Community Development Advisory Board (CDAB)

The Community Development Advisory Board held its most difficult meeting of the year, wrestling with recommendations for the 2025 Annual Action Plan that distributes approximately $28.4 million in federal, state, and local funding for housing and human services. The evening was dominated by painful choices as the board confronted a stark reality: 36 applications requesting $4.5 million in services funding when only $2.5 million is available. The meeting began with a comprehensive presentation on the Annual Action Plan's structure, funding sources, and the context within Bellingham's five-year Consolidated Plan. Staff explained that the city receives about $12 million annually in new funding from sources including the housing levy, affordable housing sales tax, general fund allocations, and two HUD funding streams (Community Development Block Grant and HOME Investment Partnership Program). However, the total action plan budget of $28.4 million includes carryover commitments from previous years and uncommitted prior year funds. The board spent the majority of the meeting conducting a detailed review of 36 applications for housing and human services funding, using a ranking system from 1 (full funding) to 4 (no funding). The process revealed deep philosophical tensions about the city's role in behavioral health services, whether to fund new programs during budget constraints, and how to balance established agencies against emerging needs. Staff provided sobering context throughout the discussion, noting that general fund cuts across all city departments mean even less flexibility for non-housing services. The specter of potential federal cuts to basic needs programs hung over the discussion, with staff suggesting the mayor might redirect all discretionary funding toward food assistance if federal school food programs face cuts. The evening concluded with preliminary consensus on most applications, though final recommendations await April's meeting. The board's struggle to make cuts reflects broader challenges facing local governments as they attempt to address community needs with increasingly constrained resources.

**Public Hearing Opened and Closed:** The board opened the required public hearing for the 2025 Annual Action Plan. No public testimony was received during the formal hearing period, though public input was welcomed during the work session. **Application Rankings Established:** The board provided preliminary rankings for 36 housing and human services applications totaling approximately $4.5 million in requests against $2.5 million available. Key preliminary decisions included: - **Tier 1 (Full Funding):** YWCA programs, Max Higby Center, Meals on Wheels, Hot Team homeless outreach, Family House, Bellingham School District Family Resource Center, and others - **Tier 2 (Match Previous Funding):** Bridget Collins Family Services, Catholic Community Services Francis Place, several others - **Tier 3 (Partial Funding):** Lydia Place programs, Maple Alley Inn meals program, Unity Care Northwest Way Station, others - **Tier 4 (No Funding):** Bellingham Childcare Learning Center, World Relief programs, Entrepreneurial Institute of Washington, Sun Community Services shelter program, others **Capital Projects Noted:** Staff presented two housing production applications: $6 million request from Mercy Housing Northwest for an Old Town project and $5.1 million from Bellingham Housing Authority for Unity Street development. Both projects require multi-year funding commitments. **Final Recommendation Scheduled:** The board will make final recommendations at their April meeting, which will be forwarded to the mayor and city council for approval.

**Sammy Letteer, on the difficulty of the process:** "We cannot fund everyone. It's awful." **Sammy Letteer, on the broader budget context:** "I just heard today that billions might be cut from school food programs right? So we might be in a situation where that discretionary funding the mayor might say, we're not going to do any of this. We're putting it all towards food." **Staff member, on federal wage requirements:** "It's not because we don't want people to get paid. We want people to get paid and actually, here in our area for residential type construction. The wages are very similar between Davis, Bacon State, prevailing wages and typical wages out there in the community." **Board member, on mental health funding:** "That is probably my strongest consideration for a 1 just due to the fact that mental health and potential prevention or services that we can provide also trickle down to homelessness, prevention and other line items." **Public participant, on Way Station:** "Any amount of money y'all give them is going to be some of the highest impact money y'all can get." **Board member, reflecting on the process:** "I love reading through these applications, and what these agencies are passionate about, and the work that they're doing."

