_____________ bill NO. _____________

INTRODUCED BY _________________________________________________

By Request of the ****

A BILL FOR AN ACT ENTITLED: "AN ACT REVISING COVENANT LAW; PROVIDING THAT COVENANTS ON RESIDENTIAL PROPERTY MAY NOT PROHIBIT the OCCUPANCY OR RENTAL OF ACCESSORY DWELLING UNITS OR PROHIBIT THE PROVISION OF child care; PROVIDING THAT COVENANTS ON RESIDENTIAL PROPERTY MAY NOT LAST LONGER THAN 5 YEARS UNLESS reratified BY A MAJORITY OF OWNERS OF PROPERTY SUBJECT TO THE COVENANT; AND PROVIDING AN APPLICABILITY DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Prohibitions on covenants on residential property. A covenant on residential property may not:

(1)        prohibit the occupancy or rental of accessory dwelling units;

(2)        prohibit the provision of child care.

NEW SECTION. Section 2. Affirmation of covenants on residential property. (1) A covenant on residential property may not last longer than 5 years unless:

(a)        a majority of owners of property subject to a covenant vote to sustain the covenant pursuant to subsection (2);

(b)        the covenant provides for a right to reenter or repossess land on account of a breach of the covenant; or

(c)        the covenant is necessary to the maintenance of shared infrastructure or was required by an approving government entity on establishment of the covenant.

(2)        A vote to sustain a covenant must extend the covenant 5 years and must be made or recorded in writing, whether on one or more documents.

NEW SECTION. Section 3. Codification instruction. [Sections 1 and 2] are intended to be codified as an integral part of Title 70, chapter 17, part 2, and the provisions of Title 70, chapter 17, part 2, apply to [sections 1 and 2].

NEW SECTION. Section 4. Applicability. [This act] applies to covenants on residential property filed on or after [the effective date of the act].