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HB 422

Allow covenants that provide housing affordability

2025 Regular Session Introduced by Jonathan Karlen

HB 422 would authorize property covenants restricting residential units to below-market affordable prices permanently, but died in the legislative process before final consideration.

(H) Died in Process
#contracts(seealso:publiccontracts) #housing #property
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WeVote Research Nonpartisan
Bill Summary · HB 422

Legislative bill overview

HB 422 would have permitted the creation and enforcement of property covenants specifically designed to maintain housing affordability over time. The bill would have allowed developers or municipalities to attach legally binding restrictions to residential properties that keep units affordable for future buyers or renters, even as surrounding property values increase.

Why is this important

Housing affordability is a critical challenge in many Montana communities where property values are rising faster than local incomes. This bill would have provided a legal tool to preserve affordable housing stock permanently, potentially helping first-time homebuyers and lower-income residents access homeownership in their communities without relying solely on government subsidies or temporary programs.

Potential points of contention

  • Property rights concerns: Opponents may argue that affordability covenants restrict property owners' ability to realize full market value on their investments, effectively limiting individual control over their own assets
  • Market distortion: Critics contend that artificially restricting property prices interferes with natural market mechanisms and could complicate future sales, refinancing, or property assessments
  • Implementation complexity: Questions exist about enforcement mechanisms, duration of covenants, how affordability thresholds would be defined and adjusted over time, and administrative costs

Compiled from official sources — confirm details with the bill’s official record.

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