Insights

Tennessee's New Development Review Law, Public Chapter 1044 Explained

Missed deadlines can mean deemed approvals under Tennessee's Public Chapter 1044. See the new review timelines and how to prepare before Jan. 1, 2027.

Sep 27, 2026

•

X min read

•

No items found.

Starting January 1, 2027, if a Tennessee municipality or county misses a development review deadline, the application can be deemed approved.

That's one of the biggest changes in Public Chapter 1044 (House Bill 2552), which sets mandatory timelines for how local governments review development applications, plans, and site development inspections. The law also limits jurisdictions to two written deficiency reports, requires a partial fee refund for certain denials, and adds new deadlines for releasing project sureties.

The law passed in the same legislative session in which lawmakers approved $20 million to spur workforce housing in high-growth, high-cost areas. Public Chapter 1044 goes after the same problem from the local side: how long it takes a project to get through review.

For most Tennessee jurisdictions, meeting the new deadlines will depend on how well departments coordinate, track, and document each review. Here's what changes and how to prepare.

‍

The Impact at a Glance

Public Chapter 1044 changes how local governments handle development review, site development inspections, and certain project surety releases. Here are the deadlines and what happens when each is missed.

‍

Area	What the Law Requires	What It Means for Local Governments
Development applications, plans, and site inspections	30 business days to issue a written deficiency report or request more information. 60 business days to approve the submission or place it on the next available agenda.	Missing either deadline means the submission is deemed approved.
Resubmittals	30 business days after the developer shows deficiencies are resolved to approve the submission or place it on the next available agenda.	Each resubmittal starts a new 30-business-day clock that staff need to track.
Deficiency reports	No more than two written deficiency reports. If issues remain after the second, the jurisdiction must deny with written justification, or conditionally approve or place the submission on the agenda.	A denial at this stage requires a 50% refund of review fees.
Incomplete submissions	30 business days to notify the developer in writing that an initial submission is incomplete.	This notice doesn't count toward the two-report limit, so a completeness check is the first chance to catch problems.
Project surety releases	After a Tennessee-registered engineer's inspection report, 20 business days to explain in writing why a surety isn't being released, and 120 business days to approve the release or place it on the agenda.	Staff need to track when each engineer's report arrives.

The law doesn't cover every permit or inspection a jurisdiction handles. According to guidance from the University of Tennessee Institute for Public Service's Center for Local Planning, it doesn't apply to building, fire, mechanical, plumbing, or electrical permits and inspections. It also excludes state agencies, independently operating utility districts, and projects the local government itself funds or contracts for. For most jurisdictions, that puts the new requirements on planning and engineering review rather than building permits.

‍

The Biggest Implications for Tennessee Local Governments

Development reviews will run on 30- and 60-business-day clocks

Once a local government receives a development application or plan, three deadlines apply:

Within 30 business days (about six weeks): issue a written deficiency report, or request the information needed to determine compliance.
Within 60 business days of the original submission (about 12 weeks): approve the application or plan, or place it on the next available planning commission or governing body agenda.
Within 30 business days of receiving documentation that deficiencies have been resolved: approve the submission or place it on the next available agenda.

If a local government misses the 30- or 60-business-day deadline for the initial submission, the submission is deemed approved.

The 60-day deadline, however, doesn't require a final decision within that window. A local government can meet it by approving the submission administratively, where local rules allow, or by placing it on the next available planning commission or governing body agenda. The law doesn't provide for extending these deadlines by agreement with the developer.

The law also directs local governments to "make all efforts" to consolidate change requests for a single application into one document. In practice, planning, engineering, public works, and utility reviewers will need to combine their comments into a single response instead of sending them to the developer separately.

To stay on schedule, staff will need to coordinate reviews and track deadlines closely, particularly when multiple departments participate in the same application. Local governments need a reliable way to know when each application was received, when comments or requests for additional information are due, and when an application must be approved or advanced to the appropriate decision-making body.

‍

Local governments will have fewer opportunities to identify and resolve deficiencies

Public Chapter 1044 limits municipalities and counties to two written deficiency reports during the review process. Combined with the new review deadlines, that puts more pressure on departments to identify issues early and coordinate comments before they go back to the developer. The Center for Local Planning recommends that local governments establish a documented review process, such as an administrative manual or standard operating procedures.

The law also distinguishes between an incomplete initial submission and a deficiency report. If a development application, development plan, or site inspection submission is incomplete, the municipality or county must notify the developer in writing within 30 business days. That notice does not count toward the two-report limit, which makes an early completeness check especially valuable. It gives staff a chance to catch missing materials before substantive review begins.

If deficiencies identified in the second report are not satisfactorily resolved, the municipality or county must either:

Deny the submission, provide written justification based on specific evidence of noncompliance, and refund 50% of the total fees the developer paid during the review process; or
Conditionally approve the submission, where authorized, or place it on the next available planning commission or governing body agenda for conditional approval.

With only two reports available, every comment cycle counts, especially when multiple departments review different pieces of the same development.

