.), § 13-401; Acts 1985, ch. 44, § 1; 1987, ch. 361, §§ 1, 4; 2001, ch. 265, §§ 1-4; 2008, ch. 1150, § 11; 2011, ch. 217, § 1; 2012, ch. 755, § 1.

Compiler's Notes. Public Law 1016, 84th Congress, was compiled in 42 U.S.C. §§ 2401-2421; however, these provisions were repealed by Pub. L. 90-488, § 1377, part of the National Flood Insurance Act of 1968, which is presently compiled in 42 U.S.C. § 4001 et seq.

For table of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Cross-References. Airport zoning ordinance appeals, hearing by board, §§ 42-6-108, 42-6-109.

Borrow excavations, exemption of certain road work construction from local and regional zoning and planning regulations, § 54-1-128.

County adoption of prepared building, plumbing and gas codes, § 5-20-103.

Establishment of foreign-trade zones, title 7, ch. 85.

Local regulation of junkyards, § 54-20-122.

Utility location, title 13, ch. 24, part 3.

Zoning classifications, exclusion of manufactured residential dwellings prohibited, title 13, ch. 24, part 2.

Zoning classifications, residences of persons with disabilities, title 13, ch. 24, part 1.

Zoning regulations in metropolitan governments, § 7-3-304.

Law Reviews.

Growth and Its Implications: An Evaluation of Tennessee's Growth Management Plan, 67 Tenn. L. Rev. 983 (2000).

Into the Fracking Fray: A Balanced Approach to Regulating Hydraulic Fracturing in Tennessee, 44 U. Mem. L. Rev. 667 (2014).

Real Property — Zoning Ordinances — Validity, 39 Tenn. L. Rev. 542.

Sunny and Share: Balancing Airspace Entitlement Rights Between Solar Energy Adopters and Their Neighbors, 72 Vand. L. Rev. 1075 (April 2019).

Attorney General Opinions. Review of zoning plans and amendments by regional planning commission of each affected region, OAG 99-150, 1999 Tenn. AG LEXIS 158 (8/16/99).

There is no constitutional requirement that a zoning ordinance be adopted by a two-thirds vote of the local legislative body or in a general election, OAG 04-007, 2004 Tenn. AG LEXIS 7 (1/16/04).

Meaning of “use permitted on review” under Tennessee zoning laws, OAG 06-142, 2006 Tenn. AG LEXIS 164 (9/19/06).

13-7-102. Regional zoning plans — Execution by county legislative body.

From and after the time when the regional planning commission of any planning region defined and created by the [former] state planning office makes and certifies to the legislative body of any county located in whole or part in such region a zoning plan, including both the text of a zoning ordinance and the zoning maps, representing the recommendations of such planning commission for the regulation by districts or zones of the location, height and size of buildings and other structures, the percentage of lots that may be occupied, the sizes of yards, courts and other open spaces, the density and distribution of population, the location and uses of buildings and structures for trade, industry, residence, recreation or other purposes and the use of land for trade, industry, residence, recreation, agriculture, forestry, soil conservation, water supply conservation or other purposes, and identify areas where there are inadequate or nonexistent publicly or privately owned and maintained services and facilities when the planning commission has determined the services are necessary in order for development to occur, then the county legislative body may, by ordinance, exercise the powers granted in § 13-7-101 and, for the purpose of such exercise, may divide the territory of the county which lies within the region but outside of municipal corporations into districts of such number, shape or area as it may determine and within such districts may regulate the erection, construction, reconstruction, alteration and uses of buildings and structures and the uses of land. All such regulations shall be uniform for each class or kind of buildings throughout any such district, but the regulations in one (1) district may differ from those in other districts. The regional planning commission may make and certify a single plan for all the territory of the county which lies within the region but outside of municipal corporations, or may make and certify separate and successive plans for parts of such territory which it deems to be suitable for urban or nonurban development or which for other reasons it deems to be an appropriate territorial unit for a zone plan; and correspondingly, any ordinance enacted by the county legislative body may cover and include the whole territory of the county which lies within the region but outside of municipal corporations covered and included in any such single plan or in any such separate and successive plans. No ordinance covering more or less than the entire area covered by any such certified plan shall be enacted or put into effect until or unless it is first submitted to the regional planning commission and is approved by the commission or, if disapproved, shall receive the favorable vote of not less than two-thirds (2/3) of the entire membership of the county legislative body.

Acts 1935, ch. 33, § 2; C. Supp. 1950, § 10268.2; impl. am. Acts 1972, ch. 542, § 15; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 13-402; Acts 2008, ch. 1150, § 12.

Compiler's Notes. The state planning office, referred to in this section, was abolished by Acts 1995, ch. 501, effective June 12, 1995.

Cross-References. Regional planning commission, § 13-3-104.

Attorney General Opinions. An ordinance or regulation imposing a design standard is valid unless it violates any state statute or positive constitutional guaranty or unless it is “clearly arbitrary, capricious, or unreasonable, having no substantial relation to the public health, safety, or welfare.”  Accordingly, whether any given ordinance or regulation requiring the observation of appearance-based residential building design standards for the construction of single family dwellings is valid is a fact-intensive inquiry, the answer to which will depend on the particular facts and circumstances related to the particular community. A given design standard may be reasonable in one community, but not in another. OAG 17-44, 2017 Tenn. AG LEXIS-44 (10/3/2017).

13-7-103. Purposes of zoning regulations.

Such regulations shall be designed and enacted for the purpose of promoting the health, safety, morals, convenience, order, prosperity and welfare of the present and future inhabitants of the state and of its counties, including, among other things, lessening congestion on the roads or reducing the wastes of excessive amount of roads; securing safety from fire and other dangers; promoting adequate light and air, including protecting and encouraging access to sunlight for solar energy systems; preventing, on the one hand, excessive concentrations of population and, on the other hand, excessive and wasteful scattering of population or settlement; promoting such distribution of population and such classification of land uses and distribution of land development and utilization as will tend to facilitate and conserve adequate provisions for transportation, water flowage, water supply, drainage, sanitation, educational opportunity, recreation, soil fertility, food supply and the protection of both urban and nonurban development, and identify areas where there are inadequate or nonexistent publicly or privately owned and maintained services and facilities when the planning commission has determined the services are necessary in order for development to occur.

Acts 1935, ch. 33, § 3; C. Supp. 1950, § 10268.3; Acts 1979, ch. 259, § 8; T.C.A. (orig. ed.), § 13-403; Acts 2008, ch. 1150, § 13.

Law Reviews.

Sunny and Share: Balancing Airspace Entitlement Rights Between Solar Energy Adopters and Their Neighbors, 72 Vand. L. Rev. 1075 (April 2019).

Attorney General Opinions. An ordinance or regulation imposing a design standard is valid unless it violates any state statute or positive constitutional guaranty or unless it is “clearly arbitrary, capricious, or unreasonable, having no substantial relation to the public health, safety, or welfare.”  Accordingly, whether any given ordinance or regulation requiring the observation of appearance-based residential building design standards for the construction of single family dwellings is valid is a fact-intensive inquiry, the answer to which will depend on the particular facts and circumstances related to the particular community.  A given design standard may be reasonable in one community, but not in another. OAG 17-44, 2017 Tenn. AG LEXIS-44 (10/3/2017).

13-7-104. Method of procedure after certification of plan from commission.

After the certification of a zone plan from the regional planning commission and before the enactment of any such zoning ordinance, the county legislative body shall hold a public hearing thereon, the time and place of which at least thirty (30) days' notice shall be given by one (1) publication in a newspaper of general circulation in the county. Such notice shall state the place at which the text and maps as certified by the planning commission may be examined. No change in or departure from the text or maps as certified by the regional planning commission shall be made, unless such change or departure be first submitted to the certifying regional planning commission for its approval, disapproval or suggestions, and, if disapproved, shall receive the favorable vote of a majority of the entire membership of the county legislative body. Such planning commission shall have thirty (30) days from and after such submission within which to send its report to the county legislative body. The entire text of a zoning ordinance need not be published in a newspaper. It is sufficient notice if the caption and a complete summary are published at least once in the official newspaper of the county or in a newspaper of general circulation in the county. The summary shall include a statement that a complete copy of the zoning ordinance is available and where such copy may be obtained. The ordinance shall not be in force until the required publication is made. If the zoning ordinance rezones property, a description of the property that is rezoned shall be included in the summary.

Acts 1935, ch. 33, § 4; C. Supp. 1950, § 10268.4; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 13-404; Acts 1985, ch. 162, § 1; 1993, ch. 262, § 1.

Code Commission Notes.

Acts 1992, private ch. 195, pertains to county zoning in Giles County, although it purported to amend general law. For this reason the governor returned the act without signature.

13-7-105. Amendments of zoning ordinance provisions — Procedure.

1. The county legislative body may, from time to time, amend the number, shape, boundary, area or any regulation of or within any district or districts or any other provision of any zoning ordinance; but any such amendment shall not be made or become effective unless the same be first submitted for approval, disapproval or suggestions to the regional planning commission of the region in which the territory covered by the ordinance is located, and, if such regional planning commission disapproves within thirty (30) days after such submission, such amendment shall require the favorable vote of a majority of the entire membership of the county legislative body.
2. Prior to adopting an amendment as authorized under subsection (a), the county legislative body shall hold a public hearing on the amendment, with at least fifteen (15) days' notice of the time and place to be given by at least one (1) publication in a newspaper of general circulation in the county. A complete summary of the amendment shall be published at least once in the official newspaper of the county or in a newspaper of general circulation in the county. The summary shall include a statement that a complete copy of the amendment is available and where the copy may be obtained. If the zoning ordinance rezones property, a description of the property that is rezoned shall be included in the summary.
3. Notwithstanding this part or any other law to the contrary, any county having a charter form of government, adopted pursuant to title 5, chapter 1, part 2, may amend its zoning ordinance by means of resolution; and all zoning amendments passed by resolution prior to July 1, 1996, shall be deemed to be valid and shall not be attacked on the grounds that the amendments were accomplished by means of resolution rather than by ordinance.

Acts 1935, ch. 33, § 5; C. Supp. 1950, § 10268.5; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 13-405; Acts 1989, ch. 34, § 1; 1993, ch. 244, §§ 1, 2; 1993, ch. 262, §§ 2, 3; 1996, ch. 715, § 1; 1997, ch. 69, § 1; 2016, ch. 577, § 1.

Compiler's Notes. Acts 1997, ch. 69, § 1 provided that the amendment by that act is intended to give effect to the legislative intent of having the amendment by Acts 1996, ch. 715, have application at the beginning of the 1996-1997 fiscal year, and that, for that purpose, this section shall have retroactive application to July 1, 1996.

For table of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Textbooks. Tennessee Jurisprudence, 26 Tenn. Juris., Zoning, § 3.

Law Reviews.

Local Government Law — 1955 Tennessee Survey (Clyde L. Ball), 8 Vand. L. Rev. 1061.

Attorney General Opinions. Review of zoning plans and amendments by regional planning commission of each affected region, OAG 99-150, 1999 Tenn. AG LEXIS 158 (8/16/99).

13-7-106. Creation of county board of zoning appeals — Appointment of members — Terms — Vacancies — Training and continuing education.

1. The legislative body of any county which enacts zoning regulations under the authority of this part shall create a county board of zoning appeals of three (3), five (5), seven (7), or nine (9) members. In any county which has adopted a charter form of government as provided in the Constitution of Tennessee, article VII, § 1, and by § 5-1-201, and which has a population of less than six hundred thousand (600,000), according to the 1980 federal census or any subsequent federal census, the legislative body of any such county which enacts zoning regulations under the authority of this part shall create a county board of zoning appeals of five (5), seven (7) or nine (9) members. The county legislative body shall be the appointing power of the members of such board of appeals and may fix their compensation and their terms, which terms shall be of such length and so arranged that the term of one (1) member will expire each year. In any county which has adopted a charter form of government as provided in the Constitution of Tennessee, article VII, § 1, and by § 5-1-201, and which has a population of less than six hundred thousand (600,000), according to the 1980 federal census or any subsequent federal census, the county legislative body shall arrange their terms in any fashion so long as no member's term exceeds five (5) years in length. The county legislative body may remove any member for cause upon written charges and after a public hearing. Vacancies shall be filled for unexpired terms in the same manner as in the case of original appointments. The county legislative body may appoint associate members of the board, and, in the event that any regular member be temporarily unable to act owing to absence from the county, illness, interest in a case before the board, or other cause, such associate member's place may be taken during such temporary disability by an associate member designated for the purpose by the county legislative body. The county legislative bodies of two (2) or more counties may, by ordinances enacted by both or all of them, arrange and provide for a joint or common board of zoning appeals.
2. 1. Each board of zoning appeals member shall, within one (1) year of initial appointment and each calendar year thereafter, attend a minimum of four (4) hours of training and continuing education in one (1) or more of the subjects listed in subdivision (b)(5).
   2. Each full-time or contract building commissioner or professional planner or other administrative official whose duties include advising the board of zoning appeals shall, each calendar year, attend a minimum of eight (8) hours of training and continuing education in one (1) or more of the subjects listed in subdivision (b)(5). A professional planner who is a member of the American Institute of Certified Planners (AICP) shall be exempt from this requirement.
   3. Each of the individuals listed in subdivisions (b)(1) and (2) shall certify by December 31 of each calendar year such individual's attendance by a written statement filed with the secretary of such individual's respective board of zoning appeals. Each statement shall identify the date of each program attended, its subject matter, location, sponsors, and the time spent in each program.
   4. The legislative body of the county shall be responsible for paying the training and continuing education course registration and travel expenses for each board of zoning appeals member and full-time building commissioner or other administrative official whose duties include advising the board of zoning appeals.
   5. The subjects for the training and continuing education required by subdivisions (b)(1) and (2) shall include, but not be limited to, the following: land use planning; zoning; flood plain management; transportation; community facilities; ethics; public utilities; wireless telecommunications facilities; parliamentary procedure; public hearing procedure; land use law; natural resources and agricultural land conservation; economic development; housing; public buildings; land subdivision; and powers and duties of the board of zoning appeals. Other topics reasonably related to the duties of the board of zoning appeals and the building commissioner or other administrative official whose duties include advising the board of zoning appeals may be approved by majority vote of the board of zoning appeals prior to December 31 of the year for which credit is sought.
   6. Each local board of zoning appeals shall keep in its official public record originals of all statements and the written documentation of attendance required to comply with these provisions for three (3) years after the calendar year in which each statement and appurtenant written documentation is filed.
   7. Each board of zoning appeals member and each building commissioner or other administrative official whose duties include advising the board of zoning appeals shall be responsible for obtaining written documentation signed by a representative of the sponsor of any training and continuing education course for which credit is claimed, acknowledging the fact that the individual attended the program for which credit is claimed.
   8. If a board of zoning appeals member fails to complete the requisite number of hours of training and continuing education within the time allotted by this subsection (b) or fails to file the statement required by this subsection (b), then this shall constitute a cause for the removal of the board of zoning appeals member from the board of zoning appeals.
   9. The legislative body of the county may, at any time, opt out of this subsection (b) by passage of a resolution. Further any such legislative body that has opted out may, at a later date, opt in by passage of a resolution.

Acts 1935, ch. 33, § 6; C. Supp. 1950, § 10268.6; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 13-406; Acts 1991, ch. 521, § 1; 1993, ch. 184, § 1; 2002, ch. 862, § 5; 2009, ch. 47, § 10; 2016, ch. 693, § 1.

Compiler's Notes. For table of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Acts 2002, ch. 862, § 1 provided that the act shall be known and may be cited as the “Planning Commission and Board of Zoning Appeals Training and Continuing Education Act of 2002.”

Law Reviews.

Judicial Review and the Uniform Administrative Procedures Act (Toxey H. Sewell), 6 Mem. St. U.L. Rev. 253.

Attorney General Opinions. Exclusive authority of county legislative body to appoint board members, OAG 94-143, 1994 Tenn. AG LEXIS 169 (12/13/94).

13-7-107. Rules of procedure and jurisdiction of board of appeals.

1. 1. The county legislative body may provide and specify, in its zoning or other ordinance, general rules to govern the organization, procedure and jurisdiction of the board of appeals, which rules shall not be inconsistent with this part, and the board may adopt supplemental rules of procedure, not inconsistent with such sections or such general rules.
   2. The supplemental rules of procedure may address, but shall not be limited to, the following:
      1. Maintenance of a record of the board's resolutions, transactions, motions and actions, which shall be a public record;
      2. Election from its membership of a chair and other officers as the board deems necessary; and
      3. The inclusion of statements of reasons for the board's actions as part of each motion or action, including such findings of fact and statements of material evidence as the board may deem pertinent.
2. The zoning ordinance may provide that the board of appeals may, in appropriate cases and subject to appropriate principles, standards, rules, conditions and safeguards set forth in the ordinance, make special exceptions to the terms of the zoning regulations in harmony with their general purpose and intent. The county legislative body may also authorize the board of appeals to interpret the zoning maps and pass upon disputed questions of lot lines or district boundary lines or similar questions as they arise in the administration of the zoning regulations.

Acts 1935, ch. 33, § 6; C. Supp. 1950, § 10268.6; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 13-407; Acts 2011, ch. 279, § 1.

13-7-108. Persons taking appeals.

Appeals to the board of appeals may be taken by any person aggrieved, or by any officer, department or board of the county affected, by any grant or withholding of a building permit or by any other decision of a building commissioner or other administrative official, based in whole or in part upon any ordinance under this part.

Acts 1935, ch. 33, § 6; C. Supp. 1950, § 10268.6; T.C.A. (orig. ed.), § 13-408.

Attorney General Opinions. Zoning appeals by county legislative body—private property owner’s application for special use exception.  OAG 10-108, 2010 Tenn. AG LEXIS 114 (10/28/10).

13-7-109. Powers of board of appeals.

The board of appeals has the power to:

1. Hear and decide appeals where it is alleged by the appellant that there is error in any order, requirement, decision or refusal made by the county building commissioner or any other administrative official in the carrying out or enforcement of any ordinance enacted pursuant to this part;
2. Hear and decide, in accordance with the provisions of any such ordinance, requests for special exceptions or for interpretation of the map or for decisions upon other special questions upon which such board is authorized by any such ordinance to pass; and
3. Where, by reason of exceptional narrowness, shallowness, or shape of a specific piece of property at the time of the enactment of the regulation or by reason of exceptional topographic conditions or other extraordinary and exceptional situation or condition of such piece of property, the strict application of any regulation enacted under such sections would result in peculiar and exceptional practical difficulties to or exceptional and undue hardship upon the owner of such property, authorize, upon an appeal relating to the property, a variance from such strict application so as to relieve such difficulties or hardship; provided, that such relief may be granted without substantial detriment to the public good and without substantially impairing the intent and purpose of the zone plan and zoning ordinances.

Acts 1935, ch. 33, § 6; C. Supp. 1950, § 10268.6; T.C.A. (orig. ed.), § 13-409.

13-7-110. Building commissioner — Position established — Permits.

Any county legislative body may provide for the enforcement of its zoning regulations by means of the withholding of building permits and, for such purpose, may establish the position of county building commissioner and may fix the compensation attached to such position. The county building commissioner shall be appointed by the county mayor, subject to the confirmation of the county legislative body. From and after the establishment of such position and the filling of same, it is unlawful to erect, construct, reconstruct, alter or use any building or other structure within the territory covered by such zoning regulations without obtaining a building permit from such county building commissioner, and such building commissioner shall not issue any permit unless the plans for the proposed erection, construction, reconstruction, alteration or use fully conform to all zoning regulations then in effect.

Acts 1935, ch. 33, § 7; C. Supp. 1950, § 10268.7; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 13-410; Acts 1999, ch. 308, § 1; 2003, ch. 90, § 2; 2003, ch. 330, § 1.

Compiler's Notes. Acts 2003, ch. 90, § 2, directed the code commission to change all references from “county executive” to “county mayor” and to include all such changes in supplements and replacement volumes for the Tennessee Code Annotated.

Attorney General Opinions. Exclusive authority of county legislative body to appoint commissioner, OAG 94-143, 1994 Tenn. AG LEXIS 169 (12/13/94).

County government authority to regulate an electric utility, OAG 07-028, 2007 Tenn. AG LEXIS 28 (3/12/07).

13-7-111. Violation of regulations — Penalties — Modes of enforcement and remedies.

It is unlawful to erect, construct, reconstruct, alter, maintain or use any building or structure or to use any land in violation of any regulation in any provision of any ordinance or any amendment thereof enacted or adopted by any county legislative body under the authority of this part. A violation of this part is a Class C misdemeanor. Each and every day during which such illegal erection, construction, reconstruction, alteration, maintenance or use continues is deemed a separate offense. In case any building or structure is or is proposed to be erected, constructed, reconstructed, altered, maintained or used or any land is or is proposed to be used in violation of this part or of any regulation or provision enacted or adopted by any county legislative body under the authority granted by this part, such county legislative body, the attorney general and reporter, the district attorney general for the judicial district in which such violation occurs or is threatened, the county building commissioner or any adjacent or neighboring property owner who would be specially damaged by such violation, in addition to other remedies provided by law, may institute injunction, mandamus, abatement or any other appropriate action, actions, proceeding or proceedings to prevent, enjoin or abate or remove such unlawful erection, construction, reconstruction, alteration, maintenance or use.

Acts 1935, ch. 33, § 8; C. Supp. 1950, § 10268.8; modified; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 13-411; Acts 1989, ch. 591, § 113.

Cross-References. Penalty for Class C misdemeanor, § 40-35-111.

13-7-112. Regulations conflicting with other laws.

Wherever the regulations made under authority of this part require a greater width or size of yards, courts or other open spaces, or require a lower height of buildings or less number of stories, or require a greater percentage of lot to be unoccupied, or impose other higher standards than are required in any other statute, the regulations made under authority of this part shall govern. Whenever any other statute requires a greater width or size of yards, courts or other open spaces, or require a greater percentage of lot to be left unoccupied, or impose other higher standards than are required by the standards that are required by the regulations made under authority of this part, the provisions of such statute shall govern.

Acts 1935, ch. 33, § 9; C. Supp. 1950, § 10268.9; T.C.A. (orig. ed.), § 13-412.

13-7-113. “Regional planning commission” defined.

For the purposes of this part, “regional planning commission” means any regional planning commission established by the [former] state planning office as authorized by law, and includes any municipal planning commission designated by the state planning office, as authorized by law, as the regional planning commission of a planning region composed of the territory of a single municipality, together with territory adjoining but outside of such municipality.

Acts 1935, ch. 33, § 10; C. Supp. 1950, § 10268.10; impl. am. Acts 1972, ch. 542, § 15; T.C.A. (orig. ed.), § 13-413.

Compiler's Notes. The state planning office, referred to in this section, was abolished by Acts 1995, ch. 501, effective June 12, 1995.

Cross-References. “Regional planning commission” defined, § 13-3-401.

13-7-114. Construction — Building permits — Agricultural use of land — Land located in special flood hazard area.

1. This part shall not be construed as authorizing the requirement of building permits nor providing for any regulation of the erection, construction, or reconstruction of any building or other structure on lands now devoted to agricultural uses or which may hereafter be used for agricultural purposes, except on agricultural lands adjacent or in proximity to state federal-aid highways, public airports or public parks; provided, that such building or structure is incidental to the agricultural enterprise. Nor shall this chapter be construed as limiting or affecting in any way or controlling the agricultural uses of land.
2. For purposes of this section, buildings used as residences by farmers and farm workers are “incidental to the agricultural enterprise”.
3. 1. Notwithstanding subsection (a) or any other law to the contrary, a county participating in the national flood insurance program shall regulate buildings and development on land located in a special flood hazard area identified on the flood insurance rate map adopted by the county for purposes of participating in the national flood insurance program, but only to the minimum extent necessary to comply with the national flood insurance program.
   2. Subdivision (c)(1) shall apply only to the regulation of buildings and development on land located within the one hundred-year floodplain.

Acts 1935, ch. 33, § 11; 1941, ch. 86, § 1; C. Supp. 1950, § 10268.11; T.C.A. (orig. ed.), § 13-414; Acts 2014, ch. 524, § 1; 2015, ch. 192, § 1.

Attorney General Opinions. County zoning of residential structures on land used for agricultural purposes.  OAG 13-80, 2013 Tenn. AG LEXIS 81 (10/22/13).

County zoning of buildings used as residences by farmers and farm workers. OAG 14-79, 2014 Tenn. AG LEXIS 82 (9/4/14).

The definition of “agriculture” in T.C. A. §§ 1-3-105(a)(2)(A) and 43-1-113(b)(1) applies  in determining the meaning of “agricultural” as used in T.C.A. § 5-1-118(b), T.C.A. § 5-1-122, and T.C.A. § 13-7-114. AG LEXIS 35 (7/26/2017).

Based on the applicable definitions of “agriculture” and “agricultural,” concentrated animal feeding operations (CAFOs) clearly involve “agricultural” activities and the “agricultural” use of land and structures. Thus, a county is not authorized to regulate CAFOs under its zoning powers or its general powers. T.C.A. § 44-18-104 merely sets forth which zoning requirements and regulations apply when determining whether a feedlot, dairy farm, or poultry production house is to be afforded absolute immunity from a nuisance claim, but it does not provide authority for a county to enact zoning requirements or regulations. T.C.A. § 13-7-114, which prevents counties from using their zoning power to regulate structures and land used for agricultural purposes, is not in conflict with T.C.A. § 44-18-104 because there is no independent source of zoning power bestowed upon any local entity under this right-to-farm law. T.C.A § 44-18-104(b) and (d) do not direct compliance with the section when no zoning requirements or regulations exist. When no zoning requirements or regulations exist, these provisions convey that a person’s compliance with the section is deemed to be established as a matter of law. OAG 18-30, 2018 Tenn. AG LEXIS 29 (7/6/2018).

13-7-115. Private acts unaffected.

This part shall not be construed as repealing or modifying any provision of any private act heretofore enacted relating to the powers of any county therein designated or of any municipality therein designated, to enact zoning regulations in such county or in territory lying outside of such municipality.

Acts 1935, ch. 33, § 12; 1941, ch. 896, § 2; C. Supp. 1950, § 10268.12; T.C.A. (orig. ed.), § 13-415.

Attorney General Opinions. There is no constitutional requirement that a zoning ordinance be adopted by a two-thirds vote of the local legislative body or in a general election, OAG 04-007, 2004 Tenn. AG LEXIS 7 (1/16/04).

Meaning of “use permitted on review” under Tennessee zoning laws, OAG 06-142, 2006 Tenn. AG LEXIS 164 (9/19/06).

13-7-116. [Reserved.]

1. No building permit shall be issued until the county building commissioner receives a copy of either a certificate of insurance or a workers' compensation policy as evidence of the existence of workers' compensation insurance.
2. The county building commissioner shall keep on file such copy of either the certificate of insurance or the workers' compensation policy for the life of the permit. After the building permit has expired, the county building commissioner shall return by mail the copy of the certificate of insurance or the workers' compensation policy within ten (10) working days to the person who obtained the permit.
3. 1. This section does not apply to those persons who are not required by title 50, chapter 6, to obtain workers' compensation coverage, to any person who performs work on such person's own property in such person's own county of residence, or to any person who directly supervises work on such person's own property in such person's own county of residence.
   2. Persons not required to present evidence of compliance with §§ 50-6-405 and 50-6-406 pursuant to this subsection (c) shall present or sign an affidavit which attests to their exemption from this section. A person authorized to issue building permits who issues a building permit to a person exempted from this section shall keep on file for the life of the permit such affidavit of exemption.
4. A person authorized to issue building permits, who in good faith accepts an affidavit of exemption, a copy of a certificate of insurance, or a copy of a workers' compensation policy shall not be liable in any criminal or civil action alleging the person obtaining the building permit was subject to §§ 50-6-405 and 50-6-406 and such person did not in fact have workers' compensation coverage. Compliance with this section shall be a rebuttable presumption that the person authorized to issue building permits acted in good faith.
5. A violation of this section is a Class C misdemeanor.

Acts 1993, ch. 520, § 1; 1999, ch. 520, § 34; 2003, ch. 359, § 11.

Cross-References. Penalty for Class C misdemeanor, § 40-35-111.

13-7-118. Land use plan in certain counties that are in an early action compact or in nonattainment for air quality.

1. This section applies to any county in the state that either is in an early action compact or is in nonattainment for air quality according to the environmental protection agency as of April 15, 2004.
2. Any county that qualifies under subsection (a) and whose population according to the 2000 federal census was sixty thousand (60,000) or more and the county as of April 15, 2004, did not have a land use plan, shall adopt a land use plan which states that air quality issues will be considered as part of the county-wide land use plans.

Acts 2004, ch. 901, §§ 1, 2.

Compiler's Notes. For table of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

13-7-119. Compiling of effective zoning ordinance and map — Zoning ordinance and map as public record — Challenge to accuracy.

