Bozeman staff tell commission water-rights ballot initiative would likely reduce housing supply and raise costs

City staff told the Bozeman City Commission on April 22 that a citizen-drafted initiative tying water adequacy rules to a high inclusionary-housing requirement would not deliver the claimed benefits and could instead reduce housing supply and shift development outside the city.

The work session — requested after the petitioners began gathering signatures for the measure commonly described by supporters as a “water adequacy” and affordable-housing initiative — included legal, planning, utilities and housing staff who outlined likely legal and operational barriers, as well as economic impacts on development costs and timing.

City Attorney Greg Sullivan said the city’s office reviews submitted citizen initiatives only for narrow technical statutory compliance (single-subject rules and ballot text) and not for how they would integrate with existing municipal code. “We do not review it for compliance with existing laws,” he said. Sullivan flagged language in the draft that uses the technical term "deed restriction," and noted Montana lacks clear statutory authority for long-term affordability covenants used elsewhere.

Chris Saunders, the city’s community development manager, summarized planning concerns: the initiative would require a…