East Helena’s City Council voted unanimously Tuesday to apply for a novel infrastructure financing tool for Habitat for Humanity’s planned Rose Hills housing development.
If approved by the Montana Board of Investments, East Helena would be the first city in Montana to use the financing bond created by House Bill 505 during the 2025 legislative session, according to officials.
The vote marks “a significant milestone for Rose Hills and for East Helena,” Madeline Forbis, communications director for Helena Area Habitat for Humanity, said in a statement.
Under the joint proposal, the city would issue an up to $12 million special assessment bond to be purchased by the Montana Board of Investments. The funds would pay for necessary infrastructure to support the planned 1500-home subdivision, including a wastewater lift station, a water tank and turn lanes off Highway 282.
East Helena and Habitat for Humanity next plan to draft and submit their bond application to the Board of Investments. If the Board approves the proposal, the City Council would then hold a final vote on issuing the bond.
“It’s just an indication of the council’s willingness to move forward with this process,” East Helena Mayor Kelly Harris said of Tuesday’s vote. “Nothing is official yet, by any means.”
The proposal review and confirmation could be complete by summer. But Harris said he wants to ensure the city follows all proper processes as it moves forward with this untested financing mechanism.
“Whenever you’re the first person to do something, there’s always some trepidation,” Harris said. “But that also could put you on the front edge of doing something cool.”
If implemented, future homeowners at Rose Hills would be expected to repay the bond through a Special Improvement District (SID), which levies an additional charge on their property tax bills over a 20-year period.
The Montana Board of Investments would back the bond by offering to allocate financing from a state fund if property owners fail to pay their SID assessments.
This state-financed backstop is crucial for a small city like East Helena, which has a $2 million annual general fund budget. Council Member Wes Feist said the program provides financial backing the city would otherwise lack the capacity to guarantee.
“The opportunity to explore that further and make sure that our infrastructure is built that meets both city standards and expectations for current and future development without current city taxpayers having to front that burden is also beneficial,” Feist said.
Forbis saw the advantage of financing infrastructure in advance. “Addressing major infrastructure needs up front helps lay the groundwork for homes that working families can afford and supports responsible growth that benefits the broader community,” she said.
The bond application approval inches Rose Hills forward, though water supply remains a potential concern given the city’s other expected housing development, 4000-home Prickly Pear Estates, and the state’s October decision to deny the City the former ASARCO water rights.
City and Habitat for Humanity officials remain confident that East Helena’s existing water rights are sufficient for Rose Hills.