1. Any county that has exercised zoning powers under this part shall compile its zoning ordinance and map, as amended, that is in effect so as to be able to provide any member of the public with a current zoning ordinance and map. In that county, the county legislative body shall authenticate, compile, update, keep, maintain and make available the zoning ordinance, map and all amendments as a public record. Any county zoning ordinance and map made available to the public through a compilation made pursuant to this section, whether in electronic or paper form, shall be presumed to be a true and accurate statement of the county's zoning ordinance and map.
2. Any party challenging the accuracy of any county zoning ordinance or map compiled as currently in effect in accordance with this section, whether in a rezoning proceeding before a county legislative body, an appeal to a board of zoning appeals, a subdivision or site plan approval proceeding before a planning commission or in any judicial proceeding, must prove the inaccuracy of the zoning ordinance or map by clear and convincing evidence.

Acts 2009, ch. 338, § 1.

Part 2
Municipal Zoning

Part 1
Mass Transit Projects

NOTES TO DECISIONS

1. Billboard.

The owner of a billboard on leased property was entitled to the costs of removal of the billboard upon condemnation of the property. State ex rel. Commissioner v. Teasley, 913 S.W.2d 175, 1995 Tenn. App. LEXIS 472 (Tenn. Ct. App. 1995), appeal denied, State ex rel. Comm'r Dep't of Transp. v. Teasley, 1995 Tenn. LEXIS 633 (Tenn. Oct. 30, 1995).

Part 1
Local Neighborhood Development Corporations Act of 1987

13-14-101. Short title.

This chapter shall be known as the “Development District Act of 1965.”

Acts 1965, ch. 241, § 1; 1969, ch. 239, § 1; T.C.A., § 13-1401.

Compiler's Notes. Acts 1986, ch. 820 contained the Municipal Development Authority Act of 1986 containing an alternative method of municipal planning; however, this act was amended to be eventually applicable only to Johnson City and is listed in the Uncodified Public Acts Index.

The Greater Nashville Regional Council, established in title 64, ch. 7, supersedes the Mid-Cumberland Council of Governments, and the Mid-Cumberland Development District. See § 64-7-101.

Cross-References. Local neighborhood model development corporations, title 13, ch. 13.

13-14-102. Creation of districts.

1. From and after the time when the department of economic and community development has progressed to the stage of preparing a general plan for development of the state as provided for in §§ 13-16-103 — 13-16-105, which includes at least a delineation of regions deemed viable to the economic development of the state, then the department is empowered, in cooperation with counties, municipalities and local development agencies, and in accordance with the conditions and procedures specified in this chapter, to create development districts for such regions, such districts to encompass one (1) or more counties or parts of counties, such that are conducive to efficient planning and orderly economic development of the state.
2. A board established as hereinafter provided for shall be responsible for area-wide planning in its district.

Acts 1965, ch. 241, § 2; 1969, ch. 239, § 2; 1972, ch. 542, § 11; T.C.A., § 13-1402; Acts 1995, ch. 501, § 5.

13-14-103. Purposes of chapter.

1. It is the intent of the general assembly that the various counties and cities be provided the most effective and efficient means of organizing themselves on a regional basis for the purpose of carrying on general and comprehensive planning and development activities, such that would provide coordinated, efficient and orderly economic development of the state. It is the further intent that local governments through such regional agencies be guided and assisted in making maximum use of federal, state and local programs designed to stimulate economic development and utilization of resources. It is the further intent of this chapter that the planning function of government be separated from the plan implementation function, leaving to existing county, municipal and state governments and their instrumentalities the carrying out of all plans for physical, economic and resource development, as provided for under existing laws. However, it is the intent of the general assembly that development districts may perform the implementation function with respect to the public guardianship program created by title 34, chapter 7.
2. It is the further intent of this chapter that, in order to ensure the success of regional planning and development as herein defined, the state may provide minimum financial assistance on a matching basis to such boards for purposes of staffing and providing other planning and administrative services, in accordance with the state's policy of furthering the economic development of the state.

Acts 1965, ch. 241, § 3; T.C.A., § 13-1403; Acts 1990, ch. 654, § 1.

13-14-104. Membership of boards.

The membership of boards created under this chapter shall consist of the county mayor of each county within the district, the mayor of each municipality within the district, the chief executive officer of any metropolitan government within the district, one (1) representative from a local agency in each county dealing with problems of industrial development or promotion appointed by the county mayor, and one (1) state senator and one (1) state representative whose senatorial or representative districts lie wholly or in part in the development district. The senator member shall be selected by the senators whose districts are wholly or in part within the development district. Senators and representatives shall serve on such boards for two (2) years or until they leave the general assembly, whichever occurs first. Senators whose districts lie wholly or partly within the development district shall meet at the call of the senior senator among those affected, for the purpose of selecting a member of the development district board, and representatives shall meet at the call of the senior representative for that purpose. Membership on such boards shall be for four (4) years or until the expiration of the term of the official by whom such representative was appointed, whichever occurs first. Members are subject to reappointment. The representative of each county and city government as indicated above may be chosen from an existing city or county planning commission. The board may appoint an executive committee to act for it and determine the authority of such committee. No member of the general assembly shall receive any additional compensation for such member's service on a board.

Acts 1965, ch. 241, § 4; 1975, ch. 324, § 1; 1978, ch. 737, § 1; impl. am. Acts 1978, ch. 934, §§ 16, 36; Acts 1979, ch. 381, § 3; T.C.A., § 13-1404; Acts 2003, ch. 90, § 2.

Compiler's Notes. Acts 2003, ch. 90, § 2, directed the code commission to change all references from “county executive” to “county mayor” and to include all such changes in supplements and replacement volumes for the Tennessee Code Annotated.

Attorney General Opinions. Power to appoint county development district representative, OAG 98-014, 1998 Tenn. AG LEXIS 14 (1/9/98).

13-14-105. Procedure for creation.

1. Upon delineation of regions deemed viable to the economic development of the state as provided for in this chapter, the department of economic and community development shall notify the chief executive officer of each municipal and county government in such region proposed for planning and development, and hold a public hearing with such officers assembled to explain the advantages of economic development, and otherwise solicit an expression of interest about the creation of such district and board as provided for in this chapter.
2. No district shall be created without the consent of at least a three-fourths (¾) majority of counties as represented by the county mayor, and a three-fourths (¾) majority of municipalities as represented by the mayor.
3. Membership in these districts shall be by consent only and any municipality or county may, by majority vote of the governing body, cease to become a member of the district.

Acts 1965, ch. 241, § 5; 1972, ch. 542, § 11; impl. am. Acts 1978, ch. 934, §§ 16, 36; T.C.A., § 13-1405; Acts 1995, ch. 501, § 5; 2003, ch. 90, § 2.

Compiler's Notes. Acts 2003, ch. 90, § 2, directed the code commission to change all references from “county executive” to “county mayor” and to include all such changes in supplements and replacement volumes for the Tennessee Code Annotated.

13-14-106. Powers and duties of boards.

1. Each board created under this chapter has the authority to:
   1. Organize itself into a public body, elect its officers, and adopt bylaws for purposes of carrying out functions authorized under this chapter;
   2. Receive and expend funds from any sources for staffing, for research, planning, coordination, economic development, demonstration projects, and other activities deemed necessary to promote the efficient, harmonious and economic development of the district; and receive grants from private foundations for purposes of research and for demonstration projects oriented to human, physical and natural resources utilization;
   3. Contract with local, state and federal agencies, and with consultants for services to be provided;
   4. Prepare broad plans for the economic development of the district, including, but not limited to, comprehensive land use and plans for physical development. Such plans shall be made with the purpose of guiding and accomplishing a coordinated, adjusted, efficient and economic development of the district which will, in accordance with present and future needs and resources, best promote the health, safety, morals, order, convenience, prosperity and welfare of the citizens, as well as efficiency and economy in the process of development, including distribution of population, urbanization, and the uses of land and resources for trade, industry, recreation, forestry, agriculture and tourism, and will tend to create conditions favorable to transportation, health, safety and otherwise promote the general welfare of the citizens. Such plans may include the design and layout of industrial parks and feasibility studies for extension of utilities and services to areas deemed suitable for industrial development;
   5. Cooperate and coordinate its activities with local and state planning agencies and other districts in developing and implementing plans for development;
   6. Cooperate and coordinate its activities with the federal agencies responsible for developing natural, human and physical resources of the district; recommend projects which will enhance the development of all resources, to be carried out through existing governmental units or through a combination of these as applicable under state laws, including, but not limited to, the former Area Redevelopment Program [terminated], the Appalachian program and the former Economic Opportunity Act [repealed];
   7. Cooperate with local and regional finance companies in assembling financial resources for commercial, industrial and other development;
   8. Compile, prepare, publish and disseminate information about the economic resources of the district and about sub-areas;
   9. Encourage and assist in the creation of private and semipublic, nonprofit organizations as needed and under existing laws of the state for carrying out specific projects and programs initiated under federal and state laws;
   10. Enter into compacts or contractual arrangements with planning agencies of other adjoining or neighboring states, for the purpose of preparing joint-comprehensive plans for development of a broader area or region. Boards are hereby expressly authorized to expend funds for interstate planning, notwithstanding the fact that in doing so portions of such funds may be used for planning work outside of the state boundary;
   11. Contract with the commission on aging and disability to operate the program established by title 34, chapter 7; and
   12. Have and exercise other authority as deemed necessary to further and promote the orderly and economic development of the state.
2. Each governing board operating under this chapter shall:
   1. Jointly adopt statewide uniform travel regulations subject to the approval of the commissioner of finance and administration and shall reimburse its officers and employees for official travel in conformance with such regulations;
   2. Develop a system of competitive bidding on purchases of supplies and equipment and other contracts and shall submit the written procedures governing such system to the state procurement commission for approval;
   3. Develop written personnel procedures to be filed with the commissioner of finance and administration for the hiring, promotion, demotion and dismissal of all employees, and shall include an employee compensation plan based on a salary comparability analysis which takes into account state salary schedules, local government salary schedules, and regional private market variations; and
   4. Submit, annually, to the department of economic and community development, or such other office as may be directed by the governor, a work program and budget, together with such other information as may be requested.

Acts 1965, ch. 241, § 6; 1976, ch. 665, §§ 1-3; 1979, ch. 381, § 1; T.C.A., § 13-1406; Acts 1989, ch. 196, § 1; 1990, ch. 654, § 2; 1995, ch. 501, § 5; 2011, ch. 295, § 19.

Compiler's Notes. For federal acts referred to in this section, the Area Redevelopment Program, formerly compiled in 42 U.S.C. § 2501 et seq., has terminated persuant to former 42 U.S.C § 2525, effective August 31, 1965; the Appalachian Program, was enacted as Public Law 89-4, passed March 9, 1965; and the Economic Opportunity Act, formerly compiled in 42 U.S.C. § 2701 et seq. was repealed, effective October 1, 1981.

The term “commission on aging and disability” was substituted for “commission on aging” pursuant to Acts 2001, ch. 397.

Attorney General Opinions. Power to appoint county development district representative, OAG 98-014, 1998 Tenn. AG LEXIS 14 (1/9/98).

13-14-107. Limitations on power of board.

1. The following limitations, in addition to any other limitations specifically provided herein, shall apply to boards created under this chapter:
   1. All plans shall be advisory only;
   2. No authority is hereby granted to enact zoning ordinances or subdivision standards;
   3. No authority is hereby granted such that would supplant or in any way interfere or supersede the planning and development authority granted cities and counties under other applicable state statutes;
   4. Plans prepared under this chapter must reflect goals and objectives for harmonious development of the district, and, in the case of highways, must be in accordance and coordinated with plans of the department of transportation, and with plans of the department of economic and community development;
   5. Plans prepared under this chapter shall be transmitted to all governmental bodies in the district, and these may be adopted as their own for purposes of planning and development;
   6. No authority is hereby granted for the exercise of the power of eminent domain, nor for engaging in construction projects;
   7. No authority is hereby granted to regulate the agricultural or other use of land; and
   8. Only duly appointed members of the board, or persons duly designated pursuant to § 6-54-112, may vote.
2. Notwithstanding the limitation of subdivision (a)(6) which prohibits the board from engaging in construction projects, the board is authorized to construct a building for its own use. The board is authorized to borrow such funds it deems necessary to fund the construction of a building for its own use, and may mortgage or otherwise pledge its real property or other assets to secure such a loan.

Acts 1965, ch. 241, § 7; 1972, ch. 542, § 11; impl. am. Acts 1972, ch. 829, § 7; Acts 1979, ch. 381, § 2; T.C.A., § 13-1407; Acts 1990, ch. 1008, § 1; 1991, ch. 250, § 1; 1995, ch. 501, § 5; 2008, ch. 990, § 1; 2010, ch. 730, § 1.

13-14-108. Uniform accounting system.

1. The comptroller of the treasury is directed to develop a uniform accounting system conforming to generally accepted accounting principles for the governing boards operating under this chapter.
2. Such uniform accounting system shall be subject to the approval of the commissioner of finance and administration. Upon such approval, each development district shall establish and maintain the uniform accounting system.
3. No state appropriation shall be released to a development district until such district has established the required accounting system.

Acts 1976, ch. 665, § 5; T.C.A., § 13-1413.

13-14-109. Member voting after term of office expired.

If a member of a board created under this chapter participates in a vote of such board after such member's term of office has expired, no state funds shall be released to or expended by such board until such time as the board meets and rescinds any votes in which such member has participated and reconsiders its action with a lawfully constituted board.

Acts 1979, ch. 381, § 4; T.C.A., § 13-1414.

13-14-110. Regional agencies under special acts.

Nothing in this chapter shall in any way limit or infringe upon the statutory authority granted by law to the Beech River watershed development authority, the department of environment and conservation, or the Upper Duck River development agency as the same have been heretofore created by the general assembly; nor shall any provision of this chapter restrict or limit the functions of any similar tributary watershed area development authority which may be hereafter created by the general assembly.

Acts 1965, ch. 241, § 8; T.C.A., § 13-1408; Acts 1996, ch. 816, § 11.

Compiler's Notes. Acts 1996, ch. 816, which abolished the Tennessee Elk River development agency, provided in § 2 that all powers, duties, contractual obligations and functions of the agency are transferred to the department of environment and conservation.

Cross-References. Beech River watershed development authority, title 64, ch. 1, part 1.

Upper Duck River development agency, title 64, ch. 1, part 6.

Department of environment and conservation, title 4, ch. 3, part 5.

13-14-111. Financing.

1. It is the intent of the state to assist financially with the development of regional plans for economic development and for coordination of activities thereunder. The board for the Memphis area association of governments, composed of the Fayette, Lauderdale, Shelby, and Tipton counties and the municipalities located within those counties, has been created as provided in this chapter and when the local governments have indicated a willingness to contribute financially by adopting a budget requiring a certain per capita assessment, the state shall be authorized to match the local contributions according to subdivision (c)(3).
2. The local contributions to the Memphis area association of governments shall be based upon, in the case of counties, an amount not to exceed twenty-one cents (21¢) per capita based on the latest decennial census, one half (½) of which may be contributed by local incorporated cities or by other private, public or semipublic bodies; provided, that no county shall be required to contribute more than twelve thousand five hundred dollars ($12,500) annually. The aggregate of such funds may also be used for purposes of matching various federal programs of assistance for planning and development. Counties and municipalities may participate independently of each other in financing the activities of the board. Cities and counties are specifically authorized to appropriate and expend funds for carrying out the purposes of this chapter.
3. 1. It is the intent of the state to assist financially with the development of regional plans for economic development and other regional plans, activities, and programs authorized by this chapter and other statutes and for coordination of activities thereunder. The regional plans, activities and programs shall be for the benefit of and for the local governments of this state and, as appropriate, the state government and the citizens of Tennessee. The boards of the eight (8) other development districts established as the First Tennessee development district, the East Tennessee development district, the Southeast Tennessee development district, the Upper Cumberland development district, the South Central Tennessee development district, the Southwest Tennessee development district, the Greater Nashville regional council and the Northwest Tennessee development district have been created as provided in this chapter and title 64, chapter 7.
   2. When the local governments have indicated a willingness to contribute financially to the development districts by adopting a budget establishing a certain per capita assessment, the state shall include in its budget under the department of economic and community development, or its state functional equivalent, a separate line item for the funding of the activities of the development districts. Any appropriations of state funds made to the development districts by the general assembly shall not be reduced, except in conjunction with an across the board percentage reduction applicable to multiple state government departments and agencies.
   3. The amount of state funding to each development district shall be based upon the per capita assessment established by the individual development district boards. The per capita assessment and corresponding state funding levels for the nine (9) development districts are as follows:

      Per Capita Assessment Annual State Appropriation

      1-5 cents $40,000

      6-10 cents 70,000

      11-15 cents 100,000

      16-20 cents 150,000

      21-30 cents 180,000

      31 - to an amount over 31 cents as may be approved by the  individual development district board 200,000

4. For calculating the per capita assessments of the development districts in subsection (c), the board of a development district may utilize either the population counts from the latest yearly population estimates or from the decennial census figures of each city, town, metropolitan government, and county that is located in and is a member government of the development district, as reported by the United States department of commerce, bureau of the census or its federal functional equivalent. The aggregate of the funds generated by the per capita assessment may be used for the purposes of matching various federal and state programs, grants and contracts for planning, programs and activities undertaken by the development districts. The aggregate of state funds appropriated to the development districts may be used for the purpose of matching various federal programs, grants and contracts for planning, programs and activities undertaken by the development districts. Any funds generated by either the per capita assessment or the state appropriation may be utilized by the development districts to pay the operating and administrative costs of the district. Cities, towns, metropolitan governments, and counties may participate in the per capita assessment funding of the development districts in which they are located independently of each other. In order to promote regional cooperation and planning, counties may pay the per capita assessment of any of the cities or towns within the county's political boundary. Cities, towns, metropolitan governments and counties are specifically authorized to appropriate and expend funds for carrying out the purposes of this chapter.

Acts 1965, ch. 241, § 9; 1968, ch. 613, § 1; 1969, ch. 165, § 1; 1972, ch. 830, § 1; 1973, ch. 271, §§ 1, 2; T.C.A., § 13-1409; Acts 1985, ch. 429, § 1; 2007, ch. 521, §§ 1-4; 2013, ch. 456, §§ 1-3.

Compiler's Notes. This section may be affected by § 9-1-116, concerning entitlement to funds, absent appropriation.

For tables of population of Tennessee municipalities, and for  U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Acts 2019, ch. 404, § 2 provided that notwithstanding this section, appropriations to the Department of Economic and Community Development for economic development district grants are authorized to be reduced in the amount of $174,000 (recurring) for the transfer of such amount to the Tennessee Commission on Children and Youth for the sole purpose of making a grant in such amount to the Tennessee Court Appointed Special Advocate Association.

13-14-112. Reporting and auditing.

1. Each board operating under this chapter shall prepare an annual report of its activities through June 30 of each year, and submit a copy of such report to the governor, the general assembly, and the commissioner of finance and administration.
2. 1. The annual reports and all books of accounts and financial records of all funds received by grant, contract or otherwise from state, local, or federal sources shall be subject to audit annually by the comptroller of the treasury. The audit may be performed by a licensed independent public accountant selected by the board and approved by the comptroller of the treasury. The cost of any audit shall be paid by the development district.
   2. The comptroller of the treasury shall ensure that audits are prepared in accordance with generally accepted governmental auditing standards and determine if the audits meet minimum audit standards prescribed by the comptroller of the treasury. No audit may be accepted as meeting the requirements of this section until approved by the comptroller of the treasury.
   3. All audits shall be completed as soon as practicable after the end of the fiscal year of the development district. One (1) copy of each audit shall be furnished to each member of the board of the development district and the comptroller of the treasury. Copies of each audit shall also be made available to the press.
   4. All audits performed by the internal audit staff of any such development district shall be conducted in accordance with the standards established by the comptroller of the treasury pursuant to § 4-3-304(9).

Acts 1965, ch. 241, § 10; 1976, ch. 665, § 4; 1978, ch. 728, § 1; T.C.A., § 13-1410; Acts 1984, ch. 794, § 8.

Cross-References. Reporting requirement satisfied by notice to general assembly members of publication of report, § 3-1-114.

13-14-113. Appropriated funds subject to approval — Matching funds required.

1. Funds appropriated to implement this chapter are subject to the approval of the governor and the commissioner of finance and administration.
2. Such approval shall be given only after review by the department of economic and community development of the annual work program developed by the district to assure that such program is in accordance with the development plans of the state.
3. These funds or portions thereof shall be paid only upon certification by the appropriate official of each board that matching local funds are available.

Acts 1965, ch. 241, § 11; 1969, ch. 165, § 2; T.C.A., § 13-1411; Acts 1995, ch. 501, § 6.

Compiler's Notes. This section may be affected by § 9-1-116, concerning entitlement to funds, absent appropriation.

13-14-114. Bond requirements.

1. Any board member, executive committee member, employee officer, or any other authorized person of a development district, who receives public funds, has authority to make expenditures from public funds, or has access to any public funds, is hereby required to give bond to be made payable to the state of Tennessee with such sureties as hereinafter provided. Such bond is to be conditioned in all cases in which a different condition is not prescribed, upon the faithful discharge of the duties of such office, employment or other authorized activity in which such person is engaged during the time such person continues therein, or in the discharge of any part of such duties.
2. Such official bond shall be executed in the same form as that prescribed by § 8-19-101, for county and state officials and employees.
3. 1. Effective July 1, 2013, the minimum amount of such required bond shall be determined from the amount of revenues handled by the respective development district as reported in the last audit approved by the comptroller of the treasury. The minimum amount of the bond shall be based on revenues as follows:
      1. Four percent (4%) of the revenues up to three million dollars ($3,000,000); and
      2. Two percent (2%) of the excess over three million dollars ($3,000,000) shall be added.
   2. The amounts indicated in subdivisions (c)(1)(A) and (B) shall be cumulative.
4. All such official bonds shall be signed by authorized individuals of a corporate surety, and such corporation shall be duly licensed to do business in this state as a surety.
5. The official bonds required under this section are hereby required to be recorded in the office of the register of deeds where the office of the development district is located and transmitted to the office of the county clerk in the same county for safekeeping.
6. No examination or certification of any of such bonds shall be required in this section.
7. Provisions for bonds of all state and county officers set forth in title 8, chapter 19, shall also govern the bonds of all persons covered under this section, so far as title 8, chapter 19, is not inconsistent with this section.
8. The respective development district shall pay the premiums for such bonds.

Acts 1976, ch. 665, § 6; T.C.A., § 13-1412; Acts 2013, ch. 315, §§ 25, 26.

Compiler's Notes. Acts 2013, ch. 315, § 31 provided that the act, which amended subsections (c) and (e), shall apply to the renewal or obtaining an official bond for any bonding after April 29, 2013.

Part 2
Community-Based Development Organizations

13-16-101. Short title.

This part shall be known as the “Industrial Park Act.”

Acts 1959, ch. 169, § 1; T.C.A., § 13-1301; T.C.A., § 13-16-201.

Code Commission Notes.

This section was renumbered from § 13-16-201 to § 13-16-101 by authority of the Code Commission in 2019.

Compiler's Notes. Section 2 of Acts 1959, ch. 169 read:

“Declaration of policy. — The future growth of population in this state, the employment of its people, the proper utilization of its natural resources, and the strengthening of its economy will depend in large measure on growth of industry and related activities. In recent years, increasing numbers of plants seek location in industrial parks or districts where, in company with other plants, utilities and services may be jointly supplied, and in which suitable restrictions and standards of construction and performances may be applied. It is the intent of this act to facilitate the assembly of lands and the development of such industrial parks where feasible and necessary.”

Cross-References. Industrial development corporations, title 7, ch. 53.

Law Reviews.

Property Rights vs. Public Use: Analyzing Tennessee's Response to Kelo Eminent Domain Ruling (Scott Griswold), 43 Tenn B.J. 14 (2007).

Attorney General Opinions. Sale of city land for golf course, OAG 99-143, 1999 Tenn. AG LEXIS 165 (7/30/99).

13-16-102. Part definitions.

As used in this part, unless the context otherwise requires:

1. “Governing body” means the board or body in which the general legislative powers of a municipality are vested;
2. “Industrial park” means land and rights, easements and franchises relating thereto, and may include adequate roads and streets, water and sewer facilities, utilities, and docks and terminals, as required for the use of industry, and such appurtenant land for necessary incidental use. “Industrial park” may also include a site for the establishment or location of a single industry;
3. “Industrial park agency” means the governing body, or the commission, board, or other agency to which powers under this part have been delegated by the governing body; and
4. “Municipality” means any county or incorporated city or town in this state.

Acts 1959, ch. 169, § 4; T.C.A., § 13-1302; T.C.A., § 13-16-202.

Code Commission Notes.

This section was renumbered from § 13-16-202 to § 13-16-102 by authority of the Code Commission in 2019.

13-16-103. Powers of municipality.

Subject to the conditions of this part, any municipality has the power to:

1. Acquire land and rights and easements therein by gift, purchase, or eminent domain, and develop the land into industrial parks within or without the municipality or partially within and partially without the municipality, and maintain and operate such industrial parks; provided, that the power of eminent domain shall be exercised only for public use, as defined in § 29-17-102, and shall not be extended to or exercised with respect to property owned or held by a corporation which is subject to regulation by the Tennessee public utility commission, the department of safety, and/or the department of transportation, and which itself possesses the power of eminent domain, except and unless:
   1. No other property is reasonably available for the contemplated use;
   2. The property to be taken is not reasonably necessary to the operation of the corporation owning or holding it; and
   3. The taking will not interfere or be inconsistent with any public use for which the property is used or held;
2. Issue its bonds to finance in whole or in part the cost of such industrial parks, and pledge its full faith and credit and/or fees, rents, tolls or other charges for the use of or in connection with any industrial building or any public works project as provided in the Industrial Building Bond Act of 1955, compiled in title 7, chapter 55, or the Local Government Public Obligations Act of 1986, compiled in title 9, chapter 21;
3. Sell or lease plots of land and charge and collect fees for services made available within such industrial parks, subject to and in accordance with any agreement which may be made with bondholders; provided, except as set forth in § 13-16-107(a), that prices, rentals and fees shall be fixed and revised from time to time so as to produce, as nearly as possible, sufficient funds to provide for the prompt payment of principal and interest upon all bonds when due, and provide for the operation and maintenance of such parks and adequate depreciation accounts in connection therewith;
4. Pledge to the punctual payment of the bonds authorized for such purposes and interest thereon the income, revenues and proceeds from sales to be received from such industrial parks;
5. Accept grants and the cooperation of the state of Tennessee upon such conditions as may be provided by law;
6. Accept grants and the cooperation of the United States or any agency thereof in the development, maintenance, operation and financing of industrial parks and do any and all things necessary in order to avail itself of such aid and cooperation; and
7. Exercise all powers with respect to industrial parks that municipalities may exercise with respect to industrial buildings under the Industrial Building Bond Act of 1955, and the Industrial Development Corporations Act of 1955, compiled in title 7, chapter 53.

Acts 1959, ch. 169, § 5; T.C.A., § 13-1303; Acts 1988, ch. 750, § 47; 1990, ch. 593, §§ 1, 2; 1995, ch. 305, § 99; 2017, ch. 94, § 33; 2017, ch. 422, § 2; T.C.A., § 13-16-203.

Code Commission Notes.

This section was renumbered from § 13-16-203 to § 13-16-103 by authority of the Code Commission in 2019.

Compiler's Notes. Acts 2017, ch. 422, § 7 provided that the act, which amended this section, shall apply to takings or condemnation actions initiated on or after May 18, 2017.

Attorney General Opinions. Municipal power to acquire land for industrial park, OAG 95-121, 1995 Tenn. AG LEXIS 139 (12/18/95).

Projects outside municipal limits financed under Local Public Obligations Act, OAG 96-005, 1996 Tenn. AG LEXIS 4 (1/16/96).

Under T.C.A. § 5-1-114(a), contiguous counties may cooperate to develop an industrial park through an interlocal agreement, OAG 03-020, 2003 Tenn. AG LEXIS 26 (2/24/03).

Because development of an industrial park could be a “county general purpose” and a “public purpose,” counties may use property tax revenues generated by the industrial park to fulfill terms and conditions of an interlocal agreement, OAG 03-020, 2003 Tenn. AG LEXIS 26 (2/24/03).

13-16-104. Control of industrial parks.

1. The governing body of any municipality may exercise direct control in the development, operation and maintenance of any industrial park, or may delegate by ordinance or resolution any or all powers to a commission or board, the composition, terms of office, appointment, and compensation to be determined by the governing body in such ordinance or resolution.
2. Such powers may be delegated to an industrial development corporation created under title 7, chapter 53, to any existing port authority, to a regional megasite authority created under title 64, chapter 6 or to similar bodies available to act as an instrumentality of the municipality.

Acts 1959, ch. 169, § 6; T.C.A., § 13-1304; Acts 2009, ch. 158, § 16; T.C.A., § 13-16-204.

Code Commission Notes.

