On Monday, a district court judge in Bozeman delivered a decision on a case involving several housing laws enacted by the Montana Legislature in 2023. The ruling largely dismissed claims from a homeowners group that had contested these laws. However, the judge identified issues in one particular law that infringed upon the Montana Constitution’s right of public participation, specifically regarding preventing local opposition from halting development projects.
District Court Judge Mike Salvagni determined that the 2023 legislative measures, which include initiatives mandating cities to approve more accessory dwelling units and duplexes, cannot override the existing covenants of homeowner associations.
This mixed verdict was met with reactions from both advocates and critics of the housing legislation. Governor Greg Gianforte and proponents of the free-market housing policies praised the court’s support of three zoning regulations, while legal representatives for the plaintiffs highlighted the ruling reinforcing public involvement in certain real estate projects.
“The decision by Gallatin District Court to uphold key pro-housing reforms is a win for all Montanans seeking affordable and attainable housing,” Gianforte mentioned in a statement, highlighting the law’s role in tackling the state’s housing crisis by boosting the availability of housing and broadening access to homeownership, a significant facet of the American dream.
Shelter WF, a housing advocacy organization based in Whitefish, and the Frontier Institute, a free-market think tank that championed the 2023 proposals, also lauded the decision in their statements on Monday. Both organizations had been involved with Gianforte’s housing task force, which played a part in drafting the legislation.
“This outcome is positive for Montanans intending to purchase or rent a property in this region, owing to the increase in accessory dwelling units, duplexes, and small apartments, which will enhance affordability for general working individuals,” expressed Shelter WF President Nathan Dugan.
On the other hand, a lawyer for the plaintiffs, Montanans Against Irresponsible Densification (MAID), based in Bozeman, remarked that the court appropriately invalidated sections of the 2023 Senate Bill 382 that excluded public participation in land use determinations.
“Constitutionally, public engagement is essential,” MAID attorney Jim Goetz stated. “This is a significant challenge to the essence of that statute.”
MAID initiated the legal case in late 2023, maintaining that these laws would obligate its members to live in denser neighborhoods with larger structures, increased traffic, and numerous other transformations falsely presented as methods to promote affordable housing. Earlier, in the legal fight, Salvagni had ordered a temporary halt on some laws, but that decision was later overturned by the Montana Supreme Court in September.
The laws that were completely supported by Salvagni’s ruling are:
1. Senate Bill 245 from 2023 mandates cities with over 7,000 residents to allow apartment buildings in zones designated for commercial use.
2. Senate Bill 323 from 2023 requires cities with 5,000 or more residents to allow duplex homes on any residential lot.
3. Senate Bill 528 from 2023 compels cities to implement rules fostering the development of accessory dwelling units, or secondary homes on parcels shared with larger houses.
The contentious SB 382, or the Montana Land Use Planning Act, aims to extensively revise the state’s land use planning framework. Supporters, such as the Montana League of Cities and Towns, promoted it as a critical modernization effort focused on accommodating increasing population demands and improving the development approval process.
This law intended to boost public involvement during early growth strategy formulation and diminish participation upon proposal of specific projects. Advocates claimed this would help prevent local resistance from stalling development processes.
The act suggests that if development projects align closely with current zoning and subdivision standards, they should receive administrative consent without involving public meetings with elected officials—events where neighborhood resistance often forms against such endeavors. Proponents viewed this as a means to provide developers with greater assurance about permissible constructions, thereby expediting project approvals.
Goetz contended this approach fails to reflect the complexities inherent in planning.
“Land use planning is not simple nor straightforward. It’s not a binary matter when general provisions in your growth policy are applied to future projects. The public must have the opportunity to engage — and they have done so,” Goetz explained.
While the act allows appeals for controversial projects, Salvagni agreed with MAID that scaling back post-proposal public comments compromises the constitutional right of participation.
“These legal aspects that bypass public participation and do not offer notice or an opportunity to be heard at the vital stage of decision-making by the planning administrator on a site-specific proposal are inherently unconstitutional,” Salvagni wrote. “This total exclusion of notice and a platform to voice opinions violates the Constitution.”
Kelly Lynch, executive director of the Montana League of Cities and Towns, expressed disappointment over the ruling abolishing the revised participation guidelines, acknowledging that the law introduced numerous avenues for gathering public input early in the process.
“Clearly, we disagree with this position,” Lynch stated during an interview, having promoted the novel approach in 2023 and assuring lawmakers then of its constitutionality. “We are evaluating our next steps, including potentially appealing the ruling.”
