Near Term Code Amendments: Complying with 2023 State Legislation

Introduction

The City is proposing changes to Title 16 (Manufactured Housing and Mobile Home Parks). The proposed changes will update the definition of manufacture housing in response to HB 246, as well as clarify and update the Title generally, making it easier to use and understand.

Overview of Changes

Proposed amendments to Title 16 include 30 amendments that cover seven main categories which include:

• Compliance with HB 246
• Clarify and update existing process and current practice
• Clarify the connection between Title 16, Title 20 Zoning Code, and the City Subdivision Regulations
• Update the responsible departments for various sections of code and cross references
• Correct inconsistencies and conflicts between regulations and departments
• Remove sections that are no longer relevant or are regulated by other departments
• Remove barriers to use of manufactured housing and creation of manufactured housing parks in alignment with City equity and housing lenses.

Refer to the sidebar for additional information such as detailed amendments, dates for upcoming meetings, and background documents.

Please use the Comment space at the bottom of this page to submit any comments you have on the proposed amendments.

Introduction

The City is proposing a second round of near-term code amendments to the City of Missoula Zoning Code (Title 20). This second round of amendments will result in permanent changes for targeted amendments that will support new housing development, improve the efficiency of the development review process, and better implement our existing policy goals. These changes will create a new baseline that will be considered within the Our Missoula project workflow and compliment the ongoing Code Reform and Growth Policy Update processes.

Overview of Changes

Proposed amendments for the 2^nd round of near-term zoning code changes include 27 amendments to Title 20 (City Zoning Code) that cover seven main categories; administrative adjustments, accessory dwelling units (ADUs), the Permanently affordable housing option, Historic Preservation, setbacks, the vertical mixed-use building type (VMU), and zoning officer opinions (ZOO). Following is a snapshot of proposed changes:

• Administrative adjustments – existing regulations requiring an administrative review are changed from administrative review to by-right to expedite the process of specific amendments and encourage their use. These include changes to parcel area and parking and are subject to specific criteria.
• Accessory Dwelling Units – in an effort to further promote the use of ADUs proposed amendments will increase the size of an ADU, remove the required distance between the primary unit and ADU, and increase the height to that of the zoning district where the ADU is located
• Permanently affordable housing option – amendments proposed will expand the number of zoning districts that allow this housing option, and amend the definition of affordable making this option more flexible
• Historic Preservation – proposed changes will allow the historic preservation officer to review and approve historic preservation permits not required to be reviewed by the Historic Preservation Commission in response to a legislative bill passed last year
• Setbacks – remove required setbacks adjacent to an alley currently regulated by the Engineering Division and remove the required 1/3 the height related to side setback, noted in several districts allowing existing structures to build straight up
• Vertical Mixed-use building type – proposed changes will help encourage the use of this building type by removing the on-site parking requirements for non-residential uses, redefining the amount of required commercial space, and providing alternative landscaping requirements
• Zoning officer opinions – Occasionally staff need to make an interpretation of existing regulations and want to formalize the opinion. Amendments propose codifying seven different ZOOs that:
  1. Clarify home occupations are a permitted use in any residential zoning district
  2. Clarify when the hillside protection regulations apply to a project
  3. Clarify boundary line relocations with regard to district boundaries aligning with different right of ways
  4. Clarify a microbrewery can have a retail sales component as an accessory use
  5. Remove the necessity to receive approval of a project from the Development Park Design Review Committee in the Missoula Development Park Overlay Zone
  6. Include a parking incentive for the affordable housing option
  7. Allow parking to extend into interior side setbacks for multi-dwelling projects

Refer to the sidebar for additional information such as detailed amendments, dates for upcoming meetings, and background documents.

Please use the Comment space at the bottom of this page to submit any comments you have on the proposed amendments.

ADOPTION OF THE INTERIM CONDITIONAL USE ORDINANCE
The City is also requesting comment on the permanent adoption of the Conditional Use Interim Ordinance that was adopted by City Council in November of 2022. For more information, please refer to the dedicated webpage for this project here.

District Court Injunction

In early December, a complaint was filed against the State regarding the constitutionality of four bills passed during the legislative session, SB 323 (Trebas), SB 528 (Hertz), SB 245 (Zolnikov) and SB 382 (Mandeville). The City of Missoula, along with the Montana League of Cities and Towns, opposed the first three of these bills but provided extensive feedback and helped lobby for passage of the latter.