This section was renumbered from § 13-16-204 to § 13-16-104 by authority of the Code Commission in 2019.

13-16-105. Provision for public services.

1. Public services required by industries should be provided by governmental and private units and agencies responsible for such services in areas encompassing industrial parks, such as financing and installation of utility services and utility agencies, construction and maintenance of service roads and streets, and storm sewers where needed, by counties or cities, and building of dock and harbor facilities by counties, cities or port authorities.
2. Governmental and private units and agencies are empowered to provide such services in connection with the development of industrial parks under this part.

Acts 1959, ch. 169, § 3; T.C.A., § 13-1305; T.C.A., § 13-16-205.

Code Commission Notes.

This section was renumbered from § 13-16-205 to § 13-16-105 by authority of the Code Commission in 2019.

13-16-106. Municipalities acting jointly.

The powers conferred upon municipalities under this part may be exercised by two (2) or more municipalities acting jointly, in which event the governing bodies of the municipalities acting jointly shall provide by contract the manner of development, operation and maintenance of industrial parks, or the powers may be delegated by resolution to a joint commission or board, the composition, terms of office, appointment, and compensation of same to be fixed by agreement of the governing bodies of such municipalities acting jointly. Such powers may also be delegated to an industrial development corporation created under title 7, chapter 53, to a port authority, to a regional megasite authority created under title 64, chapter 6, or to similar bodies available to act as instrumentalities of municipalities as specified in § 13-16-104.

Acts 1959, ch. 169, § 7; T.C.A., § 13-1306; Acts 2009, ch. 158, § 17; T.C.A., § 13-16-206.

Code Commission Notes.

This section was renumbered from § 13-16-206 to § 13-16-106 by authority of the Code Commission in 2019.

13-16-107. Certificate requirements.

1. 1. 1. Before a municipality may undertake to borrow funds to develop an industrial park under this part, it must obtain a certificate of public purpose and necessity under title 7, chapter 55, except that § 7-55-106 shall not apply to such certificate for an industrial park. The committee shall investigate, find and determine, upon application of any municipality therefor, as to whether a certificate of public purpose and necessity shall be issued to such municipality to engage in the establishment of an industrial park project under the declared public policy of this part for the economic development and advancement of the municipality, and in considering and determining whether or not such certificate shall issue, the committee shall find and determine affirmatively that:
         1. The project is well conceived and has a reasonable prospect of success;
         2. There is a good probability that the project will be self-sustaining from the sale and lease of land in the industrial park, utility revenues derived from the provision and sale of utilities in the industrial park, ad valorem and other taxes resulting directly from the development of the industrial park, and other fees and charges for services provided to the industrial park;
         3. The project will tend to provide proper economic development of the municipality, and will encourage industry to locate there; and
         4. There are adequate property values and suitable financial conditions, so that the total bonded indebtedness of the municipality, solely for the purposes authorized by this part and by title 7, chapter 55, shall not exceed ten percent (10%) of the total assessed valuation of all the property in the municipality ascertained by the last completed assessment at the time of the issuance of such bonds.
      2. Until December 31, 1992, the requirement for obtaining such certificate of public purpose and necessity shall be waived for an industrial park for which sixty percent (60%) of its funding for the second phase of development was provided by a federal grant received from the economic development administration and which on July 1, 1992, is in the final stages of completing such second phase.
   2. When the committee has determined such facts favorably, it is authorized and empowered, having due regard to the promotion of the public policy and the general welfare herein declared, to issue a certificate of public purpose and necessity to the municipality to engage in the project. If and when such certificate is issued, it shall authorize the particular municipality to do all of the things authorized under § 13-16-103, including the issuance of bonds for the development of the industrial park and the securing of such bonds with income, revenues and proceeds from the sale of property in the municipality, any or all utility revenues of the municipality, any or all tax revenues of the municipality, including ad valorem taxes, and any other revenues, fees, rentals or charges of the municipality, or any of the foregoing as shall be approved by the committee. The certificate shall expire thirty-six (36) months from its date unless, within that time, such industrial park shall have been established; subject, however, to any delays necessitated by any litigation or acts of God; delaying the establishment of the industrial park. The issuance of such certificate of public purpose and necessity may be made contingent on the applicant supplying reasonable and satisfactory maps of the area proposed for development as an industrial park and preliminary development plans, including competent estimates of the cost of site preparation and supplying of projected utilities and services, and the extent to which appropriate private or local government agencies are prepared to supply them.
2. 1. If and when the certificate is issued, the committee therein shall fix and determine:
      1. The extent and the amount to which the municipality may issue bonds or make expenditures for such industrial park;
      2. What property may be acquired therefor; and
      3. The terms upon which such acquisition may be had.
   2. If the governing body of the municipality fails or refuses to follow the requirements made by the committee in the certificate, then the members of the governing body of the municipality voting for such failure or refusal shall be individually and personally liable, and liable on their official bonds for any loss that the municipality may sustain by reason of such failure or refusal to follow such requirements, and in addition may be compelled by injunction to comply with such requirements.
3. The committee is hereby authorized and empowered to adopt and put into effect all reasonable rules and regulations that it may deem necessary to carry out the provisions of this part not inconsistent herewith.
4. When used in this section, “industrial park project” or “project” means the acquisition of land, rights, easements and franchises relating thereto and/or the provision of any roads and streets, water and sewer facilities, utilities, docks and terminals, as well as any appurtenant land that may be reasonably necessary for incidental use thereof. This subsection (d) does not limit the authority of the committee to issue a certificate of public purpose and necessity for the purchase and/or development of a site for the location of a single industry.
5. Notwithstanding this section, a municipality with a population not less than three hundred thousand (300,000), according to the 2000 federal census or any subsequent federal census, shall not be required to obtain a certificate of public purpose and necessity in order to borrow funds to develop an industrial park under this part. Any such municipality that makes a total pledge of full faith and credit of the municipality related to an industrial park project shall not exceed ten percent (10%) of the total assessed valuation of all property in the municipality, ascertained by the last completed assessment at the time of issuance of the obligations. In any resolution pledging the full faith and credit and unlimited taxing power of any such municipality to secure any obligations related to the project, the governing body of the municipality shall state that the project being considered is well conceived, has a reasonable prospect for success, will provide proper economic development and employment, and will not likely become a burden on the taxpayers of the municipality.
6. A city or county may exercise the power of eminent domain for development of an industrial park, only with respect to property located within the jurisdictional boundaries of the city or county; or in the case of a city, also with respect to property within an urban growth boundary as defined in § 6-58-101; or in the case of a county, also with respect to property within an urban growth boundary or planned growth area as defined in § 6-58-101. Either a city or town and county, or both, operating a joint industrial park may exercise the power of eminent domain with respect to property located within the jurisdictional boundaries of the county and within an urban growth boundary and a planned growth area. Before a city or county may undertake to exercise the power of eminent domain for development of an industrial park, it must obtain a certificate of public purpose and necessity as provided in subsection (a), even if no funds will be borrowed for the project, except:
   1. The requirements of subdivision (a)(1)(A)(iv) are not applicable to a certificate of public purpose and necessity obtained solely for the exercise of eminent domain authority; and
   2. A certificate of public purpose and necessity for the exercise of eminent domain, in addition to the applicable findings set forth in subdivision (a)(1)(A), shall be based on a finding that the city or county has been unable, through good faith negotiations, to acquire the property to be acquired by eminent domain or any alternative property that would be of comparable suitability for the project. Good faith negotiations shall be established, if the city or county has made an offer to purchase the property for an amount equal to or in excess of the fair market value, determined by the average of at least two (2) appraisals by independent, qualified appraisers.

Acts 1959, ch. 169, § 8; 1963, ch. 251, § 1; 1969, ch. 193, § 1; 1972, ch. 797, § 1; T.C.A., § 13-1307; Acts 1989, ch. 394, §§ 1-3; 1990, ch. 593, §§ 3-5; 1992, ch. 945, § 3; 2006, ch. 770, §§ 3, 4; 2006, ch. 863, § 3; T.C.A., § 13-16-207.

Code Commission Notes.

This section was renumbered from § 13-16-207 to § 13-16-107 by authority of the Code Commission in 2019.

Compiler's Notes. Acts 2006, ch. 863, § 25, provided that the amendment by that act shall apply only to eminent domain or condemnation proceedings initiated on or after July 1, 2006.

For table of certified populations figures of Tennessee municipalities, see the supplement to Volume 13.

Cross-References. Power and use of eminent domain, title 29, ch. 17, part 1.

13-18-101. Short title.

This chapter shall be known and may be cited as the “Major Energy Project Act of 1981.”

Acts 1981, ch. 131, § 1.

Cross-References. Major energy projects provisions inapplicable to hazardous waste management, § 68-212-107.

13-18-102. Chapter definitions.

As used in this chapter, unless the context clearly otherwise requires:

1. “Applicant” means any person planning or proposing a project which has been designated a major energy project;
2. “Approval” means any permit, license, lease, certificate, right-of-way, or other grant, rate, ruling, or decision authorized or issued by an agency of state or local government;
3. “Contact agency” means the department of economic and community development;
4. “Joint review process” means the process provided by §§ 13-18-108 — 13-18-115 by which the applications for permits or approvals required by state, local, or federal agencies for a major energy project are consolidated and coordinated;
5. “Joint review staff” means those persons from involved agencies who are designated to staff the joint review team;
6. “Joint review team” or “team” means a coordinating group organized to conduct the joint review process on a major energy project. It is an officially composed group of government agencies organized to work with the applicant to coordinate government review and decision-making activities and is composed of involved state, local, and federal agencies and the applicant;
7. “Lead local agency” means the local department or agency designated by the chief executive officer of that local government to be most affected by or involved in the proposed major energy project;
8. “Lead state agency” means the department or agency of the state determined by the governor to be most involved in the joint review process;
9. “Local government” means any government body, including any municipality, county, or utility district or any political subdivision of this state;
10. “Local law” means the rules, regulations, resolutions, ordinances, codes, case law, and other laws of any local government;
11. “Major energy project” means any project at one (1) physical location which has been determined by the contact agency to be in the state interest pursuant to its authority under § 13-18-103, which has a capital cost of one hundred million dollars ($100,000,000) or more, and which is likely to reduce the dependence of the state on imported energy projects;
12. “Person” means any individual, cooperative, partnership, corporation, association, consortium, unincorporated organization, trust, estate, nonprofit institution or any entity organized for a common purpose, and any instrumentality of state or local government;
13. “Project decision schedule” or “schedule” means the timetable set out by the joint review team in which to accomplish the joint review process, submit applications, hold hearings, and obtain approval of involved agencies;
14. “State agency” means any general or special purpose executive agency of Tennessee;
15. “State law” means the laws, rules, resolutions and case law of Tennessee; and
16. “Team leader” means the state or local lead agency which is selected by the joint review team to lead the team and coordinate and supervise the joint review process.

Acts 1981, ch. 131, § 2.

13-18-103. Applications for designation as major energy project, joint review, and expedited review — Revocation or termination — Judicial review.

1. 1. Any person planning or proposing an energy project may apply to the contact agency for an order designating such project as a priority energy project. An application shall include such detailed information concerning the project as the contact agency may require by rule to enable the contact agency to make a designation, including a detailed design proposal for the project, detailed economic data on the costs of the project, and an analysis of environmental impacts of the project; provided, that the adequacy of an application under this section shall not be subject to judicial review.
   2. Not later than five (5) days after the receipt of a designation request, the contact agency shall publish notice of the filing of the designation request, together with a brief description thereof in newspapers of general circulation in the area of the project and in Nashville. The contact agency shall also keep on file and make available for public inspection and copying at the main office of the contact agency and in such other places as the contact agency deems appropriate such portions of the full designation request.
   3. No project shall be designated a major energy project unless the contact agency finds that the project is likely to reduce directly or indirectly the state's dependence on imported energy and meets the capital expenditure requirements set out in § 13-18-102(11).
2. 1. Any person who plans to develop an energy project may request the contact agency to designate the project a major energy project and to approve the project for joint review. The chief executive officer of the contact agency shall determine whether the proposed project is a major energy project and whether it qualifies for the joint review process. The chief executive officer of the contact agency shall consult with agencies who will be involved in issuing permits and with any other agency to determine whether the proposed project should be so designated. If the chief executive officer decides the project should be so designated, the chief executive officer shall recommend the designation to the governor for the governor's concurrence.
   2. If the governor approves designation of the proposed project as a major energy project, the governor shall issue an executive order designating a lead state agency, approving the project for the joint review process, and providing for a joint review staff.
   3. An applicant may request the joint review process for parts of the regulatory as well as for the entire process.
3. 1. In the alternative, any person who plans to develop an energy project may request the contact agency to designate the project a major energy project and to approve the project for expedited review. In the case of a request for expedited review, the applicant shall indicate which agencies or parts of the regulatory process the applicant wishes to have considered under the terms of this chapter. Expedited review shall enjoy the expedited judicial hearings provided for by this chapter. In the case of a request for expedited review, the chief executive officer shall make the determinations provided for in subsections (a) and (b) and submit such chief executive officer's recommendation to the governor. If the governor approves, the governor has to issue an executive order specifying the agencies or parts of the regulatory process to be included in expedited review and the procedure to be followed.
   2. An applicant may seek to be declared a major energy project and to utilize expedited review solely to enjoy any one (1) of the benefits set out in this chapter, such as expedited judicial review or consolidation of hearings, but such applicant shall be limited to the relief sought.
4. A request for designation of a project as a major energy project and use of the joint review process, or for expedited review, shall be approved or rejected within one (1) month of the initial request.
5. Once an energy project has been designated a major energy project, and the joint review process or expedited review process has begun, the designation and process shall not be revoked or terminated unless requested by the applicant or unless procured by fraud or misrepresentation.
6. A decision of the contact agency or governor designating an energy project as a major energy project shall not be subject to judicial review, except for fraud or misrepresentation and no court shall hold unlawful or set aside any department or agency action, finding, rule, or conclusion on the basis of a decision designating an energy project as a major energy project.

Acts 1981, ch. 131, § 3.

13-18-104. Joint review team — State lead agency — Local lead agency.

1. If a project is designated a major energy project and approved for the joint review process, a joint review team shall be formed. The state agencies in the team shall be designated by the governor and shall include all departments or agencies whose approval will be required for any state-issued permit which the project may require. The governor shall designate one (1) agency to be the state lead agency.
2. In addition to state agencies, the team shall include any local agencies whose approvals may be required in the development of the project. The joint review staff shall be responsible for identifying and contacting each involved local agency. If a local government has more than one (1) involved agency, its chief executive officer shall designate the local lead agency.
3. In addition to state and local agencies, federal agencies whose approvals may be required in the development of the project shall be invited to join the team. The joint review staff shall be responsible for identifying and contacting each involved local agency.
4. In addition to all governmental agencies, the team shall include the project applicant as an ex officio member.

Acts 1981, ch. 131, § 4.

13-18-105. Duty of joining local agency to participate in and abide by joint review process schedule.

If a local agency joins the team, the head of that agency and the chief executive officer of the local government in which the agency is located shall agree to participate in the joint review process and abide by the project decision schedule for all locally required permits, licenses, or other approvals. Such agreement shall not negate the independent authority of the local agency or government to issue its ultimate approval or disapproval, so long as such decision is made in accordance with the project decision schedule.

Acts 1981, ch. 131, § 5.

13-18-106. Joining federal agency to cooperate and abide by schedule.

If a federal agency joins the team, it shall abide by the project decision schedule and cooperate in the joint review process, insofar as is possible and consistent with federal law.

Acts 1981, ch. 131, § 6.

13-18-107. Meeting of joint review team — Timing — Notice.

1. After all involved state, local, and federal agencies have been identified, the joint review staff shall call a meeting of the joint review team.
2. Such meeting shall be called not more than six (6) weeks after the project is designated a major energy project, and the participants shall be given at least two (2) weeks notice of the meeting. The notice shall include the time, date and place of the meeting, the agenda to be considered, and any additional information needed to inform participants or the public of the purpose of the meeting. The notice shall be advertised in a newspaper of general circulation.

Acts 1981, ch. 131, § 7.

13-18-108. Selection of team leader — Presentation by applicant — Draft agreement.

1. At the first meeting, the joint review team shall select a participating agency to be team leader.
2. The applicant shall make a presentation to the team at this meeting on the project, stating what actions it has already undertaken, what actions will be undertaken in the future, and what actions it would like the team to take.
3. Based on the information submitted by the applicant to the contact agency, the joint review staff shall submit a draft agreement of responsibilities to the team describing the statutory and regulatory jurisdiction, duties and responsibilities of each permitting and nonpermitting agency at each level of government that may review the proposed project. It shall also describe the responsibilities and general schedule of the applicant.

Acts 1981, ch. 131, § 8.

13-18-109. Second meeting — Completion of agreement of responsibility.

1. After the team members have had a reasonable time to review the draft agreement and the applicant's presentation, but not more than four (4) weeks, the team leader shall call a second meeting. At this meeting the team shall complete the agreement of responsibility. When completed it shall be signed by the team members.
2. Notice of this meeting shall be given in accordance with  § 13-18-107.

Acts 1981, ch. 131, § 9.

13-18-110. Additional meetings.

1. After the agreement of responsibility has been signed, the team shall hold such additional meetings as it deems necessary to hear public comment, to gather information on the project, and clarify the responsibilities of the team members. At these meetings, the team and the applicant shall also develop a tentative project decision schedule.
2. At least two (2) of these meetings shall be held in the vicinity of the project site.
3. Not more than fourteen (14) weeks shall be used to complete this process.
4. Adequate public notice shall be given prior to each meeting, in accordance with § 13-18-107.

Acts 1981, ch. 131, § 10.

13-18-111. Consolidation of applications — Project decision schedule.

1. During the meetings provided for in § 13-18-110, the applicant and the involved agencies shall agree whether or not to attempt a coordination of applications. If possible, the applicant and the team should attempt to agree on one (1) consolidated application designed to satisfy the requirements of all participating agencies without violating administrative and substantive law.
2. If one (1) consolidated application is not possible, the applicant and the team shall endeavor to consolidate as many different applications as possible into one (1) application. It is expected that all state and local applications will be so consolidated.
3. When agreement on consolidation of applications has been reached, a project decision schedule shall be adopted to chart the application and approval process. The schedule may subsequently be modified by the team if necessary, but the general time limits agreed on by the applicant and the permitting agencies should be maintained.

Acts 1981, ch. 131, § 11.

13-18-112. Preapplication meetings — Failure to participate.

1. Beginning as early in the joint review process as possible, but not less than thirty (30) days prior to application, the applicant and permitting agencies shall hold preapplication meetings to determine what each expects from the other so as to accelerate the application process.
2. The applicant shall also meet with public individuals and groups who have expressed or have identified interests in the project, either through the medium of the meeting provided for in §§ 13-18-108 — 13-18-110, or otherwise, to identify and deal with the concerns of such persons.
3. If persons who have had the opportunity to participate in preapplication meetings and raise concerns did not do so, it shall be noted in the application record.
4. Notice of such meetings shall be given in accordance with § 13-18-107.

Acts 1981, ch. 131, § 12.

13-18-113. Implementation and compliance with project decision schedule.

1. When the project decision schedule has been agreed on, the application shall be submitted and actions taken in accordance with it. Each permitting agency and the applicant shall endeavor to comply with the schedule so as to complete the permitting process as expeditiously as possible, with due regard for public health, safety, and welfare, and the rights of the applicant. The team leader shall monitor implementation of the schedule and act to resolve delays or disputes.
2. No project decision schedule shall encompass a period of more than two (2) years unless the team finds that additional time is necessary.
3. The time limits for agencies' actions set out in the project decision schedule shall be followed unless the team determines that different deadlines would help expedite or coordinate government review.
4. Notwithstanding any other provision of law, the time limits and special procedures imposed by the project decision schedule shall constitute the lawful decision-making deadlines and procedures for reviewing applications filed by the applicant.

Acts 1981, ch. 131, § 13.

13-18-114. Special procedures for state agencies authorized.

1. Notwithstanding any other provision of law, the team may establish special procedures in the project decision schedule for any state agency subject to such schedule.
2. Such procedures shall be consistent with all statutes and rules, regulations and orders promulgated by the agency except that the team may require the agency to:
   1. Consolidate, to the maximum extent practicable, its proceedings respecting actions and decisions which are subject to the project decision schedule with the proceedings of other agencies, including other state and local agencies which are also subject to such schedule;
   2. Establish permit, license, and other filing requirements which eliminate unnecessary duplication, and, to the maximum extent practicable, provide for uniform collection, analysis, and reporting of such data;
   3. Substitute legislative-type hearings in lieu of trial-type hearings; provided, that in any cases in which:
      1. A formal hearing including an opportunity for cross-examination of witnesses is authorized by any provision of statute other than this chapter; and
      2. The agency determines there is a genuine and substantial dispute of fact which can only be resolved with sufficient accuracy by the introduction of evidence in a formal hearing;

         the agency shall designate such dispute for resolution in a formal hearing conducted in accordance with the statute providing for such hearing;

   4. Shorten time periods for actions required by agency procedures;
   5. Conduct hearings, except where such hearings are conducted pursuant to subdivision (b)(3), in which parties may submit such written data, views, or arguments and such written responses to the data, views or arguments submitted by other parties, as the team, agency, or the presiding employee may specify and in which oral presentation is limited to brief oral argument with respect to the written submissions;
   6. Establish procedures for issuing final decisions in which the presiding employee at any hearing may be required to certify the hearing record to the agency for decision without an initial decision. Such procedures may also require the presiding employee to submit the record to the agency without a recommended or tentative decision, but with such analysis of the record as the agency may specify. The agency itself shall then make the decision; or
   7. Utilize any combination of procedures authorized by this subsection (b).

Acts 1981, ch. 131, § 14.

13-18-115. Judicial action to enforce schedule.

1. If any state or local agency has failed or is reasonably likely to fail to comply with a project decision schedule, the team leader may bring an enforcement action in the appropriate chancery court.
2. In any action brought under this section, if the court determines that any state or local agency has failed or is reasonably likely to fail to comply with a project decision schedule, the court shall order the agency to act in accordance with the existing schedule where such action would be practical and would not deny any person due process of law.
3. If the court determines that the agency has failed or is reasonably likely to fail to comply with a project decision schedule but that action in accordance with the project decision schedule would clearly be impracticable or would deny any person due process of law, the court shall instruct the team to revise the project decision schedule to require the agency to complete consideration of the applicant's request as soon as practicable, consistent with due process of law. Immediately upon receipt from the team of a certified copy of the revised project decision schedule, the court shall issue an order directing the agency to comply with such schedule.
4. Notwithstanding any other provision of law including any other provision of this chapter, any action brought under this section shall be assigned for hearing and completed at the earliest possible date, shall, to the greatest extent practicable, take precedence over all other matters pending on the docket of the court at the time, and shall be expedited in every way by such court.

Acts 1981, ch. 131, § 15.

13-18-116. Consolidated hearings.

1. If agreed to by the team and the applicant, consolidated hearings shall be used when possible. Such hearings shall include all hearings which agencies would be required to conduct individually. The team and the applicant shall determine which agencies shall be included in the consolidated hearings, but no agency shall be included over the objection of the applicant, if the action required from that agency is merely routine or administrative. If an application by the applicant to a particular agency would not otherwise require a hearing, such agency shall not be included in the consolidated hearing and no action taken in the consolidated hearing shall delay such application.
2. The consolidated hearing is intended to combine public hearings concerned with similar regulatory topics, e.g., water quality, into one (1) hearing, thus avoiding the need for additional individual hearings. Issues to be considered in the hearing must be common to each agency and clearly indicated in the agenda and public notice. A common hearing procedure must be developed that satisfies due process and individual agency statutes. One (1) hearing record should be prepared for use by each agency.
3. Procedural and organizational arrangements for the hearing should be made as far in advance as possible. Guidelines for organizing the hearing are provided below:
   1. The team and applicant should identify those public hearings that could be coordinated. If possible, such identification should occur when the project decision schedule is formulated;
   2. The team, in conjunction with the applicant and relevant agencies, should decide whether it is feasible to coordinate those hearings and which coordinated approach would be desirable;
   3. Assuming coordination is feasible, the team leader should appoint one (1) team member to develop a coordinated hearing plan;
   4. The team member assigned to develop the plan will arrange various meetings, as necessary, with relevant agency representatives, their attorneys and the proponent to develop and review proposed plans;
   5. Once a plan has been agreed upon, the decision schedule should be modified, if necessary, to reflect the hearing agreement;
   6. If the participating agencies and the proponent agree, the team member assigned to coordinate development of the joint hearing plan should continue to coordinate implementation of the plan; and
   7. The coordinated hearing plan should be discussed at one (1) or more team meetings to allow for public comment.

Acts 1981, ch. 131, § 16.

13-18-117. State or local timing provisions modified to coincide with federal law.

To effect maximum consolidation and coordination of the permitting process, any state or local law or regulation on the timing for filing documents, holding hearings, or providing notice is hereby modified to the necessary extent to coincide with the applicable federal law or regulation, if the federal agency involved participates in the joint review process.

Acts 1981, ch. 131, § 17.

13-18-118. Waiver of state or local law enacted after commencement of construction.

1. The joint review team is authorized to waive application of any state or local statutes, regulations, or requirements enacted or promulgated after the commencement of construction of a major energy project, unless the general assembly explicitly prohibits such waiver. No waiver pursuant to this section shall take effect unless:
   1. The team finds that the waiver is necessary to ensure timely and cost-effective completion and operation of the facility; and
   2. The team, after consultation with the agency responsible for implementing the statute, regulation, or requirement to be waived, finds that the waiver will not unduly endanger public health or safety.
2. 1. For the purposes of this section, “commencement of construction” means that the owner or operator of a major energy project has obtained all necessary preconstruction approvals or permits required by state or local laws or regulations and either has:
      1. Begun or caused to begin, a continuous program of physical on-site construction of the facility, including site clearance, grading, dredging, or land filling in preparation for the fabrication, erection, or installation of the building components of the facility; or
      2. Entered into binding agreements or contractual obligations, which cannot be cancelled or modified without substantial loss to the owner or operator, to undertake a program of construction of the facility to be completed within a reasonable time.
   2. For the purpose of this subsection (b), interruptions resulting from acts of God, strikes, litigation, or other matters beyond the control of the owner shall be disregarded in determining whether such construction is continuous.

Acts 1981, ch. 131, § 18.

13-18-119. Modification of project decision schedule.

1. At any time prior to the completion of the major energy project, the joint review team may:
   1. Revise the special procedures for state or local agencies on the project decision schedule;
   2. Add new special procedures for state or local agencies on the project decision schedule;
   3. Revise any deadline on the project decision schedule; or
   4. Add any new deadline on the project decision schedule.
2. No modification in the project decision schedule shall be allowed unless the team determines that:
   1. Such modification would further the purposes of this chapter;
   2. Continued adherence to the schedule would be impractical or would not be in the public interest;
   3. In the case of a request for a modification by an agency, that the agency has exercised due diligence in attempting to comply with the schedule;
   4. In the case of a request for a modification by an applicant, that the applicant has exercised due diligence in attempting to comply with the schedule; and
   5. Except as provided by this section, such modification is consistent with § 13-18-114 and is published in a newspaper of general circulation.

Acts 1981, ch. 131, § 19.

13-18-120. Certification of approvals — Effect.

1. If the joint review team has been notified by the agencies with authority to grant such approvals or perform such actions, or by a reviewing court, that all agency actions and approvals on the project decision schedules relating to a priority energy project:
   1. Have been granted;
   2. Have been performed; or
   3. Are not necessary;

      and if judicial review of such actions or approvals is completed, then the team shall certify the same. Such certification shall indicate any conditions and the expiration date of any approvals that have been granted to the project.

2. A certificate issued by the team under subsection (a) shall constitute conclusive evidence in any judicial or executive proceeding that all actions and approvals necessary to the completion and initial operation of the project have been granted for the duration and subject to the conditions specified on the certificate.

Acts 1981, ch. 131, § 20.

13-18-121. Intervention or appearance in other action.

1. The joint review team, or the applicant individually, may intervene in any state or local agency proceeding if such agency proceeding involves an action pursuant to this chapter or involving the project.
2. The joint review team, or the applicant individually, may appear as a party of right in any judicial proceeding involving an action pursuant to this chapter or involving the project.

Acts 1981, ch. 131, § 21.

13-18-122. Appeals — Consequent revision of project decision schedule.

1. Any judicial appeal which is provided for in the permitting process of any individual agency shall be permitted when such agency joins in the joint review process, and any action of the joint review team in conducting such process may be appealed if such action by the permitting agency would be appealable.
2. Unless specified otherwise, appeals shall be made to the chancery court for Davidson County, and shall be given priority by that court and heard before any other action not already under consideration by that court.
3. Any appeal from a decision of the chancery court shall be made directly to the Tennessee supreme court and be expedited by that court. Any review by the Tennessee supreme court shall be assigned for hearing and completed at the earliest possible date, shall to the greatest extent practicable take precedence over all other matters on the docket of the court at that time, and shall be expedited in every way by such court.
4. Immediately following any decision remanding to an agency any case or controversy involving the validity of this chapter or an action pursuant to this chapter, the joint review team shall revise the project decision schedule as necessary to expedite any further proceedings required by the decision of the court. Such revisions shall be consistent with § 13-18-119.

