realestate

Bill proposes sale of state trust lands for private development projects

Public land managers push for easier development of state trust lands, but lawmakers are split on support.

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ublic land managers in Montana are pushing to make it easier to develop and sell state trust lands, arguing it will help address housing shortages. However, lawmakers are divided on the issue. MTPR's Austin Amestoy spoke with reporter Ellis Juhlin about the proposed legislation and its implications.

    The proposal would allow the state to lease trust lands to developers for residential or commercial building, then sell the developed land. This is a departure from current policy, which only allows leasing for agricultural use or development of raw land. The Department of Natural Resources and Conservation (DNRC) wants to expand options for using these lands.

    The agency's Director Amanda Kaster says this change would facilitate affordable workforce housing on state trust lands near cities and towns. DNRC has evaluated potential sites in Billings, Kalispell, Whitefish, Missoula, and the Gallatin Valley, identifying areas where development could happen.

    However, some lawmakers are concerned that the proposal goes beyond the 2023 law aimed at addressing affordable housing. They worry about the potential for commercial development and the lack of clear guidelines or public process. Democratic Representative Johnathan Karlen expressed these concerns during a recent committee hearing.

    This issue is part of a broader national trend. Other states, including Utah, have implemented similar policies, and there's been interest in using federal public lands to build housing. The Biden Administration has even authorized the sale of federal land in Nevada for affordable housing near Las Vegas.

    The proposed bill still needs to be debated during the 2025 legislative session, which begins after the elections next month. While a committee didn't endorse the proposal, it's not dead yet – any lawmaker could pick it up and continue the discussion early next year.

State lawmakers propose selling public trust lands for private development projects nationwide.