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SB 1601

Local Government, General - As introduced, authorizes a municipality to create and require the use of a landlord registry for a real estate investment trust that owns, operates, or finances 10 or more dwelling units located within the municipality. - Amends TCA Title 66.

114th Regular Session (2025-2026) Introduced by Ferrell Haile

Municipalities with 2/3 vote can require REITs owning 10+ units to register and update info, no fees allowed, with $50/week fines after a hearing for noncompliance.

Assigned to General Subcommittee of Senate Commerce and Labor Committee
#general #localgovernment
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Bill Summary · SB 1601

Summary of SB 1601 (Session 114, Tennessee) – Local Government, General

Note: This is the bill as introduced and as amended on the fiscal analyses provided. It concerns authorizing municipalities to establish a Real Estate Investment Trust (REIT) registry for certain multifamily properties and related enforcement mechanisms.

1) Main purpose and intent

  • Authorize a municipality, by a two-thirds vote of its governing body, to require registration of any REIT that owns, operates, or finances 10 or more dwelling units within the municipality’s boundaries.
  • Prohibit municipalities from charging any registration fee.
  • Create a framework for REIT registration, updating of registration information, and enforcement through fines for noncompliance.

2) Key provisions and changes

  • Authority to require REIT registration:
    • A municipality may adopt a resolution (two-thirds vote) to require REITs owning/operating/financing 10+ dwelling units within the municipality to register.
  • Fees:
    • Municipalities may not charge a registration fee for REITs.
  • Registration updates:
    • REITs must update their registration information within 30 days of any change.
  • Enforcement and penalties:
    • Local building code enforcement agencies may assess a fine of $50 per week against REITs that fail to register or update information.
    • Before any fine is imposed, the REIT must be given an opportunity to appear and be heard at a hearing.
    • Municipalities must provide written notice of the hearing schedule to REITs at least 15 days prior to the hearing.
  • Administrative process:
    • Appeals by REITs can be addressed through regularly scheduled meetings, implying no significant new expenditure for local governments to handle appeals.

3) Who or what would be affected

  • REITs:
    • Those owning, operating, or financing 10 or more dwelling units within the municipality could be required to register and periodically update information.
    • They would be subject to potential weekly fines ($50) for failure to register or update information, after due process.
  • Municipalities:
    • Local government bodies in applicable cities could establish REIT registries (subject to a two-thirds vote).
    • Must enforce registration and provide hearings and notices; penalties would be collected as fines rather than fees.
  • Local building code/enforcement agencies:
    • Given the enforcement role for penalties, agencies would administer fines and hearings.

4) Procedural and timeline aspects

  • Trigger for implementation:
    • Adoption of a two-thirds-vote resolution by the municipality’s governing body.
  • Registration/update timeline:
    • 30-day window for REITs to update information after changes.
  • Hearing/process:
    • REITs must be given a hearing opportunity before fines are levied.
    • Written notice of hearing must be provided at least 15 days in advance.
  • Fiscal note:
    • Considered not significant; assumes REIT registries would be limited to larger cities (e.g., Nashville, Chattanooga, Knoxville, Memphis, Murfreesboro) and would utilize existing staff/resources.
    • No new registration fees; fines are the primary enforcement mechanism and are estimated to have minimal revenue impact.

5) Legislative context and status

  • Amended language (SB 1601 as amended) clarifies the fee prohibition and the 30-day update period.
  • Action history indicates the bill has moved through state Senate committees with scheduling in 2026.
  • Sponsor: Co-sponsor Ferrell Haile.

Bottom line

SB 1601 would empower certain Tennessee municipalities to require REITs with 10+ dwelling units within the municipality to register and promptly update their information, while prohibiting any registration fee. Noncompliance could lead to a $50-per-week fine, enforced after a due-process hearing. The measure envisions leveraging existing local resources and targets larger urban areas where REIT activity is more likely.

Compiled from official sources — confirm details with the bill’s official record.

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