Acts 1981, ch. 131, § 22.

13-18-123. Time limits for petitions for review.

1. Except as provided by subsection (b), any petition for review of any action pursuant to this chapter or of the validity of this chapter shall be brought not later than twenty (20) days following the date of actual or constructive notice of the final agency action relating to the action which is being challenged.
2. Any petition for review of the reasonableness of any deadline in a project decision schedule shall be brought not later than thirty (30) days after such deadline is listed on the project decision schedule and published in a newspaper of general circulation or such challenge shall be barred. The party challenging the reasonableness of the deadline shall have the burden of proof.
3. Any petition for review of the validity of this chapter or of any action pursuant to this chapter shall be barred unless a complaint is filed prior to the expiration of time limits prescribed by subsections (a) and (b).

Acts 1981, ch. 131, § 23.

13-18-124. Limitations on injunctive relief not part of final judgment.

1. Except as provided in subsection (b), no court shall have jurisdiction to grant any injunctive relief lasting longer than ninety (90) days against any act pursuant to this chapter, except in conjunction with the final judgment entered in a case.
2. No court shall have jurisdiction to grant any injunctive relief preventing the enforcement of a project decision schedule except in conjunction with a final judgment. If the court on review determines that a deadline on a project decision schedule is not reasonable, the court may instruct the board to extend the deadline period.

Acts 1981, ch. 131, § 24.

13-18-125. Expedited review procedure.

If the applicant seeks an expedited review under § 13-18-103(c), the applicant and the agencies which are involved may utilize any provision of this chapter, including project decision schedules, consolidated hearings, and all provisions for expedited judicial review. When using a procedure, such as a project decision schedule, the applicant and the agency or agencies involved in the expedited review, acting together, are authorized to take any action or do anything that a joint review team may or should do, and for that purpose may act as a joint review team.

Acts 1981, ch. 131, § 25.

13-18-126. All state entities authorized to provide assistance — Composition of joint review staff — Loans of personnel.

1. All departments, agencies, or other entities of state government, including the University of Tennessee and institutions operated by the board of regents, are authorized to provide any assistance requested by the joint review team, the team leader, or the contact agency.
2. The joint review staff may be drawn from any of the preceding entities and personnel shall be placed on loan to the team at the request of the team leader. The loan shall continue for the term of the joint review process, and for a reasonable time thereafter, and during such period the compensation, benefits, and expenses of such loaned employee shall continue to be paid by the employing entity.

Acts 1981, ch. 131, § 47.

13-18-127. Rules and regulations.

The contact agency or joint review team or team leader is authorized to promulgate rules and regulations to effectuate the purposes of this chapter. Rules and regulations procedural in nature only shall not be subject to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Any other rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act.

Acts 1981, ch. 131, § 46.

13-18-128. Statutory purpose — Liberal construction.

This chapter is declared to be remedial in nature to reduce the reliance of Tennessee on imported energy products, and this chapter shall be liberally construed to effectuate its purposes and provide for the most rapid development of major energy projects consistent with public health and safety.

Acts 1981, ch. 131, § 45.

13-20-101. Short title.

This chapter may be referred to as the “Housing Authorities Law.”

Acts 1935 (Ex. Sess.), ch. 20, § 1; C. Supp. 1950, § 3647.1; T.C.A. (orig. ed.), § 13-801.

Textbooks. Tennessee Jurisprudence, 19 Tenn. Juris., Municipal, State and County Aid, § 2.

Law Reviews.

Local Government Law — 1955 Tennessee Survey (Clyde L. Ball), 8 Vand. L. Rev. 1061.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

Attorney General Opinions. Housing authority as municipal agency exempt from contractor licensing requirement, OAG 99-013, 1999 Tenn. AG LEXIS 1 (1/25/99).

Applicability of statutes pertaining to public purchasing and public contracting, and governing general contractors, to housing authorities established by municipalities or counties pursuant to T.C.A. §§ 13-20-101 et seq., OAG 05-170, 2005 Tenn. AG LEXIS 172 (11/21/05).

13-20-102. Chapter definitions.

As used in this chapter, unless the context otherwise requires:

1. “Authority” or “housing authority” means a public body and a body corporate and politic organized in accordance with this chapter for the purposes, with the powers, and subject to the restrictions, hereinafter set forth;
2. “Bonds” means any bonds, interim certificates, notes, debentures, or other obligations of the authority issued pursuant to this chapter;
3. “Business” means any lawful activity conducted primarily:
   1. For the purchase, sale, lease and rental of personal and real property, and for the manufacturing, processing, or marketing of products, commodities, or any other personal property;
   2. For the sale of services to the public; or
   3. By a nonprofit organization;
4. “City” means the city or town which is, or is about to be, included in the territorial boundaries of an authority when created hereunder;
5. “City clerk” and “mayor” means the clerk and mayor, respectively, of the city, or the officers thereof, charged with the duties customarily imposed on the clerk and mayor, respectively;
6. “Commissioner” means one (1) of the members of an authority appointed in accordance with this chapter;
7. “Community facilities” includes real and personal property, and buildings and equipment for recreation or social assemblies, for educational, health or welfare purposes and necessary utilities when designed primarily for the benefit and use of the housing authority and/or the occupants of the dwelling accommodations;
8. “Contract” means any agreement of an authority with or for the benefit of an obligee whether contained in a resolution, trust indenture, mortgage, lease, bond or other instrument;
9. “Council” means the legislative body, council, board of commissioners, board of trustees, or other body charged with governing the city;
10. “Dwelling unit” means a building or structure used as a place of residence;
11. “Farmers of low income” means persons or families who at the time of their admission to occupancy in a dwelling of the authority:
    1. Live under unsafe or unsanitary housing conditions;
    2. Derive their principal income from operating or working upon a farm; and
    3. Had an aggregate average annual net income for the three (3) years preceding their admission that was less than the amount determined by the authority to be necessary, within its area of operations, to enable them, without financial assistance, to obtain decent, safe, and sanitary housing, without overcrowding;
12. “Federal government” includes the United States, or any agency, instrumentality, corporate or otherwise, of the United States;
13. “Governing body” means the council of any city;
14. “Government” includes the state and federal governments and any subdivision, agency or instrumentality, corporate or otherwise, of either of them;
15. 1. “Housing project” includes all real and personal property, buildings and improvements, stores, offices, lands for farming and gardening, and community facilities acquired or constructed or to be acquired or constructed pursuant to a single plan or undertaking, to:
       1. Demolish, clear, remove, alter or repair unsanitary or unsafe housing; and/or
       2. Provide safe and sanitary dwelling accommodations for persons of low income;
    2. “Housing project” may also be applied to the planning of the buildings and improvements, the acquisition of property, the demolition of existing structures, the construction, reconstruction, alteration and repair of the improvements, and all other work in connection therewith. “Housing project” may also include such buildings and equipment for recreational or social assemblies for educational, health or welfare purposes, and such necessary utilities, as are designed primarily for the benefit and use of the housing authority and/or the occupants of such dwelling accommodations;
16. “Mixed-finance project” means a project that is financially assisted by private resources, which may include low-income housing tax credits, in addition to an amount provided under any state or federal program. “Mixed-finance project” includes a project that is developed by:
    1. An authority or by an entity affiliated with an authority;
    2. A partnership, a limited liability company, or other entity in which the authority, or an entity affiliated with an authority, is a general partner, managing member, or otherwise participates in the activities of the entity; or
    3. Any entity that grants to the authority the right of first refusal and first option to purchase, after the close of the compliance period, the qualified low-income building in which the public housing units exist in accordance with the Internal Revenue Code of 1986, § 42(i)(7) (26 U.S.C. § 42(i)(7));
17. “Mortgage” includes deeds of trust, mortgages, building and loan contracts or other instruments conveying real or personal property as security for bonds and conferring a right to foreclose and cause a sale thereof;
18. “Municipality” means any city, town, or village or other municipality in the state;
19. “Obligee of the authority” or “obligee” includes any bondholder, trustee or trustees for any bondholders, any lessor demising property to the authority used in connection with a housing project or any assignee or assignees of the lessor's interest or any part thereof, and the United States, when it is a party to any contract with the authority;
20. “Persons of low income” means persons or families who lack the amount of income which is necessary, as determined by the authority undertaking the housing project, to enable them, without financial assistance, to live in decent, safe, and sanitary dwellings, without overcrowding;
21. “Real property” includes lands, lands under water, structures, and any and all easements, franchises and incorporeal hereditaments and every estate and right therein, legal and equitable, including terms for years and liens by way of judgment, mortgage or otherwise;
22. “Representative district” means any division or district of any city or municipality which is created for the purpose of electing a representative to the governing body of the city or municipality;
23. “State” means the state of Tennessee;
24. “Taxing agency” means any county, city, town or metropolitan government in the state; and
25. “Trust indenture” includes instruments pledging the revenues of real or personal properties but not conveying such properties or conferring a right to foreclose and cause a sale thereof.

Acts 1935 (Ex.Sess.), ch. 20, § 3; 1935 (Ex.Sess.), ch. 44, § 2; 1935 (Ex.Sess.), ch. 45, § 2; 1937, ch. 234, § 1; 1943, ch. 22, §§ 2-4; C. Supp. 1950, § 3647.2 (Williams, §§ 3647.3, 3647.31, 3647.38); Acts 1965, ch. 193, § 1; 1972, ch. 690, § 1; 1978, ch. 854, § 1; T.C.A. (orig. ed.), § 13-802; Acts 1999, ch. 243, § 2.

Cross-References. Farmers of low income, §§ 13-20-501, 13-20-508, 13-20-509, 13-20-510.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-103. Meetings and residence of commissioners.

Nothing contained in this chapter shall be construed to prevent meetings of the commissioners anywhere within the perimeter boundaries of the area of operation of the authority or within any additional area where the housing authority is authorized to undertake a housing project, nor to prevent the appointment of any person as a commissioner of the authority who resides within such boundaries or such additional area, and who is otherwise eligible for such appointment under this chapter.

Acts 1935 (Ex. Sess.), ch. 20, § 44, as added by Acts 1943, ch. 22, § 6; C. Supp. 1950, § 3647.29H (Williams, § 3647.29t); T.C.A. (orig. ed.), § 13-803.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

Attorney General Opinions. Residency requirements for city housing authority commissioners, OAG 99-075, 1999 Tenn. AG LEXIS 75 (4/5/99).

Residency requirement for commissioners of city housing authority, OAG 04-092, 2004 Tenn. AG LEXIS 101 (5/13/04).

13-20-104. Powers of housing authority.

1. An authority has the power to:
   1. Investigate into living, dwelling and housing conditions and into the means and methods of improving such conditions;
   2. Determine where unsafe, or unsanitary dwelling or housing conditions exist;
   3. Study and make recommendations, in cooperation with any city, municipal or regional planning commission, concerning the plan of any city or municipality located within its boundaries in relation to the problem of clearing, replanning and reconstruction of areas in which unsafe, or unsanitary dwelling or housing conditions exist, and concerning provisions for dwelling accommodations for persons of low income;
   4. Prepare, carry out and operate housing projects;
   5. Provide for the construction, reconstruction, rehabilitation, improvement, alteration or repair of any housing project or any part thereof by direct sponsorship of the authority, by the purchase of a mortgage or by the making of a mortgage loan to a not-for-profit entity or corporation. In the event it becomes necessary for an authority to issue bonds for the obtaining of capital to purchase a mortgage or the making of a mortgage loan as provided for in this section, the bond issue shall first be approved by ordinance or resolution of the local governing body;
   6. Own, operate, assist, or otherwise participate in one (1) or more mixed-finance projects to provide for the construction, reconstruction, rehabilitation, improvement, alteration or repair of any housing project or any part thereof. An authority may provide capital assistance, operating assistance and financing assistance to a mixed-finance project in the form of a grant, loan, guaranty, collateralization or other form of investment in the project, or other form of public or private borrowings, for the construction or rehabilitation of a housing project;
   7. Take over by purchase, lease or otherwise any housing project located within its boundaries undertaken by any government, or by any city or municipality located in whole or in part within its boundaries;
   8. Manage as agent of any city or municipality located in whole or in part within its boundaries any housing project constructed or owned by such city;
   9. Act as agent for the federal government in connection with the acquisition, construction, operation and/or management of a housing project or any part thereof;
   10. Arrange with any city or municipality located in whole or in part within its boundaries or with a government for the furnishing, replanning, installing, opening or closing of streets, roads, roadways, alleys, sidewalks or other places or facilities;
   11. Arrange for the acquisition by such city, municipality, or government of property, option or property rights;
   12. Arrange for the furnishing of property or services in connection with a project;
   13. Arrange with the state, its subdivisions and agencies, and any county, city or municipality of the state, to the extent that it is within the scope of each of their respective functions:
       1. Cause the services customarily provided by each of them to be rendered for the benefit of such housing authority and/or the occupants of any housing projects;
       2. Provide and maintain parks and sewerage, water and other facilities adjacent to or in connection with housing projects; and
       3. Change the city or municipality map, to plan, replan, zone or rezone any part of the city or municipality;
   14. Lease or rent any of the dwellings or other accommodations or any of the lands, buildings, structures or facilities embraced in any housing project and to establish and revise the rents or charges therefor;
   15. Enter upon any building or property in order to conduct investigations or to make surveys or soundings;
   16. Purchase, lease, obtain options upon, acquire by gift, grant, bequest, devise, or otherwise, any property, real or personal or any interest therein from any person, firm, corporation, city, municipality, or government;
   17. Acquire by eminent domain any real property, including improvements and fixtures thereon except as provided in § 13-20-105;
   18. Sell, exchange, transfer, assign, or pledge any property, real or personal or any interest therein to any person, firm, corporation, municipality, city, or government;
   19. Own, hold, clear and improve property;
   20. Insure or provide for the insurance of the property or operations of the authority against such risks as the authority may deem advisable;
   21. Procure insurance or guarantees from the federal government of the payment of any debts or parts thereof secured by mortgages made or held by the authority on any property included in any housing project;
   22. Borrow money upon its bonds, notes, debentures, or other evidences of indebtedness and secure the same by pledges of its revenues, and, subject to the limitations hereinafter imposed, by mortgages upon property held or to be held by it, or in any other manner;
   23. In connection with any loan, agree to limitations upon its right to dispose of any housing project or part thereof or undertake additional housing projects;
   24. In connection with any loan by a government, agree to limitations upon the exercise of any powers conferred upon the authority by this chapter;
   25. Invest any funds held in reserve or sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control;
   26. Sue and be sued;
   27. Have a seal and alter the same at pleasure;
   28. Have a perpetual succession;
   29. Make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority;
   30. Make and from time to time amend and repeal bylaws, rules and regulations not inconsistent with this chapter;
   31. Conduct examinations and investigations and hear testimony and take proof under oath at public or private hearings on any matter material for its information;
   32. Issue subpoenas requiring the attendance of witnesses for the production of books and papers and to issue commissions for the examination of witnesses who are out of the state or unable to attend before the authority, or are excused from attendance;
   33. Make available to such agencies, boards or commissions as are charged with the duty of abating or requiring the correction of nuisance or like conditions, or of demolishing unsafe or unsanitary structures within its territorial limits, its findings and recommendations with regard to any building or property where conditions exist which are dangerous to the public health, morals, safety or welfare;
   34. Provide consulting services to housing authorities outside the housing authority’s territorial jurisdiction;
   35. Enter into management contracts with other authorities outside the authority's territorial jurisdiction, which provide for the management of all or any part of the operations of an authority or all or any part of a housing project or a mixed-finance project of an authority; and
   36. Enter into agreements with municipalities under which the authority agrees to exercise any or all powers of an authority under this chapter relating to redevelopment or urban renewal projects for such municipality with respect to one (1) or more redevelopment or urban renewal projects, including, but not limited to, holding public hearings, preparing redevelopment and urban renewal plans and managing redevelopment projects; provided, however, that all debt related to such redevelopment projects must be issued by the housing authority for the jurisdiction subject to the agreement and the housing authority for the jurisdiction subject to the agreement must consent to such agreement by resolution. Any municipality may enter into an agreement described in this subsection (a).
2. Any of the investigations or examinations provided for in this chapter may be conducted by the authority or by a committee appointed by it, consisting of one (1) or more commissioners, or by counsel, or by an officer or employee specially authorized by the authority to conduct it. Any commissioner, counsel for the authority, or any persons designated by it to conduct an investigation or examination shall have power to administer oaths, take affidavits and issue subpoenas or commissions. An authority may exercise any or all of the powers herein conferred upon it, either generally or with respect to a specific housing project or projects through or by an agent or agents which it may designate, including any corporations which are or shall be formed under the laws of this state, and for such purposes, an authority may cause one (1) or more corporations to be formed under the laws of this state or may acquire the capital stock of any corporation or corporations. All housing project property owned by a corporate agent of a housing authority is subject to the control of and is deemed to be property of the housing authority. Any corporate agent may, to the extent permitted by law, exercise any of the powers herein conferred upon the authority. For purposes of this subsection (b), “corporation” shall include both for-profit corporations and nonprofit corporations.
3. In addition to all of the other powers herein conferred upon it, an authority may do all things necessary and convenient to carry out the purposes and provisions of this chapter. No provisions with respect to the acquisition, operation or disposition of property by other public bodies shall be applicable to an authority unless the general assembly shall specifically so state.
4. Notwithstanding anything to the contrary contained in this chapter or in any other provision of law, an authority may include, in any contract let in connection with a project, stipulations requiring that the contractor and any subcontractor comply with requirements as to minimum wages and maximum hours of labor, and comply with any conditions which the federal government may have attached to its financial aid of the project.
5. 1. Notwithstanding anything to the contrary contained in this chapter or in any other provision of law, an authority shall not initiate any public housing project under this chapter or any other provision of law until the governing body, or agency designated by it or empowered by law to act, of each city or municipality, in which any of the area to be covered by the project is situated in a representative district thereof, has approved the proposed public housing project plan, which provides an outline for the development, construction, lease, or purchase of the proposed housing project and is sufficiently complete to indicate its relationship to definite local objectives of appropriate land use and providing decent, safe, and sanitary housing for persons of low income.
   2. 1. Such cities or municipalities are hereby authorized to approve public housing project plans through their governing body or agency designated by it for that purpose.(B)  The governing body shall not approve a public housing project plan until after a public hearing has been held by the governing body, or the agency designated by it or empowered by law so to act, to determine the necessity for the adoption of the public housing project proposal. Notice of the public hearing shall be given, by publishing once a week for three (3) consecutive weeks immediately preceding the public hearing in a newspaper of general circulation published in the city or municipality, providing notice of the time, place, and purpose of the public hearing and identifying at least two (2) locations, one (1) of which shall be the offices of the authority, where a map of the area to be included in the proposed public housing project, with the streets or other lines marking the boundaries of the area clearly indicated, may be reviewed by interested persons; and
      2. The failure to give the notice required in subdivision (e)(2)(B) may be asserted only by an owner having interest in property or an occupant of a business or dwelling unit thirty (30) days prior to the date of public hearing within the representative district in which a public housing project, as authorized pursuant to this chapter, both under the public or private acts, is proposed to be developed, constructed, leased, or purchased as a cause of action on the trial of the issue of the right of the housing authority to develop, construct, lease, or purchase the public housing project, and such failure to give notice as required in subdivision (e)(2)(B) constitutes a cause of action unless, in the judgment of the court trying such issue, there has been compliance with subdivision (e)(2)(B).
   3. For purposes of this subsection (e), “public housing project” shall mean housing units that are subject to a housing authority's annual contribution contract with the United States department of housing and urban development.
6. 1. “Low-income housing tax credit (LIHTC) property” means low-income housing property restricted under government regulations pursuant to § 42 of the Internal Revenue Code of 1986 (26 U.S.C. § 42), the low-income housing tax credit program.
   2. Upon the affirmative vote of a majority of the members of its governing body, the city or county for which a housing authority is created may delegate to such housing authority the authority to negotiate and accept payments in lieu of ad valorem taxes from the housing authority's lessees operating LIHTC property; provided, however, that such authorization shall be granted only upon a finding that such payments are deemed to be in furtherance of the housing authority's public purposes. The housing authority shall submit each such agreement to the city or county legislative body of all affected taxing jurisdictions for approval.
   3. Before October 1 of each year, a housing authority to which authority to negotiate payments in lieu of taxes has been delegated by a city or county shall submit to the state board of equalization an annual report containing a list of all the real and personal property owned by the housing authority and its associated entities and subsidiaries with respect to which payments in lieu of ad valorem taxes have been negotiated and accepted; the value of each listed property, as estimated by the lessee of the property; the date and term of the lease for each listed property; the amount of payments made in lieu of property taxes for each listed property; the date each listed property is scheduled to return to the regular tax rolls; and a calculation of the taxes which would have been due for each listed property if the properties were privately owned or otherwise subject to taxation. Each lessee of the housing authority shall be responsible for the timely completion and filing of the report, and failure to timely complete and file the report shall subject such lessees to a penalty equivalent to that applicable to similar lessees of industrial development corporations; provided, that no lessee shall be liable who has provided the state board of equalization information required by this section as may be pertinent to property leased by the lessee from the housing authority.
7. 1. If any two (2) authorities determine it to be in the best interest of each authority to merge, each such authority shall approve the merger by resolution. Any such resolution shall include the name of each authority involved in the merger, identify the surviving authority into which each authority plans to merge and the terms and conditions of the merger. Any such resolution shall be filed with each city or county that created each authority that is subject to the merger, and if the governing body of each such city or county approves such merger by resolution, the authorities may proceed with the merger. Upon the effective date of the merger:
      1. Every other authority that is a party to the merger shall merge into the surviving authority and the separate existence of every authority except the surviving authority shall cease;
      2. The title to all real estate and other property owned by each authority that is a party to the merger shall be vested in the surviving authority without reversion or impairment;
      3. The surviving authority shall be deemed to have assumed all liabilities and obligations of each authority that is a party to the merger;
      4. A proceeding pending against any corporation that is a party to the merger may be continued as if the merger did not occur or the surviving corporation may be substituted in the proceeding for the authority whose existence ceased; and
      5. The board of commissioners of the surviving entity shall remain unchanged.
   2. Upon the effective date of any such merger, the boundaries of the authority shall be deemed to be the collective boundaries of the merged authorities.
   3. The surviving authority for purposes of this chapter shall continue to be considered a city, county or regional authority as was the case prior to the merger, and the appointment and composition of the board of commissioners of the surviving authority shall not change.
   4. The power to merge authorities under this subsection (g) is supplemental to all other powers granted under this chapter to consolidate authorities or to create regional authorities.
   5. A notice of any merger of authorities pursuant to this subsection (g) shall be filed with the secretary of state.
8. If an authority determines it to be in its best interest to dissolve, the authority shall approve such dissolution by resolution. Such resolution shall include a statement providing for the distribution of assets upon the completion of dissolution of the authority. Upon adoption of such resolution, subject to any approval required by the charter or bylaws of the authority and upon the approval by resolution by the governing body of each municipality or county that created such authority, articles of dissolution and termination setting forth the name of the authority, the date of its incorporation and a statement that the authority has approved the dissolution of the authority and the date on which such approval was given shall be delivered to the secretary of state. Upon filing the articles of dissolution with the secretary of state, the corporate existence of the authority shall terminate except for the purpose of conducting activities to wind up and liquidate its affairs, including collecting its assets, conveying and disposing of its properties that will not be distributed in kind, discharging or making provisions for discharging its liabilities, and returning, transferring or conveying assets held by the authority upon a condition requiring return, transfer or conveyance, which condition occurs by reason of the dissolution, in accordance with such condition, transferring, subject to any contractual or legal requirements, its assets as provided or authorized by its charter or bylaws.

Acts 1935 (Ex. Sess.), ch. 20, § 9; 1937, ch. 234, § 3; mod. C. Supp. 1950, § 3647.8 (Williams, § 3647.9); Acts 1972, ch. 690, § 2; 1976, ch. 729, § 1; T.C.A. (orig. ed.), § 13-804; Acts 1995, ch. 442, § 1; 1999, ch. 243, § 1; 2002, ch. 815, § 2; 2006, ch. 999, §§ 1-4; 2012, ch. 706, §§ 1-3; 2015, ch. 222, § 1.

Cross-References. Contracts with federal government authorized, § 13-20-610.

Law Reviews.

Real Property — 1955 Tennessee Survey (Wade H. Sides, Jr.), 8 Vand. L. Rev. 1110.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

Attorney General Opinions. A housing authority may designate a non-profit corporation as its corporate agent, OAG 01-135, 2001 Tenn. AG LEXIS 142 (8/31/01).

13-20-105. Private property — Taking by eminent domain restricted under certain conditions.

A housing authority created under this chapter shall not have the power to take by eminent domain private property in an urban renewal area for the purpose of resale, if the owner of same desires to develop such owner's own property and if the designated reuse of the property in the urban renewal plan is such that the owner's parcel can be redeveloped by itself without affecting the objectives of the urban renewal plan as to the owner's parcel or adjoining or adjacent properties thereto, and the owner signs an agreement with the housing authority to abide by the urban renewal plan, in any development thereof.

Acts 1972, ch. 711, § 1; T.C.A., § 13-833.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-106. Housing research and studies.

In addition to all its other powers, any authority may, within its area of operation, undertake and carry out studies and analyses of the housing needs, and of the meeting of such needs, including data with respect to population and family groups and the distribution thereof according to income groups, the amount and quality of available housing and its distribution according to rentals and sales prices, employment, wages and other factors affecting the local housing needs and the meeting thereof, and make the results of such studies and analyses available to the public and the building, housing and supply industries, and may also engage in research and disseminate information on the subject of housing.

Acts 1935 (Ex. Sess.), ch. 20, § 49, as added by Acts 1945, ch. 102, § 1; C. Supp. 1950, § 3647.29M (Williams, § 3647.29y); T.C.A. (orig. ed.), § 13-805.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-107. Cooperation of authorities in exercise of powers.

Any two (2) or more authorities may join or cooperate with one another in the exercise, either jointly or otherwise, of any or all of their powers for the purpose of financing, including the issuance of bonds, notes or other obligations and giving security therefor, planning, undertaking, owning, construction, operating or contracting with respect to a housing project or projects located within the boundaries of any one (1) or more of the authorities. For such purposes, an authority may by resolution prescribe and authorize any other housing authority or authorities, so joining or cooperating with it, to act on its behalf with respect to any or all of such powers. Any authorities joining or cooperating with one another may by resolution appoint from among the commissioners of such authorities an executive committee with full power to act on behalf of such authorities with respect to any or all of their powers, as prescribed by resolutions of such authorities.

Acts 1935, (Ex. Sess.), ch. 20, § 10; 1943, ch. 22, § 5; C. Supp. 1950, § 3647.9 (Williams, § 3647.10); T.C.A. (orig. ed.), § 13-806.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-108. Eminent domain used to acquire land for housing projects and by United States agencies.

1. A housing authority as defined in § 13-20-102 and any corporation, which is an agency of the United States, shall, upon the adoption of a resolution declaring that the acquisition of the property described therein is in the public interest and necessary for public use, have the right to acquire by eminent domain any real property, including improvements and fixtures thereon, which it may deem necessary for a housing project being constructed, operated or aided by it or the United States. Any corporation borrowing money or receiving other financial assistance from the United States or any agency thereof for the purpose of financing the construction or operation of any housing project or projects, the operation of which will be subject to public supervision or regulation, shall have the right to acquire by eminent domain any real property, including fixtures and improvements thereon which it may deem necessary for such project. A housing project shall be deemed to be subject to public supervision or regulation within the meaning of this chapter if the rents to be charged are in any way subject to the supervision, regulation or approval of the United States, the state or any of their subdivisions or agencies, or by a housing authority, city, municipality or county, whether such right to supervise, regulate or approve is by virtue of any law, statute, contract or otherwise.
2. The power of eminent domain hereinabove conferred may be exercised pursuant to either:
   1. Title 29, chapter 16; title 29, chapter 17, part 5; and any amendments thereto; or
   2. Pursuant to any other applicable statutory provisions, now in force or hereafter enacted, for the exercise of the power of eminent domain.
3. Property already devoted to a public use may be acquired; provided, that no property belonging to any city or municipality or to any government may be acquired without its consent and that no property belonging to a public utility corporation may be acquired without the approval of the commission or other officer or tribunal, if any there be, having regulatory power over such corporation.
4. Whenever the power of eminent domain as herein conferred shall be exercised, in estimating the damages, the jury or jury of view, as the case may be, shall give the value of the land or rights taken without deduction, together with incidental damages, if any. Where the removal of furniture, household belongings, fixtures, merchandise, stock in trade, inventories, equipment or machinery is made necessary by the taking, the reasonable expense of such removal shall be considered in assessing incidental damages. The reasonable expense of the removal of such chattels shall be construed as including the cost of any necessary disconnection, dismantling or disassembling, the loading, and drayage to another location not more than ten (10) miles distant, and the reassembling, reconnecting, and installing in such new location. This provision shall only apply when the power of eminent domain is exercised under this section.