## Meeting Overview The Bellingham Community Development Advisory Board (CDAB) convened on March 13, 2025, in the Mayor's Boardroom during what board members described as a day of "snow and hail and sunshine." The meeting brought together board members both in-person and online to tackle one of their most challenging annual responsibilities: reviewing and making funding recommendations for dozens of local service programs seeking city support. The evening was dominated by a comprehensive presentation on the 2025 Annual Action Plan and an intensive work session to evaluate 36 applications from housing and human services organizations requesting a total of $4.5 million in funding – far exceeding the approximately $2.5 million available. This disparity forced board members into the difficult position of making cuts to worthy programs serving vulnerable populations throughout Bellingham. Present were board members Karen Jones (Sunnyland neighborhood), Samuel Etts (city staff), Heather Aven (city staff), Kathleen Morton (city staff), Ben Spicer (5th Ward), Catherine Fredman (at-large), Shannon Laws (community representative, online), Matt Unger (3rd Ward, online), Ryan Wood (Happy Valley, online), and Jasmine Fast (Ward 1, arriving late). Also attending were Andrew Balkans from the Bellingham and Whatcom County Housing Authorities, and Lila, an urban planner interested in joining the board. ## The 2025 Annual Action Plan Framework City staff Kathleen Morton and Samuel Etts led a detailed presentation explaining how the Annual Action Plan fits into the broader federal housing and community development framework. The plan serves as Bellingham's blueprint for deploying approximately $12 million in annual funding from various sources, including federal HUD dollars, local housing levy funds, affordable housing sales tax revenue, and general fund allocations. "The Consolidated Plan is a 5-year Strategic plan that states and local jurisdictions use to analyze housing and community development needs for the area and make data-driven assessments," Morton explained, noting that Bellingham chooses to incorporate local funding into this federally-required plan even though it's not required to do so. The total budget reflected in the draft action plan exceeds $28 million, but this includes multi-year commitments to ongoing capital projects. The actual new funding coming in annually is about $12 million, with the larger number reflecting uncommitted prior year funds and existing project commitments that span multiple years. The funding sources break down into local funds – including the housing levy, affordable housing sales tax, and general fund allocations – and federal HUD programs like Community Development Block Grants (CDBG) and HOME Investment Partnership funds. "The proportions are about the same" between the annual funding and the larger action plan budget, Etts noted, with local funds providing the majority of resources due to Bellingham's generous local commitments to housing. ## Capital Housing Projects and Production Challenges Two major housing development applications dominated the capital funding requests: a $6 million ask from Mercy Housing Northwest for an Old Town project, and a $5.15 million request from Bellingham Housing Authority for their Unity Street development. Combined, these requests total over $11 million for just two projects, creating a slight shortfall in the rental housing production category. Both projects represent significant affordable housing developments that would add dozens of units to Bellingham's housing stock. The Mercy Housing project would be located in Old Town near the Lighthouse Mission, while the Housing Authority's Unity Street project would be built on property they own from their former offices. Both developers have site security, a crucial requirement for capital funding applications. Staff explained that while these commitments would be made in 2025, the actual funding wouldn't flow until construction begins, potentially several years out. This timing allows the city to make forward commitments, essentially borrowing against future levy or sales tax collections to fully fund these critical projects. The board also learned about several ongoing capital commitments carrying over from previous years, including the Lake Whatcom Treatment Center project on Lincoln Street, and two Opportunity Council developments near Bellis Fair – a family housing project currently under construction and a senior housing project preparing to break ground. ## Home Ownership Programs Receive Boost The homeownership category showed the impact of previous board recommendations, with funding levels increased to support $75,000 per unit for ownership projects. This change particularly benefited the Kulshan Community Land Trust's La Frenair project, which had been approved in previous years but at lower funding levels. "We hadn't committed up to that 75,000 per unit," Etts explained, noting that the trust had requested additional funding to reach the new per-unit threshold the board had recommended during their fall administrative planning process. The 12-unit project includes a mix of townhomes and accessory dwelling units designed to provide affordable homeownership opportunities. The city also maintains its Down Payment Assistance program in partnership with the Washington State Housing Finance Commission, available to low-income first-time homebuyers either through regular bank transactions or in conjunction with Kulshan Community Land Trust purchases. An additional $443,000 remains available for homeownership initiatives, potentially including staff-level feasibility studies examining privately-owned multifamily buildings that might be suitable for conversion to affordable housing through cooperative or condominium structures. ## Services Funding Faces Severe Competition The evening's most challenging discussion centered on services funding, where 36 applications requested approximately $4.5 million while only about $2.5 million