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Committee hears bill to allow state trust land leases for attainable single-family housing
Summary
House Bill 931 would authorize school trust/state lands to be leased for owner-occupied, single-family attainable workforce housing; sponsors said leases would retain state ownership and include limits to prevent large commercial buyouts, while opponents and committee members pressed for details and precedent.
Representative Curtis Schomer, sponsor of House Bill 931, told the House Business and Labor Committee the bill would allow the Department of Natural Resources and Conservation (DNRC) state trust lands to be leased for development of attainable single-family workforce housing. Schomer described the bill as a constituent-driven effort for lands that are “not prime income source lands already” and said the aim is to make housing more affordable by leasing land while making homes owner-occupied.
Committee members asked whether the proposal would set a precedent for commercial development on state trust lands. Representative Seacon’s Crowe and others noted that state trust lands already have long-term leases in some areas and asked how the bill would prevent large investors from purchasing or converting homes to rentals. Schomer replied the legislation is intended to prevent sale of the underlying land and to require owner-occupancy terms; “These houses would have to be owner occupied,” he said.
Representative Seacon’s Crowe and others pointed to examples in Kalispell and the Flathead where trust lands sit beneath commercial developments; Representative Seacon’s Crowe said leases are used to generate revenue that benefits schools. Members also discussed whether students or Career and Technical Education (CTE) programs could be involved in building homes as part of apprenticeship or mentorship programs, with Schomer and proponents suggesting partnerships with nonprofits and local contractors could lower costs.
Witnesses and committee discussion repeatedly emphasized that the state would retain title to the land; leases would be structured to protect school trust revenue and “highest and best use” requirements still apply. Representative Seacon’s Crowe and others noted that similar ideas had been raised previously and that prior bills which proposed selling state land drew concern.
The hearing closed with the sponsor seeking a “do pass”; committee members suggested additional work on drafting and asked the sponsor to consult with stakeholders about lease terms and potential fiscal impacts. No formal vote was recorded during the hearing.