On December 29, Judge Salvagni in the Eighteenth Judicial District (Gallatin County) issued a preliminary injunction against the implementation of SB 323 and SB 528. SB 323 required municipalities with a population of 5,000 or more to allow a duplex as a permitted right in all zones where single-family residential is a permitted use. SB 528 required every municipality in Montana to allow an accessory dwelling unit of a certain size as a permitted right on lots zoned for single-family homes. In response to the preliminary injunction:

• If a municipality has not already enacted any changes to their zoning ordinance to comply with these new state laws, they are now held in abeyance, and municipalities can wait for the litigation to play out before taking further action.
• If a municipality has already codified these required changes into its zoning ordinance and this reflects the desired policy of the city or town, then no further action is needed at this time.
• If a municipality has already codified these changes into its zoning ordinance but would not have otherwise made these changes absent the passage of SB 323 or SB 528, and the city does not agree with the policies required therein, the city may take steps to repeal or hold such ordinance in abeyance until the lawsuit is resolved.

As to SB 245 and SB 382, both laws remain effective at this time and those municipalities to which they apply must take steps to come into compliance with these laws as set forth therein. SB 245 has already been adopted by the City of Missoula. We will continue to work towards the implementation of SB 382 through the Our Missoula Code Reform and Growth Policy Update project.

SB 323

The City of Missoula, through local powers, maintains the authority to amend our zoning code in alignment with our adopted growth policy. We’ve assessed the impact of SB323 and determined that the areas of the community where this would most apply to are zoned primarily single-family. The growth policy future land use map would support implementation of the duplex bill in approximately 66% of the affected parcels. We also find differences in which neighborhoods throughout Missoula would be impacted. The areas of the community where this would be supported based on the current land use designations in the growth policy future land use map include neighborhoods in the South Hills, Franklin to the Fort, River Road, and the Upper Rattlesnake. Some of these areas also allow for higher densities and are already taking on new development. The growth policy future land use map, as adopted, would not support implementation of the duplex bill in approximately 33% of the affected parcels. The areas of the community where this would not be supported include the University District, the Lower Rattlesnake, Miller Creek, and portions of Lewis and Clark and Rose Park areas.

While allowing duplexes in all zones is an effective gentle infill tool, our inability to implement this equitably across the community presents serious concerns. As identified in the Equity and Land Use Report, land use code can impact equity for decades to come. As a city, we have committed to remedying inequities that already exist and to ensuring that we do no further harm in the development of new code. In recognition of this, we will be removing SB 323 implementation from our round two code reform changes and instead work towards a comprehensive approach to equitably promote and allow gentle infill across the community through the Our Missoula Code Reform project.

SB 528

The City of Missoula has continued to promote ADU development over the last several years by providing more flexibility in our regulation and code, in alignment with our adopted growth policy. We continue to address barriers to ADU development through programming and code, and plan to incorporate targeted changes into the round two amendments that come directly from feedback from our local development community. This will ensure these changes remove the barriers most present in Missoula. Given that the City of Missoula has already been a leader throughout Montana in facilitating development of ADUs, we will continue to explore code amendments that build on our prior efforts, including the relaxation of size and height requirements. This will be achieved through a variety of locally driven code amendments and not through the implementation of SB 528.

Our Missoula Project Timeline

A key focus of the Our Missoula project is Missoula's housing issues, and the project's end goal, a new unified development code, will have a direct influence on the growth, shape, and affordability of housing. The current code sets limits on the types of housing that can be built in different locations, how large a building can be, and how many homes can be on a given site.

Although these rules were put in place for a purpose, in some cases they are constraining the ability to provide housing. The Our Missoula process includes putting a spotlight on how the current code affects housing development and will result in changes to remove unnecessary barriers and encourage housing that meets high priority needs. The solution presented to this issue through SB 323 is but one approach or tool to addressing this issue, and it will be considered, along with others, through the Our Missoula process to best determine what regulatory updates will be most meaningful for Missoula.

Update

Approved unanimously on October 16, 2023 for 6 months. Effective immediately, through April 16, 2024.
Extension of this ordinance is scheduled for approval on March 25, 2024 at City Council.

Introduction

The City of Missoula Community Planning, Development and Innovation Department (CPDI) is amended the City of Missoula Title 20 Zoning Code. The proposed amendments comply with mandates outlined in the seven bills affecting the zoning code recently passed by the Montana State Legislature.