was available. This category included 13 housing-related service applications totaling $2.8 million in requests, and 23 human and social services applications seeking $1.7 million. Board members had previously scored applications using a four-tier system: Tier 1 (full funding), Tier 2 (match previous year's funding), Tier 3 (partial funding), and Tier 4 (no funding). The scoring revealed both consensus and sharp divisions on various programs. Strong consensus emerged around several established programs. The YWCA's request received seven Tier 1 votes and one Tier 2, with board members praising their comprehensive service delivery and effective leveraging of other resources. "They're checking every box," noted one member, referring to how the program addressed multiple consolidated plan priorities while representing only 7% of the organization's overall budget. The Food Bank also generated discussion about funding philosophy. While serving as a critical community resource, some members questioned whether the city's $150,000 contribution – representing just 1% of the Food Bank's budget – was the best use of limited funds. "150,000 could go... that's a lot of money for some other programs," one member argued, though the group ultimately maintained support recognizing the program's fundamental importance. ## New Programs Face Skeptical Review Several new applications seeking city funding for the first time encountered resistance as board members grappled with limited resources. The Bellingham Childcare and Learning Center's request for $20,000 in tuition assistance faced questions about effectiveness and overlap with Whatcom County's new child and family well-being levy. "For people that actually don't make much money, they still can't afford to go to this place," observed one board member, noting that $20,000 spread across 35 beneficiaries would provide minimal impact on families facing childcare costs of $2,000 monthly for infants. World Relief's requests for two new programs supporting refugees and immigrants generated debate about the city's role in funding religiously-affiliated organizations. While staff confirmed that programs funded with city dollars cannot include religious content, some members questioned whether these new initiatives should receive priority over existing programs facing cuts. The Entrepreneurial Institute of Washington's application for hemp house construction drew particular skepticism. Requesting $80,000 for an untested program with no demonstrated track record, the application was quickly dismissed. "They don't have like, do they even have a model of this hemp house?" questioned one member, with another adding, "We haven't heard from them. I think they came out of nowhere." ## Mental Health and Behavioral Health Funding Debates Several applications highlighted ongoing questions about the city's role in funding mental health services, traditionally a county responsibility. Lydia Place's request for mental health support services and Compass Health's new application generated extensive discussion about appropriate funding sources and jurisdictional responsibilities. "The county does have specific behavioral health dollars. So we typically look to the county to fund behavioral health services," Etts explained, though acknowledging that county resources are insufficient to meet community needs. This created tension for board members who recognized the value of mental health services while questioning whether limited city funds should address gaps in county-funded programs. Ryan Wood, participating online, made a compelling case for Lydia Place's mental health program: "That is probably my strongest consideration for a 1 just due to the fact that mental health and potential prevention or services that we can provide also trickle down to homelessness prevention and other line items that aren't necessarily categorized within the Mental Health Program." The board ultimately supported mental health initiatives but at reduced funding levels, recognizing both the need and the funding constraints they faced. ## Established Programs Navigate Uncertain Terrain Long-standing programs found themselves defending continued funding in the competitive environment. The Bellingham School District's Family Resource Center presented a case for why schools needed city support for services reaching families that other programs might miss. "The school district does reach out to children and families that other programs miss," one member argued. "They're low hanging fruit... people who have kids in the system know about their services and use them before seeking other services." However, some questioned whether the district, with its own substantial budget, should receive such significant city support. The program represented 75% of the service budget being requested, raising questions about appropriate resource allocation. Mercy Housing Northwest's request for senior services generated questions about service delivery changes. Staff noted concerns about income qualification, explaining that the organization had previously served families whose incomes had grown over time – exactly the desired outcome, but creating challenges for programs required to serve low-income populations. ## Outreach Programs Face Coordination Questions Multiple organizations requested funding for homeless outreach services, prompting discussions about service coordination and potential duplication. Northwest Youth Services' request for street outreach faced particular scrutiny given existing outreach capacity through the HOT (Homeless Outreach Team). "I think it's a duplication of services. The HOT team is out there. They're doing a great job, and they don't have a limit on who they can see, whereas Northwest services is just youth," argued one member who had recently consulted with the HOT team about service coordination. This concern about duplication extended to other programs, with members seeking to understand how different organizations coordinated their efforts and