Amends TCA Title 29.

This bill creates the "Private Property Protection Act," which creates a statutory process whereby private property owners may seek judicial relief when a local governmental entity has taken certain action through regulation that results in the diminution in value of the subject property.<br /> <br /> COMPENSATION FOR DIMINUTION IN VALUE<br /> <br /> This bill requires an owner of private real property to be paid an amount equal to the reduction in the fair market value of the affected property interest resulting from enactment or enforcement of a land use regulation as of the date the land use regulation goes into effect ("just compensation") if the following occurs:<br /> <br /> (1) A local governmental entity enacts or enforces a new land use regulation that restricts or prohibits the existing uses of a parcel of private real property or an interest in the property; and<br /> <br /> (2) As a result of that restriction or prohibition, the fair market value of the affected property or interest decreases by at least 10 percent.<br /> <br /> However, this bill does not require such compensation if the decrease in the fair market value of the affected property or interest is less than $10,000. The above provisions also do not apply to a land use regulation that meets the following conditions:<br /> <br /> (1) A land use regulation that restricts or prohibits activities commonly and historically recognized as public nuisances under common law;<br /> <br /> (2) A land use regulation that restricts or prohibits activities for the protection of public health and safety, such as fire and building codes, health and sanitation regulations, solid or hazardous waste regulations, and pollution control regulations;<br /> <br /> (3) A land use regulation that is required to comply with federal law;<br /> <br /> (4) A land use regulation that restricts or prohibits the use of a property for the purpose of selling pornography or performing nude dancing; or<br /> <br /> (5) A land use regulation that was enacted prior to the date of acquisition of the property by the owner or a family member of the owner who owned the subject property prior to acquisition or inheritance by the owner, whichever occurred first.<br /> <br /> DEMAND FOR JUST COMPENSATION<br /> <br /> This bill authorizes an owner to demand just compensation by providing written notice to a local governmental entity enacting or enforcing a land use regulation. The written notice must meet the following requirements:<br /> <br /> (1) The written notice must be sent by certified mail to the chief executive officer of the local governmental entity, describe the affected property, and identify the owner's interest in the property;<br /> <br /> (2) The written notice must include a written appraisal and may include other evidence that supports the claim and demonstrates the loss in fair market value; and<br /> <br /> (3) The written notice must be made within three years of the enactment of the land use regulation, or the date the owner of the property submits a land use application in which the enacted land use regulation is an approval criterion, whichever is earlier.<br /> <br /> This bill requires a local governmental entity to do the following within 180 days of receiving a written demand as described above:<br /> <br /> (1) Modify, remove, or choose not to apply the land use regulation to allow the owner to use the property for a use permitted at the time the owner acquired the property;<br /> <br /> (2) Offer other non-monetary remedies, including density transfers; <br /> <br /> (3) Provide just compensation to the owner; or<br /> <br /> (4) Deny that compensation is due.<br /> <br /> CAUSE OF ACTION<br /> <br /> An owner has a cause of action against the local governmental entity for compensation or other remedy under this bill in the circuit court for the county in which the real property is located if the local governmental entity denies that compensation is due, or denies the amount claimed to be due, and does not modify, remove, or choose not to apply the land use regulation or reach another agreement with the property owner within 180 days after a written demand is received.<br /> <br /> This bill provides that an owner's failure to file an application for a land use permit with a local governmental entity is not grounds for dismissal, abatement, or delay of a compensation claim. Further, in an action brought pursuant to this bill, the court is required to award the prevailing party necessary and reasonable attorney fees, court costs, and expenses incurred by the party during the course of the proceedings. The bill clarifies that this remedy is in addition to other remedies available under the Tennessee Constitution or United States Constitution, and is not intended to modify or replace other remedies.<br />