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Committee tables bill that would protect owners’ right to rent primary residences

House Local Government Committee · March 4, 2025
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Summary

HB 802 would have prohibited local governments from restricting rental of an owner’s primary residence (defined as occupancy 183 days/year) and limited local regulation for that narrow category; after extensive pro-and-con testimony the committee tabled the bill to await coordination with a Senate measure (SB 336) and further stakeholder work.

Representative Shannon Maness presented House Bill 802, which would make the rental of an owner’s primary residence and an accessory dwelling unit on the same lot a permissible use in county and municipal zoning. Maness said the measure focuses narrowly on owner-occupied properties and excludes investor-owned rentals.

Proponents included landlord associations and numerous homeowners who said the ability to rent a primary residence is a fundamental property right that helps Montanans keep homes amid rising taxes and costs. Mary Kay Demers (Helena Landlord Association), Wendy Dixon, and several others described personal situations where rental income helped pay property taxes or keep a family home.

Opponents—municipal and county officials and housing advocates such as Kelly Lynch (Montana League of Cities and Towns), Jake Brown (Shelter Whitefish), Karen Alley (Montana Association of Counties), and Tim Worley (Montana Association of Planners)—said the bill duplicates provisions in Senate Bill 336, risks preempting local land-use controls, and could reduce long-term rental housing stock in places where local governments currently control STRs by zoning district.

Committee members noted overlapping Senate proposals and stakeholder negotiations. During executive action the committee adopted a substitute motion to table HB 802; the chair announced the bill is tabled. Sponsors and opponents indicated work will continue, including possible consolidation with SB 336.