Tennessee Code Title 13. Public Planning and Housing § 13-20-505

(a) The area of operation or boundaries of a regional housing authority may be decreased from time to time to exclude one (1) or more counties from such area if the legislative body of each of the counties in such area and the commissioners of the regional housing authority each adopt a resolution declaring that there is a need for excluding such county or counties from such area; provided, that no action may be taken pursuant to this section if the regional housing authority has outstanding any bonds or notes, unless, first, all holders of such bonds and notes consent in writing to such action. If such action decreases the area of operation of the regional housing authority to only one (1) county, such authority shall thereupon constitute and become a housing authority for such county, in the same manner as though such authority were created and constituted a public and corporate body for such county pursuant to other provisions of this chapter, and the commissioners of such authority shall be thereupon appointed as provided for the appointment of commissioners of a housing authority created for a county.

(c) Any property held by a regional housing authority within a county or counties excluded from the area of operation of such authority, as herein provided, shall, as soon as practicable after the exclusion of the county or counties respectively, be disposed of by such authority in the public interest.