HB 831 increases Montana's elderly homeowner and renter income tax credit to help low-to-moderate-income seniors. It raises the maximum credit from $1,150 to $1,400 and increases the household income threshold for eligibility from $35,000 to $50,000 before the credit phases out. The bill also requires annual inflation adjustments to maintain the credit's value and applies retroactively to tax years beginning after December 31, 2024. This directly benefits Montanans aged 65+ who own or rent homes and meet the updated income limits.
SB 424 would have expanded Montana's disabled veteran property tax assistance program to include veterans rated 60% to 90% disabled (previously only 100% or 80%+). It updated tax rate reductions based on income, adding new multipliers for 80-90% disabled veterans (e.g., 70% reduction for $0-$45,803 income) while maintaining existing rates for 100% disabled veterans. The bill directly affected disabled veterans with 60-90% service-connected disabilities (or surviving spouses) who own and occupy their primary residence as a qualifying property. The proposed changes were not enacted, as the bill was vetoed by the governor on June 9, 2025, and the veto override failed on July 14.
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.
SB 504 proposes creating a $75 million grant program to fund permanent supportive housing projects in Montana. The bill would provide grants to nonprofit organizations for constructing, rehabilitating, or acquiring housing that offers long-term affordable leases (for residents earning 60% or less of the area median income) and onsite support services like mental health care, job assistance, and addiction recovery. It allocates $50 million from the general fund and $25 million from a behavioral health fund, with grants disbursed based on project proposals and adherence to specific conditions, including outcome tracking. The program, administered by the Montana Department of Commerce, aims to directly support homeless or at-risk individuals through housing and integrated services, effective July 1, 2025. (Note: The bill died in process in May 2025 and did not become law.)
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.
HB 920 establishes a temporary property tax exemption for new senior care facilities and housing development projects. Tax-exempt non-profit organizations sponsoring these projects must first petition a local government, which determines if there is a "compelling need" for the project through a public hearing. If approved by the local government, the sponsor can then apply to the department of revenue for the exemption. This bill aims to encourage the development of various affordable housing and care options for seniors aged 55 or 62 and older.
HB 492 revises municipal zoning laws by setting new limits on the minimum parking space requirements local governments can impose on new developments. The bill generally caps required parking for residential units at one space per unit and for commercial spaces at one space per 5,000 square feet, with specific exemptions for certain types of projects like affordable housing or smaller commercial spaces. If a city or town chooses to require more parking than these new limits, it must compensate the developer or property owner for the real cost of constructing the additional spaces. This legislation directly affects municipal zoning authorities and developers within those areas.
HB 505 modifies the Montana Housing Infrastructure Revolving Loan Fund Account. The bill allows this fund to retain all interest and income it earns, rather than those funds being transferred elsewhere. It also directs the state treasurer to transfer $50 million from the general fund into this account by June 2025 and another $50 million by June 2026. These provisions aim to increase the resources available within the revolving loan fund, which supports housing infrastructure projects. The principal of the fund can only be appropriated by a two-thirds vote of each legislative house.
SB 243 amends state zoning laws to allow for increased housing density and building height in certain municipalities. In urban areas with populations over 5,000, it requires cities to permit multiple-unit dwellings and mixed-use developments in commercial zones, provided they have municipal water and sewer. For these developments, the bill limits parking requirements to no more than one space per unit and prohibits height restrictions below 60 feet in specific commercial and industrial zones. Furthermore, it mandates that cities with at least 5,000 residents allow duplex housing in areas zoned for single-family residences, with similar zoning regulations.
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.
