TN HB0636

Creates the "Real Estate Infrastructure Development Act of 2025" authorizing Tennessee municipalities to establish infrastructure development districts by resolution to fund streets, roads, bridges, sidewalks, water, wastewater, natural gas, electric, telecommunications, parking, and storm water facilities

Allows host municipalities to levy special assessments on properties within districts to pay infrastructure costs, impact fees, administrative expenses, and debt service on bonds with a maximum 30-year term

Requires district establishment through petition signed by the developer and all property owners, followed by public hearing with at least 14 days notice and majority vote of the governing body

Special assessment liens are superior to trust deeds, mortgages, and mechanic's liens (except state/county/municipal tax liens), with delinquent assessments subject to 1% monthly interest and 1% monthly penalty

Districts must dissolve within 30 years or upon payment of all outstanding debt obligations, and are subject to annual audit by the comptroller of the treasury with up to 5% of assessments allowed for administrative expenses