The Montana Legislature has introduced Senate Bill 532, a significant piece of legislation aimed at streamlining the approval process for accessory dwelling units (ADUs) across the state. Introduced on April 29, 2025, the bill seeks to address the growing demand for affordable housing options by easing restrictions on the construction of ADUs, which are secondary housing units located on the same lot as a primary residence.

Key provisions of SB 532 include prohibiting counties from imposing excessive regulations on ADUs, such as higher building standards than those applied to single-family homes. The bill specifically prevents local governments from setting maximum building heights, minimum lot sizes, or other development standards that are more stringent than those for the primary dwelling. Additionally, it allows counties to charge a one-time application fee of up to $250 for ADU permits, while still permitting standard building fees.

The legislation also clarifies that counties cannot condition the approval of ADUs on the adoption of restrictive covenants, although private parties may still enter into such agreements. Furthermore, SB 532 mandates that counties without existing regulations must permit ADUs in accordance with the new standards until they adopt their own rules.

Debate surrounding the bill has highlighted concerns from local governments about potential overreach and the loss of regulatory control. Critics argue that the legislation could lead to overcrowding and strain on local infrastructure, while supporters emphasize the urgent need for affordable housing solutions in Montana's growing communities.

The implications of SB 532 are significant, as it aims to facilitate the construction of more housing units in a state facing a housing shortage. Experts suggest that by simplifying the approval process for ADUs, the bill could help alleviate some of the pressure on the housing market, potentially leading to lower rental prices and increased availability of affordable housing options.

As the bill moves through the legislative process, its future remains uncertain, with ongoing discussions about balancing the need for housing with local governance and community standards. If passed, SB 532 could reshape the landscape of residential development in Montana, making it easier for homeowners to create additional living spaces and contribute to the state's housing stock.