Housing (Historic Preservation)

This bill amends Montana's zoning laws to establish that when there is ambiguity about whether a property's prior use is allowed, decisions must favor allowing that use to protect property rights. It directly affects property owners, developers, and local zoning officials by clarifying how existing nonconforming uses are interpreted and enforced. The legislation removes the ability of historic preservation boards to review zoning permit applications and variances, while also adding a rebuttable presumption that manufactured homes in residential areas will not negatively impact property values. Additionally, the bill defines tiny dwelling units as residential spaces between 350 and 750 square feet and requires local design review standards to be clear, objective, and necessary for public health or safety.

This bill creates a state-funded property tax credit program for homeowners who designate their homes as primary residences. It redirects existing state lodging and rental car tax revenues into a special account, which is then distributed to counties to provide credits directly on property tax bills for certified primary residences. Homeowners must apply for certification by March 1 each year, and the Department of Revenue will verify eligibility while counties administer the credit payments. The program allows recipients to keep any excess credit if it exceeds their property tax bill, and it includes provisions for appeals and penalties for fraudulent applications.

HB 346 exempts various grant and loan programs from environmental review requirements under the Montana Environmental Policy Act (MEPA). This bill directly affects the Department of Commerce, Board of Housing, and other commissions by removing the need for environmental assessments when authorizing or administering these specific programs. The exemptions apply to programs supporting microbusiness development, historic preservation, workforce training, housing finance, and other economic development initiatives. This aims to streamline the process for providing financial assistance through these identified programs.

This bill (LC 1879) proposed creating housing improvement districts, which would have allowed local governments to establish designated areas for targeted housing development or rehabilitation efforts. It would have directly affected municipalities and property owners within those designated districts by enabling new zoning or funding mechanisms. However, the bill never advanced beyond the drafting stage, as its draft was officially "Died in Process" on May 27, 2025. No concrete policy changes were enacted, as the bill was abandoned before committee review or voting.