SB 266 requires Montana cities with populations over 5,000 to allow triplexes (three-unit homes) and fourplexes (four-unit homes) in areas where single-family homes are permitted, without imposing stricter rules than those for single-family properties. The bill mandates that zoning regulations for these multi-unit housing types cannot be more restrictive than those for single-family residences, including limits on parking (max one space per unit) and reduced requirements for lot sizes or building setbacks. It also encourages local governments to adopt additional housing strategies, such as eliminating or reducing off-street parking mandates and permitting accessory dwelling units. This bill directly affects cities meeting the population threshold, aiming to increase housing density options for residents.
HB 761 revises laws regarding residential property covenants, aiming to protect property owners' rights. It prevents the enforcement of any new or amended restrictions on property use that are more restrictive than those that existed when the owner acquired the property, unless the owner provides express written consent. Owners claiming this protection must record their exception with the county clerk. The bill clarifies how these protections apply to successor owners and maintains the validity of existing covenants, except for newly imposed, more restrictive terms without consent.
HB 871 aimed to prevent municipalities from requiring a zoning change, specifically from single-family to multi-family, for parcels of land located outside city limits to connect to municipal water or sewer systems. It would have amended existing law to explicitly prohibit this requirement. The bill also included a $1,000 appropriation to the Department of Environmental Quality for updating related documents. This measure would have primarily affected property owners outside city boundaries seeking to access municipal utility services.
HB 378 proposes to remove state-level prohibitions that currently restrict local governments from requiring certain contributions for housing development. The bill would repeal existing laws preventing cities, towns, and counties from mandating fees or land dedications from developers for the purpose of providing housing for specified income levels or sale prices. If enacted, this would allow local governments to include such requirements in their zoning regulations and conditions for approving new additions or developments. This change would directly affect local government planning capabilities and property owners or developers undertaking new projects.
HB 931 clarifies that developing single-family or multifamily residential housing can be considered a commercial purpose for leasing state trust land. The bill specifically allows nonprofit corporations to lease state trust land to develop "attainable workforce housing." It revises the definition of "commercial purpose" within state law to include such residential developments under a master lease. This change aims to enable the creation of housing for workers on state-owned land.
SB 337 creates a temporary property tax exemption for land undergoing residential subdivision development. Developers can qualify by applying to the department and prepaying five times the most recent annual property taxes and assessments for the property. This exemption applies to the real property within the subdivision for up to five years, or until a habitable dwelling is built on an individual lot, or until 95% of the lots in the subdivision contain habitable dwellings. The bill's provisions apply to property tax years beginning after December 31, 2025.
SB 133 revises the laws governing impact fees that local governments charge on new development. The bill removes the ability for governmental entities to include an administrative fee within impact charges and limits impact fee increases to the rate of inflation. It also updates definitions related to these fees and details the required documentation for their calculation, such as a service area report.