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Hendersonville townhome developer calls rental restriction 'unconstitutional'
Hendersonville townhome developer calls rental restriction 'unconstitutional'
Hendersonville townhome developer calls rental restriction 'unconstitutional'

Published on: 07/01/2025

Description

HENDERSONVILLE, Tenn. (WKRN) — A developer has requested the city remove a "blanket rental restriction" from their property, calling it an unconstitutional infringement of their property rights.

At the Tuesday, July 1 meeting of the Hendersonville Planning Commission, planning officials will consider the proposal from the developer of Nearwater Place Townhomes to remove the rental restriction.

According to a letter sent by the developer's legal counsel, they believe the restriction to be unlawful, prompting their request to have it removed. Per the letter, the developer believes the blanket restriction constitutes a regulatory taking, which is prohibited by both the Tennessee and U.S. Constitutions.

They claim the restriction qualifies as a "regulatory taking" because it "deprives a property owner 'all economically beneficial use'" of their property in the letter, saying any developer assumes they will be able to use their property in the "most economically beneficial way."

While the developer initially thought all the townhomes would sell, the real estate market has not seen that vision through, per counsel, but with the rental restriction, they can't use the townhomes as rental property.

"It is difficult to imagine what the City's goal was at all other than to keep out renters because they're viewed as 'undesirable,'" the letter reads. "This, it is our position that the ban on rentals violates the equal protection and substantive due process clauses of the US and Tennessee Constitutions."

Further, they claim the city's conditional approval of the townhomes — the city conditioned the approval of the development on the condition it included a rental ban — was unconstitutional in the first place, because it forced the developer to "relinquish his constitutional right to own, use, enjoy, and alienate its property (and those same rights of subsequent purchasers) to gain approval for the development."

For those reasons, the developer — through counsel — is requesting the Hendersonville Planning Commission remove the blanket restriction.

If not, they say the townhomes that haven't yet sold may "continue to sit vacant," and "could quickly fall into disrepair.

Hendersonville Alderman Bob Garza told News 2 he was aware of the proposal, but he declined to comment on the situation until after the planning commission met on the issue.

News 2 has also reached out to the attorneys who represent the developer on the matter.

The Hendersonville Planning Commission meets at 6 p.m. in the main meeting room at city hall.


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News Source : https://www.wkrn.com/news/local-news/middle-tn-neighborhood-news/hendersonville-townhome-developer-unconstitutional-rental-restriction/

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