Housing

SB 405 proposed transferring $50 million from Montana's general fund to the Housing Montana Fund within 15 days of enactment, directly supporting state housing programs and affordable housing initiatives. It required the Department of Commerce to update administrative rules related to housing by the start of the 70th legislative session. The bill would have taken effect July 1, 2025, but died in committee on May 23, 2025, after being tabled in April 2025. This was a substantive funding bill, not a procedural measure, with no further legislative action taken.

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.

SB 532 revises county zoning laws to require counties with zoning regulations to allow accessory dwelling units (ADUs) on lots with existing single-family homes. It mandates that counties permit at least one ADU "by right," meaning without requiring special permits or public hearings, and sets size limits for detached or attached units. The bill prohibits counties from imposing certain restrictions on ADUs, such as requiring additional parking, owner occupancy, or specific exterior designs. Counties may charge a one-time application fee for reviewing ADU applications and must comply with expedited sanitation review provisions.