Montana wins housing reform appeal at state’s high court
Monique Merrill
(CN) — The Montana Supreme on Tuesday unanimously upheld a slate of 2023 housing reform laws.
The seven-justice panel rejected a lower court’s ruling, which had declared a provision aimed at curbing “not in my backyard” opposition in the housing development process unconstitutional.
The high court further vacated the lower court’s declaratory ruling that one of the statutes could not supersede more restrictive accessory dwelling unit (ADU) and duplex rules.
The lower court had, however, found that the housing reform statutes overall do not violate equal protection, and the high court agreed.
Montana Governor Greg Gianforte praised the Supreme Court’s decision, calling it a landmark victory for Montana families and the state as it works to increase the supply of affordable housing.
“Homeownership is a key part of the American dream,” Gianforte said in a statement. “By upholding the constitutionality of our reforms, it will help bring the American dream into greater reach for Montanans across our state.”
The challenged laws were part of Gianforte’s 2023 bipartisan housing package, called the “Montana Miracle.”
Senate Bill 323 requires that towns of certain sizes allow duplex housing in single-family zoning, and Senate Bill 528 requires all cities to allow ADUs. Senate Bill 382 requires larger cities to change their zoning regulations to allow duplexes, as well as broader changes to the state’s land use planning rules.
Montanans Against Irresponsible Densification sued the state in late 2023, arguing that several measures were unconstitutional. The group consists of property owners who live in single-family neighborhoods in cities across the state.
The group argued the housing reform bills unfairly burdened single-family neighborhoods and undermined its members’ ability to participate in the land-use planning and approval process.
A judge in Gallatin County sided with the homeowners’ group, blocking the enforcement of two of the bills in December 2023. The Montana Supreme Court in 2024 reversed the decision and sent it back for further proceedings.
The lower court issued a split ruling in 2025, holding that provisions of Senate Bill 382 violate the state Constitution’s right of participation and declaring that the laws cannot supersede homeowner association covenants.
The Montana Supreme Court on Tuesday reversed those holdings.
The homeowners’ group argued that Senate Bill 382’s public participation process was constitutionally deficient because it doesn’t allow public input at every stage of land-use development, but the high court pointed to the extensive participation the law requires.
“The [Montana Land Use Planning Act] provides for ample public participation throughout the adoption, amendment, and updates of the land use plan, zoning regulations, and subdivision regulations,” Montana Supreme Court Justice Beth Baker wrote in a 34-page opinion. “The plain language is clear that continuous and extensive public participation is encouraged at this stage.”
The court found that while Senate Bill 382 limits public participation on site-specific developments, the public has already had an opportunity to participate during earlier stages of the process. Plus, it allows for public participation when projects deviate from the original plan.
“Because the Legislature has ‘provided by law’ a detailed provision for notice and public participation, we conclude that [Montanans Against Irresponsible Densification] has not met its heavy burden to show that Senate Bill 382 is unconstitutional in all of its applications,” Baker wrote.
The high court also affirmed the lower court’s ruling that the homeowners’ group failed to prove the housing reform laws violate the right to equal protection.
“The [Montana Land Use Planning Act] and the other housing reform statutes do not violate the right to equal protection solely because the law treats people not subject to private covenants differently, ‘as discrimination only exists when people in similar circumstances are treated unequally,’” Baker wrote.
The homeowners’ group did not respond to a request for comment before press time.