Gallatin Court Upholds Housing Laws, Clears Path for More Building Across Montana

A Gallatin County judge has upheld most of Montana’s 2023 legislative pro-housing reforms, delivering a setback to homeowners who argued the new laws trampled local control and public participation.

Judge Michael Salvagni’s ruling allows cities to continue implementing laws designed to address the state’s housing crunch, which supporters say has priced out working families. The decision lifts a significant legal hurdle for legislation championed by Gov. Greg Gianforte and a bipartisan coalition of legislators.

“This ruling is a victory for all Montanans striving for affordable, attainable housing,” Gianforte said in a statement. “These bipartisan measures, developed through the Housing Task Force and passed by the Legislature, address our state’s housing crisis by increasing supply and expanding access to homeownership, a key part of the American dream.”

The suit was brought by a Bozeman-based homeowners’ coalition known as Montanans Against Irresponsible Densification, or MAID. The group sought to block the laws by alleging they violated local autonomy and the constitutional right to public participation. Judge Salvagni rejected most of those claims, though he struck down one portion of Senate Bill 382 that restricted comment on individual development proposals.

The Legislation

Senate Bill 323 (Sen. Jeremy Trebas, R-Great Falls):
Permits construction of duplexes in single-family zones, making it easier for property owners to build multi-unit housing on existing lots.

Senate Bill 245 (Sen. Daniel Zolnikov, R-Billings):
Lets landowners in urban areas develop multi-unit or mixed-use projects, a move Zolnikov says will help preserve farmland by focusing growth in cities. “Expanding landowner rights is critical to guiding development responsibly,” he said when the bill passed.

Senate Bill 528 (Sen. Greg Hertz, R-Polson):
Restores the option to build accessory dwelling units, such as backyard cottages, on single-family lots. Proponents say ADUs create affordable starter homes and diversified housing stock.

Senate Bill 382 (Sen. Forrest Mandeville, R-Columbus):
Overhauls local land-use planning by requiring local governments to adopt policies that promote housing. The court took issue with a section limiting public comment on site-specific proposals, ruling it violated Montana’s constitutional protections for citizen participation. “Modernizing land-use rules is overdue,” Mandeville said when lawmakers advanced SB 382, “and this law helps ensure we plan ahead for housing needs.”

Reaction

Leaders from the Montana League of Cities and Towns voiced mixed feelings. While they welcomed statewide guidance to tackle housing shortages, they were disappointed that the court removed the streamlined process meant to speed up local project approvals. Several advocacy groups, including Shelter WF in Whitefish, praised the overall decision for greenlighting more duplexes, backyard units, and other forms of infill housing.

MAID representatives claim the victory on public comment is crucial. “At least we preserved a voice for communities,” said Jim Goetz, the group’s attorney. “Folks should have a say when a new building goes up next door.” Goetz did not indicate whether his clients plan to appeal the remainder of the ruling.

“This ruling is a real win for property rights and a critical step toward alleviating Montana’s housing crunch,” said Frontier Institute CEO Kendall Cotton, whose organization supported the pro-housing measures. “By validating expanded landowner freedoms, the court has set Montana on a path to more accessible, affordable homes.”

In practical terms, the court’s decision means local governments must comply with the provisions that remain intact, including the new zoning requirements. The measures are set to reshape how Montana cities and towns grow, by encouraging denser development and broader housing options within existing neighborhoods.

Gianforte has credited the pro-housing agenda to a bipartisan housing task force formed in 2022, which produced a set of reports highlighting regulatory hurdles and calling for solutions. “We have a long way to go,” the governor said, “but these reforms and the court’s ruling move us closer to ensuring Montanans can afford to live and thrive in our great state.”