whether multiple programs were necessary or represented inefficient overlap. ## Community Facilities and Federal Requirements The community facilities category presented fewer difficult choices, with most applications facing minimal competition. However, staff explained the challenges of using Community Development Block Grant funds for construction projects due to Davis-Bacon prevailing wage requirements. "The trouble with CDBG is that it does trigger Davis-bacon act wages when it's used for construction, which is often too big of a lift for a lot of our nonprofits to manage," Etts explained. These federal requirements demand extensive administrative capacity, including weekly certified payrolls and employee interviews, creating barriers for smaller organizations. One application from Bridget Collins for flood damage rehabilitation appeared well-positioned, with staff noting the organization's capacity to handle federal requirements. However, other applications faced uncertainty about project readiness and organizational capability to manage complex federal compliance. ## Public Input Provides Ground-Level Perspective Public testimony from Lila, the urban planner seeking board membership, provided crucial ground-level perspective on Way Station's impact. Having worked at the Whatcom County severe weather shelter, she offered firsthand knowledge of service utilization. "Every single day residents would go to the way station during the day, and it's the... in my opinion, one of the most critical resources here. It's the only place with laundry, showers, access to so many things," she testified, emphasizing that "any amount of money y'all give them is going to be some of the highest impact money y'all can get." This testimony influenced board discussion, with members recognizing the value of perspectives from people directly involved in service delivery and community support systems. ## Budget Realities Force Difficult Decisions Throughout the evening, board members grappled with the fundamental challenge of having far more worthy requests than available funding. Staff reminded them that general fund dollars face particular pressure city-wide, with every department being asked to make cuts. "We cannot fund all these agencies. It's awful," Etts acknowledged. "While these programs are amazing and wonderful, and they would have major impacts if they're not funded, we can't. We just can't fund them." This reality forced philosophical discussions about funding new programs versus maintaining existing successful initiatives. Some members advocated for focusing limited resources on proven programs during uncertain times, while others argued for supporting innovation and addressing emerging needs. The board also confronted questions about partial funding and program viability. When discussing various applications, members asked whether organizations could maintain effective programming with reduced funding or whether partial support might actually undermine program effectiveness. ## Federal Funding Uncertainty Adds Complexity The action plan process proceeded despite uncertainty about actual federal funding levels. Staff explained that HUD typically doesn't announce final funding allocations until May or June, well after local planning processes must conclude. "We might not know what HUD is gonna be giving the city. They often don't tell us until May, June what that number is gonna be even after a budget is passed," Etts noted, explaining the complex formula calculations HUD uses to distribute funds among entitlement communities nationwide. The draft action plan includes contingency language allowing for adjustments if federal funding differs significantly from projections. Minor changes can be accommodated without reopening the public process, but substantial alterations would require additional public hearings and board review. ## Looking Ahead to Final Recommendations As the meeting concluded after more than two hours of intensive discussion, board members had worked through all 36 service applications, providing preliminary guidance that staff will incorporate into formal recommendations for the April meeting. The process revealed both the difficulty of funding allocation decisions and the board's commitment to thoughtful analysis of community needs. Staff will prepare balanced budget recommendations incorporating the board's input, ensuring that total allocations don't exceed available resources. The final action plan must be approved and forwarded to the Mayor and City Council in April, beginning the formal adoption process for the 2025 funding cycle. The meeting highlighted ongoing tensions between community needs and available resources, the complexity of coordinating services across multiple jurisdictions and funding sources, and the challenge of making equitable decisions when worthy programs compete for limited dollars. Despite these challenges, board members demonstrated dedication to thorough analysis and community service, working late into the evening to fulfill their advisory responsibilities. ## Closing and Next Steps The meeting adjourned with announcements about the YWCA's new shelter facility, which would hold its ribbon cutting on Monday and begin admitting residents the following week. This positive development provided a concrete example of how the city's housing investments create real impacts for vulnerable community members. Board members expressed appreciation for staff's preparation of accessible materials and summary documents that facilitated their review process. The collaborative effort to work through dozens of applications in a single evening demonstrated both the complexity of the city's community development program and the volunteer board's commitment to careful stewardship of public resources. The April meeting will bring final recommendations and formal votes on the complete action plan, setting funding priorities that will guide Bellingham's housing and community development investments throughout the coming year.

