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Real Briefings

Community and Economic Development Committee

BEL-CED-2024-10-07 October 07, 2024 Planning Committee City of Bellingham 11 min
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Bellingham's Community and Economic Development Committee received a comprehensive presentation on the city's affordable housing production pipeline, showcasing an impressive array of projects totaling over 700 potential housing units across Whatcom County. Community and Economic Development Manager Tara Sundin led the session with seven nonprofit development partners presenting their projects, ranging from family housing to senior facilities to homeownership opportunities. The presentation highlighted both the remarkable success of recent affordable housing production—with over 400 units completed in recent years including Samish Commons (171 units), Millworks (83 units), and Trailview (77 units)—and the robust pipeline ahead. Key projects include the dual-phase Bellis Fair development (129 units total), Mercy Housing's planned 70-unit senior facility at 900 West Holly, and the Housing Authority's Unity Street project (60 units). The committee received detailed explanations of the complex financing mechanisms driving affordable housing development, particularly the differences between 9% and 4% Low Income Housing Tax Credit (LIHTC) programs. The 9% program generates significantly more equity (up to 70% of project costs) but is highly competitive, while the 4% program requires more local "soft financing" but can accommodate workforce housing levels. A significant development is Whatcom County's authorization of a 0.01% sales tax for affordable housing, which now enables large affordable housing projects outside Bellingham for the first time in years. This coordination between city and county efforts means projects in Lynden, Ferndale, Blaine, Everson, and Sumas can now compete for state tax credit allocations.

No formal votes were taken during this informational presentation. However, the committee received updates on several key developments: **Bellis Fair Phase 1 & 2 Progress:** Opportunity Council confirmed that Phase 1 (65 family units) is ready to begin construction pending final building permits and investor coordination. Phase 2 (64 senior units) is moving toward its next 9% tax credit application. **Unity Street Housi…

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The presentation sparked extensive discussion about the mechanics of affordable housing financing and potential ways to accelerate production. Council Member Lilliquist initiated a detailed exchange about the differences between 9% and 4% LIHTC programs, leading to an in-depth explanation from one of the developers about how tax credit pricing works and why the programs serve different market segments. A key policy discussion centered on parking requirements and their impact on affordable housing development. Committee Chair Cotton inquired about the Unity Street site and whether pending parking minimum reforms would affect the project. Staff confirmed the site is in the downtown parking-exempt zone, allowing maximum flexibility for the Housing Authority's design. Council Member Anderson raised concerns about capacity constraints among nonprofit developers, suggesting the city explore additional staffing support for grant writing and…
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**Tara Sundin** emphasized the collaborative nature of Whatcom County's affordable housing community and the importance of the housing levy and sales tax as local leveraging tools for state and federal funding. **Adrienne Wyld (Opportunity Council)** highlighted innovative features of Bellis Fair, including ground-floor units designed for families with intellectual or developmental disabilities and co-located childcare creating 88 subsidized slots. **Ellen Lohe (Mercy Housing)** praised city staff support and outlined their HUD 202 application strategy for 900 West Holly, which would provide rent subsidies ensuring seniors pay no more than 30% of income. **Andrew Calkins (Housing Authority)** noted the strategic advantage of public housing a…
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**Tara Sundin, on the recent production success:** "This is kind of a record I don't know that we've ever produced this much housing in this short period of time, but celebrating the units that have come online, and that's what we're really trying to do right now, is make sure that we can keep that pace to the degree that that we can going." **Adrienne Wyld, on innovative design features:** "Additionally, we also decided to include two ground floor units that will cater specifically to famili…
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**Housing Levy Timeline:** The current housing levy expires in 2028, requiring Council consideration of renewal options in coming months. **Tax Credit Applications:** Mercy Housing will submit their 9% LIHTC application for 900 West Holly this winter, while the Housing Authority will apply for 4% credits and bonds for Unity Street in winter 2024. **County Coordination:** Formal prioritization process through Whatcom County's Housing Advisory Committee will determine which project receives the next 9% …

