What do the 2023-2026 Tennessee HOA law changes mean for volunteer boards?

By OurHOA · General information · Revised October 27, 2026

Tennessee HOA law changes for boards: the 2027 fidelity bond rule, the EV charger law, condo reserve studies every five years, and the bills that died.

Part of the HOA board handbook: new state laws for boards.

The short answer

Tennessee has no single statute that covers every homeowners association the way Florida chapter 720 or the Colorado Common Interest Ownership Act does. Condominiums created on or after January 1, 2009 fall under the Tennessee Condominium Act of 2008, which begins at Tennessee Code Annotated (TCA) section 66-27-201, and older condominiums can elect into parts of it. A single-family subdivision runs mostly on its own declaration and bylaws. Three enacted laws now give Tennessee boards specific jobs: - Public Chapter 205 of 2023 (SB 863) requires condominium associations to get a reserve study and update it every five years. In effect since January 1, 2024. - Public Chapter 914 of 2026 (HB 1875) stops condominium and homeowners associations from banning an owner's EV charger on the owner's own property. In effect since July 1, 2026. - Public Chapter 731 of 2026 (SB 2326) requires every association that collects assessments to carry a blanket fidelity bond. It takes effect January 1, 2027. Start with the fidelity bond, the one deadline still ahead. Rules also depend on your declaration, and this guide is general education, not legal advice.

The fidelity bond: who needs one and how much

The governor signed SB 2326 on April 23, 2026. The bill as filed took effect July 1, 2026, but a Senate amendment moved the date to January 1, 2027. The rule reaches any homeowners association that collects assessments for common expenses, incorporated or not, and the definition expressly includes a condominium unit owners' association organized under TCA 66-27-401. Small associations are not exempt. The bond must insure the association against theft or dishonesty by its officers, directors and employees, and by any managing agent or the managing agent's employees. The required limit is a formula: reserve balances + one-fourth of total annual assessment income, with a $10,000 minimum. A worked example. An 80-home association collects $240,000 a year in assessments and holds $180,000 in reserves. One-fourth of $240,000 is $60,000, so the bond needs at least $240,000 of coverage. A 30-lot association with $9,000 in annual dues and $4,000 in reserves computes to $6,250 and must carry the $10,000 floor instead. The board or the managing agent may buy the bond on the association's behalf. One drafting note: SB 2326 and HB 1875 were each written to add a new part to chapter 27 starting at section 66-27-901, so the published code may number one of them differently. Cite the public chapter number until the code is updated.

Getting the bond in place before January 1, 2027

At the first meeting, the treasurer brings total reserve balances across every reserve account, budgeted 2027 assessment income, and the formula result. The statute does not say on which date the balance is measured, so use the highest balance you expect during the policy year. Then call the association's insurance agent and ask for a crime or fidelity policy with a limit at or above that number. Ask four questions and get the answers in writing: 1. Does the policy cover volunteer directors and officers, not just paid employees? 2. Does it cover theft by the management company and its staff? Ask for the endorsement or declarations page that shows it. 3. Is the limit per loss or aggregate, and what is the deductible? 4. How long after a loss do we have to discover and report it? At the second meeting, approve the purchase by motion and put the renewal on the annual calendar. Sample motion: "Moved, that the board purchase a blanket fidelity bond or crime policy for the association with a limit of not less than $240,000, equal to reserve balances plus one-fourth of annual assessment income as required by Public Chapter 731 of 2026, effective no later than January 1, 2027, and that the treasurer recompute the required limit before each renewal." If you already carry a policy, check the limit against the formula. Our guide on fidelity bonds and embezzlement protection covers the controls that go with the policy.

