Remove the restriction on inclusionary zoning

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69th Legislature 2025 HB 378.1
- 1 - Authorized Print Version – HB 378
1 HOUSE BILL NO. 378
2 INTRODUCED BY D. POWERS
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT REPEALING THE PROHIBITION ON LOCAL GOVERNMENTS
5 FROM REQUIRING HOUSING FEES OR DEDICATIONS OF REAL PROPERTY FOR THE PURPOSES OF
6 PROVIDING HOUSING FOR SPECIFIED INCOME LEVELS OR SALE PRICES; AMENDING SECTIONS 7-2-
7 4203, 76-2-203, 76-2-302, 76-25-303, AND 76-25-401, MCA; AND REPEALING SECTIONS 76-2-114 AND 76-
8 3-514, MCA.”
9
10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
11
12Section 1. Section 7-2-4203, MCA, is amended to read:
13 "7-2-4203. Imposition of conditions for approval of addition. (1) The council has power by
14 ordinance to compel the owners of these additions to lay out streets, avenues, and alleys that correspond in
15 width and direction and are continuations of the streets, avenues, and alleys in the city or town or in the addition
16 contiguous to or near the proposed addition.
17 (2) The owner of any addition has no rights or privileges unless the owner complies with the terms
18 and conditions of the ordinance and the plat has been submitted to, approved by, and endorsed by the mayor
19 and council.
20 (3) The council may not compel the owner of an addition to:
21 (a) pay a fee for the purpose of providing housing for specified income levels or at specified sale
22 prices; or
23 (b) dedicate real property for the purpose of providing housing for specified income levels or at
24 specified sale prices.
25 (4) A dedication of real property as prohibited in subsection (3)(b) includes a payment or other
26 contribution to a local housing authority or the reservation of real property for future development of housing for
27 specified income levels or specified sale prices."
28
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69th Legislature 2025 HB 378.1
- 2 - Authorized Print Version – HB 378
1Section 2. Section 76-2-203, MCA, is amended to read:
2 "76-2-203. Criteria and guidelines for zoning regulations. (1) Zoning regulations must be:
3 (a) made in accordance with the growth policy; and
4 (b) designed to:
5 (i) secure safety from fire and other dangers;
6 (ii) promote public health, public safety, and general welfare; and
7 (iii) facilitate the adequate provision of transportation, water, sewerage, schools, parks, and other
8 public requirements.
9 (2) In the adoption of zoning regulations, the board of county commissioners shall consider:
10 (a) reasonable provision of adequate light and air;
11 (b) the effect on motorized and nonmotorized transportation systems;
12 (c) compatible urban growth in the vicinity of cities and towns that at a minimum must include the
13 areas around municipalities;
14 (d) the character of the district and its peculiar suitability for particular uses; and
15 (e) conserving the value of buildings and encouraging the most appropriate use of land throughout
16 the jurisdictional area.
17 (3) Zoning regulations must, as nearly as possible, be made compatible with the zoning
18 ordinances of nearby municipalities.
19 (4) Zoning regulations may not include a requirement to:
20 (a) pay a fee for the purpose of providing housing for specified income levels or at specified sale
21 prices; or
22 (b) dedicate real property for the purpose of providing housing for specified income levels or at
23 specified sale prices.
24 (5) A dedication of real property as prohibited in subsection (4)(b) includes a payment or other
25 contribution to a local housing authority or the reservation of real property for future development of housing for
26 specified income levels or specified sale prices."
27
28Section 3. Section 76-2-302, MCA, is amended to read:
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69th Legislature 2025 HB 378.1
- 3 - Authorized Print Version – HB 378
1 "76-2-302. Zoning districts. (1) For the purposes of 76-2-301, the local city or town council or other
2 legislative body may divide the municipality into districts of the number, shape, and area as are considered best
3 suited to carry out the purposes of this part. Within the districts, it may regulate and restrict the erection,
4 construction, reconstruction, alteration, repair, or use of buildings, structures, or land, including the creation of
5 zoning districts that allow tiny dwelling units.
