The Blackfoot Valley's News Source Since 1980

Package of Zoning Bills Aimed at Attacking Montana's Housing Crunch Near Finish Line

Montana's population has increased 10 percent in the last decade, while housing has grown by less than 7 percent, according to a report released last fall from the governor's bipartisan Housing Task Force.

Two-thirds of the way through the 2023 Montana Legislature, lawmakers, housing advocates and the governor's office are closing in on what they say could be part of the solution to that housing crunch – a package of bills that would reform zoning laws across the state that offer cities more flexibility in building up the housing supply.

"At the end of the day, we can't prevent people from moving here. We have to find a way to build that can accommodate population growth but doesn't force development that takes over cultural land and rural areas that surround our cities. So, if we can, we need to free up areas in cities to build," Kendall Cotton, president and CEO of the Frontier Institute said.

Cotton is a member of the bipartisan Housing Task Force Gov. Greg Gianforte created last year to "help make owning or renting a home an affordable reality again for more Montanans."

According to Zillow, the average cost of a house in Montana is $427,000. That's a 5 percent increase from last year, but nearly double the amount of the average cost five years ago.

Six of the 18 recommendations from the task force dealt with zoning reform with the aim of increasing housing supply to better meet demand and to attempt to moderate housing costs, most notably in cities like Missoula, Bozeman and those in the Flathead area, where zoning restrictions on housing are the most strict. Housing and rent costs have also skyrocketed in those areas.

Now, a package of three key bills working together are nearing the governor's desk that would change zoning regulations in urban zones, seeking to create more housing options across the state:

● Senate Bill 382, sponsored by Sen. Forrest Mandeville, R-Columbus, would create the Montana Land Use Planning Act. It would rewrite Montana laws regarding land-use planning, and would require an approach to land use in the state that accommodates housing needs. The bill passed the Senate 44-6 on March 2, and passed the House 95-5 on Thursday, April 13.

● Senate Bill 323, sponsored by Sen. Jeremy Trebas, R-Great Falls, would allow duplex housing to be built on single-family housing lots if a town's population exceeds 5,000, and if the proposed property does not pose any safety problems. The bill passed the Senate 47-3 on March 2, and passed the House 72-26 on Thursday, April 13.

● Senate Bill 245, sponsored by Sen. Daniel Zolnikov, R-Billings, would allow multi-family and mixed-use housing to be built in commercial zones. The bill passed the Senate 40-10 on Feb. 24, and passed the House 96-4 on Thursday, April 13.

Mandeville said coming into the session there were three things the legislature had to focus on in terms of zoning in urban areas across the state:

"One is the immediate reforms of zoning in areas. The second piece is regulatory reforms because we can't just change zoning or require cities to enact zoning in certain ways and expect long-term results, and then the final piece is funding infrastructure, because you can't build unless you have the water and sewer capacity for multifamily there. So we have to streamline those processes better," Mandeville said.

Mandeville said the proposed changes to zoning regulations would lead to both short-term and long-term relief when it comes to residents finding affordable housing.

He said the hope for SB 382, the most widely supported of the three bills, is to give the state the ability to recognize and accommodate an increase in housing demand while also not leading to environmental hazards.

According to the Montana Zoning Atlas, 50 percent of zoned land in 13 of Montana's most in-demand counties either prohibit or penalize affordable family housing like starter homes or duplexes.

The Frontier Institute created the Montana Zoning Atlas in 2020 to take a deep dive into the zoning laws across the state to help provide data and solutions during the rise of the affordable housing crisis.

Cotton said following the COVID-19 pandemic, the state's population is growing rapidly, and current zoning regulations haven't allowed the urban areas to keep up with housing demand.

Cotton said historically, one of the worries in Montana is that expanding development beyond current city limits would encroach on Montana's wildlands, something Montanans value greatly. Another concern has been that removing certain zoning regulations strips local control. He said while there used to be compelling arguments for both sides about the Legislature not overstepping local governments, coming into this session, it has become abundantly clear to all parties that city zoning regulations have gone too far, and the Legislature has to take action.

Shelter Whitefish, an organization that fights for equitable housing in Whitefish, has also shown strong support for the three proposed bills. The organization helped with the concept of SB 245, and has SB 323 and SB 382 high on their list of bills to support during the session.

The organization lists abundant housing as one of their main priorities and has advocated for the state to tap into more building of duplex, triplex and fourplex housing in neighborhoods and to increase the possibilities for accessory dwelling units, which are independent housing units built on the same lot as stand-alone or single-family houses.

Kyle Schmauch, communications and policy manager for the Senate Republicans at the Legislature, said residential Montanans are the ones who are being hit the hardest by the exponential increase in people flooding the state.

"The housing crisis is not affecting the multi-millionaires from California. They have the money to spend on these home prices. Montanans do not, and so just the scale of the problem that we're facing is what's really spurred people into action this time at the legislature and trying to make significant, but reasonable changes," Schmauch said.

Schmauch said if just the three zoning bills were signed by the governor it would mark "the most serious pro-housing reform at the state level in decades from the state Legislature."

Cotton, Schmauch and Mandeville said the main regulation in urban towns like Missoula and Bozeman that hinders Montanans from finding affordable housing and rent is the single-family home regulations that establish the size of houses that can be built on plots.

"In Missoula nearly 75 percent of the city is zoned for family homes. That's a problem because single-family homes are the most expensive types of homes, and more middle density housing like duplexes, accessory dwelling units are more affordable by design," Cotton said. "If you look at a condo versus a single-family home. Oftentimes, it's 30-40 percent cheaper, so that at least puts it in the affordable range of a first-time home buyer."

Rep. Marilyn Marler, D-Missoula, supported all three of the bills to update zoning laws, and said from her previous city council work, it was clear to her that updated zoning laws are necessary.

"I am typically a very staunch proponent for local government control and vote against bills that take away anything that limits what local government can do. I've served on city councils for years and I'm familiar with some of these zoning issues, and neighbor-to-neighbor type conflicts that can arise at that micro level," Marler said.

Caven Wade is a student reporter with the UM Legislative News Service, a partnership of the University of Montana School of Journalism, the Montana Broadcasters Association, the Montana Newspaper Association and the Greater Montana Foundation. He can be reached at [email protected].

 

Reader Comments(0)

 
 
Rendered 03/14/2024 04:32