Housing (Mortgages)

This bill establishes a property tax deferral loan program in Montana to help eligible homeowners manage rising property tax costs. The program directly affects senior citizens aged 62 and older, active-duty military personnel from Montana, and surviving spouses of qualifying property owners who meet specific equity and residency requirements. Under the bill, the state Board of Housing can provide loans to cover the difference between current property taxes and 2022 tax amounts, with annual increases allowed as long as eligibility is maintained. The loans accrue simple interest at the lesser of the prime mortgage rate or 5% and become a lien on the property, requiring homeowners to carry hazard insurance and meet income and equity thresholds.

This bill updates Montana's real property laws to clarify tenant rights and streamline land division rules. It allows tenants to remove trade/manufacture fixtures without damaging property and enables owners of fixed improvements (like homes) to resolve ownership disputes through court actions. The bill adds specific exemptions to subdivision review requirements, including court-ordered land divisions, mortgage-related lot creations, agricultural covenants, cemetery lots, and certain utility rights-of-way. It also requires courts to notify local governments before approving land divisions under new exemption rules.

This bill (LC 1868) sought to increase funding for an existing program that provides low-interest loans to build or purchase multi-family housing in communities impacted by coal industry decline. The program uses dedicated funds from the coal trust, which was established to support economic recovery in former coal regions. The additional funding would have expanded the program’s capacity to assist residents and developers in these areas. However, the bill died in committee on May 27, 2025, without becoming law.