Overview of Bills & Changes

Key themes for these bills include changes to various zoning regulations, including:

• Allowing microbreweries to co-locate with beer & wine sales
• Raise maximum limit for Residential Day Cares from 12 to 15 children/adults.
• Allowing data centers & digital asset mining in industrial districts.
• Allowing Religious Assemblies to accommodate temporary overnight visitors.
• Setting a maximum of 1.0 parking space per unit for multi-dwelling buildings in Commercial districts.
• Repeal TED standards related to: public noticing, parkland dedication, and conditions of approval.
• Repeal the Design Review Board.
• Amend and repeal design standards unrelated to public health & safety within Design Excellence (Section 20.25), Use- and Building-Specific Standards (Section 20.40), ADUs (Section 20.45), Landscaping (Section 20.65), and Signs (Section 20.75).

The City's amendments to the City of Missoula Title 20 Zoning Code incorporate State law changes into our local regulations and create a solid baseline for the Our Missoula: Growth Policy Update and Code Reform project. The proposed amendments are limited to integrating legislative changes from the 2023 session and correcting obvious mistakes. Changes are in:

• Chapter 20.01 – Introductory Provisions;
• Chapter 20.05 – Residential Districts;
• Chapter 20.10 – Business and Commercial Districts;
• Chapter 20.15 – Industrial and Manufacturing Districts;
• Chapter 20.20 – Open Space, Public, and Aviation Districts;
• Chapter 20.25 – Overlay Districts;
• Chapter 20.40 – Use- and Building-Specific Standards;
• Chapter 20.45 – Accessory Uses and Structures;
• Chapter 20.60 – Parking and Access;
• Chapter 20.65 – Landscaping;
• Chapter 20.75 – Signs;
• Chapter 20.85 – Review and Approval Procedures;
• Chapter 20.90 – Administration;
• Chapter 20.100 – Terminology; and,
• Chapter 20.105 – Use Classifications.

In addition to the mandatory legislative changes, staff have identified a number of proposed amendments that do not specifically relate to State land use legislation but were necessary to include in this update. These include:

• Correcting formatting issues; and,
• Correcting cross references.

For additional background please reference the Round 1 folder under Materials in the sidebar containing the Summary of Proposed Changes and Summary Table of Legislative Bills.

Key Dates

• City Council Public Hearing and Final Consideration: Monday, October 16, 2023

Important Links

• House Bill 305
• House Bill 918
• Senate Bill 178
• Senate Bill 195
• Senate Bill 245
• Senate Bill 331
• Senate Bill 407

Update

Approved unanimously. Effective immediately upon approval.

Introduction

The City of Missoula amended the City of Missoula Subdivision Regulations. The amendments comply with mandates outlined in the six bills affecting the subdivision regulations recently passed by the Montana State Legislature.

Overview of Bills & Changes

Key themes for these bills include changes to various subdivision review processes, including:

• Requiring a 20-day review and approval process for specific divisions, as well as specifying review times for the expedited review process;
• Amending Family Transfer laws;
• Creating an Administrative Minor Subdivision process;
• Clarifying when a subsequent public hearing will be required;
• Allowing staff to administratively approve certain divisions, while retaining City Council approval for others; and,
• Removing the requirement for a public hearing for phased development review in certain circumstances

The City's amendments to the City Subdivision Regulations incorporate State law changes into our local regulations and creating a solid baseline for the Our Missoula: Growth Policy Update and Code Reform project. The proposed amendments were limited to integrating legislative changes from the 2023 session, correcting obvious mistakes, and amending Article 8 - Exempt Land Divisions to make it more usable and understandable. Changes are being proposed in:

• Article 1 – Introductory Provisions;
• Article 2 – Definitions;
• Article 4 – Review & Approval Procedures;
• Article 5 – Submittal Requirements; and,
• Article 8 – Exempt Land Divisions.

In addition to the mandatory legislative changes, staff have identified a number of proposed amendments that do not specifically relate to State land use legislation but were necessary to include in this update. These include:

• Moving the review procedures for condominium and townhouse proposals from Article 4 to Article 8, Exempt Land Divisions;
• Including State law language that was not included during our update in 2022;
• Correcting formatting issues; and,
• Correcting cross references.

For additional background please reference the Round 1 folder under Materials in the sidebar containing the Summary of Proposed Changes and Summary Table of Legislative Bills.

Key Dates

• Planning Board Public Hearing: Tuesday, September 19, 2023
• City Council Public Hearing and Final Consideration: Monday, October 16, 2023

Important Links

• House Bill 211
• Senate Bill 131
• Senate Bill 152
• Senate Bill 158
• Senate Bill 170
• Senate Bill 331