## MODULE S1: STUDY GUIDE **Meeting ID:** BEL-CDA-2025-03-13 ### Meeting Overview The Bellingham Community Development Advisory Board (CDAB) met on March 13, 2025, to review the draft 2025 Annual Action Plan and evaluate 36 applications for housing and human services funding. The board worked through difficult funding decisions with limited resources compared to high community need. ### Key Terms and Concepts **Annual Action Plan:** A yearly plan detailing how the City of Bellingham will use federal HUD funds and local resources to address affordable housing and community development needs, implementing the broader 5-year Consolidated Plan. **Consolidated Plan:** A 5-year strategic plan that analyzes housing and community development needs and guides funding decisions for HUD programs like Community Development Block Grant (CDBG) and HOME Investment Partnership Program. **CDAB (Community Development Advisory Board):** The citizen advisory body that reviews funding applications and makes recommendations to the Mayor and City Council on how to allocate housing and community development resources. **HUD:** The U.S. Department of Housing and Urban Development, which provides federal funding to cities for affordable housing and community development through various grant programs. **Davis-Bacon Act:** Federal prevailing wage requirements that apply to construction projects using certain federal funds, requiring contractors to pay workers prevailing wages and complete extensive administrative paperwork. **Tier System (1-4):** The ranking system CDAB used to evaluate applications: Tier 1 (full funding), Tier 2 (match previous year's funding), Tier 3 (partial funding), Tier 4 (no funding recommended). **HOME-ARP:** Special federal HOME allocation provided through the American Rescue Plan Act for homeless services, spread over 7 years with about $300,000 used annually. **PSH (Permanent Supportive Housing):** Long-term housing assistance combined with supportive services for individuals and families experiencing chronic homelessness or disabilities. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Karen Jones | CDAB Member, Sunnyland Neighborhood Representative | | Samuel Likes | City of Bellingham Staff | | Heather Bean | City of Bellingham Staff | | Kathleen Morton | City of Bellingham Staff | | Ben Spicer | CDAB Member, 5th Ward Representative | | Catherine Fredman | CDAB Member, At-Large Representative | | Shannon Laws | CDAB Member, Community Representative | | Matt Unger | CDAB Member, 3rd Ward/Puget Neighborhood Representative | | Ryan Wood | CDAB Member, Happy Valley Representative | | Jasmine Fast | CDAB Member, Ward 1/Cordata Neighborhood Representative | | Andrew Balkans | Executive Director, Bellingham & Whatcom County Housing Authorities | | Lila | Urban Planner, City of Blaine (prospective CDAB applicant) | ### Background Context The City of Bellingham receives approximately $12 million annually from federal HUD programs and local funding sources including a housing levy and affordable housing sales tax. However, the total action plan budget appears much larger ($28.4 million) because it includes multi-year commitments to ongoing capital projects and carryover funds from previous years. This year's funding process occurred amid budget constraints, with general fund cuts being requested across city departments. The board faced the difficult task of evaluating 36 applications totaling about $4.5 million in requests against only $2.5 million in available funding for services. Two major shortfalls existed: in rental housing production (under $1 million shortfall) and rental assistance/supportive services (larger shortfall). The tension between community need and available resources created challenging decisions, particularly around funding new programs versus maintaining existing successful programs during uncertain budget times. ### What Happened — The Short Version Staff presented the draft 2025 Annual Action Plan, explaining how federal HUD funds and local resources would be allocated. The board then spent most of the meeting evaluating 36 service applications using a tier system (1=full funding, 4=no funding). The board made tough choices, generally favoring established programs with proven track records over new applications. They recommended