Tennessee HOA Governing Statute

1. Overview — How HOAs are governed in Tennessee

Tennessee runs two parallel condominium statutes but has no comprehensive statute for non-condominium planned communities. That makes it a hybrid jurisdiction: condominium-comprehensive, and CC&R-primary everywhere else. The Tennessee Condominium Act of 2008, Tenn. Code § 66-27-201 et seq., is the modern condominium statute and applies to condominiums created on or after January 1, 2009.¹ The older Tennessee Horizontal Property Act, Tenn. Code § 66-27-101 et seq., dates to 1963 and continues to govern condominiums created before January 1, 2009.² Non-condominium HOAs — including most single-family master-planned communities — operate under their recorded covenants, conditions, and restrictions (CC&Rs) and the Tennessee Nonprofit Corporation Act, Tenn. Code § 48-51 et seq., because no general planned-community governance code exists in Tennessee.³

Disputes move through a distinctive bifurcated trial court system: Circuit Courts hear actions at law, Chancery Courts hear matters in equity, and most CC&R-interpretation and injunctive-relief actions proceed in Chancery.⁴ Tennessee is not a Uniform Common Interest Ownership Act (UCIOA) state. Both condominium statutes are bespoke Tennessee enactments.⁵ The governing instrument for any Tennessee community depends first on whether it is a condominium and, if so, when it was created — and second on the recorded declaration that supplies most operating rules for everyone else.

2. The statutory framework

The Tennessee Condominium Act of 2008 (Tenn. Code § 66-27-201 et seq.)

Tennessee enacted the Condominium Act of 2008 through Acts 2008, chapter 766, and it took effect January 1, 2009.⁶ By its own applicability provision, the Act covers all condominiums created in Tennessee after January 1, 2009, and in part those created before that date — but only for events and circumstances occurring after January 1, 2009.⁷ The Act occupies Parts 2 through 5 of Title 66, Chapter 27: Part 2, general provisions and definitions (§§ 66-27-201 to 66-27-211); Part 3, units and allocation of common and limited elements (§§ 66-27-301 to 66-27-323); Part 4, the unit owners' association (§§ 66-27-401 to 66-27-418); and Part 5, residential-purpose units and purchaser disclosure (§§ 66-27-501 to 66-27-507).⁸

The statute replaced the older "master deed" terminology with "declaration" and requires more extensive declaration content than the predecessor act.⁹ Defined terms in § 66-27-203 include "association," "common elements," "common expenses," "declarant," "development rights," "limited common element," and "special declarant rights."¹⁰ A consumer-protection feature in § 66-27-204 bars most deviations: except as expressly allowed, the Act may not be varied by agreement, rights it confers may not be waived, and a declarant may not use a power of attorney or other device to evade its limitations. Commercial condominiums receive different treatment.¹¹ The Act creates no regulatory agency, requires no prior local-government approval to create a condominium, and mandates no public offering statement.¹² Existing pre-2009 condominiums may opt into the Act by amending and restating their master deed or declaration.¹³

The Tennessee Horizontal Property Act (Tenn. Code § 66-27-101 et seq.)

The Horizontal Property Act originated in Acts 1963, chapter 124, and is codified as Part 1 of Chapter 27 (§§ 66-27-101 to 66-27-123).¹⁴ It governs condominiums created before January 1, 2009, that have not opted into the 2008 Act.¹⁵ The Act establishes a "horizontal property regime" in which each owner holds title to an individual unit plus a proportional undivided interest in the common areas. It can also apply to townhome communities and planned unit developments organized as horizontal property regimes.¹⁶

The Horizontal Property Act is structurally thinner than the 2008 Act. Its provisions address creation of the regime by recording a master deed, lease, or plat (§ 66-27-103); exclusive and common ownership rights (§ 66-27-106); recordation and content of the master deed (§ 66-27-107); recorded administrative bylaws and their contents (§§ 66-27-111 and 66-27-112); the administrator's books and examination by co-owners (§ 66-27-113); and proration of expenses with a lien for unpaid shares (§§ 66-27-114 and 66-27-116).¹⁷ The key compliance trap is the overlap created by § 66-27-202: a pre-2009 condominium remains anchored in the Horizontal Property Act, but a defined set of 2008 Act provisions reaches back to it for post-2009 events — including authority for the association, tort and contract liability, interim assessment authority under § 66-27-414(g), assessment-lien priority under § 66-27-415, recordkeeping under § 66-27-417, and residential disclosure under Part 5.¹⁸ Citing the 2008 Act as the wholesale governing statute for a pre-2009 condominium is wrong. The correct analysis starts in Part 1 and layers in only the enumerated universal provisions.

