Bellingham City Council

**Nicholas Henry, on his appointment:** "Tonight's really not about me. It's really about the people who helped me get here." **Nicholas Henry, on his role:** "I feel lucky every single day I get to go to work. It's pretty amazing getting to do something I genuinely love and to serve our community." **Judge Debra Lev, on Nicholas Henry:** "Ever since that day, he has demonstrated every day that we are better with him on our court team and I made the right choice." **Council Member Lilliquist, on property manager compliance:** "I was really surprised to hear this property managers who was struggling to understand and comply seeing as how it's kind of their day job." **Council Member Lilliquist, on rental regulations:** "I do think it's an important thing to understand whether or not we're overregulating or misregulating one group or the other." **Council Member Anderson, on tenant perspectives:** "We're really not gathering any information from tenants what potentially the impacts

# The Rental Fee Survey Results — And Nicholas Henry Becomes Judge ## Meeting Overview On Monday evening, March 9th, 2026, the Bellingham City Council convened for what began as a routine regular meeting but became a significant night for both housing policy and the municipal court system. Council President Hannah Stone called the meeting to order at 7 p.m. with all seven council members present — a full house for what would be an evening of data, debate, and a ceremonial swearing-in. The meeting's centerpiece was a comprehensive presentation by legislative policy analyst Iris Knott on the results of a survey conducted with landlords and property managers following the implementation of Bellingham's rental fee ordinances in 2025. But the evening also featured the confirmation and swearing-in of Nicholas Henry as the city's second Municipal Court Judge, transforming a routine appointment into a celebratory moment that broke the council's usual no-clapping protocol. ## Unpacking the Rental Fee Survey: Early Results, Complex Responses The survey presentation consumed the first hour of the meeting, with Iris Knott methodically walking through 30 slides of data collected from 626 landlords and property managers in October 2025. The survey was designed to capture early reactions to the rental fee ordinances that took effect in August 2025, as well as the rental registration and safety inspection program that had been in place for over a decade. "This was conducted in October of 2025, but we're going to go all the way back over a decade to 2015 and then jump ahead really quickly," Knott began, setting the context for how Bellingham's regulatory framework had evolved. The timeline was dense: rental registration starting in 2015, the elimination of declarations of compliance in February 2024, locking mailbox requirements in October 2024, and then the rental fee ordinances and state rent stabilization both taking effect in rapid succession in 2025. The survey revealed a city rental market dominated by small-scale landlords. Over half of respondents owned just one rental unit, and 81% managed their properties themselves rather than using professional property management. But while small landlords made up the majority of survey respondents, the 35 property managers who responded represented a significant portion of the city's rental units — highlighting the concentrated nature of professional rental management. When it came to the rental fees themselves, the data showed clear divisions between small landlords and professional property managers. "There are noticeable differences between landlords and property managers in what they're charging," Knott explained, particularly around pet policies. While many small landlords charged simple pet deposits or nothing at all, property managers typically charged ongoing pet rent and had more structured fee arrangements. The most telling responses came in the written comments — over 300 of them filling more than 100 pages of the survey packet. "Overall respondents were pretty critical of the regulatory framework," Knott summarized. "There was a small proportion that said you're doing a great job exactly as is. And there's another side that said this is terrible, we want no regulations at all. Most were somewhere in between saying, 'We recognize the need for some regulations. They're burdensome. They're complex and we want some changes.'" ## Council Members Dig Into the Data Council Member Michael Lilliquist pressed for a cleaner breakdown of the data, particularly wanting to separate "mom and pop" landlords from professional property managers. "I would like to have seen the data broken out into two clean groups and maybe leave out the messy middle," he said, noting that many other cities treat small rental operators differently, sometimes exempting them entirely from certain regulations. "I do think it's an important thing to understand whether or not we're overregulating or misregulating one group or the other," Lilliquist continued. His questions reflected broader policy tensions about how to regulate a rental market that spans everything from college students renting out spare bedrooms to large apartment complexes. Council Member Lisa Anderson raised equally important concerns about the other side of the equation: "I would be amiss if I didn't also recognize that I know the task was to look at the landlord and the property manager, but we're really not gathering any information from tenants about what potentially the impacts would be with these changes." Anderson