What governs HOA management in Tennessee?
HOA management in Tennessee is governed primarily by the Tennessee Nonprofit Corporation Act for incorporated associations, the Tennessee Condominium Act of 2008 for condominiums created after January 1, 2009, and each association's own CC&Rs and governing documents. Single-family HOAs in Tennessee are not subject to a comprehensive state HOA act: the proposed Tennessee Homeowners Association Act (SB405) remains under legislative review as of 2026 and has not been enacted.
Tennessee's Growth and the Rising Demand for HOA Management
Tennessee has been one of the fastest-growing states in the country for several years running. According to the Tennessee State Data Center, the state added 63,785 new residents between July 1, 2024 and July 1, 2025, reaching a total population of 7,315,076: the 8th largest increase in the nation that year. The record was set the prior year: 2024 saw a net gain of 98,262 residents, the largest single-year increase in Tennessee's history. That growth has been concentrated in Nashville and its suburbs, Knoxville, Chattanooga, Memphis, and Clarksville, but has spread into smaller cities and rural counties across the state as well.
Population growth drives housing development, and housing development drives community association formation. New subdivisions, planned communities, and condominium developments almost always include an HOA or community association as part of their structure. According to the Community Associations Institute (CAI), more than 5,300 community associations operate across Tennessee, serving approximately 749,000 residents. As that number grows alongside the state's population, the demand for professional HOA management services grows with it.
This guide covers the legal framework that governs HOA management in Tennessee, the key cities driving association growth, what Tennessee law requires of boards and residents, and the operational fundamentals that keep Tennessee communities running well. For the broader context on what community association management involves, see the guide to association management companies.
Tennessee Population Growth 2021-2025
Tennessee HOA Law: What Governs Community Associations in 2026
Tennessee does not have a single comprehensive statute governing all homeowners associations. The legal framework that applies to a given association depends on its structure, when it was formed, and whether it involves condominiums or single-family homes.
Tennessee Nonprofit Corporation Act
The majority of HOAs in Tennessee are incorporated as nonprofit corporations, which means they are governed by the Tennessee Nonprofit Corporation Act (Title 48, Chapters 51-69 of the Tennessee Code). This act covers corporate procedure, governance structure, board elections, record-keeping obligations, and member rights. It is the primary legal framework for most single-family HOAs in the state.
Tennessee Condominium Act of 2008
Condominiums created after January 1, 2009 are governed by the Tennessee Condominium Act of 2008. Condominiums created before that date fall under the Tennessee Horizontal Property Act. The 2008 Act introduced specific obligations for condo associations, including a significant update that took effect in 2024: as of January 1, 2024, condo associations must conduct reserve studies if one has not been performed since January 1, 2023, with updates required every five years. A copy of the reserve study must be shared with owners by email or on the community website, and the board must review reserve funding annually to confirm adequacy.
SB2150: 2024 HOA Legislation: Now in Effect
Tennessee enacted SB2150 on April 17, 2024, effective July 1, 2024. The law amends Tennessee Code Annotated Titles 13 and 66 and makes two significant changes to HOA authority over special assessments. First, a two-thirds majority vote of HOA members is now required before a board can levy a special assessment for what the law defines as nonessential amenities: features such as pools, tennis courts, and clubhouses that are not necessary for the daily operation of the community. Second, and critically, an HOA cannot foreclose on a property if a member fails to pay a special assessment for a nonessential amenity. The board must also provide financing or a payment plan for such assessments.
SB405: The Proposed Tennessee Homeowners Association Act
The Tennessee Homeowners Association Act (SB405) would, if enacted, create a comprehensive regulatory framework governing the management and operations of all single-family HOAs in the state. As of 2026, this bill remains under legislative review and has not been passed into law. Single-family HOAs in Tennessee are therefore not currently subject to a specific state HOA act beyond their own CC&Rs and the Nonprofit Corporation Act. Boards and residents should monitor legislative developments, as this bill has been introduced in multiple sessions and may advance.
Federal Laws That Apply to All Tennessee HOAs
Regardless of Tennessee's state-level framework, all HOAs in the state are subject to federal law. The Fair Housing Act prohibits discrimination in housing practices based on race, color, religion, sex, disability, familial status, or national origin. The FCC's Over-the-Air Reception Devices rule limits HOA authority to restrict satellite dishes of one meter or less. The Americans with Disabilities Act may apply to certain common area facilities. Any HOA rule that conflicts with federal law is unenforceable regardless of what the CC&Rs say.
Note: This table provides informational context only and is not legal advice. Tennessee HOA law is subject to change. Boards should consult a licensed Tennessee community association attorney for guidance specific to their association.
Tennessee's Fastest-Growing Cities and Their HOA Markets
Tennessee's growth is not evenly distributed. The cities driving new community association formation are concentrated in Middle and East Tennessee, with each major metro presenting a distinct market for HOA management services.