Non-condominium planned communities (CC&Rs plus the Nonprofit Corporation Act)

Tennessee has no comprehensive statute governing non-condominium homeowners' associations. These communities operate under their recorded CC&Rs — treated as a contract among owners — supplemented by the Tennessee Nonprofit Corporation Act, Tenn. Code § 48-51-101 et seq. (Title 48, Chapters 51 through 68), enacted by Acts 1987, chapter 242. Most Tennessee associations incorporate as nonprofit corporations, and that Act supplies the corporate scaffolding they rely on: board formation and powers, membership meetings, voting, and bylaws.^{19, 20}

A small set of single-issue statutes in Chapter 27 also touches non-condo communities, but none provides a governance framework. Part 6 (Dedicatory Instruments, §§ 66-27-601 to 66-27-603) defines "dedicatory instrument" and bars associations from prohibiting display of the U.S. flag or military flags (§ 66-27-602) and certain water-hazard warning signs (§ 66-27-603).²¹ Part 7 (Homeowners' Association, §§ 66-27-701 to 66-27-706) addresses voting-record disclosure, vested long-term-rental rights, business-entity notice, and a 2024 limit on special assessments for nonessential amenities (§ 66-27-706).²² Part 8 (Gated Subdivision, §§ 66-27-801 to 66-27-802) defines a gated subdivision as a neighborhood with at least 300 single-family homes and two or more gates and addresses access for emergency, government, and utility vehicles.²³

Because these obligations are mostly contractual or corporate rather than condominium-statutory, venue follows the relief sought under Tennessee's split trial court system. Chancery Court holds exclusive original jurisdiction over equitable causes where the demand exceeds $50 — covering declaratory judgments, injunctions, and most CC&R-interpretation and real-property disputes. Circuit Court is the court of general jurisdiction for actions at law: damages claims and jury trials.²⁴ A Circuit Court may hear an equity case if no objection is raised, or may transfer it to Chancery.²⁵

3. Compliance obligations created by the statutory framework

Governance obligations

For condominiums under either statute, governance duties are codified. Under the 2008 Act, the board may act for the association in most instances. Declarant-appointed directors owe fiduciary care, while owner-elected directors owe ordinary and reasonable care (§ 66-27-403). Declarant control terminates no later than enumerated triggers, with at least one owner-elected director required within 120 days of conveying 25% of units (§ 66-27-403(c)–(e)).²⁶ Meetings, quorums, voting, and proxies are set by §§ 66-27-408 through 66-27-410, with proxy duration tied to the Nonprofit Corporation Act.²⁷ Association recordkeeping is mandated by § 66-27-417, and the broad list of association powers sits in § 66-27-402.²⁸ Most of these are mandatory for residential condominiums under § 66-27-204, though the declaration may vary matters the Act expressly leaves to it. Pre-2009 condominiums look to recorded bylaws under §§ 66-27-111 and 66-27-112 of the Horizontal Property Act, plus the universal 2008 Act provisions. Non-condo planned communities derive governance from their CC&Rs and the Nonprofit Corporation Act, not from the condominium statutes.

Financial obligations

For condominiums, § 66-27-414 requires assessments at least annually based on a budget the board adopts at least annually, allocated per the declaration. The board may also levy interim assessments to preserve the physical integrity of a residential condominium, notwithstanding contrary declaration language (§ 66-27-414(g)).²⁹ Reserve obligations are now statutory: § 66-27-403(g) requires boards overseeing common elements with an aggregate replacement cost exceeding $10,000 to obtain or update a reserve study on a five-year cycle.³⁰ Non-condo HOAs have no statutory reserve-study mandate. Their assessment and reserve authority is contractual under the CC&Rs, subject to the § 66-27-706 limits on nonessential-amenity special assessments.³¹

Disclosure obligations

Part 5 of the 2008 Act requires that on request from a unit owner, purchaser, or lender, a residential condominium association provide the information specified in § 66-27-503 within 10 business days, and the requesting party may rely on it (§ 66-27-502).³² Required content includes governing documents, current rules, and the most recent balance sheet, income statement, and approved or projected budget (§ 66-27-503).³³ These disclosures are mandatory for residential condominiums and cannot be waived under § 66-27-204. For non-condo sales, the Tennessee Residential Property Disclosure Act (Tenn. Code §§ 66-5-201 to 66-5-210) requires sellers to disclose HOA or PUD membership and points condominium buyers to their § 66-27-502 rights. Tennessee imposes no statutory "resale certificate" for non-condo HOAs, so any resale package obligation is contractual.³⁴

