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Montanans Against Irresponsible Densification, LLC v. State of Montana

By Nathan Dugan · August 18, 2025

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Shortly after the passage of many state-level pro-housing reforms in 2023, a newly-formed group of homeowners, calling themselves Montanans Against Irresponsible Densification, LLC (MAID), filed a lawsuit claiming that four of these reforms, SB 245, SB 323, SB 382, and SB 528 were unconstitutional. 

What Did These Laws Do?

These laws have been colloquially referred to as "The Montana Miracle" in national publications because they encompass a broad range of pro-housing reforms at the state-level that rivals what any state had accomplished in a single legislative session anywhere in the country. Here's what they did.

1. SB 245

Written with substantial assistance from Shelter WF, this bill legalized multi-unit dwellings and mixed-use developments in commercial zones in municipalities designated as urban areas by the U.S. Census Bureau with populations >5,000. Additionally, municipalities cannot require that more than 1 off-street parking space per unit be built.

2. SB 323

This bill legalized duplexes on lots where single-family residences are permitted in cities with a population of at least 5,000 residents.

3. SB 382

The Montana Land Use Planning Act rewrote planning statutes for municipalities with a population of at least 5,000 residents located within counties with a population of at least 70,000 residents. This bill requires municipalities to project their future housing needs over 20 years, and to change zoning to accommodate that housing to be built by right (without additional hearings). This bill aims to load the public input process on the front-end, through the comprehensive planning phase, while reducing project-level NIMBY vetoes of new housing. See our explainer page here.

4. SB 528

This bill legalized accessory dwelling units (ADUs) throughout the state. It requires that cities permit ADUs without various poison pills that stop ADUs from being built in the first place. 

Updates

UPDATE 8/18/2025

Since this case began, there have been many updates. As of August 18, 2025, this case is on appeal with the Montana Supreme Court and is pending a decision by the Court. The bullet points below with updated information are in reverse chronological order.

  • Shelter WF led the appeal as an intervenor in the case at the Montana Supreme Court, filing an opening brief on May 15, 2025. You can view that brief here. Montanans Against Irresponsible Densification (MAID), has filed a cross-appeal. They have dropped their claims regarding substantive due process and the idea that the laws unconstitutionally take power from local governments. This means their focus has narrowed to the public participation claim (which they won in the lower court) and their equal protection claims (which they lost). It's also worth noting that MAID's brief does not address the district court's previous ruling that the new laws cannot override private covenants, a point we believe is entirely hypothetical. Adding to the robust legal debate, both the American Planning Association and the Institute for Justice have filed amicus briefs (friend-of-the-court briefs), both of which are excellent and support the state's position. On August 6, 2025, Shelter WF, the State, the League of Towns and Cities, and other intervenors filed their merits briefs. We expect MAID to file its final brief in early September, at which point the Court will be ready to make a ruling, though the timeline for a ruling is variable and unknown. 
  • Following the Supreme Court's decision, the case was remanded to the district court for further proceedings. On March 3, 2025, the district court judge ruled against most of the claims made by MAID. The court upheld the main provisions of the challenged laws, which are aimed at increasing housing supply and affordability. However, the court did conclude that a few provisions in SB 382 that limited public participation were unconstitutional. These issues were addressed with SB 121, which was signed into law after the 2025 legislative session - Shelter WF contends that this ruling is now moot.

  • On September 3, 2024, the Montana Supreme Court unanimously reversed the lower court's preliminary injunction against SB 323 and SB 528. The Supreme Court found that MAID had not met the burden of proof required for an injunction, specifically failing to demonstrate a likelihood of irreparable harm. The court's decision allowed SB 323 and SB 528 to go into effect while the lawsuit continued.

UPDATE 1/18/2024

On January 17, 2024, Shelter WF filed a motion to intervene as a defendant to support SB 245, SB 323, SB 382, and SB 528, which were challenged by Montanans Against Irresponsible Densification, LLC (MAID) in a lawsuit filed in Montana's Eighteenth Judicial District Court in Gallatin County on December 19, 2023. The court issued a preliminary injunction against SB 323 and SB 528 on December 29, 2023 - meaning that these laws did not take effect on January 1, 2024, pending the outcome of this case. Shelter WF was a key leader of the wide bipartisan coalition that saw these bills pass the legislature and be signed into law by the governor in 2023. We filed this motion to ensure that these laws can withstand this legal challenge.

About Shelter WF

Shelter WF is a 501(c)(4) organization dedicated to increasing housing abundance and affordability in Whitefish and throughout Montana.

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