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Panel advances bill allowing vacant-properties inventories and a $500 service charge for commercial blight
Summary
House Bill 2115 would let municipalities create vacant-properties inventories in zones with five or more blighted properties and levy a $500 annual charge on affected commercial parcels to cover inspection and administrative costs; the subcommittee advanced the bill 5-1 after legal questions about the bill’s scope and a Chattanooga official’s testimony.
The Cities and Counties Subcommittee voted to advance House Bill 2115, which authorizes municipalities to create vacant-properties inventories and inspection programs for designated areas with five or more blighted commercial properties and allows a $500 annual regulatory service charge on qualifying commercial parcels to cover inspections and administrative costs.
Chairman Martin, the bill sponsor, said the program is permissive and intended to address blighted commercial properties that impose costs on local services: "They can and blighted properties place a burden on local government resources like police, homeless services and code enforcement while not contributing to growth such as job creation, affordable housing or sales tax," he said during his explanation. Martin also said the charge would not apply to noncommercial residential homes and that properties with active permits, listings or utility activity would be exempt.
Committee members pressed legal staff and the sponsor about whether duplexes or properties taxed as commercial could be swept into the program; Josh Houston of Legal Services said the amendment text does not expressly define 'nonresidential' and could therefore be read broadly. Ellis Smith, director of intergovernmental and external affairs for the city of Chattanooga, testified the intent is to bring focus to vacant and blighted commercial properties so cities can return them to productive use. "The intent of this bill is to get a handle on some of the vacant, blighted commercial properties that we have here in Chattanooga and that we understand are in a lot of downtowns," Smith said.
Chairman Martin pledged to work with committee leadership to refine definitions before full committee consideration. The committee adopted amendment 13,632 and recorded a roll call of 5 ayes and 1 no to advance the bill to the next available calendar.
