The planning staff recommends the Zoning Commission initiate the code amendment as allowed by Section 27-1628.B(1). Any text amendment may be initiated by the Zoning Commission, the City Council or the Planning Board.

In 2023, the Montana legislature passed several laws regarding local land use and zoning provisions. One of those new laws, SB 245, requires cities of 5,000 or more in population to allow, by right, multi-unit developments in all commercial and mixed-use zoning districts. The law includes definitions and restrictions on required off-street parking for multi-unit developments. Planning staff has drafted a zoning code amendment to align Billings' local code with the new state law requirement. The state law is already in effect, and the city must comply. SB245 is attached to this memo for reference along with the draft ordinance.

Initiation of the code amendment does not indicate either approval or denial of the proposed amendment by either the City Council or the Zoning Commission. Initiation of the amendment allows planning staff to engage the public process with outreach to stakeholders, publication of legal advertisements and other public notice procedures for the amendment. The draft ordinance will be finalized and placed on a future Zoning Commission agenda for a public hearing.

Planning staff will reach out to the homebuilders and realtors as well as the Neighborhood Task Forces to engage them in a discussion about the new state law and the proposed required local amendment.

The Zoning Commission may:

• Initiate the amendment; or
• Not initiate the amendment; or
• Request staff to bring more information on the amendment to a future meeting. Ultimately, this required change per State Law must be addressed and initiating the amendment is the first step in the process.

There should be a minor effect on the Planning Division budget if the amendment is adopted. The Planning Division may pay for the incorporation of the amendment into the official City Code, as administered by Municode, the city's official codification company. However, any changes to City Code affect the entire community and City at some level and so costs to update the City Code administered by Municode should be funded by the City's General Fund.