full or near-full funding for core services like the YWCA domestic violence programs, Bellingham Food Bank, and several housing-related programs. Several new program applications received no funding recommendations, including World Relief's orientation programs, Entrepreneurial Institute's hemp house program, and Sun Community Services' shelter case management program. However, the board did recommend partial funding for two new programs: Road to Home's outreach services and Unity Care Northwest's Way Station day services. The board struggled particularly with mental health and non-housing programs, noting these compete for very limited general fund dollars while most of their budget is restricted to housing-specific uses. ### What to Watch Next - April CDAB meeting: Staff will present their final balanced budget recommendation incorporating the board's input - Final recommendation goes to Mayor and then City Council for approval - New contracts begin July 1, 2025 - Potential impact of unknown federal HUD funding levels on final allocations ---

## MODULE S2: FLASH CARDS **Meeting ID:** BEL-CDA-2025-03-13 **Q:** What is the total annual funding that comes into Bellingham's housing and community development programs? **A:** Approximately $12 million annually from federal HUD programs, housing levy, affordable housing sales tax, and general fund allocations. **Q:** Why does the draft Action Plan show $28.4 million when only $12 million comes in annually? **A:** The larger amount includes multi-year commitments to ongoing capital projects, uncommitted prior year funds, and carryover from special programs like HOME-ARP. **Q:** What are the four tiers CDAB used to rank funding applications? **A:** Tier 1 (full funding), Tier 2 (match previous year), Tier 3 (partial funding), Tier 4 (no funding). **Q:** How many service applications did the board evaluate and what was the funding gap? **A:** 36 applications requesting about $4.5 million total, with only about $2.5 million available, creating a roughly $2 million shortfall. **Q:** Which new programs received recommended funding despite the board's reluctance to fund new applications? **A:** Road to Home's outreach services (partial funding) and Unity Care Northwest's Way Station (full funding). **Q:** What is Davis-Bacon Act and why does it complicate some projects? **A:** Federal prevailing wage requirements for construction using certain federal funds, requiring extensive administrative work that many nonprofits struggle to manage. **Q:** Which organization received the strongest consensus for full funding? **A:** YWCA domestic violence services, with 7 of 8 board members ranking it Tier 1. **Q:** What major funding challenge affects non-housing programs? **A:** They must compete for very limited general fund dollars (about $150,000 from CDBG plus discretionary general fund), while housing programs have dedicated funding sources. **Q:** What are the two capital housing projects applying for city funding? **A:** Mercy Housing Northwest's Old Town project ($5 million request) and Bellingham Housing Authority's Unity Street project ($6.1 million request). **Q:** When do the new funding contracts begin? **A:** July 1, 2025, for a one-year term. **Q:** Which established programs did the board recommend for reduced or no funding? **A:** Housing Navigation program (recommended Tier 4) and potential reductions to some programs asking for significant increases. **Q:** What happens next in the Action Plan process? **A:** Staff will create a balanced budget recommendation for the April meeting, incorporating CDAB input, then forward recommendations to the Mayor and City Council. **Q:** How does the Whatcom County Children's Levy affect city funding decisions? **A:** The board noted it as an alternative funding source for childcare programs, influencing their decision to not recommend city funding for Bellingham Childcare and Learning Center. **Q:** What is HOME-ARP funding? **A:** Special federal HOME allocation through the American Rescue Plan Act, allocated over 7 years with about $300,000 used annually for services. **Q:** Which application did board members recuse themselves from voting on? **A:** Jasmine Fast recused herself from the Family Promise application due to her involvement with the organization. ---