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Bill

HB 378

Remove the restriction on inclusionary zoning

2025 Regular Session Introduced by Debo Powers

Restores local government authority to require developers include affordable housing in new residential projects, reversing state restrictions on inclusionary zoning policies.

(H) Died in Process
#citiesandtowns(seealso:localgovernment) #counties(seealso:localgovernment) #housing #localgovernment(seealso:citysubjects;countysubjects) #planninganddevelopment
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WeVote Research Nonpartisan
Bill Summary · HB 378

Legislative bill overview

HB 378 would remove Montana's existing restrictions on inclusionary zoning, a policy tool that requires or incentivizes developers to include affordable housing units in new residential projects. Currently, Montana law limits local governments' ability to implement such requirements. This bill would restore local authority to use inclusionary zoning as a housing affordability strategy.

Why is this important

Housing affordability is a growing challenge in Montana, with rising property values pricing out middle and lower-income residents. Inclusionary zoning gives municipalities a direct mechanism to create affordable units without additional public spending. However, the bill's passage would have shifted policy control from the state level to individual cities and counties.

Potential points of contention

  • Developer burden: Requiring affordable units increases construction costs and may reduce developer profit margins, potentially discouraging new housing development overall
  • Market intervention philosophy: Opponents argue state restrictions on inclusionary zoning reflect a belief that market forces, not mandates, should determine housing supply and pricing
  • Local control vs. state preemption: Supporters want local flexibility; opponents prefer uniform statewide rules to prevent cities from adopting policies that drive development to neighboring jurisdictions

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

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