The Center for Local Planning (CLP), part of the University of Tennessee Institute for Public Service, has released a new policy guide to help Tennessee local governments prepare for Public Chapter No. 1044, a law taking effect January 1, 2027, that sets mandatory deadlines for reviewing development applications, conducting site inspections, and releasing project sureties.
Under the law, professional staff must provide written comments on a development application within 30 business days of submittal, and must either approve the application or place it on the next available planning commission or governing body agenda within 60 business days. Miss either deadline, and the application is automatically approved as submitted.
The law also caps local governments at two written notices of deficiency per application. Once that limit is reached, staff must deny the application (refunding 50% of fees paid), conditionally approve it, or forward it to the planning commission or governing body for a decision.
A separate provision sets new statewide rules for releasing project sureties, such as performance and maintenance bonds, when a developer has a formal improvement contract with a local government. Once an independent, state-registered engineer certifies that contracted work is complete, the local government has 120 business days to release the surety or place the matter before its planning commission or governing body and must respond in writing within 20 business days if it intends to withhold release.
The law does not apply to building, fire, mechanical, plumbing, or electrical permits, which fall under separate statutes, nor to state agencies or local government-funded projects like public roadways and parks.
CLP's guide outlines these requirements in detail and recommends steps communities can take now, including designating a single development administrator with cross-departmental authority, requiring pre-submittal meetings, and documenting a clear administrative review process.
CLP, CTAS, and the Municipal Technical Advisory Service (MTAS) are jointly hosting a free webinar on the new law on Wednesday, July 29, from 10:00 to 11:30 a.m. CST. The session is open to city and county managers, mayors, planning commissioners, planning and engineering staff, building and codes officials, attorneys, and other local government officials. Registration is free, and a recording will be sent to all who register.
The full policy guide and webinar registration are available below. Questions can be directed to CLP at planning@tennessee.edu.