This is a zone change that will amend Sections 27-201 and 27-622 of the Billings, Montana City Code (BMCC) to eliminate the definition of “townhome” as a type of residential land use and update the section that requires a Master Site Plan review for multi-unit developments. In 2011, the Montana Legislature approved a bill, HB0460, to amend state law to include a definition of a townhome under the unit ownership act (MCA 70-23-101 et seq). The zoning code regulates land uses and buildings but does not regulate ownership or types of ownership. The proposed amendment would update the code to align the definition of condominium and townhome/townhouse with the new state law. In March 2012, the City Council approved a previous amendment that eliminated “townhouse” as a type of use within residential zones. Townhomes can now be allowed in any residential zone provided enough lot area exists for more than 1 dwelling unit on an undivided lot. The City Zoning Commission initiated this amendment on February 7, 2012. The Zoning Commission conducted a public hearing on April 3, 2012, and is forwarding a recommendation of approval on a 3-0 vote.

The City Council may:
1. Approve the zone change
2. Deny the zone change
3. Allow withdrawal of the zone change
4. Delay action for up to thirty (30) days

There should be no financial impact from the proposed amendment.

In 1977, the City Zoning Code defined “rowhouse” as a type of use. This definition has evolved over the years. In 1977, rowhouses were defined as three or more single dwelling units attached with the common wall along a property line. Rowhouses were allowed only by special review approval in R-50, R-60, RMF and RMF-R zoning districts. By 1985, the term “rowhouse” was replaced by the term “townhouse” then defined as two or more single dwelling units with common walls on the dividing line and fee simple ownership of the land and structure. The code required a property line between the units to be defined as a “rowhouse” or “townhouse”. The definition and regulation by special review in certain zoning districts identified the use by its architectural style. The building code has also adopted a definition of “townhome or townhouse” that anticipates a type of fire-rated construction that essentially isolates each dwelling unit from another.

In 2011, the Montana Legislature adopted a definition of townhome into law that relates to the ownership of the dwelling unit. The change in state law was primarily to handle the current lending practices in the real estate industry. The zoning code regulation of a townhome is an artifact of a previous era and is centered on the architecture – 2 or more attached dwelling units with a property line between each unit. The building code definition is geared toward life and safety of each unit owner. The new state law definition is focused on the type of ownership and financing of the property. These 3 definitions – zoning code, building code, and unit ownership type – have created confusion for owners, regulators and lenders.

The current zoning code does not and should not regulate the type of ownership of property. Townhomes should be allowed in any residential zoning district as long as lot area requirements are met and setbacks, building heights and lot coverage maximums are also observed. The zoning code requires multi-unit developments where more than two dwelling units share common private facilities such as internal driveways or private streets, to submit a Master Site Plan. The Master Site Plan ensures compliance with local codes including fire access, utilities, engineering, building and zoning. Attached dwelling units are allowed in several zoning districts. If an owner proposes to divide those dwelling units along common walls by a property line, then a side setback variance would be required. The proposed amendment will clarify the local regulation and ensure that existing and proposed townhomes are not unnecessarily regulated.

The Zoning Commission conducted a public hearing on April 3, 2012, and received the staff report and recommendation of approval. There was no other testimony. The Zoning Commission is forwarding a recommendation of approval on a 3-0 vote.

The proposed amendment will align the local definition of a townhome or townhouse with state law. The amendment will eliminate confusion for local real estate investors, banks and mortgage companies. The previous definition in the local zoning regulations was in conflict with the state law definition.