Community and Economic Development Committee

# Housing Policy and Shelter Solutions: Bellingham's $27 Million Action Plan On a Monday afternoon in early May, the Bellingham City Council's Community and Economic Development Committee gathered to review two significant agenda items that would shape the city's approach to affordable housing and homelessness in the coming year. Chair Jace Cotton called the meeting to order at 3:55 PM, with committee members Dan Hammill and Skip Williams joining both in person and online, while other council members participated as observers. The meeting, though procedurally routine, revealed the complex financial and logistical challenges facing a mid-sized Pacific Northwest city grappling with rising housing costs, persistent homelessness, and the ongoing need to balance federal requirements with local priorities. ## The $27 Million Housing Action Plan The committee's first order of business was reviewing the city's 2025 HUD Consolidated Action Plan—a comprehensive blueprint for how Bellingham would spend $27 million in federal and local funds on housing and social services over the coming year. Samuel Utz, the Housing and Services Program Manager, walked the committee through what he described as the third year of the current five-year consolidated plan. The numbers told a story of both ambition and constraint. While the total budget appeared substantial, only about $12 million represented annual recurring funds. The remainder consisted of rollover funding from previous years and uncommitted resources finally finding their way into projects. Most significantly, local funding sources—the voter-approved housing levy and affordable housing sales tax—comprised 80% of the total budget, with federal funds making up the remainder. "The predominance of these are our city funds," Utz explained, noting that this local control provided flexibility but also meant the city's housing efforts were increasingly dependent on local economic conditions. Indeed, affordable housing sales tax revenue was projected to decline from the previous year's $3.9-4 million to approximately $3.5 million, according to finance department forecasts. ### Two Major Housing Projects Take Center Stage The action plan's most significant commitment involved funding two new …