MontanaSB 169th Legislature, Regular Session (2025)SenateWALLET

Revise definition of "blighted area"

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Stricter rules to declare blight

The law tightens how cities declare an area "blighted." An area must show at least three listed problems, like severe disrepair, unsafe buildings, failing infrastructure, or title and tax issues. A city cannot use urban renewal powers until it passes a formal resolution. That resolution must name at least three of the blight factors and say redevelopment is needed for public health, safety, morals, or welfare.

Stronger limits on urban renewal takings

Property can be condemned for urban renewal only when it meets the law’s specific blight rules. The local governing body must adopt a resolution saying the taking is necessary. Cities cannot take property mainly to pass it to a private developer. They also cannot take property when the project’s main goal is to raise tax revenue. These limits reduce when owners can be forced to sell.

Tax increment financing must target blight

The law directs tax increment financing to areas declared blighted. Local governments use this tool to help pay for redevelopment in those areas. This can support projects on run-down blocks, but it may also affect nearby taxes and rents. It applies to municipal actions and resolutions adopted after the law takes effect.

Sponsors & Cosponsors

Sponsor

Greg Hertz
Republican • Senate

Cosponsors

Larry Brewster
Republican • House

Roll Call Votes

All Roll Calls

Yes: 294 • No: 0

Senate vote • 3/18/2025

Do Concur

Yes: 98 • No: 0

Senate vote • 3/17/2025

Do Concur

Yes: 96 • No: 0

Senate vote • 1/28/2025

Do Pass

Yes: 50 • No: 0

Senate vote • 1/27/2025