Cold Smoke
Cold Smoke, a new neighborhood proposed by the Housing Trust, will add 125 homes for purchase and 264 apartments for rent. The Housing Trust anticipates delivering the first 50-100 homes in 2028.
The Housing Trust, born from our community’s vision to tackle its needs, exemplifies how our collective efforts can lead to change. Together, we have welcomed home 526 community members and created 78 new homes at MeadowView Condos and RiverView Apartments. We dream of continuing this work in the new Cold Smoke neighborhood, which will provide homes for 1,000 residents.
With infrastructure and entitlements in place, Cold Smoke represents a unique opportunity to expedite our efforts in addressing this critical need.
Day(s)
:
Hour(s)
:
Minute(s)
:
Second(s)
Cold Smoke Neighborhood Pending on May 6 Vote
$39.75M LAND PURCHASE + $15M INFRASTRUCTURE MAX
Livable Big Sky is about fostering a shared vision for a place where we all belong. By investing in the places and spaces where we live, play, and connect as neighbors, we help make Big Sky a place we can all call home.
RESORT TAX
Registered voters will decide on three separate ballot measures in the May 6 election: the extension of the existing Resort Tax, Cold Smoke Housing Project Bond to purchase the land (39.75M) and infrastructure (not to exceed $15M), and a Community Park Bond of $6.8M for park upgrades and safety renovations.
Before bonding for Cold Smoke or the Community Park, voters must also approve the Resort Tax renewal.
COLD SMOKE HOUSING BOND
If voters approve of the Cold Smoke Housing Project Bond, BSCHT will permanently own the land on behalf of the community using the Community Land Trust (CLT model. It will commence with development plans after the May election.
By electing to bond, the community can borrow against our local resort tax’s future collections, without increasing taxes, to address critical needs like housing.
Three Ways to Return Your Ballot
Voting Deadline: May 6 at 8 PM
Gallatin County will mail ballots to all registered voters in the Resort Area District on April 18.
Big Sky Water & Sewer
Drop off at 561 Little Coyote Road on or before May 6.
Gallatin Elections Office
Drop off at 311 W. Main St Room 210 in Bozeman by May 6.
Return by Mail
Postage is required and must be mailed by April 28.
Community Land Trust Model
Purchase Land
The Community Land Trust uses public funding to purchase the land and infrastructure.
Construct Homes
CLT partners with construction experts to install the infrastructure and build the homes.
Sell Homes
CLT retains the land and sells discounted homes to locals with a 2% appreciation cap per year.
Pay it Forward
Owners agree to pay it forward and must resell at a discount to another local family.
Water & Sewer Annexation
Because the Cold Smoke parcel is still raw land, part of the preconstruction stage involves annexing it into the Big Sky Water & Sewer District. The Housing Trust is midway through the annexation process. BSCHT intends to activate system access rights reserved for affordable workforce housing by Big Sky residents who voted to increase Resort Tax by 1% in 2020.
In exchange for access, the Cold Smoke neighborhood must guarantee permanent affordability, require local workforce occupancy, and prohibit short-term rentals. Part of the annexation agreement also requires the Housing Trust to own the land on behalf of the community.
Cold Smoke Target Incomes
100% AMI (Area Median Income)
In Big Sky, the median household size is 2.5 persons. In 2025, the median income for this household is $102,595.
Because most Big Sky incomes fall above the area’s median income, the Cold Smoke neighborhood will target incomes ranging between 100% and 250% AMI.
Interest Lists for Cold Smoke
Cold Smoke Ownership
Cold Smoke purchase opportunities require the owner, a local worker, to occupy the home. BSCHT will also use this list for future ownership opportunities, including MeadowView and Yellowtail. The date you join either interest list does not guarantee you a specific spot in line.
Cold Smoke Rentals
All apartments for rent require local workforce occupancy. Cold Smoke apartments are not dorms and will not be designed as employee housing. Cold Smoke apartments will rent directly to locals working in Big Sky, regardless of where they work.
Why Locals Need Cold Smoke
According to the 2023 Housing Needs Assessment, Big Sky needs over 1,000 homes to address its current housing deficit. Cold Smoke, a proposed neighborhood with 389 homes, can significantly reduce this shortfall.
Why Locals Need Cold Smoke
80% of the workforce cannot afford a market-rate home for rent or purchase
According to the 2023 Housing Needs Assessment, Big Sky needs more than 500 homes to address its current housing deficit. Cold Smoke, a proposed neighborhood with 389 homes, can significantly reduce this shortfall.