‍

Site development inspections follow the same timelines

Public Chapter 1044 applies the same 30- and 60-business-day timelines to site development inspections. Within 30 business days of receiving a site inspection submission, a municipality or county must provide a written report identifying deficiencies or request the information needed to determine compliance. Within 60 business days of the submission, it must either approve the inspection or place it on the next available planning commission or governing body agenda. If the required action isn't taken in time, the inspection is deemed approved.

These requirements apply to site inspections connected to the development of real property, not to every inspection a local government conducts. Building, fire, and trade inspections, for example, fall outside the law. Municipalities and counties will need to identify which inspection workflows are covered and track those requests until they're approved or placed on an agenda.

‍

Project surety releases have new deadlines and documentation requirements

Public Chapter 1044 also sets new deadlines for releasing project sureties: the bonds, letters of credit, and other financial assurances developers post to guarantee they'll complete required improvements. These requirements apply when a contractor or developer has a contract with the local government, typically a development agreement, and an independent inspection by a Tennessee-registered professional engineer finds that all work required by that contract is complete.

Once the municipality or county receives the engineer's written inspection report, two deadlines apply:

Within 20 business days: If the local government does not release the surety, it must respond in writing with its reasons and specify the contract work it believes is incomplete.
Within 120 business days: The local government must either approve the surety release or place it on the next available planning commission or governing body agenda.

The engineer's report doesn't automatically require the local government to release the surety. It starts the clock for the local government to respond and take the next required step. That means staff will need to track when each report arrives, document any incomplete work, and make sure the release is approved or placed on an agenda in time.

‍

What Tennessee Local Governments Should Be Doing Now

With Public Chapter 1044 taking effect January 1, 2027, Tennessee municipalities and counties should review how development applications, inspections, and project sureties move through their departments today. Key areas to address include:

Audit development review workflows and deadlines. Identify bottlenecks or handoffs between departments that could make it hard to meet the new statutory timelines.
Clarify who coordinates reviews. Where multiple departments participate, decide who keeps the process on schedule and consolidates comments before they go back to the developer.
Standardize completeness and deficiency procedures. Set consistent processes for checking initial submissions, issuing deficiency reports, and tracking the two-report maximum.
Review fee schedules and refund procedures. A denial after the second deficiency report requires refunding 50% of the total fees paid during review, so finance staff should know how those refunds will be calculated, approved, and issued.
Clarify staff approval authority. Update local regulations to spell out when staff can approve a submission administratively and when it must go to the planning commission or governing body.
Centralize deadline and project tracking. Staff should be able to see at a glance when each submission, inspection request, and engineer's report was received and when the next required action is due.
Review inspection and surety procedures. Make sure staff can document inspection deficiencies and track surety releases against the 20- and 120-business-day deadlines.

How GovWell Can Help Tennessee Local Governments Implement Public Chapter 1044

Meeting these new deadlines will depend less on how fast any single reviewer works and more on whether every department can see the same application, the same comments, and the same clock. GovWell's planning and zoning software gives planning, engineering, and permitting staff one place to manage development review from submission through final action. For developers, that means faster and more predictable answers.

Here's how GovWell supports the requirements in Public Chapter 1044:

Deadline tracking: Every submission is timestamped, so staff can see how long each one has been under review and which cases are approaching a required action date.
AI AutoCheck: AutoCheck reviews applications before they're submitted, flagging missing documents and potential code issues so applicants can fix them up front. Fewer incomplete submissions and resubmittals help jurisdictions stay within the two-report limit and the 30-day response window. Once an application is submitted, AutoCheck also supports staff review for faster responses back to applicants.
Built-in AI plan review: Planning, engineering, public works, utilities, and other reviewers mark up drawings, take measurements, and leave comments in the same system. GovWell consolidates every reviewer's comments into a single response to the developer, just as the law asks local governments to do.
Deficiency history: Comments, notices, resubmittals, and applicant communications stay attached to the same record, so staff can track the two-report limit and keep a clear review history.
Site inspections: Staff can schedule and manage site development inspections alongside the underlying project, with findings and deadlines managed in one place.

GovWell already supports Tennessee jurisdictions including the the City of Lawrenceburg, City of Fairview, Union City, the City of Portland, the Town of Jonesborough, and Lincoln County, along with municipalities and counties in more than 40 states.

For local governments still relying on disconnected systems or manual tracking, the January 1, 2027 effective date is an opportunity to evaluate whether existing processes can hold up under new statutory deadlines.

If your municipality or county is preparing for the law, talk with our team about how GovWell can support your community.

‍

Frequently Asked Questions About Public Chapter 1044

When does Public Chapter 1044 take effect?

Public Chapter 1044, passed as House Bill 2552 (HB 2552) during the 2026 legislative session, takes effect January 1, 2027.

Does Public Chapter 1044 apply to building permits?

According to the Center for Local Planning, the law doesn't apply to building, fire, mechanical, plumbing, or electrical permits and inspections. It applies to development applications and plans, site development inspections, and certain project surety releases.

What happens if a Tennessee local government misses a development review deadline?

If a local government misses the 30- or 60-business-day deadline for an initial development application, plan, or site inspection submission, the submission is deemed approved.

How many deficiency reports can a local government issue?

Two. If deficiencies in the second report aren't resolved, the local government must either deny the submission with written justification and refund 50% of the review fees, or conditionally approve it or place it on the next available agenda.