Bozeman board adopts revised affordable-housing incentives, raising affordability term to 50 years amid parking and scale debate

The Bozeman Community Development Board, sitting as the zoning commission, voted to adopt a draft amendment to Division 38.380 of the Unified Development Code that rewrites the city’s rental-only affordable housing incentives and raises the required affordability term to 50 years.

The ordinance the board approved Monday (motion adopted 5-2) replaces the current affordable-housing section and keeps the program incentive-based while adding three incentive tiers (type A, B and C), off-site alternatives including a cash-in-lieu formula, and revised parking and height rules. Staff and the public debated parking minimums, historic neighborhood transitions, and how to ensure long-term maintenance of rent-restricted units.

Why it matters: The rewrite aims to make it financially feasible for developers to deliver long-term rental units affordable to area incomes while responding to public concern about building height, parking impacts and loss of “naturally occurring” affordable housing. The changes will move next to the city commission; staff told the board they plan to present a final draft Jan. 28.

City staff framed the rewrite as a response to two years of experience using the existing ordinance, public outreach and direction from the city commission. Susana Montana, community development staff, told the board the draft focuses on rental housing for now and that a separate amendment for for‑sale units will follow. “What we’re bringing before you is a discussion of a proposal to replace the existing affordable housing ordinance, division 38.380 of the Unified Development Code,” Montana said at the start of the item.

David Fine, the city’s economic development and housing manager, explained the three-tier incentive structure and the policy rationale. He said the rewrite keeps the program voluntary and attempts to strike a balance between incentives sufficient to produce affordable units and…