Acts 1935 (Ex.Sess.), ch. 20, § 11; 1935 (Ex.Sess.), ch. 44, § 3; C. Supp. 1950, § 3647.10 (Williams, §§ 3647.11, 3647.39); Acts 1965, ch. 191, § 1; T.C.A. (orig. ed.), § 13-807; Acts 2014, ch. 927, § 9.

Law Reviews.

The Private Use of Public Power: The Private University and the Power of Eminent Domain; Part Two, Private University Expansion Through Eminent Domain — Section 112 of the Federal Urban Renewal Program, 27 Vand. L. Rev. 681, 705.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-109. Acquisition of land for government.

The authority may acquire by purchase or by the exercise of its power of eminent domain as provided in § 13-20-108, any property real or personal for any housing project being constructed or operated by a government. The authority upon such terms and conditions, with or without consideration, as it shall determine, may convey title or deliver possession of such property so acquired or purchased to such government for use in connection with such housing project.

Acts 1935 (Ex. Sess.), ch. 20, § 12; C. Supp. 1950, § 3647.11 (Williams, § 3647.12); T.C.A. (orig. ed.), § 13-808.

Law Reviews.

The Private Use of Public Power: The Private University and the Power of Eminent Domain; Part Three, Private University Expansion Through Section 112 — A Case Study, IV (formal planning), 27 Vand. L. Rev. 681, 733.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-110. Conveyance, lease or agreement in aid of housing project.

1. For the purpose of aiding and cooperating in the planning, construction and operation of housing projects located within their respective territorial boundaries, the state, its subdivisions and agencies, and any county, city, or municipality of the state may, upon such terms and for such consideration as it may determine:
   1. Grant, sell, convey or lease any of its property to a housing authority or the United States or any agency thereof;
   2. To the extent that it is within the scope of each of their respective functions:
      1. Cause the services customarily provided by each of them to be rendered for the benefit of the housing authority and/or the occupants of such housing projects;
      2. Provide and maintain parks and sewage, water and other facilities adjacent to or in connection with housing projects; and
      3. Enter into any agreements to open, close, pave, install, or change the grade of streets, roads, roadways, alleys, sidewalks, or other such facilities, to change the city or municipality map, to plan, replan, zone or rezone any part of the city or municipality;
   3. Enter into agreements with respect to the exercise of its powers relating to the repair, elimination or closing of unsafe, unsanitary or unfit dwellings; and
   4. Do any and all things necessary to aid and cooperate in the planning, construction and operation of housing projects by the United States and by housing authorities.
2. In connection with the exercise of these powers, any city or municipality may incur the entire expense of any such public improvement located within its territorial boundaries without assessment against abutting property owners.
3. Any law to the contrary notwithstanding, any grant, sale, conveyance, lease or agreement provided for in this section may be made without appraisal, public notice, advertisement or public bidding.

Acts 1935 (Ex. Sess.), ch. 45, § 3; 1939, ch. 154, § 1; mod. C. Supp. 1950, § 3647.29V (Williams, § 3647.32); T.C.A. (orig. ed.), § 13-809.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-111. Federal projects acquired by authority.

With respect to any housing project which a housing authority has acquired or taken over from the federal government and which the housing authority by resolution has found and declared to have been constructed in a manner that will promote the public interest and afford necessary safety, sanitation and other protection, no municipality shall require any changes to be made in the housing project or the manner of its construction or take any other action relating to such construction.

Acts 1935 (Ex. Sess.), ch. 45, § 10, as added by Acts 1937, ch. 225, § 1; C. Supp. 1950, § 3647.29Z (Williams, § 3647.36c); T.C.A. (orig. ed.), § 13-810.

Cross-References. Contracts with federal government authorized, § 13-20-610.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-112. Zoning and building laws.

All housing projects of an authority shall be subject to the planning, zoning, sanitary and building laws, ordinances and regulations applicable to the locality in which the housing project is situated.

Acts 1935 (Ex. Sess.), ch. 20, § 13; C. Supp. 1950, § 3647.12 (Williams, § 3647.13); T.C.A. (orig. ed.), § 13-811.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-113. Rentals and tenant selection.

1. In the operation or management of housing projects, an authority shall at all times observe the following duties with respect to rentals and tenant selection:
   1. It may rent or lease the dwelling accommodations therein only to persons of low income;
   2. It may rent or lease the dwelling accommodations therein only at rentals within the financial reach of such persons of low income;
   3. It may rent or lease to a tenant dwelling accommodations consisting of the number of rooms, but no greater number, which it deems necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding; and
   4. It shall not accept any person as a tenant in any housing project if the person or persons who would occupy the dwelling accommodations have an annual net income in excess of five (5) times the annual rental of the quarters to be furnished such person or persons, except that in the case of families with three (3) or more minor dependents, such ratio shall not exceed six (6) to one (1). In computing the rental for this purpose of selecting tenants, there shall be included in the rental the average annual cost, as determined by the authority, to the occupants, of heat, water, electricity, gas, cooking range and other necessary services or facilities, whether or not the charge for such services and facilities is in fact included in the rental.
2. Nothing contained in this chapter shall be construed as limiting the power of an authority to:
   1. Vest in an obligee the right, in the event of a default by the authority, to take possession of a housing project or cause the appointment of a receiver thereof, free from all the restrictions imposed by the law, with respect to rentals, tenant selection, manner of operation, or otherwise; or
   2. Pursuant to § 13-20-604, vest in obligees the right, in the event of a default by the authority, to acquire title to a housing project or the property mortgaged by the housing authority, free from all the restrictions imposed by this chapter, except those imposed by §§ 13-20-604 and 13-20-609.

Acts 1935 (Ex. Sess.), ch. 20, § 32, as added by Acts 1937, ch. 234, § 5; 1939, ch. 74, § 2; C. Supp. 1950, § 3647.25 (Williams, § 3647.29b); T.C.A. (orig. ed.), § 13-812.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-114. Continuing counseling and education programs for tenants of housing projects.

1. In the operation and management of housing projects, an authority may assist in the establishment and development of a continuing program of counseling and education for its tenants on household management, self-help, budgeting and money management, consumer education and related counseling and educational services which will assist its tenants in improving their living conditions and ability to purchase a home.
2. Such program may include a credit union for the tenants.
3. Such programs should be developed and scheduled to encourage maximum participation of the tenants.

Acts 1972, ch. 668, § 1; T.C.A., § 13-832.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-115. Reasons for eviction.

Local housing authorities shall furnish an evicted tenant with the reasons for such tenant's eviction from a housing project upon the request of the evicted tenant.

Acts 1973, ch. 153, § 1; T.C.A., § 13-834.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-116. Housing or domiciliary care for aged persons — Daily contact and care for tenants.

Any agency of the state or any county, city, metropolitan government or other political subdivision of the state, including, but not limited to, any public housing authority or housing development agency, which operates any program providing housing or domiciliary care for aged persons which, as used herein, means persons sixty-five (65) years of age or older, in buildings which exceed three (3) stories in height, shall, as a part of such operation or program, make arrangements, where funds are made available to it for that purpose, to provide some person or persons each day to contact individually by telephone, in person or in any other effective manner, each aged person in residence, to check upon each aged person's physical well-being and comfort and, in the event and only in the event, such person requests and is in apparent need of medical or social assistance or care, to promptly contact appropriate agencies and request such assistance and care in behalf of any such person. Where public funds are not made available specifically to defray any increased costs caused by such arrangements, the agency shall not be required to provide the arrangements or program out of its funds budgeted for other purposes, but shall nevertheless adopt and implement a program to organize, develop and utilize private individual and organizational resources or any other public agency resources which may be available to carry out the arrangements, either on a volunteer basis or on any other basis which such agency may find to be reasonably feasible within its budgetary or other resources or from funds or resources made available to it from any lawful source, public or private.

Acts 1974, ch. 692, § 1; T.C.A., § 13-835.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-117. Authority membership in metropolitan cities and counties.

1. In any city or county with a metropolitan form of government, the membership of the housing authority shall be increased by two (2) additional members, which additional members shall be residents of low-rent public housing or housing projects.
2. One (1) of the commissioners authorized pursuant to § 13-20-408 of any housing authority in any county having a population of not less than three hundred nineteen thousand six hundred twenty-five (319,625) nor more than three hundred nineteen thousand seven hundred twenty-five (319,725), according to the 1980 federal census or any subsequent federal census, shall be a resident of low-rent public housing or a housing project to be appointed by the mayor of the municipality creating such authority for a term of two (2) years, notwithstanding § 13-20-408. The first resident appointment shall be made to fill the first expired term of a commissioner occurring after March 17, 1988.

Acts 1983, ch. 49, § 1; 1988, ch. 568, § 1.

Compiler's Notes.  For table of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

13-20-118. Immunity of officials.

The individual commissioners, directors, supervisory employees, and supervisory agents of a housing authority, whether such housing authority is formed under this chapter or by private act, while acting in the scope of their authority, including those entities that a housing authority or entity affiliated with an authority may form, incorporate, or join as a partner or member to develop or manage a mixed-finance project, and the directors, supervisory employees, and supervisory agents of such entities, while acting in the scope of their authority for the development or management of the mixed-finance project, enjoy the same protections and immunities that are presently provided for housing authority corporations under the law of this state, and any protections and immunities that may be provided to housing authorities in the future under the law of this state.

Acts 1984, ch. 747, § 1; 2018, ch. 664, § 1.

Law Reviews.

Tort Law–Negligence–Landlords' Duty Of Care To Tenants in Tennessee (Yusuf Malik), 77 Tenn. L. Rev. 471 (2010).

Part 2
Redevelopment

13-21-101. Part definitions.

As used in this part, unless the context otherwise requires:

1. “Dwelling” means any building or structure, or part thereof, used and occupied for human occupation or use or intended to be so used, and includes any outhouses and appurtenances belonging thereto or usually enjoyed therewith;
2. “Governing body” means the council, commission, or board, or other legislative body, charged with governing a municipality;
3. “Municipality” means any city or town;
4. “Owner” means the holder of the title in fee simple and every mortgagee of record;
5. “Parties in interest” means all individuals, associations, corporations and others who have interests of record in a structure and any who are in possession thereof;
6. “Place of public accommodation” means any building or structure in which goods are supplied or services performed, or in which the trade of the general public is solicited;
7. “Public authority” means any housing authority or any officer who is in charge of any department or branch of the government of the municipality or state relating to health, fire, building regulations, or other activities concerning structures in the municipality;
8. “Public officer” means any officer or officers of a municipality or the executive director or other chief executive officer of any commission or authority established by such municipality or jointly with any other municipality who is authorized by ordinance adopted hereunder to exercise the power prescribed by such ordinances and by this part; and
9. “Structure” means any dwelling or place of public accommodation or vacant building or structure suitable as a dwelling or place of public accommodation.

Acts 1939, ch. 152, § 2; C. Supp. 1950, § 3647.30 (Williams, § 3647.43); T.C.A. (orig. ed.), § 13-1201; Acts 1985, ch. 286, §§ 1, 5; 1986, ch. 706, § 1; 1995, ch. 391, § 1.

Compiler's Notes. Acts 1986, ch. 820 contained the Municipal Development Authority Act of 1986 containing an alternative method of municipal planning; however, this act was amended to eventually be applicable only to Johnson City and is listed in the Uncodified Acts Index.

Cross-References. Local neighborhood model development corporations, title 13, ch. 13.

Law Reviews.

The Indigent Tenant in Tennessee (William E. Caldwell), 1 Mem. St. U.L. Rev. 117.

13-21-102. Structures unfit for human occupation or use — Power of municipalities to demolish — Program to remedy the unsafe conditions caused by the unfinished structure and the suspended construction.

1. Whenever any municipality of this state finds that there exists in such municipality structures which are unfit for human occupation or use due to dilapidation, defects increasing the hazards of fire, accident or other calamities, lack of ventilation, light or sanitary facilities, or due to other conditions rendering such structures unsafe or unsanitary, or dangerous or detrimental to the health, safety or morals, or otherwise inimical to the welfare of the residents of such municipality, power is hereby conferred upon such municipality to exercise its police powers to repair, close or demolish the aforementioned structure in the manner herein provided.
2. 1. As used in this subsection (b):
      1. “Abandoned construction” means that construction of an unfinished structure has ceased and that no good faith effort has been made to complete the construction for a period of one hundred eighty (180) days; and
      2. “Suspended construction” means that construction of an unfinished structure has ceased and that no good faith effort has been made to complete the construction for a period of sixty (60) days.
   2. This subsection (b) applies to any municipality located in any county having a population of not less than one hundred twenty-six thousand six hundred (126,600) nor more than one hundred twenty-six thousand seven hundred (126,700) or located in any county having a population of not less than one hundred thirty thousand four hundred (130,400) nor more than one hundred thirty thousand five hundred (130,500), according to the 2000 federal census or any subsequent federal census:
      1. When any municipality to which this subsection (b) applies finds that there are structures in the municipality unfit for human occupation or use because of suspended construction, the municipality may use the procedures in this part to remedy the unsafe conditions caused by the unfinished structure and the suspended construction. All the applicable procedures set out in § 13-21-103 apply, but upon the public officer's finding that construction has been suspended and that the unfinished structure and the suspended construction create conditions that are dangerous or injurious to the health or safety of neighboring residents or the general public or the safety of neighboring structures, the public officer is limited to ordering that construction resume or that the owner make the unfinished structure safe by boarding up the structure, removing construction debris and other safety hazards from the construction area, and otherwise removing or neutralizing health or safety hazards. If the owner fails to take the actions within ten (10) days after being ordered to do so, the municipality may cause the unfinished structure to be boarded up and the debris and other health and safety hazards removed or neutralized. The costs of doing so shall be assessed against the owner and may be collected as provided in § 13-21-103(6).
      2. When the municipality finds that there are structures in the municipality unfit for human occupation or use because of abandoned construction, the municipality may use all the procedures, remedies and rights in this part to deal with the unfinished structure and the abandoned construction. When an unfinished structure meets both the definition of suspended construction and abandoned construction, it may be dealt with as abandoned construction.
      3. An ordinance adopted by a municipality pursuant to this subsection (b) shall provide that the public officer may determine that a structure is unfit for human occupation or use if the public officer finds that conditions exist in the structure that are dangerous or injurious to the health, safety or morals of the occupants of the structure, the occupants of neighboring structures or other residents of the municipality or to the safety of neighboring structures. These conditions may include, but are not limited to:
         1. Defects increasing the hazards of fire, accident or other calamities;
         2. Lack of ventilation, light or sanitary facilities;
         3. Dilapidation;
         4. Disrepair;
         5. Structural defects;
         6. Uncleanliness; or
         7. Suspended construction or abandoned construction.

Acts 1939, ch. 152, § 1; C. Supp. 1950, § 3647.31 (Williams, § 3647.42); T.C.A. (orig. ed.), § 13-1202; Acts 1985, ch. 286, § 5; 2009, ch. 114, § 1; 2012, ch. 663, § 1.

Compiler's Notes. For tables of population of Tennessee municipalities, and for U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

13-21-103. Adoption of ordinances — Required provisions.

Upon the adoption of an ordinance finding that conditions of the character described in § 13-21-102 exist within a municipality, the governing body of the municipality is hereby authorized to adopt ordinances relating to the structures within the municipality which are unfit for human occupation or use. Such ordinances shall include the following provisions, that:

1. A public officer be designated or appointed to exercise the powers prescribed by the ordinances;
2. Whenever a petition is filed with the public officer by a public authority or by at least five (5) residents of the municipality charging that any structure is unfit for human occupation or use, or whenever it appears to the public officer, on the public officer's own motion, that any structure is unfit for occupation or use, the public officer shall, if the public officer's preliminary investigation discloses a basis for such charges, issue and cause to be served upon the owner of and parties in interest of such structure, a complaint stating the charges in that respect and containing a notice that a hearing will be held before the public officer, or the public officer's designated agent, at a place therein fixed, not less than ten (10) days nor more than thirty (30) days after the serving of the complaint, that:
   1. The owner and parties in interest shall be given the right to file an answer to the complaint and to appear in person, or otherwise, and give testimony at the place and time fixed in the complaint; and
   2. The rules of evidence prevailing in courts of law or equity shall not be controlling in hearings before the public officer;
3. If, after such notice and hearing, the public officer determines that the structure under consideration is unfit for human occupation or use, the public officer shall state in writing the public officer's findings of fact in support of such determination and shall issue and cause to be served upon the owner thereof an order:
   1. If the repair, alteration or improvement of the structure can be made at a reasonable cost in relation to the value of the structure (the ordinance of the municipality may fix a certain percentage of such cost as being reasonable for such purpose), requiring the owner, within the time specified in the order, to repair, alter or improve such structure to render it fit for human occupation or use or to vacate and close the structure as a place of human occupation or use; or
   2. If the repair, alteration or improvement of the structure cannot be made at a reasonable cost in relation to the value of the structure (the ordinance of the municipality may fix a certain percentage of such cost as being reasonable for such purpose), requiring the owner, within the time specified in the order, to remove or demolish such structure;
4. If the owner fails to comply with an order to repair, alter or improve or to vacate and close the structure, the public officer may cause such structure to be repaired, altered or improved, or to be vacated and closed; that the public officer may cause to be posted on the main entrance of any structure so closed, a placard with the following words: “This building is unfit for human occupation or use. The use or occupation of this building for human occupation or use is prohibited and unlawful”;
5. If the owner fails to comply with an order to remove or demolish the structure, the public officer may cause such structure to be removed or demolished; and
6. The amount of the cost of such repairs, alterations or improvements, or vacating and closing, or removal or demolition by the public officer, as well as reasonable fees for registration, inspections and professional evaluations of the property, shall be assessed against the owner of the property, and shall, upon the certification of the sum owed being presented to the municipal tax collector, be a lien on the property in favor of the municipality, second only to liens of the state, county and municipality for taxes, any lien of the municipality for special assessments, and any valid lien, right or interest in such property duly recorded or duly perfected by filing, prior to the filing of such notice. These costs shall be collected by the municipal tax collector or county trustee at the same time and in the same manner as property taxes are collected. If the owner fails to pay the costs, they may be collected at the same time and in the same manner as delinquent property taxes are collected and shall be subject to the same penalty and interest as delinquent property taxes as set forth in §§ 67-5-2010 and 67-5-2410. In addition, the municipality may collect the costs assessed against the owner through an action for debt filed in any court of competent jurisdiction. The municipality may bring one (1) action for debt against more than one (1) or all of the owners of properties against whom the costs have been assessed, and the fact that multiple owners have been joined in one (1) action shall not be considered by the court as a misjoinder of parties. If the structure is removed or demolished by the public officer, the public officer shall sell the materials of such structure and shall credit the proceeds of such sale against the cost of the removal or demolition, and any balance remaining shall be deposited in the chancery court by the public officer, shall be secured in such manner as may be directed by such court, and shall be disbursed by such court to the person found to be entitled thereto by final order or decree of such court. Nothing in this section shall be construed to impair or limit in any way the power of the municipality to define and declare nuisances and to cause their removal or abatement, by summary proceedings or otherwise.

Acts 1939, ch. 152, § 3; C. Supp. 1950, § 3647.32 (Williams, § 3647.44); T.C.A. (orig. ed.), § 13-1203; Acts 1985, ch. 286, §§ 2, 3, 5; 1989, ch. 298, § 1; 1991, ch. 515, § 2; 1993, ch. 210, § 2; 2005, ch. 3, § 1.

Textbooks. Tennessee Jurisprudence, 19 Tenn. Juris., Municipal Corporations, § 46.

13-21-104. Conditions rendering structure unfit for human occupation or use.

An ordinance adopted by a municipality under this part shall provide that the public officer may determine that a structure is unfit for human occupation or use if the public officer finds that conditions exist in such structure which are dangerous or injurious to the health, safety or morals of the occupants of such structure, the occupants of neighboring structures or other residents of such municipality. Such conditions may include the following, without limiting the generality of the foregoing: defects therein increasing the hazards of fire, accident, or other calamities; lack of adequate ventilation, light, or sanitary facilities; dilapidation; disrepair; structural defects; or uncleanliness. Such ordinance may provide additional standards to guide the public officer, or the public officer's agents, in determining the fitness of a dwelling for human occupation or use.

Acts 1939, ch. 152, § 4; C. Supp. 1950, § 3647.33 (Williams, § 3647.45); T.C.A. (orig. ed.), § 13-1204; Acts 1985, ch. 286, § 5.

13-21-105. Service of complaints or orders.

Complaints or orders issued by a public officer pursuant to an ordinance adopted under this part shall be served upon persons either personally or by registered mail, but if the whereabouts of such persons are unknown and the same cannot be ascertained by the public officer in the exercise of reasonable diligence, and the public officer shall make an affidavit to that effect, then the serving of such complaint or order upon such persons may be made by publishing the same once each week for two (2) consecutive weeks in a newspaper printed and published in the municipality, or in the absence of such newspaper, in one printed and published in the county and circulating in the municipality in which the structures are located. A copy of such complaint or order shall be posted in a conspicuous place on premises affected by the complaint or order. A copy of such complaint or order shall also be filed for record in the register's office of the county in which the structure is located, and such filing of the complaint or order shall have the same force and effect as other lis pendens notices provided by law.

Acts 1939, ch. 152, § 5; C. Supp. 1950, § 3647.34 (Williams, § 3647.46); T.C.A. (orig. ed.), § 13-1205; Acts 1985, ch. 286, § 5.

Cross-References. Certified mail in lieu of registered mail, § 1-3-111.

13-21-106. Enjoining enforcement of order.

1. Any person affected by an order issued by the public officer may file a bill in the chancery court for an injunction restraining the public officer from carrying out the order, and the court may, upon the filing of such bill, issue a temporary injunction restraining the public officer pending the final disposition of the cause; provided, that within sixty (60) days after the posting and service of the order of the public officer, such person shall file such bill in the court. Hearings shall be had by the court on such bills within twenty (20) days, or as soon thereafter as possible, and shall be given preference over other matters on the court's calendar.
2. The court shall hear and determine the issues raised and shall enter such final order or decree as law and justice may require. In all such proceedings, the findings of the public officer as to facts, if supported by evidence, shall be conclusive. Costs shall be in the discretion of the court. The remedies herein provided shall be exclusive remedies, and no person affected by an order of the public officer shall be entitled to recover any damages for action taken pursuant to any order of the public officer, or because of noncompliance by such person with any order of the public officer.

Acts 1939, ch. 152, § 6; C. Supp. 1950, § 3647.35 (Williams, § 3647.47); T.C.A. (orig. ed.), § 13-1206.

13-21-107. Powers given public officer by ordinance.

An ordinance adopted by the governing body of the municipality may authorize the public officer to exercise such powers as may be necessary or convenient to carry out and effectuate the purposes and provisions of this part, including the following powers in addition to others herein granted, to:

1. Investigate conditions in the municipality in order to determine which structures therein are unfit for human occupation or use;
2. Administer oaths, affirmations, examine witnesses and receive evidence;
3. Enter upon premises for the purpose of making examinations; provided, that such entries shall be made in such manner as to cause the least possible inconvenience to the persons in possession;
4. Appoint and fix the duties of such officers, agents and employees as the public officer deems necessary to carry out the purposes of the ordinances; and
5. Delegate any of such public officer's functions and powers under the ordinance to such officers and agents as the public officer may designate.

Acts 1939, ch. 152, § 7; C. Supp. 1950, § 3647.36 (Williams, § 3647.48); T.C.A. (orig. ed.), § 13-1207; Acts 1985, ch. 286, §§ 4, 5.

13-21-108. Estimate of annual expenses and costs.

The governing body of any municipality adopting an ordinance under this part shall, as soon as possible thereafter, prepare an estimate of the annual expenses or costs to provide the equipment, personnel and supplies necessary for periodic examinations and investigations of the structures in such municipality, for the purpose of determining the fitness of such structures for human occupation or use, and for the enforcement and administration of its ordinances adopted under this part, and any such municipality is authorized to make such appropriation from its revenues as it may deem necessary for this purpose, and may accept and apply grants or donations to assist it in carrying out such ordinances.

Acts 1939, ch. 152, § 8; C. Supp. 1950, § 3647.37 (Williams, § 3647.49); T.C.A. (orig. ed.), § 13-1208; Acts 1985, ch. 286, § 5.

13-21-109. Part confers supplementary powers.

Nothing in this part shall be construed to abrogate or impair the powers of the courts or of any department of any municipality to enforce any provisions of its charter or its ordinances or regulations, nor to prevent or punish violations thereof, and the powers conferred by this part shall be in addition and supplemental to the powers conferred by any other law.

Acts 1939, ch. 152, § 9; C. Supp. 1950, § 3647.38 (Williams, § 3647.50); T.C.A. (orig. ed.), § 13-1209.

13-21-110. Violation of order to vacate structure declared unfit for human occupation — Authorizing or facilitating occupancy — Penalty.

1. Any occupied structure declared unfit for human occupation or use shall be immediately vacated as ordered by the public officer designated or appointed to exercise the powers prescribed by any ordinance adopted pursuant to the authority of this part.
2. Any person who violates an order to vacate a structure declared unfit for human occupation or use commits a Class B misdemeanor.
3. Any owner, manager, or person responsible for a structure declared unfit for human occupation or use who authorizes or facilitates the occupancy of the structure commits a Class B misdemeanor.

Acts 2015, ch. 244, § 1.

Cross-References. Penalty for Class B misdemeanor, § 40-35-111.

Part 2
Acquisition of Vacant Properties

13-23-101. Short title.

This part shall be known and may be cited as the “Tennessee Housing Development Agency Act.”

Acts 1973, ch. 241, § 1; T.C.A., § 13-2301.

Compiler's Notes. Acts 1988, ch. 901, § 2 provided that it was the legislative intent of that act to transfer, in full, the obligations, rights, duties, and funds of the Tennessee housing rehabilitation corporation to the Tennessee housing development agency.

Attorney General Opinions. Preference in THDA's qualified allocation plan for developments in qualified census tracts.  OAG 11-65, 2011 Tenn. AG LEXIS 67 (9/13/11).

13-23-102. Fund raising — Powers — Purposes.

In order to promote the production of more affordable new housing units for very low, low and moderate income individuals and families in the state, to promote the preservation and rehabilitation of existing housing units for such persons, and to bring greater stability to the residential construction industry and related industries so as to assure a steady flow of production of new housing units, the Tennessee housing development agency is given the power to raise funds from private investors through issuance of its bonds and notes and to use such funds, together with investment income, and moneys from other public and private sources to:

1. Make funds available to sponsors, developers and builders for financing land development and residential housing construction for lower and moderate income persons and families;
2. Make funds available to sponsors, developers, builders and purchasers for permanent mortgage financing of housing for lower and moderate income persons and families;
3. Purchase existing insured mortgages from lenders within the state and direct an amount equal to the proceeds from the liquidated mortgage investments into new mortgages on residential real property;
4. Enter into advance commitments with lenders to purchase insured mortgage loans made to persons and families of lower and moderate income; and further, provide technical, consultative and project assistance services to sponsors of land development or residential housing; and assist in coordinating federal, state, regional and local public and private efforts and resources to otherwise increase the supply of such residential housing;
5. Make funds available for housing loans for veterans who qualify as persons and families of low and moderate income by including in each issue of bonds sold under this chapter a veterans' administration guaranteed loan program; and
6. Make grants to eligible political subdivisions, as defined by § 13-23-103, and to such private nonprofit corporations that provide housing and related services in the state; however, such grants must be for purposes which are consistent with the purposes and mission of the agency, and must be allocated and administered in a fashion and manner as is directed by the agency through appropriate rules, regulations and proceedings.

Acts 1973, ch. 241, § 2; T.C.A., § 13-2302; Acts 1984, ch. 799, § 4; 1988, ch. 900, § 1.

13-23-103. Part definitions.

