Homeowners associations in Montana are bound by certain laws and regulations. Understand these Montana HOA laws to avoid the risk of legal liability.
For Condominiums
The Montana Unit Ownership Act (Condominiums) regulates the creation, operation, authority, and management of condominium associations in the state. But, these condominiums must explicitly elect to follow the Act by recording a declaration in the county recorder’s office where the property is based.
You can find the Montana Unit Ownership Act (Condominiums) under Title 70, Chapter 23 of the Montana Code. It consists of 11 parts, each one divided further into sections, listed below.
Part 1. General Provisions
- Short title
- Definitions
- Applicability — submission by declaration required — optional declaration for townhouses
Part 2. Regulation of Unit Sales Prior to Construction (Repealed)
Part 3. Creation — Declaration and Bylaws
- Contents of declaration
- Preliminary declaration
- Name of property — similarity prohibited
- Declaration to be approved by department of revenue before recording
- Recording of declaration
- Floor plans recorded with declaration — certification
- Bylaws — adoption, recording, and amendment
- Contents of bylaws
Part 4. Nature of the Ownership Interest
- Property status of the unit
- Exclusive ownership and possession of unit — joint ownership
- Common elements — undivided interest of unit owner
- Common elements — undivided interest to remain attached to unit
- Common elements to remain undivided — partition prohibited
Part 5. Rights and Duties Incidental to Unit Ownership
- Common profits and expenses
- Certain work on unit by owner prohibited
- Common elements — use by unit owner
- Maintenance and improvement of common elements
- Abandonment or waiver of use not to effect exemption
- Compliance with bylaws, rules, and covenants required — action
- Restriction on covenants by association of unit owners
Part 6. Conveyances, Liens, and Common Expenses
- Contents of deed or lease of unit
- Liens to be satisfied or released at time of first conveyance
- Lien allowable against unit not against the property
- Construction lien — no effect on nonconsenting owner — exception
- Lien effective against two or more units — release from
- Records of receipts and expenditures affecting common elements — inspection
- Claim for common expenses — priority of lien — contents — recording
- Foreclosure of lien under claim for common expenses — action without foreclosure
- Foreclosure on unit — payment of rent — purchase of unit by manager
- Purchaser at foreclosure sale not totally liable for prior common expenses
- Joint liability of grantor and grantee for unpaid common expenses
- Insurance of building — premiums as common expenses
- Disclosure by seller — seller to furnish documents — delay period
Part 7. Taxation and Exemptions (Repealed)
Part 8. Removal of Property From Unit Ownership Act
- Removal from chapter — recorded instrument — consent of lienholders
- Obsolete property — restoration or sale — removal from chapter
- Damage to property — decision not to repair or rebuild — removal from chapter
- Effect of removal — ownership in common — liens
- Effect of removal — subject to partition — sale
- Removal no bar to resubmission
Part 9. Actions and Process
Part 10. Enforcement and Penalty (Repealed)
Part 11. Conversion of Condominium to Townhouse
- Conversion of condominium to townhouse
- Notice of intent
- Consent by unit owner on behalf of lienholder
- Effect of conversion
- Nonapplicability — building codes — zoning regulations
Montana Senate Bill 300
In 2019, the state of Montana passed a bill (Senate Bill 300) regulating homeowners association restrictions. According to this bill, HOAs may not compel homeowners to follow “more onerous restrictions” than the ones that already existed prior to their purchase of the real property. The exception is when homeowners provide a written agreement to follow such restrictions at the time they are adopted.
A homeowner can claim the benefit of this bill by requesting their HOA to record the exception. The association should then comply with the member’s request by recording the exception with the recorder of the county and the office of the county clerk where the real property is located. This exception expires, though, when the real property is sold.
Montana HOA Laws on Corporate Governance
The Montana Nonprofit Corporation Act regulates non-profit corporations in relation to corporate procedure, structure, and management. Most homeowners and condominium associations establish themselves as non-profit corporations. Therefore, they are bound by this Act.
You can find the Montana Nonprofit Corporation Act under Title 35, Chapter 2 of the Montana Code. It consists of 13 parts, listed below.
- General – Sections 35-2-101 through 35-2-133
- Formation, Articles of Incorporation Bylaws, Amendments – Sections 35-2-201 through 35-2-233
- Corporate Name, Registered Office and Agent, and Service of Process – Sections 35-2-301 through 35-2-315
- Directors and Officers — Indemnification – Sections 35-2-401 through 35-2-454
- Members — Delegates — Voting – Sections 35-2-501 through 35-2-543
- Merger, Consolidation, and Sale of Assets – Sections 35-2-601 through 35-2-617
- Dissolution and Liquidation – Sections 35-2-701 through 35-2-732
- Foreign Corporations – Sections 35-2-801 through 35-2-834
- Annual Report — Corporate Records – Sections 35-2-901 through 35-2-912
- Fees and Charges – Sections 35-2-1001 through 35-2-1003
- Secretary of State – Sections 35-2-1101 through 35-2-1112
- Reinstatement (Repealed) – Sections 35-2-1201 through 35-2-1203
- Derivative Actions – Sections 35-2-1301 through 35-2-1307
- Distributions – Sections 35-2-1401 through 35-2-1402
Montana HOA Laws on Political Signs
Some homeowners associations might prohibit members from displaying political signs on their property. But, in doing so, these HOAs are going directly against Section 70-1-522 of the Montana Code.
According to the HOA laws of Montana, associations may not prohibit homeowners from displaying political signs on their property or a common area in which the owner possesses an undivided interest. However, associations can impose reasonable regulations such as the size of the signs, the placement of the signs, and the time period during which owners can display the signs.
Fair Housing
The Montana Human Rights Act consists of a Chapter specifically dedicated to Illegal Discrimination. This Chapter offers protection against housing discrimination based on familial status, marital status, religion, sex, race, creed, age, national origin, color, or disability (physical or mental). It also contains provisions concerning reasonable accommodations and the need for service animals.
This Act functions similarly to the federal Fair Housing Act and the Americans with Disabilities Act. Housing discrimination victims can report any discriminatory acts to the U.S. Department of Housing and Urban Development or the Montana Human Rights Bureau. Alternatively, they may also file a lawsuit in state or federal court.
