City Council
The June 9th Bellingham City Council meeting marked a significant milestone in tenant protections with the advancement of two comprehensive rental fee ordinances that have been in development since fall 2024. After months of public engagement, stakeholder focus groups, and extensive council work sessions, both the residential rental fee ordinance and manufactured/mobile home rental fee ordinance passed first and second reading unanimously. These ordinances represent one of the longest legislative processes the council has undertaken, addressing unfair and excessive fees charged to tenants while attempting to balance tenant protections with property owner concerns. Beyond tenant protections, the council took decisive action on multiple infrastructure and policy fronts. They approved a $7.345 million low-interest state loan to fund Cornwall Avenue landfill cleanup in conjunction with the Salish Landing Park development, authorized the mayor to purchase waterfront property for $15,000 to support pedestrian trail construction, and passed a comprehensive welcoming city resolution reaffirming Bellingham's commitment to protecting vulnerable community members from discrimination and violence. The council also received concerning financial news during their first quarter budget review, learning that flat revenues combined with inflation-driven cost increases could deplete city reserves within four years if current trends continue. This has prompted department heads to prepare 5% budget reduction scenarios for the upcoming budget process. Despite these challenges, the council advanced several housing-related initiatives, including approving growth allocation targets and expanding the multifamily tax exemption program to incentivize more affordable housing development. The evening concluded with substantial public comment from 15 community members, reflecting high engagement on the issues addressed during the marathon session.
**AB 24501 - Residential Rental Fee Ordinance:** Passed first and second reading 7-0 with amendments. Limits security deposits to one month's rent, caps application fees at $50 plus credit/background check costs, and prohibits various unfair fees. Staff had recommended passage. Creates civil enforcement mechanism rather than city enforcement due to resource constraints. **AB 24502 - Manufactured/Mobile Home Rental Fee Ordinance:** Passed first and second reading 7-0 with amendments. Similar protections for mobile home park residents. Staff had recommended passage. Provides stronger tenant protections in an often-vulnerable housing segment. **AB 24540 - Multifamily Tax Exemption Program:** Passed third and final reading 7-0, becoming Ordinance #2025-06-009. Expands geographic areas eligible for tax exemptions, adds 20-year exemption for permanently affordable homeownership, and allows co-living housing exemptions. Staff had recommended passage. **AB 24563 - Cornwall Avenue Lan…
**June 23, 2025:** Council will consider final approval of the 2026-2031 Transportation Improvement Program, with staff responding to Council Member Lilliquist's advance questions about the James Street project. **Rental Ordinance Third Reading:** Both rental fee ordinances will return for final consideration and implementation. **Civil Legal Aid Research:** Council policy analyst will research civil legal aid capacity for renters and mediation services availability, with focus on capacity building opportunities. **Long-term Rental Impact Monitoring:** Council will establish ongoing monitoring of rental ordinance effects, partic…