As used in this part, unless the context otherwise requires:

1. “Agency” means the Tennessee housing development agency created by this part;
2. “Average Tennessee household” means the Tennessee household of average size and median gross annual household income based on the most recent federal census or the American community survey five-year estimates released in the year following the most recent federal census;
3. “Bonds” or “notes” means the bonds and notes respectively authorized to be issued by the agency under this chapter;
4. “Eligible political subdivision” means a county, metropolitan government, municipality receiving community development block grant funds directly from the United States department of housing and urban development, a municipality in a county not otherwise applying, or a consortium of such eligible political subdivisions;
5. “Energy-saving improvement” means an improvement to a residential housing unit through the installation of insulation, heating or cooling systems conservative of energy, or other fixtures to the structure capable of reducing its total energy needs;
6. “Governmental agency” means any department, division, public agency, political subdivision or other public instrumentality of the state, the federal government, and other state or public agency, or any two (2) or more thereof;
7. “Housing cost index” means an index of specific housing cost factors to the average Tennessee household calculated monthly or at such times as the agency may require, based on the following formula:

   The median gross monthly household income divided into the sum of:

   1. The monthly mortgage payment for the average Tennessee household based on a thirty-year mortgage, at the prevailing mortgage interest rate on a mortgage amount sufficient to purchase a standard housing structure that will meet minimum property standards as established by the federal housing administration, including an amount representative of the average yield in discount points and servicing fees to the lender on such mortgage, based on the average discount paid at the latest Federal National Mortgage Association mortgage auction sale;
   2. A monthly cost factor for mortgage insurance based on the mortgage insurance premium that would be required on the mortgage at the prevailing interest rate; and
   3. An average monthly cost factor for taxes and fire insurance incurred by the average Tennessee household on a standard housing structure as required by federal housing administration minimum property standards based on data compiled by the federal housing administration;
8. “Insured construction loan” means a construction loan for land development or residential housing which is secured by a federally insured mortgage or which is insured or guaranteed by the United States or an instrumentality thereof, or for which there is a commitment by the United States or instrumentality thereof to insure or guarantee such a loan, or a construction loan which is secured by a policy of insurance or guarantee issued by any private mortgage insurer qualified to issue such insurance or guarantee in Tennessee and approved by the agency, or for which there is a commitment to insure or guarantee such loans made by any private mortgage insurer qualified to do business in Tennessee and approved by the agency, or a construction loan insured or guaranteed by an agency or instrumentality of the state authorized by law to issue such insurance or guarantee, or for which there is a commitment to insure or guarantee such loan made by such agency or instrumentality of the state;
9. 1. “Insured mortgage” or “insured mortgage loan” means a mortgage loan for residential housing insured or guaranteed by the United States or any instrumentality thereof, or for which there is a commitment by the United States or instrumentality thereof to insure or guarantee such a mortgage, or a mortgage loan which is secured by a policy of insurance or guarantee issued by any private mortgage insurer qualified to issue such insurance or guarantee in Tennessee and approved by the agency, or for which there is a commitment to insure or guarantee such loan made by any private mortgage insurer qualified to do business in Tennessee and approved by the agency, or a mortgage loan insured or guaranteed by any agency or instrumentality of the state authorized by law to issue such insurance, or for which there is a commitment to insure or guarantee such loan made by such agency or instrumentality of the state;
   2. “Insured mortgage” or “insured mortgage loan” also means a loan made on a qualified residential property in which the borrower owns, or is prepared to own by use of a cash down payment, at least twenty-five percent (25%) of the equity in the property based on its appraisal value or the sale price, whichever is the lesser amount;
10. “Land development” means the process of acquiring land primarily for residential housing construction for persons and families of lower and moderate income and making, installing or constructing nonresidential housing improvements, including water, sewer and other utilities, roads, streets, curbs, gutters, sidewalks, storm drainage facilities and other installations or works, whether on or off the site, which the agency deems necessary or desirable to prepare such land primarily for residential housing construction within this state;
11. “Lender” or “qualified lender” means any bank or trust company, federally approved mortgagee, insurance company, mortgage banking institution, federally insured savings and loan association or insured state building and loan association, which is located and authorized to do business in the state, and which is approved by the agency, or the federal national mortgage association;
12. “Low income household” means an individual or family unit whose income does not exceed eighty percent (80%) of the area or state median income, whichever is greater, adjusted for family size;
13. “Mortgage” includes deeds of trust, mortgages, building and loan contracts or other instruments conveying real or personal property as security for bonds and conferring a right to foreclose and cause a sale thereof;
14. “Obligations” means any bonds or notes authorized to be issued by the agency under this part;
15. “Persons and families of lower and moderate income” means persons and families irrespective of race, creed, national origin, age or sex deemed by the agency to require such assistance as is made available by this chapter on account of insufficient personal or family income based upon the income limits established by the board of directors. In establishing these income limits, the board of directors shall be required to take into consideration, without limitation, such factors that will ensure for the citizens of the state the equal opportunity to live in equal quality housing relative to their needs, including the following:
    1. The amount of the total income of such persons and families available for housing needs;
    2. The size of the family;
    3. The cost and condition of housing facilities available, including consideration of the following:
       1. Cost of a typical dwelling lot;
       2. Cost of materials;
       3. Cost of labor;
       4. Cost of real estate taxes; and
       5. Cost of home owners' or renters' insurance;
    4. The eligibility of such persons and families for federal housing assistance of any type predicated upon a lower income basis; and
    5. The ability of such persons and families to compete successfully in the normal housing market and to pay the amounts at which private enterprise is providing decent, safe and sanitary housing, and deemed by the agency to be eligible to occupy residential housing constructed and financed, wholly or in part, with insured construction loans or insured mortgages, or with other public or private assistance;
16. “Qualified sponsors, developers, builders or purchasers” means any person, corporation, profit or nonprofit, public or private, licensed general contractor or any other person or entity deemed by the board of directors to be qualified in providing housing for low and moderate income families; however, the Tennessee housing development agency shall not be deemed to be included in the definition herein;
17. “Qualifying not-for-profit corporation” means a not-for-profit organization that qualifies as such under the Internal Revenue Code § 501 (c)(3) (26 U.S.C. § 501(c)(3)), and chartered by the state or a nonprofit affiliate of such organization. Such qualifying organization must have substantial experience in providing low and moderate income households with housing. Specific experience and other qualifying criteria shall be set by the agency through rule and regulation;
18. “Residential housing” means a specific work or improvement within this state undertaken primarily to provide dwelling accommodations for persons and families of lower and moderate income, including the acquisition, construction or rehabilitation of land, buildings and improvements thereto and such other nonhousing facilities as may be incidental or appurtenant thereto;
19. “Servicing fees” means that sum paid for the reasonable value of services rendered to the agency for the servicing of mortgages it acquires;
20. “Servicing of mortgages” means the collection and payment of all principal and interest and all reasonable fees and charges by the lender for mortgages acquired by the agency;
21. “Solar hot water heater” means an appliance or system capable of producing most or all of the hot water needs of an average Tennessee household through the use of natural sunlight;
22. “State” means the state of Tennessee; and
23. “Very low income household” means an individual or family unit whose income does not exceed fifty percent (50%) of the area or state median income, whichever is greater, adjusted for family size.

Acts 1973, ch. 241, § 3; 1974, ch. 702, § 1; 1978, ch. 884, § 1; T.C.A., § 13-2303; Acts 1988, ch. 900, § 12; 1991, ch. 466, § 2; 2010, ch. 961, § 2.

Cross-References. Housing cost index and when program becomes operative, § 13-23-114.

13-23-104. Creation.

There is hereby created a body, politic and corporate, to be known as the “Tennessee housing development agency.” The agency, a political subdivision and instrumentality of the state, shall be deemed to be acting in all respects for the benefit of the people of the state in the performance of essential public functions and shall be deemed to be serving a public purpose and improving and otherwise promoting the health, welfare, and prosperity of the people of the state, and that the Tennessee housing development agency shall be empowered to act on behalf of the state and its people in serving this public purpose for the benefit of the general public.

Acts 1973, ch. 241, § 4; 1974, ch. 702, § 2; T.C.A., § 13-2304.

Compiler's Notes. The housing development agency, board of directors, created by this section, terminates June 30, 2022. See §§ 4-29-112, 4-29-243.

Attorney General Opinions. Administration of project-based section 8 housing assistance payments contracts.  OAG 12-25, 2012 Tenn. AG LEXIS 25 (2/29/12).

13-23-105. Board of directors.

The agency shall have a board of directors which shall be responsible for carrying out the powers given to the agency by this part.

Acts 1973, ch. 241, § 4; 1979, ch. 442, § 8; T.C.A., § 13-2305.

13-23-106. State officer members — Delegation of duties.

1. The state treasurer, the comptroller of the treasury, the commissioner of finance and administration, the secretary of state, and a staff assistant to the governor to be designated in writing by the governor, and their successors in the office, from time to time shall, by virtue of their incumbency in such offices and without further appointment or qualification, be directors of the agency.
2. Such directors may designate a member of their respective staffs to attend meetings of the board of directors or its committees and to exercise their right to vote in their absence. Such designations must be made in writing to the chair of the board of directors and filed with the secretary of state.

Acts 1973, ch. 241, § 4; 1975, ch. 320, § 1; 1977, ch. 483, § 1; 1979, ch. 442, § 1; T.C.A., § 13-2306.

13-23-107. Appointed members — Qualifications.

1. 1. 1. The governor shall appoint the following members to the board of directors for the agency, who shall be citizens of the state and shall not hold public office: a total of six (6) persons representing the following groups, with no more than one (1) person representing each group: retail building material supply; manufactured housing; home building; mortgage banking; licensed real estate brokers; local public housing authority; local government; and a qualifying not-for-profit corporation.
      2. After June 30, 2013, the governor shall appoint two (2) persons from the public at large who are knowledgeable about the problems about inadequate housing conditions in the state.
      3. Upon the first term expiration for one (1) of the public at large members, that public at large position shall expire, without reappointment, at the end of the member's term. After this term expiration and thereafter, the governor shall appoint one (1) person from the public at large who is knowledgeable about the problems about inadequate housing conditions in the state.
      4. 1. When making appointments, the governor shall give due consideration to geographic distribution of the members of the agency to ensure that all parts of the state are adequately represented.
         2. In making appointments to the agency board of directors, the governor shall strive to ensure that at least one (1) person appointed to serve on the board is sixty (60) years of age or older and that at least one (1) person appointed to serve on the board is a member of a racial minority.
   2. The speaker of the senate and the speaker of the house of representatives shall each appoint one (1) member from the public at large who shall be citizens of the state, shall not hold public office and shall be knowledgeable about the problems of inadequate housing conditions in the state. Any change in the status or profession of an appointed member shall not affect such member's position or term as a member of the agency.
2. Each member of the agency duly appointed by the governor pursuant to the former provisions of this section shall continue to serve and fill such member's respective membership position until the expiration of the term of office to which such member was appointed and until such member's successor is duly appointed and qualified. At the expiration of the term of office to which a member was appointed pursuant to the former provisions of this section, such member may be reappointed subject to the limitations imposed by this section and § 13-23-108.
3. Other individuals may be directors of the agency as may be required by applicable federal law, regulation or agreement, who shall be eligible to vote on matters before the agency to the extent required by federal law, regulation or agreement.

Acts 1973, ch. 241, § 4; 1979, ch. 442, § 2; T.C.A., § 13-2307; Acts 1982, ch. 641, § 1; 1988, ch. 900, § 2; 1988, ch. 1013, § 11; 1993, ch. 21, § 1; 2013, ch. 414, §§ 1, 3.

Compiler's Notes. Acts 2013, ch. 414, § 5 provided that the board members whose terms expire on June 30, 2013, shall continue to serve on the board after May 16, 2013, until the expiration of their terms.

13-23-108. Appointed members — Terms, etc.

1. The members of the board of directors appointed pursuant to § 13-23-107 shall serve for a term of four (4) years, except that any person appointed to fill a vacancy shall serve only for the unexpired term. Upon the expiration of the member's term, the member shall continue to serve until a successor is duly appointed and qualified. When making appointments, the governor shall consider recommendations from relevant interest groups for each vacancy. Furthermore, when making appointments, the governor and speakers shall give consideration to the ethnic, economic and social composition of the state, with particular emphasis on achieving a balance among urban and rural members from the three (3) grand divisions of the state. No appointed member shall serve more than two (2) consecutive terms, unless one (1) such term is an appointment to fill an unexpired term with less than two (2) years remaining, but such appointed member may continue to serve until such appointed member's successor is duly appointed and qualified.
2. Each appointed member may be removed by the governor for misfeasance, malfeasance, or willful neglect of duty as determined by the governor. Any appointed member who is absent from four (4) meetings of the board of directors during any twelve-month period shall cease to be a member of the agency and the position shall become vacant upon certification of such fact to the governor by the secretary of the agency.
3. Before entering into the appointed member's duties, each appointed member shall take an oath of office to administer the duties of such appointed member's office faithfully and impartially, and a record of such oath shall be filed in the office of the secretary of state.

Acts 1973, ch. 241, § 4; 1977, ch. 483, § 2; 1979, ch. 442, § 3; T.C.A., § 13-2308; Acts 1988, ch. 900, § 3; 1992, ch. 724, § 1.

Cross-References. Grand divisions, title 4, ch. 1, part 2.

13-23-109. Compensation of members.

The members of the agency shall receive no compensation for their services, but shall be entitled to receive, from funds of the agency, for attendance at meetings of the agency or any committee thereof and for other services for the agency, reimbursement for such actual expenses as may be incurred for travel and subsistence in the performance of official duties. All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.

Acts 1973, ch. 241, § 4; 1976, ch. 806, § 1(57); 1979, ch. 442, § 7; T.C.A., § 13-2309.

13-23-110. Quorum.

A majority of the members of the agency shall constitute a quorum, and the affirmative vote of eight (8) members at a meeting of the members duly called and held shall be necessary for any action taken by the membership of the agency. No vacancy in the membership of the agency shall impair the rights of a quorum to exercise all the rights and to perform all the duties of the agency. For the purposes of determining a quorum and the number of affirmative votes at a meeting, persons who have been delegated the right to vote in accordance with § 13-23-106 shall be considered members of the agency.

Acts 1973, ch. 241, § 4; 1975, ch. 320, § 5; 1977, ch. 483, § 3; T.C.A., § 13-2310; Acts 1988, ch. 900, § 4; 1993, ch. 21, § 2; 2013, ch. 414, § 4.

13-23-111. Chair and vice chair.

The governor shall designate from those appointed members of the agency a member to serve as chair. The term of the chair shall extend to the earlier of either the date of expiration of such member's then current term as a member of the agency or a date six (6) months after the expiration of the then current term of the governor designating such chair. The agency shall annually elect one (1) of its members as vice chair.

Acts 1973, ch. 241, § 4; T.C.A., § 13-2311; Acts 1988, ch. 900, § 14.

13-23-112. Officers — Executive director — Secretary — Audit and budget committee.

1. The agency shall elect or appoint, and prescribe the duties of, such other officers as the agency deems necessary or advisable, including an executive director and a secretary.
2. The executive director shall be a person of good moral character and shall be professionally qualified to administer the programs and duties of the agency. Such professional qualifications must as a minimum be evidenced by a minimum of three (3) years' experience immediately preceding such professional's appointment or election in the theory and practice of residential housing construction, law, real estate, home mortgage finance, architecture, building materials supply, public administration or urban planning.
3. The executive director shall administer, manage and direct the affairs and business of the agency subject to the policies, control and direction of the board of directors.
4. The secretary of the agency shall keep a record of the proceedings of the agency and shall be custodian of all books, documents and papers filed with the agency, the minute book or journal of the agency and its official seal. The secretary shall have authority to cause copies to be made of all minutes and other records and documents of the agency to the effect that such copies are true copies, and all persons dealing with the agency may rely upon such certificates.
5. All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
6. The state treasurer shall be the treasurer of the agency. The treasurer shall be the custodian of the assets of the agency except for those assets required by contracts with bondholders to be in the custody of the trustee. The board of directors shall set the investment policy for agency assets and the treasurer shall be responsible for making investments in accordance with such policy. The treasurer may delegate all or a portion of these duties and responsibilities to the executive director.
7. The secretary of the bond finance committee shall, subject to the policies of the board of directors and bond finance committee, be responsible for the execution of all matters relating to the issuance and servicing of the bonds and notes of the agency. The secretary of the bond finance committee may delegate these duties and responsibilities to the executive director.
8. 1. 1. There is hereby created an audit and budget committee of the agency, which shall be composed of the following:
9. The chair of the agency;

The vice chair of the agency;

The state treasurer;

The secretary of state; and

Two (2) members appointed annually by the chair from among the appointed members of the board.

The state treasurer shall serve as the chair of the audit and budget committee in even years and the secretary of state shall serve as the chair of the audit and budget committee in odd years beginning in 2013, and alternating thereafter.

The agency's director of internal audit shall serve as the secretary for the committee. The agency's director of internal audit shall serve at the pleasure of the committee. The committee has the authority to employ, terminate and establish the salary of the director of internal audit.

Three (3) or more members of the audit and budget committee shall constitute a quorum and the concurring vote of three (3) members shall be required for the approval of matters coming before the committee. Written minutes of all meetings shall be prepared by the secretary and kept on file, open to public inspection. The audit and budget committee shall be charged with the responsibility of monitoring agency financial and programmatic controls, including potential conflicts of interest of agency members and staff. To carry out these responsibilities, the committee shall review reports from the agency internal audit staff and shall review agency financial and programmatic controls at least annually, and shall review and submit the annual agency budget to the bond finance committee and the board.

Acts 1973, ch. 241, § 4; 1976, ch. 806, § 1(57); T.C.A., § 13-2312; Acts 1988, ch. 900, § 5; 1992, ch. 724, § 2; 2011, ch. 16, § 1; 2013, ch. 414, § 2.

Compiler's Notes. Acts 2013, ch. 414, § 5 provided that the board members whose terms expire on June 30, 2013, shall continue to serve on the board after May 16, 2013, until the expiration of their terms.

13-23-113. Distribution of benefits restricted.

No part of the revenues or assets of the agency shall inure to the benefit of or be distributable to its members or officers or other private persons.

Acts 1973, ch. 241, § 4; T.C.A., § 13-2313.

13-23-114. Housing cost index — Program becoming operative.

The agency shall establish a housing cost index as defined in § 13-23-103 to be computed monthly or at such time or times as the agency in its discretion may require. The housing cost index shall serve to determine what percentage of the average Tennessee household's gross monthly income is required to pay for primary fixed housing costs under then existing housing market conditions and to establish a basis for a threshold at which the financial assistance programs of this chapter will become effective. Thus, it is hereby found and declared that when primary housing costs, as defined by the housing cost index, reach or exceed twenty-five percent (25%) of an average Tennessee household's gross monthly income, a majority of Tennessee citizens are excluded from the normal housing market; and, in light of that finding, when the housing cost index reaches or exceeds a factor of twenty-five percent (25%) and upon the approval of the board of directors, the financial assistance programs established in this chapter will become operative to aid in providing adequate housing for lower and moderate income persons and families as defined by § 13-23-103. Notwithstanding any other provision of this section, the agency may at any time approve the operation of the financial assistance programs of this chapter with the affirmative vote of nine (9) members of its board of directors.

Acts 1973, ch. 241, § 4; T.C.A., § 13-2314.

13-23-115. General powers.

The agency has all of the powers necessary and convenient to carry out and effectuate the purposes and provisions of this chapter, including, but without limiting the generality of the foregoing, to:

1. Make or participate in the making of insured construction loans to qualified sponsors, developers, and builders for land development and/or for residential housing for lower and moderate income persons and families, all subject to § 13-23-116;
2. Make or participate in the making of insured mortgage loans to qualified sponsors, developers, builders and purchasers of residential housing for lower and moderate income persons and families, all subject to § 13-23-117;
3. Acquire, and contract to acquire, insured mortgages owned by lenders, and enter into advance commitments to lenders for the purchase of the mortgages, all subject to § 13-23-118;
4. Purchase, make, or participate in the making of insured loans to low and moderate income persons and families for the purpose of improving or rehabilitating existing residential housing and, in connection therewith, refinance existing loans involving the same property. Such loans shall be secured by a mortgage lien on the improved or rehabilitated property. The agency is also empowered to make loans to low and moderate income persons and families for the purpose of purchasing and rehabilitating residential housing;
5. Establish, and revise from time to time and charge and collect fees and charges in connection with making, purchasing and servicing any of its loans, notes, commitments and other evidences of indebtedness;
6. Pay reasonable fees and charges in connection with making or purchasing its loans, notes, bonds and other evidences of indebtedness;
7. Acquire real property, or any interest therein, in its own name, by purchase, transfer, foreclosure or otherwise; but only as may be necessary to carry out and effectuate the purposes of this part. This subdivision (7) shall be limited to meeting the requirements of the agency relative to a delinquency or default on the payment of any loan owned by the agency;
8. Subject to any agreement with bondholders or noteholders, sell any mortgages or other personal property acquired by the agency at public or private sale and at such price or prices as it shall determine;
9. Subject to any agreement with bondholders or noteholders, collect, enforce the collection of, and foreclose on any mortgage or other collateral securing an insured construction loan or an insured mortgage loan, and acquire or take possession of such mortgage or other collateral and sell the same at public or private sale, with or without bidding, and otherwise deal with such mortgage or collateral as may be necessary to protect the interests of the agency therein;
10. Procure insurance against any loss in connection with its operations in such amounts, and from such insurers, as it may deem necessary or desirable;
11. Subject to any agreement with bondholders or noteholders, consent, whenever it deems it necessary or desirable in the fulfillment of its corporate purposes, to the modification of the rate of interest, time of payment of any installment of principal or interest, or any other terms of a mortgage loan, mortgage loan commitment, construction loan, contract or agreement of any kind to which the agency is a party;
12. Subject to any agreement with bondholders or noteholders, invest moneys of the agency not required for immediate use, including proceeds from the sale of any bonds and notes in collateralized guaranteed investment contracts of longer than one (1) year and otherwise in the same manner as permitted by law for the investment of state funds;
13. Make, enter into and enforce all contracts or agreements necessary, convenient or desirable for the purposes of the agency or to the performance of its duties and execution or carrying out of its powers under this part, including contracts or agreements with any person, firm, agency, governmental agency or other entity, and all Tennessee governmental agencies are hereby authorized to enter into contracts and agreements, and otherwise cooperate with the agency to facilitate the purposes of this part;
14. Contract for and accept any gifts or grants or loans or appropriations of funds or property, or financial or other aid in any form from the United States or any agency or instrumentality thereof, or from the state or any agency, instrumentality or political subdivision thereof, or from any other source, and comply, subject to provisions of this part and to any agreements with bondholders or noteholders, with the terms and conditions thereof. Any grant funds becoming available to the agency for subsidies of housing for low-income families, other than those becoming available to the agency in its capacity as a mortgage lender or construction loan lender, shall be paid first to the various housing authorities in the state, to meet the subsidy needs of low-rent public housing as determined necessary by the agency, before any such funds are made available for any housing financed through this part;
15. Borrow money and issue negotiable bonds and notes for the purposes provided in this part and provide for and secure the payment thereof and provide for the rights of the holders thereof;
16. Include in any borrowing such amounts as may be deemed necessary by the agency to pay financing charges, interest on the obligations for a period not exceeding two (2) years from their date, consultant, advisory and legal fees, and such other expenses as are necessary or incident to such borrowing;
17. Subject to any agreements with bondholders or noteholders, purchase bonds or notes of the agency out of any funds or money of the agency available therefor, and hold, cancel or resell such bonds or notes;
18. Make and publish rules and regulations respecting its financial assistance programs and such other rules and regulations as are necessary to effectuate its corporate purposes;
19. Make and execute contracts for the servicing of mortgages acquired by the agency pursuant to this part, and pay the reasonable value of services rendered to the agency pursuant to those contracts;
20. 1. Renegotiate, refinance or foreclose, or contract for the foreclosure of, any mortgage in default;
    2. Waive any default or consent to the modification of the terms of any mortgage;
    3. Commence any action to protect or enforce any right conferred upon it by any law, mortgage, contract or other agreement, and to bid for and purchase such property at any foreclosure or at any other sale, or acquire or take possession of any such property; or
    4. Operate, manage, lease, dispose of, and otherwise deal with such property, in such manner as may be necessary to protect the interests of the agency and the holders of its bonds and notes;
21. Employ fiscal consultants, engineers, attorneys, real estate counselors, appraisers and such other consultants and employees as may be required in the judgment of the agency, and fix and pay their compensation from funds available to the agency therefor. All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter. The employees of the agency may participate in the Tennessee consolidated retirement system established under title 8, chapters 34-37, and the state comprehensive group insurance program;
22. Provide technical and advisory services to sponsors, builders, and developers of residential housing and to residents thereof, including relocation assistance services to persons and families displaced because of public works projects;
23. Promote research and development in proper land use planning for both urban and rural areas, in the use of technical codes in the home building industry, in planning and providing adequate community services and facilities, and in scientific methods of constructing low-cost residential housing of high durability;
24. Sue and be sued in its own name, plead and be impleaded;
25. Maintain an office in Nashville and at such other place or places as it may determine;
26. Adopt an official seal and alter the same at pleasure;
27. Adopt bylaws for the regulation of its affairs and the conduct of its business and prescribe rules, regulations and policies in connection with the performance of its functions and duties;
28. Do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this part;
29. Purchase, make, or participate in the making of insured loans to low and moderate income persons and families for the purpose of making energy-saving improvements to residential housing units. Such loans shall be secured by a mortgage lien on the improved or rehabilitated property. The agency shall also be empowered to make loans to low and moderate income persons and families for the purpose of purchasing solar hot water heaters for residential housing units;
30. Designate “areas of chronic economic distress” to be the target areas required by § 103A of the Internal Revenue Code (26 U.S.C. § 103A);
31. Make grants to eligible political subdivisions and to such private nonprofit corporations that provide housing and related services in the state consistent with the purposes and mission of the agency;
32. Serve as a clearinghouse for properties made available through the federal Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA);
33. Provide a reserve for the bond and loan programs and provide for administrative and operational support of the Tennessee industrial finance corporation, created pursuant to title 4, chapter 17, part 4 [repealed]; and
34. When entering into any contracts or agreements authorized under this chapter, including contracts or agreements providing for liquidity and credit enhancement and reimbursement agreements relating thereto, interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, other interest rate hedging agreements, evidencing a transaction bearing a reasonable relationship to this state and also to another state or nation, agree in the written contract or agreement that the rights and remedies of the parties thereto shall be governed by the laws of this state or the laws of such other state or nation; provided, however, jurisdiction over the agency against which an action on such a contract or agreement is brought shall lie solely in a court located in Tennessee which would otherwise have jurisdiction of actions brought in contract against the agency.

Acts 1973, ch. 241, § 5; 1974, ch. 702, § 3; 1976, ch. 806, § 1(57); 1977, ch. 483, § 9; 1978, ch. 884, § 2; T.C.A., § 13-2315; Acts 1981, ch. 505, § 3; 1988, ch. 900, § 6; 1990, ch. 979, § 1; 1992, ch. 724, § 3; 1998, ch. 724, § 3; 2001, ch. 253, § 16.

Compiler's Notes. Acts 1988, ch. 901, § 2 provided that it was the legislative intent of that act to transfer, in full, the obligations, rights, duties, and funds of the Tennessee housing rehabilitation corporation to the Tennessee housing development agency.

The Financial Institutions Reform, Recovery, and Enforcement Act referred to in this section, is compiled primarily in 12 U.S.C. § 93 et seq., with parts compiled in 5, 15, 18 and 26 U.S.C.

Title 4, chapter 17, part 4, referred to in this section, was repealed by Acts 2013, ch. 198, § 2, effective April 23, 2013.

Law Reviews.

The RTC's Quest For Exclusive Federal Court Jurisdiction Under FIRREA (Jeffrey S. Rosenblum), 24 Mem. St. U.L. Rev. 725 (1994).

Attorney General Opinions. Administration of project-based section 8 housing assistance payments contracts.  OAG 12-25, 2012 Tenn. AG LEXIS 25 (2/29/12).

13-23-116. Insured construction loans for development or rehabilitation — Loans for energy-saving improvements and solar water heaters — Energy use considered in making loans.

