Bozeman staff say citizen water-and-housing initiative would slow housing production, risk pushing growth outside city limits

City officials and subject-matter staff told the Bozeman City Commission on April 22 that a pending citizen initiative linking water-adequacy rules to strict affordable‑housing requirements would likely raise housing costs and push development outside city limits.

The work session featured legal, planning, utilities and housing staff who described how the measure — which would require developments of three or more residential units to reserve 33% of units as deed‑restricted affordable housing for 99 years (or as long as law allows) in order to use the city’s cash‑in‑lieu option for water — could alter project economics, timeframes and municipal water strategy.

“Plainly stated, we believe this legislation will do the exact opposite of what some believe,” Bozeman Interim City Manager said, arguing the measure “will drive up housing costs, it will reduce the number of affordable housing units being built, and will drive development to the county.”

City Attorney Greg Sullivan told commissioners his office’s role is narrow: it reviews citizen petitions for technical compliance with initiative statutes and drafts a ballot statement. “We do not review it for compliance with existing laws,” Sullivan said, stressing drafting land‑use regulations is complex and…