2015 Legislative Update II — SB 1079
February 24, 2015

In addition to the proposed Tennessee Homeowners Association Act (HB 610/SB 405), the Tennessee legislature is currently considering SB 1079. It was also introduced on February 11, 2015.

This legislation imposes certain reporting guidelines on homeowners associations. Since the proposed legislation defines as “Unit” as including an unimproved lot, it presumably does not apply to condominiums (which have similar reporting guidelines under the Tennessee Condominium Act of 2008). The issue and concern in this proposed legislation is that proposed § 66-27-602(a) prohibits the association from charging the unit owner a fee for providing the information requested pursuant to the proposed legislation. This provision directly conflicts with existing state law under Tenn. Code § 48-66-103(c) that permits a non-profit corporation (which most homeowners associations are) to charge a reasonable fee for providing such information. Further, the proposed legislation levies fines on the homeowners association if the information is not timely provided.

So, the homeowners association would not be able to recoup its administrative costs (contrary to existing state law) and would be subject to fines if it does not timely submit the required information. How does this assist a homeowners association governed and administered by unpaid directors? Is the association, which has a limited budget, simply to eat these costs?

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