Housing (Zoning · Local Government)

This bill requires cities with at least 5,000 residents to allow duplex, triplex, and fourplex housing on lots where single-family homes are permitted, ensuring these multi-unit options face no stricter zoning rules than single-family homes. It also mandates that urban municipalities with municipal water and sewer systems allow multiple-unit dwellings and mixed-use developments in commercial zones, while limiting off-street parking requirements to one space per unit. Additionally, the legislation encourages cities to adopt various housing strategies such as reducing minimum lot sizes, eliminating certain impact fees, and relaxing design requirements to promote more diverse housing options.

This bill amends Montana law to prevent counties from including certain "sensitive lands" requirements in growth policies for areas outside city boundaries. It directly affects counties, cities, and landowners in rural areas by restricting how local governments can regulate land use outside incorporated cities. The key change prohibits counties from imposing specific land use rules (like those for natural resources or fire safety) on rural lands within their zoning policies. The bill also revises county zoning requirements and includes a funding appropriation, amending sections 76-1-601, 76-2-203, and 76-2-212 of Montana Code Annotated.

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.

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.