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Billings council narrows Billings 2045 choices under Montana Land Use Planning Act, approves density overlay and defers fee changes
Summary
Staff told the council it must adopt at least five of 14 state‑listed zoning incentives to comply by May 17, 2026. Council approved a targeted higher‑density overlay near transit and employment centers, agreed to study impact‑fee changes as part of an infill policy, and voted to direct staff not to pursue a mandatory triplex/forplex change.
City planning staff told the council that the Montana Land Use Planning Act requires Billings to readopt its zoning and adopt a future land use map under the new statute by May 17, 2026, including selecting at least five of 14 specified zoning incentives intended to promote housing.
"The planning act was passed in May of 2023... giving us until May 17th, 2026 to comply," planning staff Anna said, summarizing requirements to readopt the zoning code under the new state law, adopt a future land use map and adjust subdivision regulations. She warned the deadline creates a tight timeline for council guidance.
Staff and the interim planning commission (IPC) presented the 14 potential incentives — examples included allowing duplexes where single family is permitted, encouraging higher density near transit/employment centers, reducing off‑street parking minimums, allowing accessory dwelling units, and eliminating minimum lot area. Several items reflect changes enacted or proposed at the state level; staff noted some are mandatory under current state law while others are optional and remain for council direction.
Councilors debated a set of incentives and whether to adopt staff/IPC recommendations now or continue detailed review at upcoming sessions. On specific outcomes at the work session:
- The council voted to advance incentive B: create targeted higher‑density designations (an overlay or future land use designation) near transit stations, employment centers and higher‑education facilities; staff said specific locations will be vetted with council before implementation.
- The council accepted the IPC recommendation to defer incentive D (eliminating or reducing impact fees for ADUs and multiunit developments) and to study it through a forthcoming infill‑policy process rather than adopt an immediate fee reduction.
- After debate and a substitute motion, the council directed staff not to pursue incentive G (allowing triplexes/forplexes wherever a single‑family home is allowed); a hand vote was recorded as 5 in favor, 4 opposed.
Councillors also raised procedural and substantive concerns: reducing parking minimums (a state mandate) drew pushback from members worried about street parking and fire access; some urged the council to adopt as many incentives as feasible to avoid unfavorable legislative pressure in future sessions; others emphasized careful community engagement on specific overlay locations and a near‑term (12‑month) review window after adoption.
Staff said the future land use map would not automatically rezone existing parcels, but it would give staff guidance to administratively approve rezoning applications that align with the map and the adopted plan, subject to notice and an appeals process. Staff also recommended building in an early review to collect implementation data and bring forward amendments within 12 months of adoption.
Next steps: staff will update draft language based on council direction, identify proposed overlay locations for follow‑up, continue IPC recommendations and present an economic impact analysis in a future meeting. Formal adoption and any code readoptions must be completed by the statutory deadline in May 2026.
