HELENA — The Montana Supreme Court has reversed a lower court ruling, allowing a pair of state laws intended to increase housing supply to take effect.
Just before the start of 2024, a judge in Bozeman put a preliminary injunction on laws that would have expanded where duplexes and “accessory dwelling units” can be built in Montana cities. However, the Supreme Court ruled Tuesday that an injunction wasn’t appropriate in this case.
During the 2023 legislative session, Montana lawmakers approved a series of bills that changed how local governments can manage zoning and development, with the stated goal of addressing the state’s housing shortage. Montanans Against Irresponsible Densification, a limited liability company set up by homeowners in several cities, filed suit against four of the laws, saying the changes hadn’t been carefully tailored and would threaten the character of existing neighborhoods.
Retired District Judge Mike Salvagni took over the case after the Montana Attorney General's Office, defending the laws in court, moved to substitute the original presiding judge. Salvagni agreed with plaintiffs’ arguments that the laws threatened irreparable injury to them, and he put a hold on two of them, which had been set to take effect Jan. 1:
· Senate Bill 323, sponsored by Sen. Jeremy Trebas, R-Great Falls, which requires that cities with more than 5,000 residents allow duplexes anywhere that single-family residences are allowed.
· Senate Bill 528, sponsored by Sen. Greg Hertz, R-Polson, which requires all cities and towns to allow accessory dwelling units – smaller residential units on the same lot as a single-family home.
This week, a five-justice panel of the Montana Supreme Court ruled that there wasn’t enough evidence to show those laws would create specific and imminent harm for the homeowners challenging them. They said the district court was wrong to issue an injunction based only on the possibility of harm.
During the 2023, these bills received support from lawmakers of both parties.
“The Montana Supreme Court got this one right and I thank them for that,” said Senate President Sen. Jason Ellsworth, R-Hamilton, in a statement. “It’s unfortunate that judicial activism in the Gallatin County District Court has improperly delayed pro-housing reforms for nearly a year as Montanans face ever-increasing housing costs. I encourage the courts to reject future spurious legal arguments from the plaintiffs and let the Legislature’s bipartisan pro-housing reforms begin to chip away at Montana’s housing crisis. We must build more affordable and attainable housing for young families, working Montanans, retirees, and everyone else struggling with housing costs.”
Gov. Greg Gianforte also praised the decision in a statement.
“Home ownership is a key part of the American dream,” he said. “I appreciate the Montana Supreme Court for rejecting this injunction, which held back two key reforms identified by our bipartisan Housing Task Force and passed into law by the Legislature. We will continue to find innovative ideas to increase housing supply so that affordable, attainable housing is within reach for every Montanan.”
The court’s order means this case will now go back to the district court, which will be tasked with ruling on the overall merits of MAID’s claims.
MAID’s lawsuit also challenges:
· Senate Bill 382, sponsored by Sen. Forrest Mandeville, R-Columbus, which establishes a completely updated land-use planning process for certain larger cities, which will have to create a new plan and future land-use map. It applies to cities with more than 5,000 people that are in counties with more than 70,000 people – currently Billings, Bozeman, Great Falls, Missoula, Helena, Kalispell, Columbia Falls, Whitefish, Belgrade and Laurel.
· Senate Bill 245, sponsored by Sen. Daniel Zolnikov, R-Billings, which says municipalities designated as urban areas that have more than 7,000 residents must allow multi-unit housing developments in commercial zones.