1. The agency shall be empowered to make or participate in the making of insured construction loans to qualified sponsors, developers and builders for land development and/or residential housing, including the rehabilitation thereof, for lower and moderate income persons or families when the financial assistance programs of this part become effective under this part. However, the agency will not make or participate in the making of any insured construction loans until it has notified all qualified lenders that the insured construction loan program is in effect and that the agency is prepared to enter into working agreements with qualified lenders for the making of insured construction loans to qualified sponsors, developers and builders; and it has determined that the insured construction loan is not otherwise available, totally or in part, from qualified lenders upon reasonably equivalent terms and conditions. Except as provided herein, the agency may make such loans directly only after the agency has notified all qualified lenders with whom working agreements have been established of a sponsor's, developer's or builder's loan application with the agency and after a reasonable time from the date of notification, no qualified lender has agreed in writing with the sponsor to make the insured construction loan either as a mortgagee or agent for a mortgagee, upon reasonably equivalent terms and conditions. Such loans made under this section to public housing agencies, public and private nonprofit corporations or other public or private nonprofit entities, or limited distribution entities, may be made by the agency to such borrower directly when the agency has determined that the loan is not otherwise available, totally or in part, from private qualified lenders upon reasonably equivalent terms and conditions.
2. 1. The agency may make loans to qualified lenders under terms and conditions requiring the proceeds thereof to be used for the making of loans for the construction or rehabilitation of residential housing by qualified sponsors, developers, and builders. Such loans may be made only after the agency has issued to the qualified sponsor, developer, or builder its commitment to make or participate in the making of an insured mortgage loan, or the agency has received evidence of an existing commitment to make the permanent loan, and the qualified lender has entered into an agreement with the agency agreeing to make the construction or rehabilitation loan on terms and conditions consistent with this part and the agency's rules and regulations.
   2. The agency may require that such loans to qualified lenders be secured as to payment of both principal and interest by a pledge of and lien upon collateral security in such amounts as the agency shall determine to be necessary to assure the payment of such loans and the interest thereon as the same become due. Such collateral security shall consist of:
      1. Direct general obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States or the state;
      2. Bonds, debentures, participation certificates or notes issued by the federal national mortgage association or the federal home loan mortgage corporation or by an agency or corporation which has been or is hereafter created by or pursuant to an act of the congress of the United States as an agency or instrumentality thereof; or
      3. Mortgages insured or guaranteed by the United States or an instrumentality thereof as to payment of principal and interest.
3. In making loans for rehabilitation of residential housing, the agency shall consider proposals for energy-saving improvements and solar hot water heaters, and, if feasible, include the costs of such improvements or heaters in the amount of the loan.
4. The agency shall be empowered to make loans for energy-saving improvements and solar hot water heaters to persons and families of lower and moderate incomes for residential housing occupied and owned or rented by such person or family. Such loans shall be under such conditions, with such security, and with such repayment plans as the agency may determine. In determining repayment schedules, however, the agency shall attempt to match repayments with the savings resulting to the person or family in their residential utility bill from the improvement or solar water heater. Consideration shall also be given to providing a revolving loan fund.
5. The agency shall be provided with standards for a listing of reliable and efficient solar hot water heaters by the appropriate federal agency.
6. The agency shall give consideration, in making any loan authorized by this chapter, to energy-saving improvements and appliances included in the proposed design, improvement or rehabilitation of residential housing and shall, in making loans, give maximum consideration to any proposal which would decrease energy use typical of present construction or designs.

Acts 1973, ch. 241, § 6; 1974, ch. 702, § 4; 1975, ch. 320, § 2; 1977, ch. 483, § 11; 1978, ch. 884, §§ 3-5; T.C.A., § 13-2316.

13-23-117. Insured mortgage loans.

1. The agency shall be empowered to make or participate in the making of insured mortgage loans to qualified sponsors, developers or builders of residential housing for lower and moderate income persons and families, and to lower and moderate income persons who are purchasers of residential housing when the financial assistance programs of this part become effective under § 13-23-114. No insured mortgage loans available under this section shall be made for nonowner-occupied residential housing unless the sponsor, developer, builder or purchaser is a public housing agency, a public or private nonprofit corporation or other public or private nonprofit entity or a limited distribution entity, established or certified to do business under the laws of the state, and such public agency, corporation or entity has on file with the agency the salary schedule of its officers and employees or unless such residential housing shall be fully or partially occupied by residents assisted under a federal housing assistance program. However, the agency will not make or participate in the making of any insured mortgage loans until it has notified all qualified lenders that the insured mortgage loan program is in effect and that the agency is prepared to enter into working agreements with qualified lenders for the making of insured mortgage loans to qualified sponsors, developers, builders and purchasers; and it has determined that the insured mortgage loan is not otherwise available, totally or in part, from private qualified lenders upon reasonably equivalent terms and conditions. Except as provided herein, the agency may make such loans directly only after the agency has notified all qualified lenders with whom the agency has working agreements of a sponsor's, developer's, builder's, or purchaser's pending loan application and after a reasonable time from the date of notification, no qualified lender has agreed in writing with such qualified sponsor, developer, or builder or with such qualified purchaser to make an insured mortgage loan either as mortgagee, or as an agent for a mortgagee upon reasonably equivalent terms and conditions.
2. Any loan made at a reduced interest rate under this section to purchasers of owner-occupied residential housing shall not be assumed or in any way transferred to a subsequent purchaser of such owner-occupied residential housing unless such purchaser qualifies as a person or family of lower or moderate income under § 13-23-103. Any loan made at a reduced rate under this section to sponsors, developers, builders and purchasers of nonowner-occupied residential housing shall not be assumed or in any way transferred to a subsequent purchaser of such residential housing unless such purchaser is a public housing agency, a public or private nonprofit corporation or other public or private nonprofit entity or a limited distribution entity, established or certified to do business under the laws of the state as hereinbefore provided in this section. Such loans made under this section to such public housing agencies, public or private nonprofit corporations or other public or private nonprofit entities, or limited distribution entities, may be made by the agency to such borrower directly when the agency has determined that the loan is not otherwise available, totally or in part, from qualified private lenders upon reasonably equivalent terms and conditions.
3. For purposes of this chapter, “limited distribution entity” means a corporation, trust, partnership, association, individual or other entity regulated by the agency as to the amount of distribution, retirement of capital investment, or redemption of stock or other ownership interest, in such a manner that any such distribution, retirement, or redemption will not exceed in any one (1) fiscal year ten percent (10%), or such lesser percentage as shall be prescribed by the rules and regulations of the agency, of such limited distribution entity's equity in a nonowner-occupied residential housing development. The limited distribution entity's equity in the development shall consist of the difference between the agency mortgage loan on the development and the total project cost. By regulation, the agency shall prescribe the categories of costs constituting “total project cost,” including organizational expenses, land acquisition, plans and specifications, interest and financing charges paid during construction, construction costs, architects, engineering, legal and accounting fees, and a reasonable builder's profit and job overhead. A limited distribution entity's equity in a nonowner-occupied residential housing development shall be established by the agency resolution approving the mortgage loan. For the purposes of this subsection (c), that equity shall remain constant during the life of the agency mortgage loan on such housing development, except for additional equity investment made by the limited distribution entity after agency approval. Should the limited distribution entity accumulate earned surplus in addition to such maintenance and replacement reserves as the agency may require in excess of ten percent (10%) of the first full year's proposed annual rent roll, the agency may direct that the development's rents be reduced to the extent necessary to lower the earned surplus accumulation to the ten percent (10%) (or such lesser percent as the agency shall have prescribed by its rules and regulations) return on equity factor established at the granting of the agency mortgage loan.
4. Owner-occupied dwellings shall include one (1) to four (4) family units occupied in whole or in part by the owners, as well as units constructed or existing under the Horizontal Property Act, compiled in title 66, chapter 27.
5. When allocating funds for loans on new homes, the agency shall attempt to give priority to homes which incorporate energy conserving design and construction, and which include solar heating systems and solar hot water heaters.

Acts 1973, ch. 241, § 7; 1974, ch. 702, § 5; 1975, ch. 320, § 3; 1977, ch. 483, § 4; 1979, ch. 442, § 9; T.C.A., § 13-2317.

13-23-118. Purchase of mortgages.

1. The agency shall be empowered to purchase mortgages from lenders or enter into advance commitments to lenders for the purchase of mortgages during periods when the financial assistance programs of this chapter become effective under § 13-23-114.
2. 1. “Mortgage,” as used in this section, means an insured loan owed to a lender secured by a first lien on a fee simple or leasehold estate in real property located in the state and improved by a residential structure.
   2. “Real property,” as used in this subsection (b), includes air rights.
3. The agency may purchase or enter into advance commitments to purchase insured mortgages from lenders at such prices and upon such terms and conditions as it shall determine; provided, that the total purchase price for all mortgages which the agency commits to purchase from a lender at any one (1) time shall in no event be more than the total of the unpaid principal balances thereof.
4. The agency shall require as a condition of purchase of mortgages from lenders other than mortgages purchased by the agency pursuant to advanced commitment agreements that such lenders shall, within such reasonable period of time as may be approved by the agency not in excess of one hundred eighty (180) days of receipt of the purchase price, enter into written commitments to loan and shall, within such period as may be approved by the agency, loan an amount equal to the entire purchase price of such mortgages on new residential mortgages for persons and families of lower and moderate income within the state having such terms as the agency may prescribe. The agency may refuse to approve any commitment to lend on a multiple dwelling mortgage if so required by the terms of any bonding resolution.
5. Such new mortgages shall bear interest at a rate which does not exceed the maximum interest rate, if any, set by the agency for such mortgages. The agency may set such a maximum interest rate chargeable on such new loans at the rate that the mortgages purchased by the agency were discounted to yield plus an interest differential, not in excess of one percent (1%) per annum, which the agency from time to time shall determine to be adequate consideration to induce such lenders to sell existing mortgages to the agency and to loan an amount equal to the proceeds on new mortgages in furtherance of the purposes of and subject to the conditions of this chapter.
6. The agency shall require the submission to it by each lender from which the agency has purchased mortgages, evidence satisfactory to the agency of the making of new mortgage loans and in connection therewith may, through its employees or agents, inspect the books and records of any such lender.
7. Compliance by any lender with the terms of its agreement with or undertaking to the agency with respect to the making of any mortgage loans may be enforced by decree of any circuit or chancery court of this state. The agency may require as a condition of purchase of mortgages from any lender, which is a national banking association, the consent of such lender to the jurisdiction of the circuit or chancery court over any such proceeding. The agency may also require agreement by any lender, as a condition of the agency's purchase of mortgages from such lender, to the payment of penalties to the agency for violation by the lender of its undertakings to the agency, and such penalties shall be recoverable at the suit of the agency.
8. The agency shall require as a condition of purchase of any mortgage from a lender that the lender represent and warrant to the agency that:
   1. The unpaid principal balance of the mortgage and the interest rate thereon have been accurately stated to the agency;
   2. The amount of the unpaid principal balance is justly due and owing;
   3. The lender has no notice of the existence of any counterclaim, offset or defense asserted by the mortgagor or the mortgagor's successor in interest;
   4. The mortgage is evidenced by a bond or promissory note and a mortgage document which has been properly recorded with the appropriate public official;
   5. The mortgage constitutes a valid first lien on the real property described to the agency subject only to real property taxes not yet due, installments of assessments not yet due, and easements and restrictions of record which do not adversely affect, to a material degree, the use or value of the real property or improvements thereon;
   6. The mortgage loan when made was lawful under state law and/or federal law, whichever governs the affairs of the lender, and would be lawful on the date of purchase by the agency if made by the lender on that date in the amount of the then unpaid principal balance;
   7. The mortgagor is not now in default in the payment of any installment of principal or interest, escrow funds, real property taxes or otherwise in the performance of the mortgagor's obligations under the mortgage documents and has not to the knowledge of the lender been in default in the performance of any such obligation for a period of longer than sixty (60) days during the life of the mortgage; and
   8. The improvements to the mortgaged real property are covered by a valid and subsisting policy of insurance issued by a company authorized to issue such policies in this state and providing fire and extended coverage to an amount not less than ninety percent (90%) of the insurable value of the improvements to the mortgaged real property.
9. Each lender shall be liable to the agency for any damages suffered by the agency by reason of the untruth of any representation or the breach of any warranty and, in the event that any representation shall prove to be untrue when made or in the event of any breach of warranty, the lender shall, at the option of the agency, repurchase the mortgage for the original purchase price adjusted for amounts subsequently paid thereon, as the agency may determine.
10. The agency need not require the recording of an assignment of any mortgage purchased by it from a lender pursuant to this section and shall not be required to notify the mortgagor of its purchase of the mortgage. The agency shall not be required to inspect or take possession of the mortgage documents if the lender from which the mortgage is purchased by the agency shall enter a contract to service such mortgage and account to the agency therefor.

Acts 1973, ch. 241, § 8; T.C.A., § 13-2318.

13-23-119. [Reserved.]

1. 1. Subject to title 9, chapter 20, and § 13-23-121, the agency has the power and is hereby authorized from time to time to issue its negotiable bonds and notes in conformity with applicable provisions of the Uniform Commercial Code of Tennessee, compiled in title 47, chapters 1-9, in such principal amounts as, in the opinion of the agency, are necessary to provide sufficient funds for achieving the corporate purposes thereof, the payment of interest on bonds and notes of the agency, establishment of reserves to secure such bonds and notes, and all other expenditures of the agency incident to and necessary or convenient to carry out its corporate purposes and powers.
   2. With respect to all or any portion of any issue of bonds or notes issued or anticipated to be issued hereunder, the agency may authorize and enter into interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, and other interest rate hedging agreements and options in respect thereto, from time to time, and under such terms and conditions as the agency may determine, including, without limitation, provisions permitting the agency to pay to or receive from any person or entity for any loss of benefits under such agreement upon early termination thereof or default under such agreement.
   3. The agency may enter into an agreement to sell its bonds or notes under this chapter providing for delivery of such debt not more than five (5) years, or such greater period of time if approved by the comptroller of the treasury, from the date of execution of such agreement or in the case of refunding bonds the earlier of the first date on which the bonds being refunded can be optionally redeemed resulting in cost savings or be optionally redeemed at par.
2. 1. Except as may otherwise be expressly provided by the agency, all bonds and notes issued by the agency under this chapter shall be general obligations of the agency, secured by the full faith and credit of the agency and payable out of any moneys, assets, or revenues of the agency, subject only to any agreement with bondholders or noteholders pledging any particular moneys, assets or revenues. The agency may issue such types of bonds or notes as it may determine, including bonds or notes as to which the principal and interest are payable:
      1. Exclusively from the revenues of the agency resulting from the purchase of mortgages from lenders from the proceeds of such bonds or notes;
      2. Exclusively from the revenues of the agency resulting from the purchase of certain mortgages from lenders whether or not purchased in whole or in part from the proceeds of such bonds or notes;
      3. Exclusively from the revenues of the agency resulting from the making of insured construction loans;
      4. Exclusively from the revenues of the agency resulting from the making of insured mortgage loans; or
      5. From its revenues generally.
   2. Any such bonds or notes may be additionally secured by a pledge of any grant, subsidy or contribution from the United States, or any agency or instrumentality thereof, or the state or any agency, instrumentality or political subdivision thereof, or any person, firm or corporation, of a pledge or any income or revenues, funds or moneys of the agency from any source whatsoever.
3. Bonds and notes shall be authorized by a resolution or resolutions of the agency adopted as provided by this chapter; provided, that any such resolution authorizing the issuance of bonds or notes may delegate to an officer of the agency the power to issue such bonds or notes from time to time and to fix the details of any such issues of bonds or notes by an appropriate certificate of such authorized officer.
4. Such bonds or notes shall bear such date or dates, shall mature at such time or times, shall bear interest at such rate or rates, shall be of such denominations as approved by the agency but not less than five thousand dollars ($5,000), shall be in such form, carry registration privileges, be executed in such manner, be payable in lawful money of the United States at such place or places within or without the state so long as one (1) place is within the state, be subject to such terms of redemption prior to maturity as may be provided by such resolution or resolutions or such certificate with respect to such bonds or notes, as the case may be; provided, that the maximum maturity of bonds does not exceed forty (40) years from the date thereof and the maximum maturity of notes or any renewals thereof does not exceed five (5) years from the date of the original issue of such notes.
5. 1. Prior to the commencement of each fiscal year of the state, the agency shall submit to the state funding board a schedule showing the financings proposed to be undertaken by the agency during such fiscal year. Such schedule shall specify the amount of funds estimated to be required by the agency for the financing of loans for the purchase or rehabilitation of owner-occupied residential housing for occupancy by not more than four (4) families and the amount estimated to be required by the agency for the financing of loans for any other residential housing, indicating particularly the amount estimated to be used to finance facilities for the mentally or physically handicapped. In addition, the schedule shall also specify the agency's estimates of:
      1. The amounts required to provide for costs of issuance, capitalized interest and the funding of reserves in connection with the financing of such loans;
      2. The total amount of obligations necessary to be issued to provide for such financings and the amounts expected to be provided therefor from unexpended proceeds of any outstanding obligations of the agency or from any other source;
      3. The principal amounts and months of sale of each issue of such obligations; and
      4. The spread, expressed in basis points, determined to be necessary to finance the agency's operations for such fiscal year.
   2. The agency may submit a revised schedule of proposed financings to the state funding board at any time for its consideration. If, but not unless, a schedule or revised schedule of proposed financings for such fiscal year has been submitted to and approved by the state funding board, the agency may during such fiscal year make advance commitments to make loans in the types and amounts stated in such schedule or revised schedule. However, no such commitment may be made which is not subject to the availability of the funds to be provided through the issuance of obligations of the agency unless such commitment is either:
      1. For a loan to be made from sources other than the proceeds of bonds as shown in such an approved schedule or revised schedule; or
      2. For a loan to be made from the proceeds of sale of outstanding obligations of the agency as shown in the resolution of the agency authorizing the application of the proceeds of such obligations.
   3. 1. There is hereby created a bond finance committee of the agency. The bond finance committee shall be composed of the following: the chair of the agency, the commissioner of finance and administration, the state treasurer, the comptroller of the treasury, and the secretary of state. The chair of the agency shall serve as chair of the bond finance committee, and the comptroller of the treasury shall serve as secretary. The chair shall preside at all meetings of the committee; provided, that in the absence of the chair, the secretary shall serve as acting chair. The committee shall appoint an assistant secretary to perform such duties as it directs and as may be delegated by this chapter. In the absence of both the chair and the secretary, the committee shall designate by official action of the committee a member of the committee to serve as acting chair.
      2. Three (3) or more members of the bond finance committee constitute a quorum, and the concurring vote of three (3) members is required for the approval of any matters coming before the committee for determination. Written minutes covering all meetings and actions of the committee shall be prepared by the secretary and shall be kept on file, open to public inspection during reasonable business hours. The bond finance committee shall select bond counsel and such managing underwriters as the bond finance committee deems necessary for all obligations issued by the agency.
      3. It is the duty and responsibility of the bond finance committee to periodically review and evaluate the performance of the agency's trustee and report its findings and recommendations to the board of directors.
   4. Prior to making any other preparation for the authorization, issuance or sale of any issue of obligations, the assistant secretary of the bond finance committee, with the assistance of the executive director, shall prepare and submit a plan of financing for such issue to the bond finance committee which shall specify:
      1. The maximum aggregate principal amount of the obligations to be issued;
      2. The amount of the proceeds of sale expected to be applied to:
         1. The making of loans for owner-occupied residential housing for occupancy by not more than four (4) families;
         2. The making of loans for housing facilities for the mentally or physically handicapped;
         3. The making of loans for any other residential housing;
         4. The payment of costs of issuance and capitalized interest;
         5. The funding of reserves; and
         6. Any other purpose;
      3. The estimated maturities, interest rates, redemption terms, if any, of such issue of obligations and the spread, expressed in basis points, determined to be necessary to finance the agency's operations as determined to be allocable to the issue; and
      4. The proposed method and date of sale and, in general, the proposed terms of such sale.
   5. Upon approval of the plan of financing, the assistant secretary of the bond finance committee, with the assistance of the executive director, may proceed with the preparation of the necessary documents pertaining to the authorization, issuance and sale of such obligations. Upon authorization and adoption by the board of the bond resolution authorizing the terms and conditions of such obligations and providing for the application of the proceeds thereof, the bond finance committee shall be authorized to proceed with the sale of such obligations on behalf of the agency.
   6. Failure by the agency to comply with this subsection (e) shall not affect the validity of any obligations issued by the agency or the sale thereof if the resolution of the agency authorizing the terms of such obligations has been submitted to the bond finance committee, and such obligations have been sold by the bond finance committee on behalf of the agency.
6. The agency is authorized to provide for the issuance of its bonds or notes for the purpose of refunding any bonds or notes of the agency then outstanding, including the payment of any redemption premiums thereon and any interest accrued or to accrue to the redemption date next succeeding the date of delivery of such refunding bonds or notes. The proceeds of any such bonds or notes issued for the purpose of refunding outstanding bonds or notes shall be applied to the purchase, retirement, or redemption of such outstanding bonds or notes as determined by the agency and may, pending such application, be placed in escrow until applied to such purchase, retirement or redemption. Any such escrowed proceeds, pending such use, may be invested and reinvested in the same manner as permitted by law for the investment of state funds.
7. Whether or not the bonds and notes are of such form and character as to be negotiable instruments under the terms of the Uniform Commercial Code of Tennessee, the bonds and notes are hereby made negotiable instruments within the meaning of, and for all the purposes of, the Uniform Commercial Code of Tennessee, subject only to the provisions of the bonds and notes for registration.
8. Subject only to title 9, chapter 20 and §§ 13-23-121 and 13-23-122, any resolution or resolutions authorizing any bonds or notes of the agency may contain provisions which may be a part of the contract with the holders of such bonds or notes, as to:
   1. Pledging or creating a lien, to the extent provided by such resolution or resolutions, on all or any part of any moneys or property of the agency or of any moneys held in trust or otherwise by others for the payment of such bonds or notes;
   2. Otherwise providing for the custody, collection, securing, investment and payment of any moneys of the agency;
   3. The setting aside of reserves or sinking funds and the regulation or disposition thereof;
   4. Limitations on the purpose to which the proceeds of sale of any issue of such bonds or notes then or thereafter to be issued may be applied;
   5. Limitations on the issuance of additional bonds or notes, the terms upon which additional bonds or notes may be issued and secured, and upon the refunding of outstanding or other bonds or notes;
   6. The procedure, if any, by which the terms of any contract with the holders of bonds or notes may be amended or abrogated, the amount of bonds or notes the holders of which must consent thereto and the manner in which such consent may be given;
   7. The creation of special funds into which any moneys of the agency may be deposited;
   8. Vesting in a trustee or trustees such properties, rights, powers and duties in trust as the agency may determine, which may include any or all of the rights, powers and duties of the trustee appointed pursuant to § 13-23-123, and limiting or abrogating the right of the holders of bonds or notes to appoint a trustee under such section or limiting the rights, duties and powers of such trustee;
   9. Defining the acts or omissions to act which shall constitute a default in the obligations and duties of the agency and providing for the rights and remedies of the holders of bonds or notes in the event of such default; provided, that such rights and remedies shall not be inconsistent with the general laws of this state and other provisions of this chapter; and
   10. Any other matters of like or different character, which in any way affect the security and protection of the bonds or notes and the rights of the holders thereof.
9. Any resolution or resolutions or trust indenture or indentures, under which bonds or notes of the agency are authorized to be issued, may contain provisions for vesting in a trustee or trustees such properties, rights, powers and duties in trust as the agency may determine, which may include any or all of the rights, powers and duties of the trustee appointed by the holders of any issue of notes or bonds pursuant to § 13-23-123, in which event § 13-23-123 authorizing the appointment of a trustee by such holders of bonds or notes shall not apply.
10. It is the intention of the general assembly that any pledge of earnings, revenues or other moneys made by the agency shall be valid and binding from the time when the pledge is made; that the earnings, revenues or other moneys so pledged and thereafter received by the agency shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and that the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the agency, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.
11. Neither the members of the agency nor any person executing the bonds or other obligations shall be liable personally for the bonds or other obligations or be subject to any personal liability or accountability by reason of the issuance thereof.

Acts 1973, ch. 241, § 10; 1974, ch. 702, § 6; 1975, ch. 320, § 4; 1977, ch. 483, § 6; 1979, ch. 442, § 6; T.C.A., § 13-2320; Acts 1988, ch. 900, §§ 15, 16; 1989, ch. 201, §§ 2, 3; 1990, ch. 643, §§ 1, 2; 2001, ch. 253, § 17.

13-23-121. Issuance of bonds and notes — Maximum aggregate amount — Mortgage revenue bonds.

1. The agency shall not issue bonds and notes under this part in an aggregate principal amount at any one (1) time outstanding exceeding four billion dollars ($4,000,000,000), excluding bonds or notes for the payment or redemption of which there has been or will be set aside and held in trust either moneys or direct and general obligations of, or obligations guaranteed by, the United States, or obligations secured by such obligations, or any combination thereof, which are or will be sufficient to pay when due the principal or applicable redemption price and all accrued interest thereon and, if such bonds or notes are to be redeemed, for which notice of redemption has been given or satisfactory provision has been made for the giving of such notice. For purposes of computing the aggregate principal amount of outstanding bonds at any one (1) time, bonds which bear no stated interest rate and for which no semiannual interest payments are to be made shall be considered to be issued and outstanding in a principal amount equal to the price paid to the agency for such bonds as of the date of their sale. For purposes of determining the price paid to the agency for such bonds, the amount per five thousand dollars ($5,000) maturity amount which is shown on the official statement of each issue and which is approved by the agency, and its bond counsel, shall be used.
2. The fixing of the statutory maximum in this section shall not be construed as constituting a contract between the agency and the holders of its bonds and notes that additional bonds and notes may not be issued subsequently by the agency in the event that such statutory maximum shall subsequently be increased by law.
3. The agency will distribute funds from its programs in a manner which provides substantially proportional access to this limited resource to the three (3) grand divisions as established by title 4, chapter 1, part 2, and which will provide the optimum benefit to the citizens of the state.

Acts 1973, ch. 241, § 11; 1977, ch. 483, § 7; 1977, ch. 484, § 1; 1978, ch. 820, § 1; 1979, ch. 442, § 4; T.C.A., § 13-2321; Acts 1980, ch. 916, § 1; 1981, ch. 505, §§ 1, 2, 4; 1982, ch. 780, §§ 1, 2; 1984, ch. 799, § 1; 1984, ch. 991, §§ 1, 2; 1985, ch. 121, § 1; 1988, ch. 900, § 17; 1989, ch. 201, § 1; 1989, ch. 231, § 1; 1991, ch. 466, § 1; 2008, ch. 627, § 1; 2020, ch. 766, § 1.

Compiler's Notes. For the Preamble to the act amending § 13-23-121 concerning the Tennessee housing development agency, please refer to Acts 2008, ch. 627.

For the Preamble to the act concerning the Tennessee housing development agency and the increased demand for below interest rate loans to assist low and moderate income Tennesseans, see Act 2020, ch. 766.

Amendments. The 2020 amendment substituted “four billion dollars ($4,000,000,000),” for “two billion nine hundred thirty million dollars ($2,930,000,000),” in the first sentence of (a).

Effective Dates. Acts 2020, ch. 766, § 2. July 15, 2020.

Cross-References. Grand divisions, title 4, ch. 1, part 2.

13-23-122. Reserve funds — Debt service reserve funds — Sinking fund payments — Appropriations.

1. 1. The agency may create and establish one (1) or more reserve funds to be known as debt service reserve funds and pay into any such reserve fund:
      1. Any moneys appropriated by the state for the purposes of such fund;
      2. Any proceeds of sale of bonds and notes to the extent provided in the resolution of the agency authorizing the issuance thereof;
      3. Any moneys directed to be transferred by the agency to such debt service reserve fund; and
      4. Any other moneys made available to the agency for the purposes of such fund from any other source or sources.
   2. The moneys held in or credited to any debt service reserve fund established under this subsection (a), except as hereinafter provided, shall be used solely for the payment of the principal of bonds of the agency secured by such debt service reserve fund, as the same mature, required payments to any sinking fund established for the amortization of such bonds, hereinafter referred to as “sinking fund payments”, the purchase or redemption of such bonds of the agency, the payment of interest on such bonds of the agency or the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity; provided, that moneys in such fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of such fund to less than the maximum amount of the principal, or sinking fund payments and interest maturing, becoming due and required to be made in any succeeding fiscal year on the bonds of the agency then outstanding and secured by such reserve fund, except for the purpose of paying the principal of and interest on such bonds of the agency secured by such reserve fund maturing and becoming due and sinking fund payments for the payment of which other moneys of the agency are not available. Any income or interest earned by, or increment to, any such debt service reserve fund due to the investment thereof may be transferred to any other fund or account of the agency to the extent it does not reduce the amount of such debt service reserve fund below the maximum amount of principal, or sinking fund payments and interest maturing, becoming due or required to be made in any succeeding fiscal year on all bonds of the agency then outstanding and secured by such reserve fund. Subject to any agreement with bondholders or noteholders, moneys in any debt service reserve fund not required for immediate use or disbursement may be invested as provided in § 45-2-607. In computing the amount of any debt service reserve fund for the purposes of this section, securities in which all or a portion of such reserve fund are invested shall be valued as determined by the resolution of the agency creating such debt service reserve fund, but in no event in excess of the par value thereof. If the agency shall create and establish one (1) or more debt service reserve funds as herein provided, the agency shall not issue bonds at any time if the maximum amount of principal, or sinking fund payments, and interest, maturing or required to be made and becoming due in a succeeding fiscal year on the bonds outstanding and then to be issued and secured by a debt service reserve fund will exceed the amount of such reserve fund at the time of issuance, unless the agency, at the time of issuance of such bonds, shall deposit in such reserve fund from the proceeds of the bonds to be issued, or otherwise an amount which, together with the amount then in such reserve fund, will be not less than the amount of principal, or sinking fund payments, and interest, maturing, required to be made and becoming due in the succeeding fiscal year on the bonds then to be issued and on all other bonds of the agency then outstanding and secured by such reserve fund.
2. To assure the continued operation and solvency of the agency for the carrying out of the public purposes of this part, provision is made in subsection (a) for the accumulation in each debt service reserve fund of an amount equal to the maximum amount of principal, or sinking fund payments, and interest, maturing, required to be made and becoming due in any succeeding fiscal year on all bonds of the agency then outstanding and secured by such reserve fund. In order to further assure the continued operation and solvency of the agency for the fulfillment of its corporate purposes, there shall be annually apportioned and paid to the agency for deposit in each debt service reserve fund such sum, if any, as shall be certified by the chair of the agency to the governor and the commissioner of finance and administration, as necessary to restore any such debt service reserve fund to an amount equal to the maximum amount of principal, or sinking fund payments, and interest, maturing, required to be made and becoming due in any succeeding state fiscal year on the bonds of the agency then outstanding and secured by such reserve fund; in which case such sum so apportioned and paid shall be deposited by the agency in such debt service reserve fund.
3. The agency may create and establish such other reserve funds as it shall deem advisable and necessary.
4. All amounts paid over to the agency by the state pursuant to this section shall constitute and be accounted for as advances by the state to the agency and, subject to the rights of the holders of any bonds or notes of the agency theretofore or thereafter issued, shall be repaid to the state from all available operating revenues of the agency in excess of amounts required for the debt service, reserve funds and operating expenses.
5. The chair of the agency shall make and deliver to the governor and the commissioner of finance and administration on or before November 1, 1973, and each year thereafter, a certificate stating the amount estimated to be required for payment of or provision for expenses of the agency under this part for the next ensuing state fiscal year. The amount so stated for any such ensuing state fiscal year shall be the sum of the amounts, if any, estimated for such fiscal year, by which anticipated operating expenses will exceed available operating revenues that the agency anticipates with reasonable certainty it will receive during such fiscal year. To assure the continued operation and solvency of the agency for the fulfillment of the purposes of this part, there shall be apportioned and paid to the agency after audit by the appropriate state official on vouchers certified or approved by the officer or officers authorized by the agency, not more than the amount so stated for expenses of the agency for such fiscal year.
6. As used in this section:
   1. “Available operating revenues” for the fiscal year means all amounts received on account of mortgages acquired or loans made by the agency, fees charged by the agency, if any, and income or interest earned or added to funds of the agency due to the investment thereof, and not required under the terms or provisions of any covenant or agreement with holders of any bonds or notes of the agency to be applied to any purpose other than payment of expenses of the agency; and
   2. “Operating expenses” for the fiscal year means ordinary expenditures for operation and administration of the agency.
7. Subject to agreements with bondholders or noteholders, such operating funds as are available to the agency shall be deposited in the state treasury to ensure that the administrative operation is conducted in the same manner as state agencies.
8. Subject to agreements with bondholders or noteholders, the annual budget of the agency shall be prepared in accordance with title 9, chapter 4, part 51.

