Effective advocacy by NAIOP Nashville and its members has resulted in the passage of SB 2237/HB2552 – permit reforms that will bring more transparency and predictability to local permitting processes across the state. The reform legislation passed by overwhelming bipartisan margins in April as the 2026 regular session ended, after NAIOP Nashville worked with the governor’s office and lawmakers to ensure its passage.

Starting Jan. 1, 2027, local permitting entities must either approve a development application or provide the developer with a written notice of deficiencies in the application within 30 business days of the date of submission. Failure to approve or provide a written notice of deficiencies within this timeframe will result in the application deemed approved. The legislation prohibits a local permitting entity from issuing more than two notices of deficiencies. If identified deficiencies remain unresolved, the permitting agency must either deny the application in writing and return 50% of the fees paid by the developer or provide conditional approval.