EV chargers since July 1, 2026

HB 1875 was signed May 18, 2026. It adds matching sections for condominium associations (part 4 of the Condominium Act) and for homeowners associations generally, and applies to actions taken, and to declarations entered into, renewed or amended, on or after July 1, 2026. The rules are the same for both types of association: - No ban on the owner's property. The association may not prohibit an owner from installing a charger for personal use on property the owner owns, including the owner's designated parking location. A ban in the declaration or in the rules counts. - Reasonable limits are allowed. The association may set reasonable restrictions on the number, size, placement and manner of installation of a charger on the exterior of the owner's property. - Common areas are different. The association may prohibit or restrict chargers in common areas or common elements, with one exception: if an owner's designated parking space sits inside the common area, the association may not prohibit a charger in that space. - The owner carries the risk. An owner who installs a charger must indemnify the association and hold it harmless, including reasonable attorney fees, for claims arising from installing, maintaining, operating or using it. The association may require the owner to carry insurance for those claims and to name the association on the policy. - No maintenance duty. The association is not responsible for maintaining the charger or the car it serves.

Writing an EV charger rule that holds up

Adopt a short rule rather than deciding requests one at a time. Cover placement on the exterior (a garage wall rather than the front facade, for example), conduit runs, permits and licensed electricians. Where assigned spaces sit in the common area, add who pays for the circuit and metering. Sample wording the board can adapt: "An owner may install an electric vehicle charging station for personal use on the owner's lot or in the owner's designated parking location after submitting a site plan to the board. The owner shall use a licensed electrician, obtain any required permit, maintain the station at the owner's expense, carry liability insurance naming the association, and indemnify the association as provided in Public Chapter 914 of 2026." Keep restrictions tied to number, size, placement and manner of installation, since those are the four things the statute lets you regulate on the owner's property. A rule that requires a $2,000 architectural fee or a particular brand invites the argument that it works as a prohibition. For the mechanics of a condo garage request, see our guide on handling an owner's request to install an EV charger in a condo garage.

Condominium reserve studies every five years

Public Chapter 205 of 2023 added subsection (g) to TCA 66-27-403, effective January 1, 2024. It applies to the board of a condominium association under the 2008 Act whose common elements have an aggregate replacement cost above $10,000, which is nearly every building. - If the association had a reserve study done on or after January 1, 2020, it must update the study within five years of that study and at least every five years after. - If it had no study on or after January 1, 2020, it had to complete one by January 1, 2025, and update it every five years. - The board must send a copy of the study to all owners by email or post it on the community website. - The board must review reserve funding for adequacy every year. The law defines a reserve study by who prepares it and how. It must follow the Community Associations Institute Reserve Study Standards or similar national standards, and be prepared by a credentialed reserve specialist or a licensed engineer or architect. A spreadsheet the treasurer builds does not qualify. Exempt: a board still controlled by the declarant, a condominium titled to a single owner, and a married couple owning the condominium as tenants by the entirety. Single-family subdivisions outside the Condominium Act are not covered. Subsection (g) sets no minimum contribution. If your association missed the January 1, 2025 deadline, order the study now and calendar the five-year update from its completion date.

Bills that did not become law

Owners sometimes repeat headlines about bills that never passed. Two from the 2026 session matter to boards. - Home child care (HB 2306 / SB 2282). This would have voided declaration restrictions on licensed family and group child care homes. A House subcommittee deferred it to a January 2027 calendar, and it did not pass. Your declaration's child care and business use rules still apply. - First responder vehicles (HB 1462 / SB 1763). This would have barred associations from prohibiting or penalizing a first responder for parking an emergency vehicle at home or on the adjacent road. It was assigned to a House subcommittee in January 2026 and went no further. The 2026 session closed the two-year 114th General Assembly, so any of these ideas would need a new bill in 2027.

The board's checklist

Bring this to the next meeting. 1. Compute the fidelity bond limit, get written coverage answers, and bind the policy before January 1, 2027. 2. Add the limit check to the renewal calendar and the 2027 budget. 3. Flag any rule or declaration provision that bans an EV charger on an owner's property or assigned space, and adopt a written charger rule. 4. For condominiums, order a reserve study update if the last one is over five years old or missing, and email or post it. 5. Record the annual reserve funding review in the minutes. Which rules reach your community depends on whether it is a 2008 Act condominium, an older horizontal property regime, or a subdivision with only a declaration. Have a Tennessee attorney review your documents before a specific decision.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

More on board & governance

Or browse all hoa boards & governance guides.