Montana HOA Law Changes 2021–2025: What Every Board Needs to Know

<h2>Overview of Montana HOA Law Changes 2021–2025</h2>

<p>Montana community associations are governed by the Montana Unit Ownership Act (MCA § 70-23-101 et seq.) for condominiums and the Montana Homeowners Association Act for planned communities. Between 2021 and 2025, Montana enacted several updates affecting electronic governance, solar energy rights, assessment collections, short-term rental restrictions, member record access, and EV charging protections. Here is a session-by-session breakdown.</p>

<h2>2021 Legislative Session</h2>

<h3>SB 338 — Electronic Meeting Authority</h3>

<p>SB 338 amended Montana's Unit Ownership Act to authorize electronic delivery of required notices and to permit board meetings and owner meetings to be conducted by video or telephone conference. Remote participation counts toward quorum. Associations must adopt a written policy governing electronic meetings before conducting the first electronic meeting — the policy must specify how remote participants are identified, how votes are counted, and how the meeting is recorded. This requirement is often overlooked: Montana boards that began holding video-conference meetings without adopting a written policy are technically operating without the statutory authorization SB 338 provides.</p>

<h3>HB 416 — Solar Energy Rights</h3>

<p>HB 416 added MCA § 70-17-211, prohibiting Montana homeowners associations from adopting or enforcing any covenant, condition, or restriction that prohibits the installation of solar energy systems. Associations may impose reasonable placement standards — requiring panels to be mounted on rear-facing roof slopes where achieving at least 95% of maximum output — provided those standards do not increase the cost of installation by more than 5% or reduce energy output by more than 10%. Montana's abundant sunshine and rural character make solar installation increasingly popular among HOA members. Boards should audit governing documents and adopt compliant solar installation guidelines before the first request is received.</p>

<h2>2023 Legislative Session</h2>

<h3>HB 243 — Assessment Lien Collections Reform</h3>

<p>HB 243 established a 30-day pre-lien notice requirement for Montana planned community and condominium associations. Before recording an assessment lien with the county clerk and recorder, the association must send a cure notice by certified mail identifying all amounts due and informing the owner of the right to cure within 30 days. The association is also prohibited from initiating foreclosure for a delinquency of less than $1,000 in principal assessments. This minimum delinquency threshold prevents Montana associations from using the threat of foreclosure as a collection tool for small delinquencies. Boards should update their collections policies to reflect both the pre-lien notice requirement and the $1,000 minimum foreclosure threshold.</p>

<h3>SB 491 — Short-Term Rental Restriction Authority</h3>

<p>SB 491 clarified that Montana homeowners associations have authority to adopt and enforce restrictions on short-term rentals of 30 days or less through the standard governing document amendment process. Once adopted with the required member approval percentage — typically 67% to 75% of all members — short-term rental restrictions are enforceable as a matter of contract against all current and future owners in the development. Boards considering short-term rental restrictions must conduct a member vote at the required threshold and record the amendment with the county clerk and recorder before beginning enforcement. Board-only resolutions restricting rentals are not enforceable under Montana law.</p>

<h2>2025 Legislative Session</h2>

<h3>HB 376 — Member Rights — Record Inspection and Transparency</h3>

<p>HB 376 enacted a statutory right for Montana community association members to inspect and copy the association's financial records, contracts, and meeting minutes within 10 business days of a written request. Associations may charge reasonable copying fees but may not require members to appear in person to inspect records if the member has requested electronic copies. Repeated failure to produce records within the statutory period may be the basis for a court order compelling production and an award of attorney fees to the requesting member. Montana boards that have been treating financial records as internal documents not subject to member inspection must immediately establish a written record inspection policy.</p>

<h3>SB 399 — EV Charging Rights</h3>

<p>SB 399 prohibited Montana homeowners and condominium associations from restricting an owner's right to install EV charging equipment in an assigned parking space. Associations may require licensed installation by a certified electrician, prior written board approval within 60 days of a complete application, and owner-maintained equipment liability coverage, but may not deny compliant requests without documented structural or safety cause. Given Montana's growing EV adoption rates — particularly in resort and destination communities — boards should adopt written EV charging installation policies proactively to manage the increasing volume of installation requests.</p>

<h2>Board Action Checklist</h2>

<ul>

<li>Adopt a written electronic meeting policy before conducting electronic board meetings (required by SB 338)</li>

<li>Audit CC&amp;Rs for solar installation restrictions and repeal any outright bans under MCA § 70-17-211</li>

<li>Update collections policy to require 30-day certified mail pre-lien notice and $1,000 minimum delinquency for foreclosure</li>

<li>If considering short-term rental restrictions, conduct a member vote at the governing document amendment threshold and record the amendment</li>

<li>Establish a written record inspection procedure with a 10-business-day response commitment</li>

<li>Adopt a written EV charging installation policy with a 60-day approval timeline</li>

</ul>

<h2>How APM Helps Montana HOA Boards Stay Compliant</h2>

<p>APM's remote HOA management service monitors Montana HOA and condominium law updates and provides client boards with compliance guidance on electronic meeting policies, collections procedures, solar and EV charging policies, and record access. <a href="/remote-hoa-management/montana">Learn about our Montana remote management services</a>.</p>

<p><em>Legal disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Montana attorney for guidance specific to your community.</em></p>