Montana Legislature approves regulations for accessory dwelling units

On April 4, 2025, the Montana Legislature introduced Senate Bill 532, a significant legislative proposal aimed at streamlining the process for constructing accessory dwelling units (ADUs) across the state. This bill seeks to address the growing demand for affordable housing options by easing restrictions on the development of ADUs, which are secondary housing units located on the same lot as a primary residence.

The key provisions of Senate Bill 532 include prohibiting counties from imposing excessive regulations on ADUs, such as higher impact fees, more stringent building standards, or restrictive covenants that could hinder their construction. Specifically, the bill prevents local governments from setting maximum building heights, minimum lot sizes, or other development standards that are more restrictive than those applied to single-family homes. Additionally, it allows counties to charge a one-time application fee of up to $250 for reviewing ADU applications, while ensuring that existing building codes and public safety regulations remain in effect.

The introduction of this bill has sparked notable debates among lawmakers and community stakeholders. Proponents argue that easing restrictions on ADUs is essential for addressing the housing crisis in Montana, particularly in urban areas where housing shortages are acute. They contend that ADUs can provide affordable living options for families, students, and elderly residents, thereby enhancing community diversity and resilience.

Conversely, opponents express concerns about potential overdevelopment and the impact on neighborhood character. Some local officials worry that the bill could lead to increased density in residential areas without adequate infrastructure to support it. As discussions continue, amendments may be proposed to balance the need for affordable housing with community concerns about growth and development.

The implications of Senate Bill 532 extend beyond housing policy; they touch on economic and social dimensions as well. By facilitating the construction of ADUs, the bill could stimulate local economies through increased construction activity and provide homeowners with additional income opportunities through rental arrangements. Furthermore, it aligns with broader trends in urban planning that prioritize sustainable and inclusive housing solutions.

As the legislative process unfolds, the future of Senate Bill 532 remains uncertain. If passed, it could significantly reshape the housing landscape in Montana, offering a pathway to more affordable living options while also prompting ongoing discussions about community development and infrastructure needs. Stakeholders will be closely monitoring the bill's progress, as its outcomes could have lasting effects on housing availability and community dynamics throughout the state.