The Urban Land Institute hosted The Place Summit, an annual gathering to explore and advance the policies and practices that create vibrant, inclusive, and sustainable communities. The summit highlighted the impact of the built environment on everyday life and set the stage for transformative placemaking initiatives.
Groundwork hosted a lunch session at The Place Summit, focused on “The Montana Miracle,” a set of groundbreaking reforms that impacted Montana’s built environment. Groundwork Executive Director, Duke McLarty moderated a discussion between State Senator Forrest Mandeville and Nathan Dugan to explore the far-reaching effects of zoning reform and address Montana’s challenges in facing its growing demand for housing.
Background
Similar to Northwest Arkansas, Montana is renowned for its landscapes and outdoor opportunities and is also facing a housing crisis that threatens the fabric of their communities. While residents enjoy the unique privilege of transitioning from their office desks to trails in minutes, a restrictive housing market is undermining the accessibility and vibrancy of this cherished lifestyle.
Stringent local zoning regulations have created barriers to building the types of homes that Montana desperately needs to accommodate its growing population. As a result, housing costs have soared, forcing many longtime residents and newcomers to consider leaving the state they call home.
The root of the issue lies in zoning policies originally designed to separate industrial and residential areas for safety. Over time, however, these policies have evolved to limit housing options, especially in the "missing middle" category, such as duplexes, triplexes, and townhomes. This exclusionary zoning restricts density, leading to a lack of affordable housing for people across the income spectrum.
An Aging Population
Many older adults are seeking to downsize into smaller, more manageable homes while staying connected to their communities. Missing middle housing options offer a vital solution, allowing seniors to transition without leaving behind their social networks or familiar surroundings. As Nathan Dugan, President of Shelter WF and a physical therapist, observed, “Being a home health physical therapist, I see it every day. Our houses are not set up for us to age in, and people don't have options. There are no options for people to downsize in Montana.”
The lack of available downsizing options is also becoming a growing concern in Northwest Arkansas, where 75% of residential land is zoned exclusively for single-family homes, while the population of "baby boomers" ready to downsize and retire continues to grow.
Senator Mandeville emphasized the financial strain of this issue, stating, “We fund our local governments completely on property taxes... so we're seeing people that have spent their entire lives, and for generations, in Montana being taxed out of their homes. As our property values increase, that just keeps the problem going.” Addressing this issue is essential to ensure that solutions are in place for future growth while also preserving generational living in our communities.
The Solutions
The Montana housing issue was widely recognized, but the real challenge was forming a coalition to address it. A successful collaboration emerged when industry professionals, realtors, developers, planners, city and county leaders, and legislators, including Governor Gianforte, united to create a housing task force, allowing them to push forward solutions with strong bipartisan support.
State leaders took bold steps to overhaul the state-wide planning code, aiming to streamline development processes and increase housing availability. This included:
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Legalizing ADUs in all Montana cities
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Legalizing duplexes in single-family zoning in all Montana cities
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Allowing more by-right development
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Reducing duplicative public hearing
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Expanding exemptions to administrative rules and state laws
While compromises were necessary, the progress made was significant, as Senator Mandeville noted, "You never would have seen this 10 years ago, even four years ago."
Building a coalition was crucial for passing these reforms, as it engaged a broad range of political groups and highlighted the importance of a bipartisan approach to addressing the housing crisis. The coalition, which included both right-wing organizations like Americans for Prosperity and left-leaning groups such as Shelter WF and Forward Montana, worked strategically to ensure legislative support across the political spectrum. By uniting diverse groups and stakeholders, they were able to bridge political divides and navigate the complexities of the legislative process, ultimately securing the votes needed to push the reforms forward. This collaborative approach demonstrated that housing solutions can garner widespread support, regardless of political affiliation.
Lessons Learned
The experience in Montana offers several lessons for Northwest Arkansas, especially when navigating the complexities of housing reform. One key takeaway is the importance of forming a broad, cross-partisan coalition to support housing initiatives, as housing issues often transcend political lines.
Additionally, starting early and being prepared in advance of legislative sessions is vital for success. Montana's biennial legislative sessions allowed for more thoughtful planning, which was crucial for organizations like Shelter WF, working on a volunteer basis. Leveraging local groups to lead the charge while accepting support from national organizations behind the scenes is another valuable strategy.
Finally, understanding the political landscape and recognizing when to compromise is essential. As Senator Mandeville emphasized, “you have to realize who's voting on this and who's signing the bills” and be prepared to focus on achievable goals.
The Challenges
Montana has faced significant challenges in passing its housing reform bills, particularly with legal opposition and resistance from certain communities. One major hurdle was a lawsuit filed by the organization "Maid" [Montanans Against Irresponsible Densification], which sought to block the reforms, reflecting concerns over densification. These legal battles delayed the implementation of several bills, with some scheduled reforms held up by a judge. However, the Montana Supreme Court ruled in favor of moving forward, asserting that complaints based on "afraid of what my neighbor might do" were insufficient to prevent the reforms.
Despite these setbacks, there has been a general consensus that the zoning changes are necessary, even if the process has been "a bit cumbersome" at times. Rural towns like Lewistown, which is preparing for new job growth, have embraced these reforms, recognizing their potential to support growth. On the other hand, more urban areas like Whitefish and Bozeman, home to wealthier residents, have been less receptive. The lawsuit process, though challenging, has been a valuable learning experience, as the state continues to push forward with its reforms.
Implications for Northwest Arkansas: Opposition
Though cities in NWA are making steps toward solutions like rezoning and adopting form-based codes, the challenge still lies in overcoming local pushback, particularly from city councils and planning boards, due to NIMBYism (Not In My Backyard) resistance. Senator Mandeville explained, “the number one goal of an elected official is to stay elected. If you're a city councilman and you have a bunch of your constituents complaining about something you're likely to listen to them.” This underscores the importance of a coalition to attend city council meetings in support of legislative changes that help politicians garner political will. Additionally, Senator Mandeville expressed the importance of celebrating the wins to showcase the benefits of such developments to counteract opposition. The need for state-level action was also highlighted to level the playing field across different cities within a region. By setting baseline standards at the state level, municipalities can have a clearer framework to guide their decisions, reducing regional disparities and fostering more consistent progress toward addressing housing needs.
Implications for Northwest Arkansas: Traffic
In Northwest Arkansas, traffic congestion is a major concern as cities plan for increased density, with many residents fearing that higher density will lead to more traffic. As Senator Mandeville aptly stated, "sprawl creates more traffic issues than density," emphasizing that spreading out developments over large areas often exacerbates traffic problems.
The solution is to focus on creating more walkable, mixed-use developments that support public transit options like buses or light rail. By concentrating density in specific areas, it becomes possible to reduce the reliance on cars, addressing both traffic congestion and the need for more housing. The key is a holistic approach to planning that takes into account not just density, but also transportation options, infrastructure, and the broader impact on communities. This is particularly relevant for NWA, where continued growth and expanding density need to be paired with improved transportation solutions to avoid worsening traffic issues.
Conclusion
The parallels between Montana’s housing crisis and the challenges faced in Northwest Arkansas are striking. Both regions are grappling with balancing the pressures of growth and affordability while preserving their unique identities. By addressing exclusionary zoning policies and embracing diverse housing options, communities like Montana—and Northwest Arkansas—can take meaningful steps toward fostering equitable, sustainable growth. The stakes are high: without action, both places risk becoming enclaves of exclusivity and losing the diverse communities that make them special.