{"id":21844,"date":"2026-05-22T15:27:23","date_gmt":"2026-05-22T20:27:23","guid":{"rendered":"https:\/\/www.suretybonds.com\/blog\/?p=21844"},"modified":"2026-05-22T15:32:08","modified_gmt":"2026-05-22T20:32:08","slug":"new-tennessee-bill-hoa-fidelity-bond","status":"publish","type":"post","link":"https:\/\/www.suretybonds.com\/blog\/new-tennessee-bill-hoa-fidelity-bond\/","title":{"rendered":"New Tennessee Bill – HOA Fidelity Bond"},"content":{"rendered":"

In April 2026, Tennessee Governor Bill Lee signed a new bill to protect homeowners from fraud and theft by a Home Owner\u2019s Association (HOA) or HOA committee member. According to<\/span> WKRN News 2<\/span><\/a>, the bill was co-sponsored by Tennessee Representative Caleb Hemmer and Senator Jeff Yarbro in response to allegations against the Grasser Property Management Inc. These allegations claim that the company stole thousands of dollars from HOAs they managed in Middle Tennessee.\u00a0<\/span><\/p>\n

As a result, the act amends Tennessee Code Title 66 by requiring all HOAs to have a blanket <\/span>fidelity bond<\/span><\/a> to guarantee financial responsibility. <\/span>Starting on January 1, 2027, Tennessee HOA board of directors or managing agents must purchase a minimum $10,000 surety bond.<\/b><\/p>\n

\"HOA<\/p>\n

What Is the New TN HOA Fidelity Bond Requirement?<\/span><\/h2>\n

If you\u2019re a Tennessee HOA manager, your required bond coverage will be calculated based on the HOA\u2019s size, income levels and financial activity. The fidelity bond amount must be equal to the HOA\u2019s reserve balances plus a quarter of its aggregate annual assessment income.<\/span><\/p>\n

Here\u2019s an example of how to estimate your required bond amount:\u00a0<\/span><\/p>\n

$50,000 Reserve Balances + 0.25*$100,000 annual income = $75,000 bond<\/i><\/b><\/p>\n

Either boards of directors or managing agents can purchase the bond on behalf of the HOA.\u00a0<\/span><\/p>\n

How Do HOA Fidelity Bonds Work?<\/span><\/h2>\n

Tennessee HOA fidelity bonds are a legal agreement between three parties:<\/span><\/p>\n

    \n
  1. Principal: <\/b>The HOA manager\/owner that needs the bond<\/span><\/li>\n
  2. Obligee: <\/b>The entity requiring the bond<\/span><\/li>\n
  3. Surety: <\/b>The company issuing the bond\u00a0<\/span><\/li>\n<\/ol>\n

    Fidelity bonds hold the principal financially responsible for any damages. In this case, the principal is the Tennessee HOA manager who needs the bond.\u00a0<\/span><\/p>\n

    \"TN<\/p>\n

    If the HOA or any of its board members, employees, or officers:<\/span><\/p>\n

      \n
    • commits fraud,<\/span><\/li>\n
    • misuses funds, or<\/span><\/li>\n
    • steals from the reserve,<\/span><\/li>\n<\/ul>\n

      harmed parties like homeowners, can file a claim on the fidelity bond. The surety investigates valid claims and pays harmed parties. Then, unlike insurance, the principal must reimburse the surety.<\/span><\/p>\n

      We\u2019ll update this page with more information on how to get the exact bond you need before this bill\u2019s effective date of January 1, 2027.\u00a0<\/i><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