6 (2) All regulations must be uniform for each class or kind of buildings throughout each district, but
7 the regulations in one district may differ from those in other districts.
8 (3) In a proceeding for a permit or variance to place manufactured housing within a residential
9 zoning district, there is a rebuttable presumption that placement of a manufactured home will not adversely
10 affect property values of conventional housing.
11 (4) As used in this section, the following definitions apply:
12 (a) "Manufactured housing" means a single-family dwelling, built offsite in a factory, that is in
13 compliance with the applicable prevailing standards of the United States department of housing and urban
14 development at the time of its production. A manufactured home does not include a mobile home or
15 housetrailer, as defined in 15-1-101.
16 (b) (i) "Tiny dwelling unit" means a residential dwelling unit that is 350 to 750 square feet, is on a
17 permanent foundation, and is used as a single-family dwelling for at least 45 days or longer.
18 (ii) Appendix Q, tiny houses, of the International Building Code as it was printed on January 1,
19 2023, may govern all other requirements of a tiny dwelling unit that is 350 to 750 square feet.
20 (5) This section may not be construed to limit conditions imposed in historic districts, local design
21 review standards, existing covenants, or the ability to enter into covenants pursuant to Title 70, chapter 17, part
22 2. Local design review standards imposed by a local government must be clear, objective, and necessary to
23 protect public health or safety or to comply with federal law.
24 (6) Zoning regulations may not include a requirement to:
25 (a) pay a fee for the purpose of providing housing for specified income levels or at specified sale
26 prices; or
27 (b) dedicate real property for the purpose of providing housing for specified income levels or at
28 specified sale prices.
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69th Legislature 2025 HB 378.1
- 4 - Authorized Print Version – HB 378
1 (7) A dedication of real property as prohibited in subsection (6)(b) includes a payment or other
2 contribution to a local housing authority or the reservation of real property for future development of housing for
3 specified income levels or specified sale prices.
4 (8)(6) (a) Except as provided in subsection (8)(b) (6)(b), when reviewing an application for a zoning
5 permit or variance from local design review standards, the determination of compliance with local design review
6 standards as provided in subsection (5) must be conducted by employees of the municipality, and the
7 municipality may not require review by an external board.
8 (b) Subsection (8)(a) (6)(a) does not apply to historic preservation boards reviewing an application
9 for a permit or variance to structures or districts that the local government has designated as historic or that are
10 listed on the national register of historic places as defined in the National Historic Preservation Act of 1966 as it
11 read on October 1, 2023."
12
13Section 4. Section 76-25-303, MCA, is amended to read:
14 "76-25-303. Limitations on zoning authority. (1) A local government acting pursuant to this part
15 may not:
16 (a) treat manufactured housing units differently from any other residential units;
17 (b) include in a zoning regulation any requirement to:
18 (i) pay a fee for the purpose of providing housing for specified income levels or at specified sale
19 prices; or
20 (ii) dedicate real property for the purpose of providing housing for specified income levels or at
21 specified sale prices, including a payment or other contribution to a local housing authority or the reservation of
22 real property for future development of housing for specified income levels or specified sale prices;
23 (c)(b) prevent the erection of an amateur radio antenna at heights and dimensions sufficient to
24 accommodate amateur radio service communications by a person who holds an unrevoked and unexpired
25 official amateur radio station license and operator's license, "technician" or higher class, issued by the federal
26 communications commission of the United States;
27 (d)(c) establish a maximum height limit for an amateur radio antenna of less than 100 feet above the
28 ground;
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69th Legislature 2025 HB 378.1
- 5 - Authorized Print Version – HB 378
1 (e)(d) subject to subsection (2) and outside of incorporated municipalities, prevent the complete use,
2 development, or recovery of any mineral, forest, or agricultural resources identified in the land use plan, except
3 that the use, development, or recovery may be reasonably conditioned or prohibited within residential zones;
4 (f)(e) except as provided in subsection (3), treat the following differently from any other residential
5 use of property:
6 (i) a foster home, kinship foster home, youth shelter care facility, or youth group home operated
7 under the provisions of 52-2-621 through 52-2-623, if the home or facility provides care on a 24-hour-a-day
8 basis;
9 (ii) a community residential facility serving eight or fewer persons, if the facility provides care on a
10 24-hour-a-day basis; or
11 (iii) a family day-care home or a group day-care home registered by the department of public
12 health and human services under Title 52, chapter 2, part 7;
13 (g)(f) except as provided in subsection (3), apply any safety or sanitary regulation of the department
14 of public health and human services or any other agency of the state or a political subdivision of the state that is
15 not applicable to residential occupancies in general to a community residential facility serving 8 or fewer
16 persons or to a day-care home serving 12 or fewer children; or
17 (h)(g) prohibit any existing agricultural activities or force the termination of any existing agricultural
18 activities outside the boundaries of an incorporated city, including agricultural activities that were established
19 outside the corporate limits of a municipality and thereafter annexed into the municipality.
