HOA and Condo Association Disputes in Tennessee

Living in a planned community or condominium means living under a set of recorded rules. When an owner and the association disagree about what those rules require, Tennessee law starts with the documents themselves: the declaration (often called the covenants or CC&Rs), its amendments, the bylaws, and any rules adopted under them. Statutes fill in some important gaps, especially for condominiums.

Which law applies

• Condominiums created after January 1, 2009 are governed by the Tennessee Condominium Act of 2008 (Tenn. Code Ann. § 66-27-201 et seq.). Older condominiums fall under the Horizontal Property Act and their own documents, though several parts of the 2008 Act, including the rules on fines, assessment liens, records, and resale disclosures, also reach events at older condominiums after 2009, though generally without overriding existing provisions of the older declaration or bylaws (§ 66-27-202).
• Single-family HOAs have no comprehensive Tennessee statute. Their declaration controls, with a few targeted statutes covering topics such as flag display and rental-restriction amendments.
• Many associations are also nonprofit corporations, so the Tennessee Nonprofit Corporation Act applies to their governance and members' rights.

How courts read covenants

Tennessee courts strictly construe restrictive covenants. They do not extend a restriction to activity it does not clearly and expressly prohibit, and genuine ambiguity is resolved in favor of the owner's unrestricted use of the property (Pandharipande v. FSD Corp., Tenn. 2023, following Williams v. Fox, Tenn. 2007). In Pandharipande, the Tennessee Supreme Court held that a covenant limiting lots to residential purposes did not clearly prohibit short-term rentals. In Lone Mountain Shores Owners Association v. Bennafield (Tenn. Ct. App. 2025), covenants that were ambiguous about short-term rentals could not support an injunction against them.

Clear covenants, on the other hand, are enforced. An owner who argues the association gave up a restriction faces a high bar: abandonment requires violations so widespread that they defeat the purpose of the restrictions, and isolated violations are not enough (River Plantation Homeowners Association v. Capps, Tenn. Ct. App. 2019).

When amendments bind existing owners

Owners take their property subject to the declaration's amendment clause. In Pandharipande, the same owner who won on the original covenant lost on a later amendment requiring a 30-day minimum lease: the Court held that an owner who buys subject to a declaration that allows amendments also takes subject to later amendments adopted under it, and that an amendment adopted by the members is presumed valid and is generally upheld unless the challenger shows it is arbitrary and capricious. The declaration there expressly allowed amendments adding new restrictions.

Statutes add limits for rentals:

• Single-family HOAs (freestanding homes, not condominiums): if an amendment adopted on or after May 1, 2021 prohibits rentals of 180 days or more, owners at the time keep the right to rent until they transfer the property (§ 66-27-703), and a member can make a written request for the voting record for that amendment (§ 66-27-702).
• Condominiums under the 2008 Act: amendments generally need 67 percent of the votes, or more if the declaration requires, a challenge to an amendment must be brought within one year after it is recorded, and no amendment may prohibit leasing a unit without the consent of all affected owners (§ 66-27-317). I am not aware of a Tennessee appellate decision on whether a minimum lease term counts as prohibiting leasing.

Assessments, fines, and liens

For condominiums, the Condominium Act gives the association a lien on a unit for assessments and fines when they become due (§ 66-27-415). That lien is generally junior to a first mortgage or deed of trust recorded before the assessment became delinquent. But in a power-of-sale foreclosure, whether started by the lender or the association, the association is entitled to priority in the sale proceeds for up to six months of regular common assessments, capped at 1 percent of the first mortgage's maximum principal. The association loses that priority if the lender or owner has given the association the lender's name and address and the association fails to send the lender written notice within 30 days after six months of assessments become delinquent. A foreclosure by the association does not wipe out a prior mortgage. The lien can be foreclosed judicially or, if the declaration allows, by power of sale, and it is extinguished unless enforcement begins within six years. In a court action under that section, the judgment must include costs and reasonable attorney's fees for the prevailing party.

A condominium association may impose reasonable fines only after notice and an opportunity to be heard (§ 66-27-402). For HOAs that are not condominiums, fines and liens depend on the declaration, with one statutory exception: since July 1, 2024, a homeowners' association's special assessment for a nonessential amenity, such as a pool, tennis court or clubhouse, must be passed by at least two-thirds of the association's total membership, the association must provide members with financing or a payment plan over a defined period, and the association may not take a foreclosure action for nonpayment of it (§ 66-27-706). Roads, utilities, other amenities needed for the community's daily operation, and amenities described in the declaration but not yet built do not count as nonessential. The statute's definition of a homeowners' association does not mention condominiums, and I am not aware of a Tennessee appellate decision on whether this rule reaches condominium associations. In Hurley v. Green Shadows Homeowners Association (Tenn. Ct. App. 2025), the court reversed a summary judgment and attorney's fee award for an association that had fined an owner and demanded a roof replacement, because material facts were disputed.

Records and meetings

Condominium associations must keep their records reasonably available to owners (§ 66-27-417). In Young v. Cottage Grove Condominium Association (Tenn. Ct. App. 2026), following Sigel v. Monarch Condominium Association (Tenn. Ct. App. 2012), the Court of Appeals held that the Condominium Act, not the Nonprofit Corporation Act, governs a condominium association's records duties. The court also read the Act's list of records narrowly: the association did not have to hand over its contract with its management company, and in Sigel it did not have to produce election ballots. For associations organized as nonprofit corporations more generally, members may inspect and copy records on written demand made at least five business days ahead; for accounting records and the membership list, the demand must be made in good faith and for a proper purpose (§ 48-66-102). Condominiums governed by the 2008 Act must hold at least one association meeting a year and give 10 to 60 days' notice of owners' meetings (§ 66-27-408).

Condominium sellers also have disclosure rights: on request, the association must furnish resale information, including the governing documents, budget, assessments, and pending litigation, within 10 business days (§§ 66-27-502, -503).

Resolving the dispute

I am not aware of any Tennessee statute requiring HOA disputes to go to mediation or arbitration, though some declarations require it. Rights under the Condominium Act are enforceable in court (§ 66-27-211). Requests for an injunction are typically brought in chancery or circuit court, while smaller money claims may fit in general sessions court within its jurisdictional limit. Many declarations award attorney's fees to the prevailing party, which raises the stakes on both sides.

Whether a particular rule, fine, or amendment holds up depends on the recorded documents and how the association acted. If you are an owner or a board facing an association dispute in Middle Tennessee, my office can review the documents with you.

Educational disclaimer: This article provides general Tennessee educational information only and is not legal advice for any specific community, declaration, or dispute.