67th Legislature HB 304.1
1 HOUSE BILL NO. 304
2 INTRODUCED BY F. GARNER
4 A BILL FOR AN ACT ENTITLED: “AN ACT CLARIFYING THE DEFINITION OF COMMUNITY LAND TRUSTS
5 THAT OWN LAND TO PRESERVE AFFORDABLE HOUSING; AND AMENDING SECTION 70-23-102, MCA.”
7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
9 Section 1. Section 70-23-102, MCA, is amended to read:
10 "70-23-102. Definitions. In this chapter, unless the context requires otherwise, the following
11 definitions apply:
12 (1) "Association of unit owners" means all the unit owners acting as a group in accordance with the
13 declaration and bylaws.
14 (2) "Borrower" means a mortgagor, grantor as defined in 71-1-303, or other debtor.
15 (3) "Building" means a multiple-unit building or buildings comprising a part of the property.
16 (4) "Common elements" means the general common elements and the limited common elements.
17 (5) "Common expenses" means:
18 (a) expenses of administration, maintenance, repair, or replacement of the common elements;
19 (b) expenses agreed upon as common by all the unit owners; and
20 (c) expenses declared common by 70-23-610 and 70-23-612 or by the declaration or the bylaws of
21 the particular condominium.
22 (6) "Community land trust" means a nonprofit organization exempt from taxation under section
23 501(c)(3) of the Internal Revenue Code that holds title to land beneath individually owned housing units,
24 including but not limited to single-family homes, townhomes, condominiums, and multi-unit rental properties for
25 the purpose of preserving affordable housing.
26 (7) "Condominium" means the ownership of single units with common elements located on property
27 submitted to the provisions of this chapter. The term does not include a townhome, or a townhouse, a
28 community land trust, or a housing unit located on land belonging to a community land trust.
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67th Legislature HB 304.1
1 (8) "Conversion" means a change in the character of residential real property from one or more
2 parcels of land with attached condominium units to one or more parcels of land with attached townhome or
3 townhouse units without a change to the undivided interest of the unit owners.
4 (9) "Declaration" means the instrument by which the property is submitted to the provisions of this
6 (10) "General common elements", unless otherwise provided in a declaration or by consent of all the
7 unit owners, means:
8 (a) the land on which the building is located, except any portion of the land included in a unit or made
9 a limited common element by the declaration;
10 (b) the foundations, columns, girders, beams, supports, mainwalls, roofs, halls, corridors, lobbies,
11 stairs, fire escapes, entrances, and exits of the building;
12 (c) the basements, yards, gardens, parking areas, and outside storage spaces, private pathways,
13 sidewalks, and private roads;
14 (d) installations of central services such as power, light, gas, hot and cold water, heating,
15 refrigeration, air conditioning, waste disposal, and incinerating;
16 (e) the elevators, tanks, pumps, motors, fans, compressors, ducts, and in general all apparatus and
17 installations existing for common use;
18 (f) the premises for the lodging of janitors or caretakers of the property; and
19 (g) all other elements of the building necessary or convenient to its existence, maintenance, and
20 safety or normally in common use.
21 (11) "Lienholder" means a person holding a security interest, including a mortgagee, beneficiary of a
22 trust indenture, or other creditor who holds a mortgage, trust indenture, or other instrument that encumbers real
24 (12) "Limited common elements" means those common elements designated in the declaration or by
25 agreement of all the unit owners as reserved for the use of a certain unit or number of units to the exclusion of
26 the other units.
27 (13) "Majority" or "majority of the unit owners", unless otherwise provided in the declaration, means the
28 owners of more than 50% in the aggregate of the undivided ownership interests in the general common
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67th Legislature HB 304.1
1 elements as the percentage of interest in the element appertaining to each unit is expressed in the declaration.
2 Whenever a percentage of the unit owners is specified, percentage means the percentage in the aggregate of
3 undivided ownership.
4 (14) "Manager" means the manager, board of managers, or other person in charge of the
5 administration of or managing the property.
6 (15) "Project" means a real estate condominium project whereby a condominium of two or more units
7 located on property submitted to the provisions of this chapter is offered or proposed to be offered for sale.
8 (16) "Property" means the land, all buildings, improvements, and structures on the land, and all
9 easements, rights, and appurtenances belonging to the land that are submitted to the provisions of this chapter.
10 (17) "Recording officer" means the county officer charged with the duty of filing and recording deeds
11 and mortgages or other instruments or documents affecting the title to real property.
12 (18) "Townhome" or "townhouse" means property that is owned subject to an arrangement under
13 which persons own their own units and hold separate title to the land beneath their units, but under which they
14 may jointly own the common areas and facilities.
15 (19) "Unit" means a part of the property including one or more rooms occupying one or more floors or a
16 part or parts of the property intended for any type of independent use and with a direct exit to a public street or
17 highway or to a common area or area leading to a public street or highway.
18 (20) "Unit designation" means the number, letter, or combination of numbers and letters designating a
19 unit in the declaration.
20 (21) "Unit owner" means the person owning a unit in fee simple absolute individually or as co-owner in
21 any real estate tenancy relationship recognized under the laws of this state. However, for all purposes,
22 including the exercise of voting rights, provided by lease filed with the presiding officer of the association of unit
23 owners, a lessee of a unit must be considered a unit owner."
24 - END -
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