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Community and Economic Development Committee

BEL-CED-2026-04-27 April 27, 2026 Planning Committee City of Bellingham
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The Community and Economic Development Committee met to address two significant items affecting Bellingham's housing and economic development landscape. The committee unanimously recommended approval of the city's 2026 Action Plan for federal housing funds and local revenue sources, totaling millions in housing and human services investments. Staff presented a comprehensive analysis of downtown commercial vacancy trends, revealing a 10% ground-floor vacancy rate with concentrated challenges in the downtown core at 14%. The housing action plan continues the city's substantial commitment to affordable housing development with over 200 units in the pipeline and more than $15 million in funding commitments. The downtown vacancy study provides the data foundation for strategic interventions to address commercial space challenges that have persisted post-COVID.

**AB 24898 - 2026 Action Plan Resolution:** Unanimously recommended for approval. The resolution adopts the annual action plan for Community Development Block Grant (CDBG), HOME Investment Partnership Program funds, Bellingham Housing Levy, and affordable housing sales tax allocations. Staff recommendation was to approve, and council followed that recommendation. The plan allocates funding across multiple categories with rental housing production …

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The housing action plan discussion centered on the balance between community needs and available funding constraints. Samuel Lutz emphasized that community needs far exceed available resources, requiring careful prioritization aligned with the five-year consolidated plan. The plan reflects significant carryover funding from previous commitments, with more than half the budget representing previously committed projects, particularly large capital developments that take multiple years to complete. The downtown vacancy analysis revealed important market dynamics affecting commercial space utilization. The 10% overall vacancy rate falls within the 5-10% range considered balanced by industry standards, but the 14% rate in the downtown core presents concentrated challenges. Staff iden…
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**Community Development Advisory Board (CADB):** Unanimously supported the action plan after robust discussions, particularly around HOME ARP funding allocation for homelessness prevention programs. CADB sought to equalize funding among three agencies, increasing support for those with less previous funding. **Council Member Williams:** Praised the comprehensive scope of city housing work and requested presentation materials to help communicate the breadth of city programs to constituents who may not fully understand the extent of current efforts. **Council Member Huffman:** Expressed appreciation for the data-driven downtown vacancy analysis and requested fo…
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**Samuel Lutz, on funding constraints:** "Unfortunately, there are far greater needs in the city that fall under these goals and priorities than we have funding to address." **Council Member Williams, on city housing efforts:** "A lot of people that have reacted to me, we don't do enough, we need more, but I'm always amazed at how much we are doing." **Tara Sundine, on downtown evolution:** "We know that we see that play out with our parking garage right now. I believe we're oversold by 100%…
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Follow-up committee meeting scheduled to allow more extensive discussion of downtown vacancy strategies and implementation timeline. The 2026 Action Plan moves to full council for final approval. Staff will continue existing downtown programs while developing new initiatives including potential business advocate po…

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The 2026 Action Plan received committee endorsement, moving it closer to implementation with over $15 million in housing investments. The city now has comprehensive data on downtown commercial vacancy patterns with clear categori…
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### Meeting Overview The City of Bellingham Community and Economic Development Committee met on April 27, 2026, to consider the 2026 Action Plan for housing and human services funding and review a comprehensive downtown vacancy study. The committee approved the Action Plan, which allocates federal and local funds to housing development, rental assistance, and supportive services, and received detailed findings on downtown commercial vacancy rates and strategies to address them. ### Key Terms and Concepts **Community Development Block Grant (CDBG):** Federal funding program that provides cities with resources for housing, community development, and services for low-income residents. **HOME Investment Partnership Program:** Federal program providing formula grants to states and localities for affordable housing activities, including tenant-based rental assistance and housing rehabilitation. **Area Median Income (AMI):** The midpoint of a region's income distribution, used as a benchmark for determining housing affordability and eligibility for housing programs. Projects typically serve households at 30-60% AMI. **Low-Income Housing Tax Credits (LITC):** Federal program that provides tax credits to developers of affordable housing, with 9% credits being highly competitive and 4% credits being less competitive but more available. **Community Development Advisory Board (CADB):** Local board that reviews funding applications and provides recommendations on how to allocate federal and local housing funds. **Business and Occupation (B&O) Tax:** Washington state tax on gross receipts of businesses, which the city can reduce or exempt in certain areas to incentive development. **Multifamily Tax Exemption:** Local incentive that provides property tax exemptions for residential developments that include affordable housing units. **Stalled Assets:** Properties that have been vacant for over five years due to environmental issues, ownership complications, or other barriers to development. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Jace Cotton | Committee Chair, City Council Member | | Hollie Huffman | Committee Member, City Council Member | | Edwin "Skip" Williams | Committee Member, City Council Member | | Dan Hammill | City Council Member | | Kim Lund | Mayor | | Samuel Lutz | Planning and Community Development Depa…
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Housing Economic Development Land Use & Planning Government Operations AB 24898 AB 24912 Bellingham Housing Authority Cadb Community Development Advisory Board Coulson Community Land Trust Downtown Bellingham Partnership Lake Whatcom Center Mercy Housing Northwest Opportunity Council Dan Hammill Darby Gallagher Edwin Williams Hollie Huffman Jace Cotton Kim Lund Samuel Lutz Sarah Mcpherson Tara Sundine Affordable Housing Community Development Downtown Development Downtown Vacancy Economic Development Homeownership Housing Action Plan Housing Budget Housing Levy Housing Policy Low Income Housing Tax Credits Mixed Income Housing Rental Housing Supportive Housing