Senate Bill 1601, also known as House Bill 1501, amends Tennessee Code Annotated to establish new requirements for real estate investment trusts (REITs) that own, operate, or finance ten or more dwelling units within a municipality. The bill allows municipalities, through a two-thirds vote of their governing body, to mandate that these REITs provide specific information to the local agency responsible for enforcing building codes. This information includes the REIT's or its agent's contact details and the addresses of the dwelling units they manage. The bill specifies that no fees will be charged for filing this information and requires REITs to notify the agency of any changes in ownership or information within thirty days.

Additionally, the bill imposes a fine of $50 per week on REITs that fail to register or notify the local agency of changes as required. Before any fines are assessed, REITs will have the opportunity to contest the charges at a hearing, with written notice provided at least fifteen days in advance. The act is set to take effect on July 1, 2026.