Frequently Asked Questions
What happens if voters do not approve the Cold Smoke housing bond?
Without resort tax bonding, the Housing Trust cannot build Cold Smoke or another neighborhood of its size to address the community's shortage of 1,000 homes. Because federal and state programs do not target middle incomes, no government funding streams exist for this purchase. Additionally, the land costs in Big Sky exceed annual resort tax collections and funding provided by local foundations.
Rather than purchasing a large, shovel-ready plot like Cold Smoke, the Housing Trust could continue to buy small plots of land for development, as it did with MeadowView and RiverView, while reclaiming existing homes via Good Deeds. This method would take 20 years to create 389 homes, whereas the Cold Smoke neighborhood will only take seven to build.
Where can I find more information about the May 6 ballot measures?
Bonding allows the community to borrow against Resort Tax’s future revenue to address critical needs, such as housing, without increasing the current resort tax rate or impacting property taxes.
How can I vote in the May 6 election?
If you are an ACTIVE registered voter with the Big Sky Resort Area District boundary, you will automatically receive your ballot in the mail at the end of April. The Gallatin County Elections office must receive all ballots back by 8 PM on May 6.
CHECK TO SEE IF YOU ARE AN ACTIVE VOTER
3 WAYS TO RETURN YOUR BALLOT
1. RETURN BY MAIL (Postage is required and should be mailed by April 28 to be received and counted)
2. DROP OFF BEFORE MAY 6 at the Gallatin County Elections Office located at 311 W. Main St., Room 210, Bozeman, MT 59715
3. DROP OFF ON MAY 6 BY 8 PM at the Big Sky Water and Sewer District Office located at 561 Little Coyote Rd or the Gallatin County Elections Office.
Why should the community use public dollars for Cold Smoke?
Cold Smoke is an investment in the workforce that Big Sky’s tourism economy relies on and is an important step in ensuring that those who make Big Sky thrive can also call it home. Because 80% of the workforce cannot afford market-rate housing, the community must find ways to reduce these costs to keep its critical service providers like teachers, nurses, and firefighters. By bringing public dollars to the table, the Housing Trust can rent and sell Cold Smoke homes at a discount from the open market despite high construction costs.
Creating accessible and stable housing for our workforce enables our working residents to live in the community they’re helping to build and support. From conservation to child care, the arts, and parks & trails, Big Sky depends on active community members to nourish and maintain all the organizations that help make this a great place to work, live, and play. By investing in long-term affordable housing, the community can ensure residents flourish, keeping Big Sky a great place to live, prosper, and raise a family far into the future, bolstering the local economy, and enhancing the cultural landscape of Big Sky.
Why does the community need a neighborhood like Cold Smoke?
The 2023 Housing Needs Assessment Update estimates that 80% of Big Sky's workforce cannot afford market-rate homes.
Since 2023, adding 79 new homes for the workforce has reduced Big Sky's housing deficit to just over 1,000.
Why is the Housing Trust attempting to purchase the Cold Smoke land?
In 2020, Big Sky residents voted to increase Resort Tax by 1% to fund 60% of a new water and sewer treatment plant. This vote also reserved capacity in the new plant for the construction of affordable workforce housing.
The Housing Trust views this vote as a community mandate to use these rights to address Big Sky's housing shortage. Cold Smoke, located next to the Water and Sewer District, qualifies for annexation into the district and comes with infrastructure and entitlements, streamlining development. Other plots of land under consideration would require at least five additional years to build the infrastructure and obtain zoning approvals.
What type of homes will be available at Cold Smoke?
Because the Housing Trust still needs to purchase the land and complete the annexation process, it cannot finalize construction plans yet. However, it is working with architects on preliminary plans.
The 264 apartments will neighbor RiverView Apartments along Highway 64. These eight buildings will contain studio, one-bedroom, and two-bedroom apartments. Most will rent directly to local employees, but some may also be available for purchase.
The Housing Trust will nestle the 125 homes into the hillside across the river and away from the highway. The homes will have either two or three bedrooms and a garage. There will be a mix of attached and detached homes for sale.
Will there be an appreciation cap at Cold Smoke?
Cold Smoke purchase opportunities will share the same appreciation cap as MeadowView Condos, which is 2% per year. An appreciation cap prevents market pressures from driving prices beyond the reach of average wage earners, ensuring that the community's initial investment to purchase the land and sell below-market-rate homes passes to all Cold Smoke owners, keeping the community livable for future generations.