20 (2) Regulations that condition or prohibit uses pursuant to subsection (1)(e) (1)(d) must be in effect
21 prior to the filing of a permit application or at the time a written request is received for a preapplication meeting
22 pursuant to 82-4-432.
23 (3) Except for a day-care home registered by the department of public health and human services,
24 a local government may impose zoning standards and conditions on any type of home or facility identified in
25 subsections (1)(e) and (1)(f) and (1)(g) if those zoning standards and conditions do not conflict with the
26 requirements of subsections (1)(e) and (1)(f) and (1)(g)."
27
28Section 5. Section 76-25-401, MCA, is amended to read:
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69th Legislature 2025 HB 378.1
- 6 - Authorized Print Version – HB 378
1 "76-25-401. Authority to adopt local subdivision regulations -- limitations. (1) (a) Within its
2 respective jurisdiction, a local government shall regulate the creation of lots in substantial compliance with its
3 adopted land use plan and zoning regulations by adopting subdivision regulations.
4 (b) The governing body of a county or city has the authority to adopt subdivision regulations in
5 accordance with this part by an ordinance that substantially complies with 7-5-103 through 7-5-107.
6 (c) A municipality shall adopt subdivision regulations for those portions of the jurisdictional area
7 outside the boundaries of the municipality that the governing body anticipates may be annexed into the
8 municipality over the next 20 years. Unless otherwise agreed to by the applicable jurisdictions, subdivision
9 regulations on property outside the municipal boundaries may not apply or be enforced until the areas are
10 annexed or being annexed into the municipality.
11 (2) The subdivision regulations must provide a process for the application and consideration of
12 subdivision exemptions, certificates of survey, preliminary plats, and final plats as necessary for the
13 implementation of this chapter.
14 (3) (a) A local governing body may not require, as a condition for approval of a subdivision under
15 this part:
16 (i) the payment of a fee for the purpose of providing housing for specified income levels or at
17 specified sale prices; or
18 (ii) the dedication of real property for the purpose of providing housing for specified income levels
19 or at specified sale prices.
20 (b) A dedication of real property prohibited in subsection (3)(a)(ii) includes a payment or other
21 contribution to a local housing authority or the reservation of real property for future development of housing for
22 specified income levels or specified sale prices.
23 (4) The local governing body may not change, in the subdivision regulations or in the process for
24 subdividing, any timelines or procedural requirements for an application to subdivide other than provided for in
25 this part."
26
27 NEW SECTION. Section 6. Repealer. The following sections of the Montana Code Annotated are
28 repealed:
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69th Legislature 2025 HB 378.1
- 7 - Authorized Print Version – HB 378
1 76-2-114. Housing fees and dedication of real property prohibited.
2 76-3-514. Housing fees and dedication of real property prohibited.
3 - END -