Nashville and Middle Tennessee
Nashville-Davidson County posted the largest population gain in Tennessee in both 2024 and 2025, according to the Tennessee State Data Center. The Nashville metro has seen sustained residential development in surrounding counties: Rutherford, Williamson, Wilson, Sumner, and Montgomery: with new master-planned communities requiring HOA management from the point of developer turnover. The Nashville market has a high concentration of professional management companies and strong competition for quality service, which means boards evaluating management contracts have real options for comparison.
Knoxville and East Tennessee
Knox County and the surrounding communities of Maryville, Oak Ridge, and the corridor toward the Smoky Mountains have seen steady growth. The Knoxville market includes a mix of established suburban HOAs and newer planned communities serving both residents and second-home owners drawn by the area's access to outdoor recreation. HOA management demand in Knoxville is growing but remains less concentrated than Nashville, giving local firms and self-managed associations more room to operate effectively.
Chattanooga
Hamilton County and Chattanooga have attracted significant business relocation and residential development over the past decade. The city's revitalized downtown and access to outdoor amenities have driven demand for higher-end residential communities, many of which include full-service HOA management. Chattanooga's growth rate has been more moderate than Nashville's but consistent, and the HOA management market reflects that steady demand.
Memphis
Memphis and Shelby County represent a different HOA management market than Tennessee's other major metros. Growth has been more limited, but the city has a substantial base of established HOAs in its suburban communities, including Germantown, Collierville, and Bartlett. Property management demand in Memphis is driven more by the rental market and established community associations than by new development, making it a stable but less rapidly expanding market for HOA services.
Clarksville and Other Growth Markets
Clarksville (Montgomery County) has ranked consistently among Tennessee's fastest-growing counties for several years and is one of the fastest-growing mid-size cities in the country. The military community surrounding Fort Campbell drives significant residential development and HOA formation. Johnson City and the Tri-Cities region in Northeast Tennessee have also seen growing HOA activity as remote work has accelerated migration to smaller Tennessee cities with lower costs of living.
What HOA Management Involves in Tennessee Communities
Whether a Tennessee community association chooses professional management or self-management, the operational responsibilities are the same. The board is responsible for ensuring all of them are handled: the choice of management structure determines who does the handling.
Financial Management
Assessment billing, collection, accounts payable, bank reconciliation, monthly financial reporting, reserve fund tracking, annual budget preparation, and audit coordination are the core financial functions of every HOA. In Tennessee, condo associations now have the additional obligation of maintaining a funded reserve study updated every five years. See the complete guide to HOA accounting for the full scope of financial management obligations.
Governance and Compliance
Board elections, meeting administration, rule enforcement, architectural review, violation notices, and lien procedures are all governed by the CC&Rs and Tennessee law. Boards that enforce rules inconsistently expose the association to selective enforcement claims. Boards that fail to follow their own notice and hearing procedures before levying fines create legal liability. The HOA rules and regulations guide covers the enforcement process in detail.
Maintenance and Vendor Management
Common area maintenance, vendor sourcing and oversight, work order processing, and emergency response coordination require ongoing management regardless of association size. Tennessee's climate: hot, humid summers and occasional severe weather: means associations need vendor relationships in place for landscaping, HVAC, storm cleanup, and infrastructure maintenance before problems occur rather than after.
Self-Management vs. Professional Management in Tennessee
Smaller Tennessee associations with straightforward finances and an engaged board can often self-manage effectively. The decision to hire professional management makes most sense when the community is larger than 50-75 units, when the board lacks expertise in financial management or compliance, when the management workload exceeds what volunteers can reasonably absorb, or when the association has experienced financial irregularities. For a structured comparison of both approaches, see HOA self-management vs. professional management.
HOA Management Tools for Tennessee Communities
ManageCasa is an HOA and community association management platform used by both professional management companies and self-managed associations across Tennessee and nationally. It covers financial reporting, dues collection, maintenance tracking, resident communication, compliance management, and board governance in one platform.
See ManageCasa's HOA management capabilities: managecasa.com/capabilities/management
Frequently Asked Questions
What laws govern HOAs in Tennessee?
Tennessee HOAs are governed by the Tennessee Nonprofit Corporation Act, the Tennessee Condominium Act of 2008 for condos, governing documents, and federal laws including the Fair Housing Act.
Do HOAs in Tennessee have to conduct reserve studies?
Tennessee condominium associations must complete reserve studies every five years under updated state law. Single-family HOAs currently have no statewide reserve study requirement unless governing documents require one.
What did Tennessee's SB2150 change for HOAs?
Tennessee SB2150 requires member approval for certain special assessments and prevents HOAs from foreclosing over unpaid nonessential amenity assessments. Payment plans must also be offered to homeowners.
How fast is Tennessee growing and what does it mean for HOAs?
Tennessee’s rapid population growth is driving new residential development and increasing HOA formation statewide. More communities now rely on HOAs for maintenance, governance, and shared amenities.
Which Tennessee cities have the most HOA activity?
Nashville, Knoxville, Chattanooga, Clarksville, and Memphis have strong HOA activity. Middle Tennessee suburbs, especially Williamson and Rutherford counties, continue seeing significant new community
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