Who can buy at Cold Smoke?
Cold Smoke purchase opportunities will be available to any Montana resident who is also a full-time member of Big Sky's workforce, regardless of their employer. Additionally, buyers must reside in the home year-round, qualify for a conventional mortgage, and meet local income requirements. Cold Smoke buyers cannot own other residential property. For example, if buyers own a MeadowView Condo, they must sell their existing home to upgrade to Cold Smoke.
The target income for ownership opportunities at Cold Smoke is between 120-250% of the Area's Median Income (AMI).
What if Cold Smoke is not annexed into the Water & Sewer District?
Without annexation into the Big Sky Water and Sewer District, the Housing Trust cannot build Cold Smoke. The property needs access to the water and sewer services reserved by the District for new workforce housing.
Who currently owns the 100-acre parcel known as Cold Smoke?
Big Sky Community Housing Trust hopes to purchase the 99-acre Cold Smoke parcel, plus infrastructure, from Lone Mountain Land Company (LMLC) using a bond against Resort Tax. Voters will decide in the May 6, 2025, election whether to approve the Cold Smoke Housing Project bond. This vote will not raise taxes but instead extends and leverages the existing Resort Tax.
On April 16, 2025, the Housing Trust and LMLC agreed to a land purchase price of $39.75 million and an infrastructure cost not to exceed $15 million.
(In January 2025, the Resort Tax Board of Directors approved the land purchase for up to $45 million and the infrastructure purchase for up to $15 million. Due to Gallatin County's ballot measure deadlines, the Board had to set a max price before LMLC and BSCHT reached a firm agreement on the cost of the land.)
When will Cold Smoke be ready for occupancy?
Cold Smoke is a multi-phase project in its initial planning stages. Because of this, an accurate timeline is not yet available. If BSCHT can secure Resort Tax bond funding to purchase the land in 2025, it hopes to deliver the first 50-100 homes in 2028 and complete the entire project by 2032.
How does the community ensure it does not overpay for Cold Smoke?
If voters approve the bond in May, LMLC has agreed to sell the property for $39.75 million – a 14.3% discount below the average appraised value of $46.40 million.
Three different independent appraisers with experience in Big Sky assessed the value of the land. Resort Tax received its appraisal of $44.7 million in March 2025. The Housing Trust received its appraisal in November 2024 for $45 million. LMLC received its appraisal in June 2024 for $49.5 million.
What is the total project cost, and how will you pay for these costs in addition to the bond?
The Housing Trust project expects Cold Smoke to cost approximately $220,000,000 in total. In addition to Resort Tax funding, the project will leverage commercial financing, philanthropy, and other grants to begin construction. Initial home sales will help provide capital for future construction.
With 1,000+ vacation rentals, why not reclaim this inventory instead of building new homes?
The Housing Trust already reclaims existing homes through its Good Deeds program. However, the program is naturally limited by the available inventory for purchase, and much of this inventory is located in HOAs with either deferred maintenance or high fees to address maintenance. Due to inflated housing prices, it's also less expensive to build on this scale than it is to purchase existing inventory one condo at a time.
How much will homes cost to buy or rent at Cold Smoke?
Building costs are high, and the project is still in the preconstruction stage. The Housing Trust cannot finalize rental or sales prices until it has fully secured the land, funding, and contractors for the build. If the Housing Trust purchases the land, it hopes to sell Cold Smoke homes to residents with an AMI (area median income) of 120% to 250%. BSCHT will rent the apartments to locals with an AMI of 100% to 140%.
Rent or monthly mortgage payments cannot exceed 33% of these income ranges because of the water and sewer connection rights the project hopes to gain by annexing into the Big Sky County Water and Sewer District.
The chart below shows the 2025 Area Median Incomes (AMI) for Gallatin County, set annually by the United States Department of Housing and Urban Development (HUD). The 100% column represents the median income for various household sizes.
Will there be dorms at Cold Smoke?
No. Although Cold Smoke will offer many rental opportunities, it will not have dorms. Instead, the apartment buildings will contain studio, one-bedroom, and two-bedroom units with all standard amenities, like laundry.
Who can rent at Cold Smoke?
Cold Smoke rental opportunities will be available to any full-time member of Big Sky's workforce, regardless of their employer who make an income between 100-140% of the Area's Median Income (AMI).