Tennessee condominium associations formed after January 1, 2009 are governed by the Tennessee Condominium Act of 2008. Older condominiums and general subdivision HOAs operate under the Tennessee Horizontal Property Act and their CC&Rs. In 2023, Tennessee passed reserve study requirements for newer condominium associations — the most significant change to Tennessee condo governance in recent years.
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2023: Reserve Study Requirement for Condo Associations (Effective January 1, 2024)
SB 863 / HB 750 — Reserve Study Requirement for Condo Associations
Condominium associations governed under the Tennessee Condominium Act of 2008 — that is, associations formed after January 1, 2009 — must comply with the following reserve study requirements:
Initial Reserve Study
If a reserve study has not been performed since January 1, 2023, the association must conduct one. This obligation applies to all qualifying associations regardless of size.
Five-Year Renewal Requirement
Reserve studies must be updated every **five years** after the initial study. Boards should schedule their next reserve study before the five-year anniversary of the most recent one.
Scope of Coverage
A proper reserve study should include a physical analysis of the association's common elements and a financial analysis of the reserve fund's capacity to fund anticipated repairs and replacements.
Note: General HOA Statute Pending
Tennessee does not have a general HOA statute for subdivision HOAs. Subdivision homeowners associations are governed by their CC&Rs and general contract law. Proposed SB 405 (a general HOA act that would govern subdivision HOAs statewide) remains pending as of 2026. Tennessee subdivision HOA boards should monitor this legislation and consult counsel on its implications.
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What Tennessee HOA Boards Should Do Now
1. If your condominium association was formed after January 1, 2009 and has not conducted a reserve study since January 1, 2023, commission one immediately (SB 863 / HB 750).
2. Document your reserve study date — set a calendar reminder for the five-year update deadline.
3. Share reserve study results with the board and use them to inform the annual budget reserve contribution.
4. For subdivision HOAs, monitor SB 405 — a general Tennessee HOA statute could significantly change how your association operates.
5. Consult Tennessee HOA counsel to ensure your governing documents and reserve practices align with current law.
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How APM Provides Remote HOA Management in Tennessee
APM provides professional remote HOA and condo management to Tennessee boards through our HOA Alchemy platform, serving communities in Nashville, Memphis, Knoxville, and across the state. Our compliance team monitors Tennessee condo and HOA law developments and helps clients maintain reserve study schedules and compliant financial procedures. Contact us at billing@apmhoa.com or visit [apmhoa.com/remote-hoa-management/tennessee](https://www.apmhoa.com/remote-hoa-management/tennessee) for a free remote management proposal.
*This article is for general informational purposes only and does not constitute legal advice. For questions specific to your association, consult a licensed Tennessee attorney.*
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