Accessory dwelling units were on the table in Nashville this year, so here is where things landed and what it means for property owners in Knoxville.
The ADU bill. HB 2031 and its Senate companion, SB 2131, would have set statewide rules for ADUs. Cities could not have required owner occupancy, banned renting the unit, set minimum sizes below 850 square feet, or added extra development fees. ADU permits would have been reviewed without a discretionary hearing and approved within 60 days. A House subcommittee pulled the bill from its calendar on March 11, and the General Assembly adjourned April 23 without passing it. A new General Assembly convenes January 12, 2027, so any ADU bill starts over.
What that means in Knoxville. The city’s zoning code still decides what you can build and how you can use it, including whether the owner has to live on the property. Knoxville has so far kept an owner-occupancy requirement. Before you spend a dollar on plans, pull your lot’s zoning at KGIS.
What did pass. HB 2552 was signed May 22 and takes effect January 1, 2027. For development applications, local governments get 30 business days to send a written list of deficiencies. They get 60 business days to approve the application or place it on the next planning commission or governing body agenda. Miss a deadline and the application is deemed approved as submitted. It doesn’t change who can live where, but it should speed up permitting for builders and owners across the state.
Short-term rentals are a separate system. Neither the failed ADU bill nor the new permit clock changes Knoxville’s short-term rental ordinance, so check it before listing anything for stays under 30 days.
If you’re weighing an ADU on a specific lot, call me before you draw anything up.
From Knoxville! KnoxvilleRob.com