Dispute resolution obligations

The 2008 Act lets associations impose late charges and, after notice and an opportunity to be heard, levy reasonable fines for violations (§ 66-27-402(a)(11)).³⁵ Associations may foreclose assessment liens by judicial action, or nonjudicially if the declaration so provides and statutory notice is given (§ 66-27-415). A limited six-month "super-lien" carries payment priority capped at 1% of the first mortgage and cannot extinguish a first mortgage.³⁶ Venue is the operational variable. CC&R-interpretation suits, requests for injunctions or declaratory judgments, and lien-enforcement or quiet-title matters generally proceed in Chancery Court as equity. Damages actions and jury matters proceed in Circuit Court.³⁷ For non-condo planned communities, enforcement obligations are contractual under the CC&Rs or corporate under the Nonprofit Corporation Act, and § 66-27-706(b) now bars foreclosure for nonpayment of a nonessential-amenity special assessment.³⁸

4. Tennessee's recent legislative and judicial activity

Recent bills

Tennessee's recent HOA-related legislation targets two specific gaps: special assessment protections and reserve planning requirements.

Recent court rulings

Recent appellate decisions reinforce procedural discipline and contract clarity for Tennessee community associations.

Active legislative debates

Efforts to create a comprehensive HOA statute continue to surface in successive legislative sessions.

5. National positioning and related coverage

Tennessee sits in the hybrid camp: condominium-comprehensive through both a modern statute and its predecessor, but CC&R-primary for non-condominium planned communities. That pattern is shared with Hawaii, Massachusetts, New Hampshire, Maine, Michigan, Wisconsin, and Kentucky. Tennessee's distinctive features are the 2008 Condominium Act layered over the surviving 1963 Horizontal Property Act, and a bifurcated Circuit and Chancery trial court system reminiscent of Delaware's Superior Court and Court of Chancery split. For multi-state operators, the practical implication is straightforward: Tennessee compliance turns on classifying each community correctly and, when litigation looms, choosing between Circuit and Chancery based on the relief sought.

6. Closing note

HOA Weekly updates this Tennessee governing statute page quarterly to reflect new legislation and appellate rulings. Federal frameworks — including the Fair Housing Act and the Fair Debt Collection Practices Act — also apply to Tennessee communities and will be covered as those sections come online.

