After deciding to apply for a new state financing tool to fund infrastructure at Habitat for Humanity’s planned 1500-home Rose Hills development, East Helena and Habitat officials have begun to examine what the new subdivision will need – and how much it will cost.
East Helena plans to issue a special assessment bond, to be guaranteed by the Montana Board of Investments (BOI), to pay for an elevated water tank, a wastewater lift station, turn lanes off Highway 282 and more – with costs estimated at $10 million to $12 million.
The bond would be repaid over 20 years through a Special Improvement District (SID), a tax mechanism that adds to property tax bills. At the $12 million level, smaller unit owners would pay about $33 in monthly assessments, while larger home owners would pay around $83 monthly.
For a $10 million bond, monthly costs would be in the vicinity of $27 and $69, respectively, based on Monitor calculations. Over the 20-year payback period for a $12 million bond, pricier homeowners would pay just under $20,000, while smaller unit owners would pay nearly $8,000. Most residents will likely pay less than this, having bought in after the bond took effect.
Working on their bond application, City and Habitat officials are calculating final project estimates based on expected costs. $12 million, according to Jacob Kuntz, executive director of Helena Area Habitat for Humanity, “is a reasonable number if we’re talking about all of that infrastructure happening.”
The priciest element is the elevated water tank at an estimated $6 million, followed by the wastewater lift station at around $3 million, then turn lanes for another $1 million, according to Kuntz. The bond will also likely need to cover a bond reserve amount, administrative costs and interest accrued during construction.
“The nice part about that is, once that tank is in place, it’ll be sufficient for the entire neighborhood,” Kuntz said. “It won’t be something that will have to be upgraded in the future, which is what we were originally thinking we might have to do.”
BOI’s Montana Housing Infrastructure Bond Guarantee Program backs local government bonds with state funds rather than requiring cities to put up their own money as collateral – critical for a city with a $2 million general fund budget.
The bond guarantee program is one of Montana’s newer financing tools. House Bill 819, passed in 2023, created the Montana Housing Infrastructure Revolving Loan Fund with $106 million and established initial programs to help finance housing infrastructure.
House Bill 505, passed in 2025, expanded the fund by $50 million and created the bond guarantee program that East Helena is now applying for. The programs aim to help local governments and developers reduce infrastructure costs for new housing by funding water and wastewater systems, drainage and road improvements.
“The goal is to increase home ownership and provide more long-term rental opportunities, increase housing supply and offer diverse housing types to meet the needs of population growth,” explained BOI Executive Director Dan Villa.
From small developments to large apartment complexes, at least 30 housing projects across Montana have received funding through these programs, including developments in Helena, Bozeman, Missoula, Hamilton, Kalispell, Polson, Dillon, Billings and Butte.
As of Feb. 12, East Helena’s application would be the first to use the bond guarantee program if approved, according to Villa.
In East Helena’s case, the city has taken the lead on the application with Habitat providing detailed project information. A bond attorney with Dorsey Whitney, is working with both to model assessment structures. The final application will include the scope of work, detailed cost estimates and a methodology for applying SID assessments to Rose Hills properties.
Once BOI reviews and backs the bond, it will return to the City Council for a final vote, after which the city would create the SID, Kuntz explained. Habitat for Humanity, as the landowner, will initially pay assessments on the land. As individual lots are sold, homeowners begin paying their share of the assessments, according to Kuntz.
Homeowners who buy early on will pay assessments closer to the full 20-year period, while those who buy later will only pay assessments for the remaining years of the term.
BOI is unable to comment on a specific project prior to receiving the relevant application. The Board’s review timeline varies by project size – proposals under $1 million can be approved within a week, while larger projects require formal Board approval at regularly scheduled meetings. The Board’s next meeting is set for April 22.
East Helena hopes to submit its application by early March, depending on cost and assessment calculations. “Once we know what those costs are, we’ll be able to come up with that final amount of that bond,” Kuntz said. “The goal here is, if it’s possible, to get it back to the city sometime by the end of spring so that we can continue moving forward with the development.”
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CORRECTION: A January East Helena Monitor article about this planned Rose Hills bond asserted that East Helena “lacked adequate water rights for the subdivision,” which was incorrect. Even with the state’s denial of East Helena’s request for the former ASARCO water rights, the city is expected to have adequate water for the 1500 homes planned for Rose Hills.
