Tennessee does not have a comprehensive community association statute like Florida's Chapter 720 or California's Davis-Stirling Act. Instead, Tennessee HOAs operate under several different laws, with the primary governing framework coming from:

• Tennessee Nonprofit Corporation Act (T.C.A. § 48-51-101 et seq.): Most HOAs are incorporated as nonprofit corporations and must follow this statute
• Tennessee Horizontal Property Act (T.C.A. § 66-27-101 et seq.): Governs traditional condominiums
• Tennessee Condominium Act of 2008 (T.C.A. § 66-27-201 et seq.): Applies to condominiums created after January 1, 2009
• Declaration of Covenants, Conditions & Restrictions (CC&Rs): Your community's recorded governing documents
• Bylaws: Internal operating rules for the association

Because Tennessee has fewer state regulations than many other states, your community's recorded documents (the Declaration and Bylaws) are your primary source of authority and obligation. Understanding these documents is essential for effective board service.

What this means in practice: When a question comes up about whether the board can do something, your first stop should always be your Declaration and Bylaws, not a Google search for "Tennessee HOA law." We've seen boards make decisions based on what they read about Florida or Texas HOA rules, only to discover those states have completely different statutory frameworks. Your documents are your rulebook.

As a board member, you have fiduciary duties to the association and its members. These duties apply whether you're a volunteer or receive compensation.

Duty of Care: You must make informed decisions and act with the care that a reasonably prudent person would exercise in similar circumstances. This means:

• Attending meetings and staying informed about association business
• Reviewing financial reports and understanding the association's financial position
• Seeking professional advice when needed (legal, accounting, management)
• Participating thoughtfully in board decisions

Duty of Loyalty: You must act in the best interest of the association, not your personal interest or the interest of a particular faction. This includes:

• Disclosing and managing conflicts of interest
• Maintaining confidentiality of sensitive board discussions
• Avoiding self-dealing or preferential treatment
• Making decisions based on what's best for the community as a whole

Duty of Obedience: You must act within the scope of authority granted by the governing documents and applicable law. This means:

• Following the procedures outlined in your Bylaws
• Enforcing the Declaration consistently
• Staying within budget and proper spending authority
• Ensuring the association complies with state and federal law

Duty of care in action: One board we know faced a $200,000 roof replacement decision. Rather than just picking the lowest bid, they hired a roofing consultant for $1,500 to evaluate all three proposals. The consultant identified that the cheapest option used substandard materials that would void the warranty. That's duty of care: seeking expert advice when the stakes are high.

Both the Tennessee Nonprofit Corporation Act and your Bylaws establish requirements for association meetings. Understanding these requirements helps ensure valid decision-making and protects the board from challenges.

Annual Membership Meeting:

• Required annually unless your Bylaws specify otherwise
• Typically used for board elections and major community business
• Notice requirements are usually specified in your Bylaws (commonly 10-30 days)
• Quorum requirements must be met for valid votes

Board Meetings:

• Regular meetings should be held as specified in your Bylaws
• Special meetings can be called according to Bylaws procedures
• Most Bylaws allow for telephonic or video participation
• Minutes should be recorded and maintained for all board meetings

Open Meeting Considerations:

Tennessee does not have a statutory requirement that HOA board meetings be open to members. However, many governing documents require or encourage open meetings, and transparency generally serves the community well. Check your specific documents for guidance.

Executive Session:

Boards may meet in executive (closed) session to discuss sensitive matters such as:

• Pending or threatened litigation
• Personnel matters
• Contract negotiations
• Collection actions against specific owners

Sound financial management is a core board responsibility. Tennessee law and your governing documents establish various financial obligations.

Budget and Assessments:

• Boards must adopt an annual budget covering anticipated expenses
• Assessment authority comes from your Declaration, so understand your limits
• Many Declarations require membership approval for assessments beyond a certain threshold
• Special assessments typically have specific procedural requirements

Reserve Funds:

While Tennessee doesn't mandate reserve studies or specific reserve funding levels, smart boards maintain adequate reserves for major repairs and replacements. Best practices include:

• Conducting a reserve study every 3-5 years
• Funding reserves according to the study's recommendations
• Keeping reserve funds separate from operating funds
• Investing reserves conservatively and appropriately

Financial Records:

Associations must maintain accurate financial records. Members generally have the right to inspect association records, though the specific procedures vary by governing document. Maintain:

• Monthly financial statements (balance sheet, income statement)
• Bank statements and reconciliations
• Invoices and payment records
• Annual budgets and any audits or reviews
• Tax returns (most associations file Form 1120-H)

Enforcing community standards fairly and consistently is one of the board's most visible, and sometimes most contentious, responsibilities.

Key Principles for Enforcement:

• Consistency: Apply rules equally to all owners. Selective enforcement can undermine your authority and create legal exposure.
• Documentation: Maintain records of all violations and enforcement actions.
• Due Process: Provide notice and opportunity to be heard before imposing fines or other penalties.
• Reasonableness: Enforcement actions should be proportionate to the violation.

Common Enforcement Tools:

• Written violation notices
• Fines (if authorized by your documents)
• Suspension of common area privileges
• Legal action (as a last resort)

Collection of Assessments:

Tennessee associations have significant collection powers, including the ability to file liens against properties with delinquent assessments. Your Declaration may also authorize:

• Late fees and interest
• Acceleration of future assessments
• Legal fees recovery
• Foreclosure (though this is rarely used for assessments alone)

Why consistency matters: We've seen a board get challenged in court because they fined one homeowner for a fence violation but ignored the same violation from a board member's neighbor. The homeowner's attorney argued selective enforcement, and the association ended up dropping the fine and paying its own legal fees. Consistent enforcement isn't just fair; it's your legal protection.

Proper record-keeping protects the association and fulfills legal obligations. The Tennessee Nonprofit Corporation Act requires corporations to maintain certain records.

Required Records:

• Articles of Incorporation and all amendments
• Bylaws and all amendments
• Minutes of all membership and board meetings
• Written communications to members generally
• List of current directors and officers with addresses
• Financial statements for the past three years

Recommended Additional Records:

• Declaration and any amendments
• Plat maps and architectural drawings
• Insurance policies
• Contracts and vendor agreements
• Violation records and correspondence
• Architectural review applications and approvals
• Reserve study and component inventory

Records Retention:

While Tennessee doesn't specify retention periods for all HOA records, best practices suggest:

• Permanent: Governing documents, meeting minutes, property records
• 7 years: Financial records, tax returns, contracts
• 3-5 years: General correspondence, routine operational records

We've seen boards struggle when previous officers kept records on personal computers that were never transferred. One community couldn't locate their original Declaration for months because it was in a former president's garage. Centralized, organized record-keeping saves headaches when leadership changes.

Adequate insurance protects the association, the board, and individual owners. Your Declaration likely specifies minimum coverage requirements.

Common Coverage Types:

• Property Insurance: Covers common areas and, depending on your documents, building exteriors or interiors
• General Liability: Protects against injury claims on common property
• Directors & Officers (D&O): Protects board members from personal liability for good-faith decisions
• Fidelity/Crime: Covers theft or embezzlement of association funds
• Workers' Compensation: Required if the association has employees

Review your insurance annually with a qualified agent who understands community associations. Tennessee's weather, from tornadoes to flooding, may require additional coverage.