Tennessee House Bill HB2386

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26
• Refer: 2/5/26
• Refer: 3/18/26
• Refer: 4/1/26
• Refer: 4/14/26
• Engrossed: 4/21/26
• Enrolled: 4/28/26
• Passed: 5/19/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 13; Title 65 and Title 68, relative to infrastructure development.

Impact

The bill authorizes political subdivisions, which include counties and municipalities, to require developers to fund offsite infrastructure improvements based on a cost-sharing arrangement. Such agreements are expected to reflect the proportionate impact of a development on local public infrastructure, thereby incentivizing responsible development while ensuring that local communities can adequately support increased population and facilities. This shift may promote more orderly development and align public service needs with growth in construction activities.

Summary

House Bill 2386 seeks to amend various sections of the Tennessee Code Annotated, specifically focused on infrastructure development. The bill introduces a framework for cost-sharing agreements between developers and political subdivisions regarding offsite public infrastructure improvements necessary for new development projects. This framework aims to establish clear guidelines and responsibilities when developers contribute to public infrastructure that extends beyond the bounds of their respective projects.

Contention

While proponents of HB2386 argue that the bill will allow for better planning and financing of public infrastructure improvements, critics may contend that it places too much burden on developers, potentially increasing the costs of development and, subsequently, housing prices. There is also concern about how local governments will navigate these agreements, especially if disputes arise over cost allocation. The bill’s implementation will necessitate careful monitoring to ensure that local needs are balanced against developer interests and that all stakeholders are engaged in the planning process.