East Helena Unanimously Approves Rose Hills Application for Up to $12M Bond

The East Helena City Council voted unanimously last month to move forward with an application for a municipal special assessment bond of up to $12 million to pay for off-site infrastructure needed for the Rose Hills neighborhood. The Council’s action clears the way for the city and Helena Area Habitat for Humanity to submit a formal request to the Montana Board of Investments, a required step before a final city vote.

The bond is proposed as a special assessment bond to be purchased by the Montana Board of Investments. Funds would be used primarily for water, wastewater, and transportation improvements that must be in place before as many as 1,500 homes can be built. Specific infrastructure cited in planning documents includes a water tank, a wastewater lift station, and turn lanes off Highway 282. Rose Hills is planned on roughly 200 to 250 acres along Montana Highway 282, just south of US-12, within the larger two-thousand-acre former Asarco smelter site.

Under the plan, repayment would fall to future homeowners through a Special Improvement District assessment added to property tax bills over 20 years. The Montana Board of Investments would provide a backstop by allocating state fund financing if property owners fail to pay SID assessments. City officials framed the financing as a way to protect East Helena’s general fund and existing taxpayers by shifting infrastructure costs to the development.

Jacob Kuntz, executive director of Helena Area Habitat for Humanity, described the new municipal bond program as legislation-enabled. He said, “That municipal bond program that is made possible through the state legislature this last session allows the board of investments help small towns like East Helena develop the infrastructure needed to build the housing Montana desperately needs.” East Helena Mayor Kelly Harris said, “There are a lot of steps to these things, and it is unqiue and it shows that the city council is open to these unique ideas.” Harris also cautioned that the Council’s vote is preliminary. “It’s just an indication of the council’s willingness to move forward with this process,” she said. “Nothing is official yet, by any means.” Harris noted the novelty and attendant caution of using a new financing tool: “Whenever you’re the first person to do something, there’s always some trepidation. But that also could put you on the front edge of doing something cool.”

Timing and approvals remain provisional. Helena Area Habitat reports its subdivision application was deemed “sufficient” in early July, enabling public review. The organization lists an East Helena Planning Commission review on August 20 at 6:00 p.m. and a Zoning Commission review on September 10 at 6:00 p.m. Rosehillsmontana estimates infrastructure construction could begin in fall 2026, with home construction following in 2027. Boulder Monitor reported the Board of Investments’ review could be complete by summer, after which the City Council would hold a final bond issuance vote.

Water availability looms as a central community concern. City officials say existing water rights are sufficient for Rose Hills, even as reporting notes the state denied the city the former ASARCO water rights in October and another planned development, Prickly Pear Estates, would add further demand. The bond and SID structure will influence what future homeowners pay and how East Helena scales services such as fire, police, and public works as the population grows.

Next steps for residents include the Board of Investments review and the scheduled Planning and Zoning Commission hearings. Helena Area Habitat asks those interested in project updates to email info@rosehillsmontana.com. As the application proceeds, the Council’s preliminary unanimous vote signals political willingness to use a new state-enabled financing tool while leaving key financial and technical details to be refined.