TN HB2068

Prohibits local zoning authorities from adopting or enforcing "downzoning" actions that reduce permitted density, building height, lot coverage, or introduce new procedural barriers like discretionary reviews or public hearings for previously by-right projects

Exempts downzoning necessary to protect public health and safety (geologic hazards, flood zones, fire hazards), comply with federal law (Endangered Species Act, Fair Housing Act, ADA), or prevent nuisances

Requires zoning authorities to compensate property owners for any reduction in fair market value caused by downzoning, calculated through independent certified appraisal; jurisdictions may avoid compensation by waiving the downzone for that property within 60 days

Allows affected property owners to sue for injunctive relief, declaratory judgment, or damages, with attorney's fees awarded to prevailing plaintiffs; places burden on zoning authority to prove exceptions apply by clear and convincing evidence

Takes effect July 1, 2026, applying only to downzoning actions adopted on or after that date