Acts 1973, ch. 241, § 12; 1974, ch. 702, § 7; 1975, ch. 320, § 6; T.C.A., § 13-2322.

13-23-123. Remedies of bondholders and noteholders — Trustees.

1. In the event that the agency shall default in the payment of principal of or interest on any bonds or notes issued under this part after the same shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of thirty (30) days, or in the event that the agency shall fail or refuse to comply with this part, or shall default in any agreement made with the holders of any issue of bonds or notes, the holders of twenty-five percent (25%) in aggregate principal amount of the bonds or notes of such issue then outstanding, by instrument or instruments filed in the office of the secretary of state and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of such bonds or notes for the purposes herein provided.
2. Such trustee may, and upon written request of the holders of twenty-five percent (25%) in principal amount of such bonds or notes then outstanding shall, in such trustee's own name:
   1. Enforce all rights of the bondholders or noteholders, including the right to require the agency to collect interest and amortization payments on the mortgages held by it adequate to carry out any agreement as to, or pledge of, such interest and amortization payments, and to require the agency to carry out any other agreements with the holders of such bonds or notes and to perform its duties under this part;
   2. Enforce all rights of the bondholders or noteholders, including the right to require the agency to carry out and perform the terms of any contract with the holders of such bonds or notes or its duties under this part;
   3. Bring suit upon all or any part of such bonds or notes;
   4. By action or suit, require the agency to account as if it were the trustee of an express trust for the holders of such bonds or notes;
   5. By action or suit, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such bonds or notes; and
   6. Declare all such bonds or notes due and payable and if all defaults shall be made good, then, with the consent of the holders of twenty-five percent (25%) of the principal amount of such bonds or notes then outstanding, to annul such declaration and its consequences.
3. Such trustee shall, in addition to the foregoing, have and possess all the powers necessary or appropriate for the exercise of any functions specifically set forth herein or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights.
4. Before declaring the principal of bonds or notes due and payable, the trustee shall first give thirty (30) days' notice in writing to the governor, to the agency and to the attorney general and reporter.
5. The circuit or chancery court shall have jurisdiction of any suit, action or proceeding instituted on behalf of the bondholders or noteholders by such trustee or any trustee appointed and acting in conformity with § 13-23-120(i). The venue of any such suit, action or proceeding shall be laid in Davidson County.

Acts 1973, ch. 241, § 13; 1974, ch. 702, § 8; 1977, ch. 483, § 8; T.C.A., § 13-2323.

13-23-124. Credit of state not pledged.

1. 1. Obligations issued under this part shall not be deemed to constitute a debt, liability, or obligation of the state or of any other political subdivision thereof, nor a pledge of the full faith and credit of the state or any other political subdivision, but shall be payable solely from the revenues or assets of the agency.
   2. Each obligation issued under this chapter shall contain on the face thereof a statement to the effect that the agency shall not be obligated to pay the same, nor the interest thereon, except from the revenues or assets pledged therefor and that neither the full faith and credit, nor the taxing power of the state, or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such obligation.
   3. All obligations of the agency issued under this part are revenue bonds or notes and are not general obligations of the state of Tennessee.
2. Expenses incurred by the agency in carrying out this part may be made payable from funds provided pursuant to this part, and no liability is incurred by the agency hereunder beyond the extent to which moneys have been so provided.

Acts 1973, ch. 241, § 14; 1974, ch. 702, § 9; T.C.A., § 13-2324.

13-23-125. Annual reports — Audits.

1. The agency may, in accordance with the rules, regulations, policies and procedures of the state publications committee, submit an annual report of its activities for the preceding year to the governor, comptroller of the treasury, and the general assembly. Each such report shall set forth a complete operating and financial statement of the agency during such year. The annual report shall set forth an annual statistical report including, but not limited to, the amount of mortgage loans made and the geographic location of the property having such mortgages; the number, size and average income of families benefiting from the agency's activities; the improved size of housing for such families; and comparison of the loan interest rates for such families with and without the agency's activities.
2. 1. The annual report, including financial statements, all books, accounts and financial records of the agency shall be audited annually by the comptroller of the treasury.
   2. All audits performed by the internal audit staff of the agency shall be conducted in accordance with the standards established by the comptroller of the treasury pursuant to § 4-3-304(9).

Acts 1973, ch. 241, § 15; 1974, ch. 702, § 10; 1977, ch. 483, § 12; T.C.A., § 13-2325; Acts 1984, ch. 794, § 9; 1990, ch. 1024, § 15; 2004, ch. 656, § 2.

Cross-References. Reporting requirement satisfied by notice to general assembly members of publication of report, § 3-1-114.

13-23-126. Authority to accept funds.

1. The agency is authorized to accept such moneys as may be appropriated from time to time by the general assembly for effectuating its corporate purposes including, without limitation, the payment of the initial expenses of administration and operation and the establishment of a reserve or contingency fund to be available for the payment of the principal of and the interest on any bonds or notes of the agency.
2. The agency is authorized to accept funds from any other legal and appropriate source for effectuating its corporate purposes.

Acts 1973, ch. 241, § 16; T.C.A., § 13-2326; Acts 1988, ch. 900, § 8.

13-23-127. Tax exemption.

1. The exercise of the powers granted by this part will be in all respects for the benefit of the people of the state, for their well being and prosperity and for the improvement of their social and economic conditions, and the agency is not required to pay any tax or assessment on any property owned by the agency under this part or upon the income therefrom; nor is the agency required to pay any transfer tax of any kind on account of instruments recorded by it or on its behalf.
2. Any obligations issued by the agency under this part, their transfer, and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation by the state or any local unit or political subdivision or other instrumentality of the state, excepting inheritance and gift taxes.

Acts 1973, ch. 241, § 17; 1975, ch. 152, § 1; T.C.A., § 13-2327.

13-23-128. Conflicts of interest.

1. 1. No member or employee of the agency, during such member's or employee's tenure or for six (6) months thereafter, shall be employed by, hold any paid official relation to, or have any financial interest in, any housing sponsor or any housing development financed or assisted by the agency.
   2. No real property to which such member or employee holds legal title or in which such person has any financial interest shall be sold, during such member's or employee's tenure or for six (6) months thereafter, to a housing sponsor for a housing development to be financed by the agency.
2. If any member or employee of the agency has a direct or indirect interest in any other business or contract with the agency other than those described in subsection (a), or has an ownership interest in any firm, corporation, or other entity having an interest in any business or contracts with the agency other than those described in subsection (a), such interest must be disclosed in writing and set forth in the official minutes of the agency, and such member or employee must refrain from participation in any discussion or activity by the agency in connection with such business or contract.
3. If any member or employee fails to comply with the foregoing provisions, such member or employee may, after proper notification and opportunity to be heard, be disqualified from membership with or employment by the agency by a majority vote of the board of directors and may not be reappointed to or reemployed by the agency.
4. In no event shall any failure to comply with this section affect the validity of the authorization, issuance, or sale of bonds or notes by the agency under this part.
5. Subsection (a) does not apply to any interest, relation, or sale disclosed by a member or employee prior to January 1, 1979, and made a part of the minutes of the agency in accordance with the then applicable law.
6. 1. No state officer or employee shall, during such state officer's or employee's term of service or employment, or within a period of six (6) months after ceasing to be a state officer or employee, have any financial interest, directly or indirectly, in any firm, corporation, association or other organization engaged in any way in any housing program under the terms of this part.
   2. Notwithstanding any other provision of this chapter to the contrary, any state officer or employee, except officers and employees of the Tennessee housing development agency, whose financial interest, either directly or indirectly, is with or through a lender as defined in § 13-23-103, is not in violation of this section, except as otherwise specifically prohibited by law. The exception granted by this subsection (f) also applies to a constitutional officer of this state when one is acting as an individual and not in an official capacity, even though such an officer may be a director of the Tennessee housing development agency.

Acts 1973, ch. 241, § 18; 1979, ch. 442, § 5; T.C.A., § 13-2328; Acts 1982, ch. 724, § 1; 2004, ch. 444, §§ 1-3; 2013, ch. 405, §§ 1, 2.

13-23-129. Bonds and notes as legal investments.

The bonds and notes of the agency are hereby made securities in which all public officers and bodies of this state and all municipal subdivisions, all insurance companies and associations and other persons carrying on insurance business, all banks, bankers, trust companies, including savings and loan associations, building and loan associations, investment banking companies and other persons carrying on an investment banking business, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons who are now or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest in the bonds and notes of the agency funds including capital in their own control or belonging to them. The bonds and notes are also hereby made securities which may be deposited with and may be received by all public officers and bodies of this state and all municipalities and municipal subdivisions for any purpose for which the deposit of bonds or notes or other obligations of this state is now or may hereafter be authorized.

Acts 1974, ch. 702, § 11; T.C.A., § 13-2329.

13-23-130. Supplemental nature.

This part is deemed to provide an additional and alternative method for the activities authorized thereby and is regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing.

Acts 1973, ch. 241, § 19; T.C.A., § 13-2330.

13-23-131. Inconsistencies with other laws.

Insofar as this part is inconsistent with any other law, general, special, or local, this part is controlling.

Acts 1973, ch. 241, § 20; T.C.A., § 13-2331.

13-23-132. Construction.

This part, being necessary for the welfare of the state and its inhabitants, shall be liberally construed so as to effectuate its purposes.

Acts 1973, ch. 241, § 21; T.C.A., § 13-2332.

13-23-133. False statements intended to influence participation in agency programs — Penalties.

1. It is unlawful for any person to knowingly make, utter, or publish a false statement of substance or aid or abet another person in making, uttering, or publishing a false statement of substance for the purpose of influencing the agency to allow participation in any of its programs.
2. A violation of this section is a Class E felony.

Acts 1977, ch. 483, § 10; T.C.A., § 13-2333; Acts 1989, ch. 591, §§ 1, 6; 1993, ch. 278, § 1.

Cross-References. Penalty for Class E felony, § 40-35-111.

Part 2
Handicapped Housing Authorization Act of 1977

13-24-101. Purpose — Meaning of “person with a disability.”

1. It is the purpose of this part to remove any zoning obstacles which prevent persons with a disability from living in normal residential surroundings.
2. As used in this part, “person with a disability” does not include persons who have a mental illness and, because of such mental illness, pose a likelihood of serious harm as defined in § 33-6-501, or who have been convicted of serious criminal conduct related to such mental illness.

Acts 1978, ch. 863, § 1; 1979, ch. 361, §§ 1, 3; T.C.A., § 13-2401; Acts 2000, ch. 947, §§ 8B, 8C; 2011, ch. 47, §§ 8, 9; 2011, ch. 158, § 8.

Compiler's Notes. Acts 2011, ch. 47, § 107 provided that nothing in the legislation, which amended subsections (a) and (b), shall be construed to alter or otherwise affect the eligibility for services or the rights or responsibilities of individuals covered by the provision on the day before the date of enactment of this legislation, which was July 1, 2011.

Acts 2011, ch. 47, § 108 provided that the provisions of the act are declared to be remedial in nature and all provisions of the act shall be liberally construed to effectuate its purposes.

Cross-References. County zoning regulations, title 13, ch. 7, part 1.

Municipal zoning regulations, title 13, ch. 7, part 2; § 13-7-401.

13-24-102. Homes in which persons with disabilities reside classified as single family residence.

For the purposes of any zoning law in Tennessee, the classification “single family residence” includes any home in which eight (8) or fewer unrelated persons with disabilities reside, and may include three (3) additional persons acting as support staff or guardians, who need not be related to each other or to any of the persons with disabilities residing in the home.

Acts 1978, ch. 863, § 2; 1979, ch. 361, § 2; T.C.A., § 13-2402; Acts 1999, ch. 204, § 1; 2011, ch. 47, § 10; 2011, ch. 158, § 9.

Code Commission Notes.

Acts 2011, ch. 47, § 10, effective July 1, 2011, purported to substitute “support staff” for “houseparents”. Acts 2011, ch. 158, § 9, effective May 5, 2011, had already made the substitution; therefore, ch. 47 was not given effect.

Compiler's Notes. Acts 2011, ch. 47, § 107 provided that nothing in this legislation, which amended this section, shall be construed to alter or otherwise affect the eligibility for services or the rights or responsibilities of individuals covered by the provision on the day before the date of enactment of this legislation, which is July 1, 2011.

Acts 2011, ch. 47, § 108 provided that the provisions of this act, which amended this section, are declared to be remedial in nature and all provisions of this act shall be liberally construed to effectuate its purposes.

13-24-103. Precedence over other laws.

This part takes precedence over any provision in any zoning law or ordinance in Tennessee to the contrary.

Acts 1978, ch. 863, § 2; T.C.A., § 13-2403.

13-24-104. Inapplicability to commercial residences for persons with disabilities.

This part does not apply to such family residences wherein persons with disabilities reside when such residences are operated on a commercial basis.

Acts 1978, ch. 863, § 2; T.C.A., § 13-2404; Acts 2011, ch. 47, § 11.

Compiler's Notes. Acts 2011, ch. 47, § 107 provided that nothing in the legislation shall be construed to alter or otherwise affect the eligibility for services or the rights or responsibilities of individuals covered by the provision on the day before the date of enactment of this legislation, which was July 1, 2011.

Acts 2011, ch. 47, § 108 provided that the provisions of the act are declared to be remedial in nature and all provisions of the act shall be liberally construed to effectuate its purposes.

Part 2
Manufactured Residential Dwellings

13-26-101. Short title.

This chapter shall be known and may be cited as the “Human Resource Agency Act of 1973.”

Acts 1973, ch. 289, § 1; T.C.A., § 13-2101.

13-26-102. Creation authorized.

The chief elected public officials of various counties and/or cities of the economic development districts established under chapter 14 of this title, are empowered to create a human resource agency. It is the intent of this chapter that there may be four (4) metropolitan human resource agencies, Memphis-Shelby, Nashville-Davidson, Knoxville-Knox, Chattanooga-Hamilton, and no more than nine (9) rural human resource agencies, coterminous with the boundary lines of the development districts. It is the further intent of this chapter that the agencies so created may be the delivery system for human resources, and in no way an infringement on the planning functions of the development districts.

Acts 1973, ch. 289, § 2; T.C.A., § 13-2102.

Compiler's Notes. The Delta, East Tennessee, First Tennessee, Mid-Cumberland, Northwest Tennessee, South Central Tennessee, Southeast Tennessee, Southwest Tennessee, and Upper Cumberland human resource agencies, created by this section, terminate June 30, 2021. See §§ 4-29-112, 4-29-242.

13-26-103. Governing board — Policy council — Establishment.

1. There is established a governing board, the membership of which consists of the county mayor of each county within the district, the mayor of each municipality within the district, the chief executive officer of any metropolitan government within the district, one (1) representative from a local agency in each county knowledgeable of and dealing with the problems concerning human resource agencies appointed by the county mayor or chair, and one (1) state senator and one (1) state representative whose senatorial or representative districts lie wholly or in part within the development district. The senate member shall be selected by the senators whose districts are wholly or in part within the development district and the representative member shall be selected by the representatives whose districts are wholly or in part within the development district. Senators and representatives shall serve on such boards for two (2) years or until they leave the general assembly, whichever occurs first. Senators whose districts lie wholly or partly within the development district shall meet at the call of the senior senator among those affected, for the purpose of selecting a member of the governing board, and representatives shall meet at the call of their senior representative for that purpose. Membership on such boards shall be for four (4) years or until the expiration of the term of the official by whom such representative was appointed, whichever occurs first. Members are subject to reappointment. The representative of each county and city government as indicated above may be chosen from an existing city or county planning commission. The board may appoint an executive committee to act for it and determine the authority of such committee. No member of the general assembly shall receive any additional compensation for such member's service on a board.
2. No votes may be cast by proxy. Only duly appointed members of the board may vote.
3. If a member of a board created under this chapter participates in a vote of such board after such member's term of office has expired, no state funds shall be released to or expended by such board until such time as the board meets and rescinds any votes in which such member has participated and reconsiders its action with a lawfully constituted board.
4. This board shall appoint a policy council to act for it and shall determine the authority of such council over and above that specified in § 13-26-104. The membership of the policy council shall be broadly based and equitably distributed between providers and consumers of human resource services and/or established by public law.

Acts 1973, ch. 289, § 3; T.C.A., § 13-2103; Acts 1980, ch. 677, § 1; 2003, ch. 90, § 2.

Compiler's Notes. Acts 2003, ch. 90, § 2, directed the code commission to change all references from “county executive” to “county mayor” and to include all such changes in supplements and replacement volumes for the Tennessee Code Annotated.

Attorney General Opinions. Human resource agency board member conflict of interest.  OAG 12-37, 2012 Tenn. AG LEXIS 37 (3/19/12).

13-26-104. Policy council — Powers.

The powers of every policy council include the power to adopt bylaws, to appoint persons to senior staff positions, to determine major personnel, fiscal, and program policies, to approve overall program plans and priorities, and to assure compliance with conditions of and approve proposals for financial assistance under this chapter, subject to ratification by the governing board.

Acts 1973, ch. 289, § 4; T.C.A., § 13-2104.

Attorney General Opinions. Human resource agency board member conflict of interest.  OAG 12-37, 2012 Tenn. AG LEXIS 37 (3/19/12).

13-26-105. Powers of agencies — Loan authorization.

1. It is hereby declared that the agencies created pursuant to this chapter shall be a body, politic and corporate, and shall be public and governmental bodies acting as agencies and instrumentalities of the creating and participating counties and cities, and such agencies are declared to be for a public and governmental purpose and a matter of public necessity.
2. In order to carry out its overall responsibility for administering a human resource program, a human resource agency is hereby given the authority to own and dispose of property, both real and personal, and to receive and administer funds under this chapter, funds and contributions from private or local public sources which may be used in support of a human resource program, and funds under any federal or state assistance program pursuant to which such an agency organized in accordance with this chapter could serve as grantee, contractor, or sponsor of projects appropriate for inclusion in a human resource program.
3. With prior approval of the board of directors, a human resource agency may borrow funds when such funds are fully and properly secured by grant funds receivable. Such loans are authorized for short-term emergency cash flow needs only. Such loans shall not constitute an indebtedness of the state, nor shall the interest on such debt be directly or indirectly charged to a state or federal program grant.
4. A human resource agency may make contracts and execute instruments containing such covenants, terms, and conditions as, in the judgment of the directors, may be necessary, proper, or advisable for the purposes of obtaining grants, loans, or other financial assistance from any federal, state or local agency for or in the aid of the acquisition or improvement of the facilities of the agency and make all other contracts and execute all other instruments, including, without limitation, licenses, long-term and short-term leases, mortgages, deeds of trust, and other agreements relating to property and facilities under its jurisdiction, and the construction, operation, maintenance, repair and improvement thereof, as in the judgment of the board of directors may be necessary, proper or advisable for the furtherance of the purpose of this part and the full exercise of the powers herein granted. In exercising the powers granted herein, the directors shall abide by all statutes, regulations and procedures to which counties must conform in such matters.

Acts 1973, ch. 289, § 5; T.C.A., § 13-2105; Acts 1994, ch. 555, § 1; 1995, ch. 22, § 1; 1998, ch. 597, § 1.

Attorney General Opinions. Agency operates as not-for-profit organization even though designated as “body politic,” OAG 95-048, 1995 Tenn. AG LEXIS 54 (5/15/95).

13-26-106. Financial reports — Audits.

1. Each governing board operating under this chapter shall prepare an annual report of its activities, including financial statements, through June 30 of each year, and submit a copy of such report to the governor, the general assembly, and the commissioner of finance and administration.
2. 1. The annual report, including financial statements, and all books of account and financial records are subject to annual audit by the comptroller of the treasury.
   2. A human resource agency may, with the prior approval of the comptroller of the treasury, engage licensed independent public accountants to perform the audits.
   3. The audit contract between the human resource agency and the independent public accountant shall be on contract forms prescribed by the comptroller of the treasury.
   4. The human resource agency is responsible for reimbursement of the costs of audits prepared by the comptroller of the treasury and the payment of fees for audits prepared by licensed independent public accountants.
   5. Audits and working papers prepared by independent public accountants shall be reviewed and approved by the comptroller of the treasury prior to payment.
   6. Copies of such audits shall be provided to each member of the board and the comptroller of the treasury and shall be made available to the press.
   7. All audits performed by the internal audit staffs of any such agency shall be conducted in accordance with the standards established by the comptroller of the treasury pursuant to § 4-3-304(9).

Acts 1973, ch. 289, § 6; 1976, ch. 666, § 4; T.C.A., § 13-2106; Acts 1984, ch. 794, § 10; 1985, ch. 284, § 1.

Cross-References. Reporting requirement satisfied by notice to general assembly members of publication of report, § 3-1-114.

13-26-107. Appropriations — Local contributions.

1. Any funds appropriated to implement this chapter are subject to the approval of the governor and the commissioner of finance and administration.
2. Such approval shall be given only after review by the office of the governor of the annual work program developed by the human resource agency to assure that such program is in accordance with the development plans of the state.
3. It is the intent of the state to assist financially with the delivery of human resources for residents. After the creation of any such board as provided in this chapter and when the local governments have indicated a willingness to contribute financially by adopting a budget requiring a certain per capita assessment, the state is authorized to match the local contributions according to the following schedule:

   Local Assessment     Annual State Contribution

   Cents/Capita  Contribution  Cap/County

   1-5              $40,000    $7,500

   6-10              $70,000   $7,500

   11-15             $100,000  $10,000

   16-20             $150,000  $12,500

4. Such local contributions shall be based upon, in the case of counties, an amount not to exceed fifteen cents (15¢) per capita based on the latest decennial census, one half (½) of which may be contributed by local incorporated cities or by other private, public or semipublic bodies; provided, that no county shall be required to contribute more than ten thousand dollars ($10,000) annually. The aggregate of such funds may also be used for purposes of matching various federal programs of assistance. Counties and municipalities may participate independently of each other in financing the activities of the board. Cities and counties are specifically authorized to appropriate and expend funds for carrying out the purposes of this chapter.

Acts 1973, ch. 289, § 7; T.C.A., § 13-2107; Acts 1989, ch. 575, § 1; 1992, ch. 786, § 1; 2007, ch. 467, § 1; 2018, ch. 1030, § 1.

13-26-108. Duties of governing board.

Each governing board operating under this chapter shall:

1. Jointly adopt statewide uniform travel regulations subject to the approval of the commissioner of finance and administration and reimburse its officers and employees for official travel in conformance with such regulations;
2. Develop a system of competitive bidding on purchases of supplies and equipment and other contracts and submit the written procedures governing such system to the state procurement commission for approval; and
3. Develop written personnel procedures to be filed with the commissioner of finance and administration for the hiring, promotion, demotion and dismissal of all employees and include an employee compensation plan based on a salary comparability analysis, which takes into account state salary schedules, local government salary schedules, and regional private market variations.

Acts 1976, ch. 666, §§ 1-3; T.C.A., § 13-2108; Acts 2011, ch. 295, § 19.

13-26-109. Uniform accounting system.

1. The comptroller of the treasury is directed to develop a uniform accounting system conforming to generally accepted accounting principles for the governing boards operating under this chapter.
2. Such uniform accounting systems shall be subject to the approval of the commissioner of finance and administration.
3. Upon such approval each human resource agency shall establish and maintain the uniform accounting system.
4. No state appropriation shall be released to a human resource agency until such agency has established the required accounting system.

Acts 1976, ch. 666, § 5; T.C.A., § 13-2109.

13-26-110. Bond requirements.

1. Any board member, policy council member, employee, officer, or any authorized person of a human resource agency who receives public funds, has authority to make expenditures from public funds, or has access to any public funds is hereby required to give bond to be made payable to the state of Tennessee with such sureties as are hereinafter provided. Such bond is to be conditioned in all cases in which a different condition is not prescribed, upon the faithful discharge of the duties of such office, employment, or other authorized activity in which such person is engaged during the time such person continues therein, or in the discharge of any part thereof.
2. Such official bond shall be executed in the same form as that prescribed by § 8-19-101 for county and state officials and employees.
3. 1. Effective July 1, 2013, the minimum amount of such required bond shall be determined from the amount of revenues handled by the respective human resource agency as reported in the last audit approved by the comptroller of the treasury. The minimum amount of the bond shall be based on revenues as follows:
      1. Four percent (4%) of the revenues up to three million dollars ($3,000,000); and
      2. Two percent (2%) of the excess over three million dollars ($3,000,000) shall be added.
   2. The amounts indicated in subdivisions (c)(1)(A) and (B) shall be cumulative.
4. All such official bonds shall be signed by authorized individuals of a corporate surety, and such corporation shall be duly licensed to do business in this state as a surety.
5. The official bonds required under this section are hereby required to be recorded in the office of the register of deeds where the office of the human resource agency is located and transmitted to the office of the county clerk in the same county for safekeeping.
6. No examination or certification of any such bonds shall be required in this section.
7. Provisions for bonds of all state and county officers set forth in title 8, chapter 19, shall also govern the bonds of all persons covered under this section, so far as title 8, chapter 19, is not inconsistent with this section.
8. The respective human resource agency shall pay the premium for such bonds.

Acts 1976, ch. 666, § 6; T.C.A., § 13-2110; Acts 2013, ch. 315, §§ 27, 28.

Compiler's Notes. Acts 2013, ch. 315, § 31 provided that the act, which amended subsections (c) and (e), shall apply to the renewal or obtaining an official bond for any bonding after April 29, 2013.

13-26-111. Oversight — Funding.

1. For purposes of general oversight, and specifically for purposes of § 13-26-107, the human resource agencies created pursuant to this chapter are attached to the department of human services. Any reports required of human resource agencies by this chapter, or reports that may arise from activities undertaken pursuant to the authority of this chapter, shall be filed with the commissioner of human services in addition to any other filing which may be required.
2. 1. It is the legislative intent that the commissioner consider the financial needs of human resource agencies, particularly matching funds as envisioned by § 13-26-107, and to the extent deemed appropriate shall include such funds in the budget request of the department of human services submitted to the commissioner of finance and administration pursuant to § 9-4-5103.
   2. The commissioner of human services shall provide planning assistance and oversight to these agencies to assure coordination and avoidance of duplication of activities among human service providers in each jurisdiction.
   3. Nothing in this section shall require any expenditure of funds unless such funds are lawfully appropriated by the general assembly.

Acts 1993, ch. 300, § 1; 1997, ch. 308, § 3.

Part 1
Enterprise Zones [Repealed]