1. Tennessee Legislature, Tenn. Code § 66-27-201, Tennessee Condominium Act of 2008 — general provisions ↩
2. Tennessee Legislature, Tenn. Code § 66-27-101, Tennessee Horizontal Property Act — general provisions ↩
3. Tennessee Legislature, Tenn. Code § 48-51-101, Tennessee Nonprofit Corporation Act — short title ↩
4. Tennessee Administrative Office of the Courts, About the Trial Courts — Circuit, Criminal, and Chancery Courts ↩
5. RunHOA, Tennessee State HOA Laws ↩
6. Tennessee General Assembly, Public Chapter 766 (Acts 2008), Tennessee Condominium Act of 2008 ↩
7. Homeowners Protection Bureau, Tennessee HOA Law Overview — Tenn. Code § 66-27-202 (Applicability) ↩
8. Tennessee Legislature, Tenn. Code Title 66, Chapter 27 — Condominiums and Planned Communities ↩
9. Kaman & Cusimano, The Tennessee Condominium Act of 2008 — Overview and Analysis, Lexology ↩
10. Kaman & Cusimano, Tennessee Condominium Act — Tenn. Code § 66-27-203 Defined Terms ↩
11. Tennessee Legislature, Tenn. Code § 66-27-204, Variation by agreement — waiver prohibited ↩
12. Kaman & Cusimano, The Tennessee Condominium Act of 2008 — No Regulatory Agency or Public Offering Statement Required, Lexology ↩
13. Kaman & Cusimano, The Tennessee Condominium Act of 2008 — Pre-2009 Opt-In Provisions, Lexology ↩
14. Tennessee Legislature, Tenn. Code § 66-27-101, Tennessee Horizontal Property Act (Acts 1963, ch. 124) ↩
15. FirstService Residential, The Tennessee Horizontal Property Act — Applicability to Pre-2009 Condominiums ↩
16. FirstService Residential, The Tennessee Horizontal Property Act — Townhomes and Planned Unit Developments ↩
17. Tennessee Legislature, Tenn. Code Title 66, Chapter 27, Part 1 — Horizontal Property Act, §§ 66-27-101 to 66-27-123 ↩
18. Dinkelspiel Rasmussen & Mink, The Tennessee Condominium Act of 2008 and Older Condos and the Power to Assess ↩
19. Tennessee Legislature, Tenn. Code § 48-51-101, Tennessee Nonprofit Corporation Act — short title, FindLaw ↩
20. FirstService Residential, The Tennessee Horizontal Property Act — Nonprofit Corporation Act as Governance Supplement ↩
21. Tennessee Legislature, Tenn. Code § 66-27-602, Dedicatory instruments — flag display restrictions prohibited, FindLaw ↩
22. Tennessee Legislature, Tenn. Code § 66-27-706, Homeowners' Association — nonessential amenity special assessments ↩
23. Tennessee Legislature, Tenn. Code Title 66, Chapter 27, Part 8 — Gated Subdivision, §§ 66-27-801 to 66-27-802 ↩
24. Tennessee Legislature, Tenn. Code § 16-11-103, Chancery Court — exclusive original jurisdiction in equity ↩
25. University of Tennessee County Technical Assistance Service, Jurisdiction of Circuit Court ↩
26. Tennessee Legislature, Tenn. Code § 66-27-403, Unit owners' association — board authority, fiduciary duties, and declarant control ↩
27. Tennessee Legislature, Tenn. Code § 66-27-410, Unit owners' association — proxies and voting, FindLaw ↩
28. Tennessee Legislature, Tenn. Code § 66-27-402, Unit owners' association — powers ↩
29. Tennessee Legislature, Tenn. Code § 66-27-414, Unit owners' association — assessments and budget ↩
30. Tennessee Legislature, Tenn. Code § 66-27-403(g), Reserve study requirement — five-year cycle, FindLaw ↩
31. Tennessee Legislature, Tenn. Code § 66-27-706, Homeowners' Association — limits on nonessential-amenity special assessments ↩
32. Tennessee Legislature, Tenn. Code § 66-27-502, Residential condominiums — owner and purchaser right to information ↩
33. Dinkelspiel Rasmussen & Mink, Required Records for Tennessee Condominium Associations — Tenn. Code § 66-27-503 ↩
34. Tennessee Legislature, Tenn. Code § 66-5-210, Residential Property Disclosure Act — HOA and PUD disclosure, FindLaw ↩
35. Tennessee Legislature, Tenn. Code § 66-27-402(a)(11), Unit owners' association — fines and late charges ↩
36. Tennessee Legislature, Tenn. Code § 66-27-415, Assessment lien — priority, foreclosure, and super-lien cap, FindLaw ↩
37. Tennessee Legislature, Tenn. Code § 16-11-103, Chancery Court jurisdiction — equity versus Circuit Court actions at law ↩
38. Tennessee Legislature, Tenn. Code § 66-27-706(b), Homeowners' Association — foreclosure prohibited for nonessential-amenity assessment ↩
39. Tennessee Legislature, Tenn. Code § 66-27-706 (Added by 2024 Tenn. Acts, ch. 691), Special assessments for nonessential amenities; TN SB2150, BillTrack50 — Public Chapter 691 bill detail ↩
40. FirstService Residential, New Tennessee Law Impacts Condominium Reserve Study — Public Chapter 205 (2023) ↩
41. Tennessee Legislature, Tenn. Code § 66-27-403(g), Reserve study — five-year update cycle and owner access, FindLaw ↩
42. Renegade Mountain Community Club, Inc. v. Cumberland Point Condominium Property Owners Association, Inc., No. E2024-00213-COA-R3-CV, Tenn. Ct. App. (May 2, 2025) ↩
43. Crossville Chronicle, Homeowners board recognized by court — Renegade Mountain developer rights background ↩
44. Timberlake Homeowners Association, Inc. v. Timberlake Development, LLC, Tenn. Ct. App. (May 3, 2024) ↩
45. Tennessee General Assembly, SB0405, Proposed Tennessee Homeowners' Association Act — 2025-26 Regular Session ↩
46. Community Associations Institute, 2025 CAI Tennessee Legislative Session Report — End of Session Summary ↩