      In April 2026, Tennessee Governor Bill Lee signed a new bill to protect homeowners from fraud and theft by a Home Owner\u2019s Association (HOA) or HOA committee member. According to WKRN News 2, the bill…<\/p>\n","protected":false},"author":73,"featured_media":21846,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"featured_image_src":"https:\/\/www.suretybonds.com\/blog\/wp-content\/uploads\/2026\/05\/New-Tennessee-HOA-Fidelity-Bond-2027-2.png","author_info":{"display_name":"Allie Webb","author_link":"https:\/\/www.suretybonds.com\/blog\/author\/alliesuretybonds-com\/"},"yoast_head":"\nNew Tennessee Bill - HOA Fidelity Bond | Surety Bond Insider<\/title>\n<meta name=\"description\" content=\"Starting on January 1, 2027, Tennessee HOA board of directors or managing agents must purchase a minimum $10,000 surety bond.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.suretybonds.com\/blog\/new-tennessee-bill-hoa-fidelity-bond\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Tennessee Bill - HOA Fidelity Bond | Surety Bond Insider\" \/>\n<meta property=\"og:description\" content=\"Starting on January 1, 2027, Tennessee HOA board of directors or managing agents must purchase a minimum $10,000 surety bond.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.suretybonds.com\/blog\/new-tennessee-bill-hoa-fidelity-bond\/\" \/>\n<meta property=\"og:site_name\" content=\"Surety Bond Insider\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/suretybond\" \/>\n<meta property=\"article:published_time\" content=\"2026-05-22T20:27:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-05-22T20:32:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.suretybonds.com\/blog\/wp-content\/uploads\/2026\/05\/New-Tennessee-HOA-Fidelity-Bond-2027-2.png\" \/>\n\t<meta property=\"og:image:width\" content=\"910\" \/>\n\t<meta property=\"og:image:height\" content=\"512\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Allie Webb\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@suretybonds\" \/>\n<meta name=\"twitter:site\" content=\"@suretybonds\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Allie Webb\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"New Tennessee Bill - HOA Fidelity Bond | Surety Bond Insider","description":"Starting on January 1, 2027, Tennessee HOA board of directors or managing agents must purchase a minimum $10,000 surety bond.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.suretybonds.com\/blog\/new-tennessee-bill-hoa-fidelity-bond\/","og_locale":"en_US","og_type":"article","og_title":"New Tennessee Bill - HOA Fidelity Bond | Surety Bond Insider","og_description":"Starting on January 1, 2027, Tennessee HOA board of directors or managing agents must purchase a minimum $10,000 surety bond.","og_url":"https:\/\/www.suretybonds.com\/blog\/new-tennessee-bill-hoa-fidelity-bond\/","og_site_name":"Surety Bond Insider","article_publisher":"https:\/\/www.facebook.com\/suretybond","article_published_time":"2026-05-22T20:27:23+00:00","article_modified_time":"2026-05-22T20:32:08+00:00","og_image":[{"width":910,"height":512,"url":"https:\/\/www.suretybonds.com\/blog\/wp-content\/uploads\/2026\/05\/New-Tennessee-HOA-Fidelity-Bond-2027-2.png","type":"image\/png"}],"author":"Allie Webb","twitter_card":"summary_large_image","twitter_creator":"@suretybonds","twitter_site":"@suretybonds","twitter_misc":{"Written by":"Allie Webb","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.suretybonds.com\/blog\/new-tennessee-bill-hoa-fidelity-bond\/","url":"https:\/\/www.suretybonds.com\/blog\/new-tennessee-bill-hoa-fidelity-bond\/","name":"New Tennessee Bill - HOA Fidelity Bond | Surety Bond Insider","isPartOf":{"@id":"https:\/\/www.suretybonds.com\/blog\/#website"},"datePublished":"2026-05-22T20:27:23+00:00","dateModified":"2026-05-22T20:32:08+00:00","author":{"@id":"https:\/\/www.suretybonds.com\/blog\/#\/schema\/person\/3a23b7ab885eecdc7784f742952d4ae7"},"description":"Starting on January 1, 2027, Tennessee HOA board of directors or managing agents must purchase a minimum $10,000 surety bond.","breadcrumb":{"@id":"https:\/\/www.suretybonds.com\/blog\/new-tennessee-bill-hoa-fidelity-bond\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.suretybonds.com\/blog\/new-tennessee-bill-hoa-fidelity-bond\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.suretybonds.com\/blog\/new-tennessee-bill-hoa-fidelity-bond\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.suretybonds.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Surety Bond News","item":"https:\/\/www.suretybonds.com\/blog\/category\/news\/"},{"@type":"ListItem","position":3,"name":"New Tennessee Bill – HOA Fidelity Bond"}]},{"@type":"WebSite","@id":"https:\/\/www.suretybonds.com\/blog\/#website","url":"https:\/\/www.suretybonds.com\/blog\/","name":"Surety Bond Insider","description":"News, Legislation and Updates for the Surety Industry","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.suretybonds.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.suretybonds.com\/blog\/#\/schema\/person\/3a23b7ab885eecdc7784f742952d4ae7","name":"Allie Webb","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.suretybonds.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/304330565fd9f7e5af2961619d444ee5?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/304330565fd9f7e5af2961619d444ee5?s=96&d=mm&r=g","caption":"Allie Webb"},"url":"https:\/\/www.suretybonds.com\/blog\/author\/alliesuretybonds-com\/"}]}},"jetpack_featured_media_url":"https:\/\/www.suretybonds.com\/blog\/wp-content\/uploads\/2026\/05\/New-Tennessee-HOA-Fidelity-Bond-2027-2.png","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.suretybonds.com\/blog\/wp-json\/wp\/v2\/posts\/21844"}],"collection":[{"href":"https:\/\/www.suretybonds.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.suretybonds.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.suretybonds.com\/blog\/wp-json\/wp\/v2\/users\/73"}],"replies":[{"embeddable":true,"href":"https:\/\/www.suretybonds.com\/blog\/wp-json\/wp\/v2\/comments?post=21844"}],"version-history":[{"count":5,"href":"https:\/\/www.suretybonds.com\/blog\/wp-json\/wp\/v2\/posts\/21844\/revisions"}],"predecessor-version":[{"id":21848,"href":"https:\/\/www.suretybonds.com\/blog\/wp-json\/wp\/v2\/posts\/21844\/revisions\/21848"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.suretybonds.com\/blog\/wp-json\/wp\/v2\/media\/21846"}],"wp:attachment":[{"href":"https:\/\/www.suretybonds.com\/blog\/wp-json\/wp\/v2\/media?parent=21844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.suretybonds.com\/blog\/wp-json\/wp\/v2\/categories?post=21844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.suretybonds.com\/blog\/wp-json\/wp\/v2\/tags?post=21844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}