senate joint resolution NO. 32
A joint resolution of the Senate
and the House of Representatives of the state of montana
requesting an interim study on affordable housing and economic redevelopment of
local zoning and state and local subdivision and water and sanitation
laws and regulatory processes and how they affect development and the availability of workforce housing.
WHEREAS, access to safe, affordable, workforce housing for both renters and homeowners is essential to Montana's social and economic welfare; and
WHEREAS, homeownership has been an essential element of the American Dream for decades; and
WHEREAS, documented social benefits of homeownership include increased charitable activity, greater civic participation, neighborhood attachment, lower incidences of teen pregnancy, higher high school graduation rates, better physical and psychological health, and significant increases in wealth and in reported life satisfaction, self-esteem, and happiness; and
WHEREAS, due to the COVID-19 pandemic, there has been a surge in demand for real estate, frequently coming from out-of-state buyers, which has sent prices sharply upward for houses sold in the summer and fall of 2020; and
WHEREAS, workforce housing is an increasingly difficult problem for many Montana communities. With relatively few workforce homes available for working families, and with much of the existing workforce inventory aging and in need of rehabilitation, many working families are being priced out of housing markets; and
WHEREAS, according to the Montana Department of Labor and Industry, the median cost of a home in Montana has increased by 25% since 2014, and, on average, housing costs make up 22% of household expenses. In Montana, 24% of renter households qualify as extremely low income, and there is currently a shortage of approximately 17,420 rental homes that are affordable and available for extremely low-income renters; and
WHEREAS, rent in Montana has increased more than 5% a year over the past 3 years; and
WHEREAS, Montana's homeownership rate has steadily decreased from 70% to 66% over the past decade, and the current Native American homeownership rate in Montana is less than 50%; and
WHEREAS, families who pay more than 30% of their income for housing are considered cost-burdened and may have difficulty affording necessities such as food, clothing, transportation, and medical care; and
WHEREAS, the United States Interagency Council on Homelessness estimates that 1,405 Montanans experience homelessness on any given day, and of them, 134 are families, 198 are veterans, 119 are unaccompanied young adults, and 200 are individuals experiencing chronic homelessness; and
WHEREAS, workforce housing remains an urgent priority issue in Montana and poses a problem not only for first-time home buyers and renters, but also for employers looking for qualified employees; and
WHEREAS, using a combination of public data, data provided by local sources, research from the literature, information on other states, as well as data on Montana, the study will assess the landscape of federal and state direct and indirect funding efforts for increasing the quantity and quality of available workforce homes in Montana and comparable states.
Now, therefore, be it resolved by the Senate and the House of Representatives OF THE STATE OF MONTANA:
That the Legislative Council be requested to designate an appropriate interim committee or statutory committee, pursuant to section 5-5-217, MCA, or direct sufficient staff resources to: examine local zoning and state and local subdivision and water sanitation review laws, regulations, fees, and processes that affect development and that impact the availability of workforce housing.
BE IT FURTHER RESOLVED, that the study include review of:
(1) statutes governing county and municipal zoning;
(2) statutes governing local government and state agency subdivision review;
(3) local zoning and subdivision regulations;
(4) local growth policies and area plans;
(5) state agency and local government processes and review fees and state agency administrative rules that govern review of subdivision applications;
(6) the need for and availability of workforce housing in Montana;
(7) costs to local governments, developers, and state agencies for local and state subdivision review and how those costs affect housing prices; and
(8) ways to improve land use planning and other regulatory processes that may enhance the availability of workforce housing and other developments in a manner that protects public health, safety, and welfare and that minimizes adverse impacts to water resources, wildlife, and the natural environment.
BE IT FURTHER RESOLVED, that the study:
(1) examine the current availability of workforce housing in metropolitan and rural areas of the state;
(2) identify existing federal, state, and local subsidies, grants, and other incentives and programs available to increase the availability of workforce housing, the extent to which the subsidies, grants, and other incentives and programs are utilized, and the successfulness of their usage in increasing the availability of workforce housing;
(3)(1) examine the
challenges facing those in need of workforce housing, including financial,
social, and logistic challenges;
(4)(2) assess the ability
of local governments to leverage existing laws and resources, including partnering with nonprofit and for-profit entities, to
increase the availability of workforce housing;
(5)(3) examine the best
practices of other states in increasing the availability of workforce housing;
(6)(4) examine any unique
challenges faced by local governments across the state resulting from differences in economic prosperity and considering the
differences between the metropolitan and rural areas of the
state;
(7)(5) evaluate the
potential benefits, cost savings, and improved affordability from utilizing
energy efficiency standards in housing; and
(8)(6) assess the
feasibility and cost savings from partnerships between public utilities and
private businesses in replacing aging housing in
existing programs with newer modular and mobile home units.
BE IT FURTHER RESOLVED, that the
study include input from appropriate
stakeholders, including but not limited to the Department of Commerce, the Department of Labor and Industry, local
entities, and other stakeholders as appropriate. seek
information and participation from local governments, state agencies, organizations representing realtors, builders, land use
planners, environmental interests, property owners,
affordable housing advocates, developers, and any other person or entity that
the committee considers appropriate.
BE IT FURTHER RESOLVED, that if the study is assigned to staff, any findings or conclusions be presented to and reviewed by an appropriate committee designated by the Legislative Council.
BE IT FURTHER RESOLVED, that all aspects of the study, including presentation and review requirements, be concluded prior to September 15, 2022.
BE IT FURTHER RESOLVED, that the final results of the study, including any findings, conclusions, comments, or recommendations of the appropriate committee, be reported to the 68th Legislature.