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The presentation formally established Bellingham's most comprehensive affordable housing pipeline in recent history, with over 700 potential units identified across multiple jurisdictions. The county's new sales tax authorization fundamentally shifts the regional dynamic, enabling competitive projects outside Bellingham for the first time in years. The Housing Authority's decision to pursue 4% credits for Unity Street instead of competing for limited 9% allocations represents a strategic shift to maximize overall regional production. Staff confirmed the downtown parking exemption applies to the Unity Street site, removing a …
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# Affordable Housing Pipeline: Bellingham's Blueprint for the Future The afternoon of October 7, 2024, brought together an unusual collection of advocates, developers, and city officials in the second-floor chambers of Bellingham City Hall. What unfolded was not just another routine committee meeting, but a comprehensive showcase of the region's most ambitious affordable housing agenda — a pipeline of projects representing hundreds of future homes for families, seniors, and working people who have been squeezed out by rising costs. Council President Dan Hammill called the Community and Economic Development Committee to order at 1:06 PM, with committee chair Jace Cotton presiding over what would become both a celebration of recent successes and a strategic planning session for the years ahead. The single agenda item — "Low-to-Moderate Income Affordable Housing Production Pipeline" — was deceptively simple for what would be revealed as a complex web of funding mechanisms, community partnerships, and development challenges that define affordable housing production in America today. Committee members Hannah Stone and Hollie Huthman joined Cotton as Community and Economic Development Manager Tara Sundin introduced an impressive roster of nonprofit housing developers who had gathered to present their projects. This wasn't the usual staff presentation where council members would hear about city initiatives. Instead, the real experts — the people who navigate the labyrinthine world of tax credits, federal programs, and community partnerships — would speak for themselves. ## The Foundation: Understanding the Crisis and the Response Before diving into specific projects, Sundin provided crucial context about how Bellingham approaches affordable housing. "As you know, the city does address housing affordability in a number of different ways," she explained. "Today's presentation, though, is just focused on the production of new housing that is affordable to low income and sometimes moderate income households." This distinction was important. While the city pursues various strategies to address housing costs — from zoning reforms to tenant protections — this pipeline specifically represented projects where the city invests direct financial support to create permanently affordable units. Sundin's next point revealed both the success and the challenge ahead: "I know some of you have asked about the pipeline. And that, you know, making sure that we have a lot in th…
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### Meeting Overview The City of Bellingham's Community and Economic Development Committee met on October 7, 2024, chaired by Council Member Jace Cotton, to receive an informational presentation on the current affordable housing development pipeline. City staff and partner nonprofit developers presented 14 housing projects in various stages of development, totaling hundreds of units across Whatcom County. ### Key Terms and Concepts **4% Tax Credit:** A federal low-income housing tax credit program that generates less equity than 9% credits but is coupled with tax-exempt bonds. Typically used for workforce housing with permanent debt. **9% Tax Credit:** A federal low-income housing tax credit program that generates more equity funding for affordable housing projects. Highly competitive and prioritized for deeply affordable housing. **AMI (Area Median Income):** A measurement used to determine housing affordability levels, with percentages like 30%, 50%, 60%, and 80% AMI determining who qualifies for affordable housing units. **Housing Levy:** A voter-approved property tax in Bellingham that provides local funding to leverage federal and state affordable housing resources. **Soft Financing:** Low-interest, deferred, or forgivable loans from public agencies that supplement private financing for affordable housing projects. **Tax Credit Allocation:** The competitive federal process where states distribute limited low-income housing tax credits to affordable housing projects. **WSHFC:** Washington State Housing Finance Commission, which administers the tax credit program in Washington and coordinates county-level housing development pipelines. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Jace Cotton | Committee Chair, City Council | | Tara Sundin | Community & Economic Development Manager | | Adrienne Wyld | Housing Development Manager, Opportunity Council | | Andrew Calkins | Executive Director, Bellingham & Whatcom Housing Authority | | Rose Lathrop | Executive Director, Kulshan Community …
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Housing Budget & Finance Economic Development Government Operations AB 24272 Catholic Community Services Habitat For Humanity Housing Authority Kulshan Community Land Trust Mercy Housing Opportunity Council Washington State Housing Finance Commission Whatcom County Andrew Calkins Dan Hammill Ellen Lohe Hannah Stone Jace Cotton Lisa Anderson Michael Lilliquist Rose Lathrop Skip Williams Tara Sundin Affordable Housing Budget Finance Comprehensive Plan Homelessness Housing Policy Land Use Policy Parking Minimums Permitting Fees Subsidies Policy Tax Revenue Transportation Policy