had heard "anecdotally that, you know, people are going to see annual rent increases where perhaps they hadn't. People who have pets who might not be able to, people who are getting the therapy animal certificate so they could keep their pets." She pushed for a tenant survey to accompany the landlord data, noting that not everyone has "necessarily a bad player landlord." The exchange revealed the complexity of measuring policy impacts in real time. Mayor Marilyn Lund responded that staff was already working on establishing a renter advisory group — work that had been delayed for over two years but was finally moving forward with an enabling resolution coming to council next month. ## The Broader Regulatory Context Director Christopher Lyon from Planning and Community Development outlined the multiple regulatory changes happening simultaneously. Beyond the rental fees, the city was working on audit programs for rental inspections, policy improvements for unsafe bedroom rentals, and clarifications to late fee regulations that would come before council on March 23rd. Council Member Lilliquist shared a recent personal experience that illustrated ongoing problems: "This weekend I witnessed state law being broken. I was helping a friend move out and I saw them illegally withholding his security deposit for reasons that had to do with wear and tear. And they said the windows weren't clean enough. And my friend said, 'I expected this. I'm not fighting it.'" "That's what it's still like out there," Lilliquist continued. "So, we still have a bad culture of at least a few people who are still not treating others fairly." The presentation concluded with Council Member Dan Hamill moving to refer the matter to the Planning Committee for further discussion — a motion that passed unanimously and set the stage for deeper policy conversations in the coming months. ## Nicholas Henry: From Commissioner to Judge After the data-heavy survey discussion, the meeting's tone shifted dramatically with the confirmation of Nicholas Henry as Bellingham Municipal Court Judge Position Two. The appointment had been routine business — Henry had been serving as municipal court commissioner since January 2022 and was the obvious choice for the position. But what made the evening special was the swearing-in ceremony that followed. Judge Debra Lev, the presiding judge, administered the oath with Henry's wife Stephanie watching from the gallery. "Before you take the oath of office, this is a long time coming. I'm so happy that Nick joined our court team back when I appointed him and started in January of 2022," Judge Lev said. "Ever since that day, he has demonstrated every day that we are better with him on our court team, and I made the right choice." Henry's response was heartfelt and personal: "Tonight's really not about me. It's really about the people who helped me get here." He thanked Mayor Lund for the appointment, the council for the confirmation, and Judge Lev for mentoring him. But his most emotional words were for his wife: "My lovely wife Stephanie is here supporting me. I just want to say I love you. We met a few months before I got my very first job outside of law school and look where we are now." Council President Stone broke protocol to allow applause, noting that the council is "usually very against clapping or booing as well. So thankfully there was no booing." The appointment represents a significant expansion of the municipal court's capacity. As Stone explained, "During our last budget cycle, the council did confirm the addition of a judge position at the court." The key difference between a commissioner and a judge is the ability to hear trials, which should help reduce case backlogs and provide swifter justice for community members. ## Mayor's Report: Day Center and Community Engagement Mayor Lund used her report to highlight two major initiatives taking shape in 2026. The first was the development of a day center for people experiencing homelessness, with an ambitious goal of opening by fall 2026. The center would provide case management, food, referrals to substance abuse and mental health treatment, and serve as a consistent location for street medicine teams and outreach workers. The timing is critical because the central library branch will close for renovations later in 2026. "This unmet need is critical, especially as we strive to meet our ongoing commitments to a healthy, thriving downtown and importantly as we anticipate some of the impacts that the closure of our central library branch for renovations will have later this year," Lund explained. The city was advocating for just over $1 million in state funding for the project, with the House including the funding in its capital budget but the Senate excluding it — a common dynamic that would be resolved in the final days of the legislative session. The mayor also announced a new "Ask Us Anything" community engagement series, with the first event scheduled for March 18th at the Bellingham Cruise Terminal. "We invite people to bring their questions and their curiosity and we will do our best to bring the answers," Lund said. ## Sequential Intercept Model and Criminal Justice Planning Council Member Hamill reported on his attendance at a two-day Sequential Intercept Model (SIM) training in late February, part of his work with the Incarceration Prevention Reduction Task Force. The SIM is a community resource mapping tool that Bellingham has used for over a decade to identify gaps and strengths in services for people involved in the criminal justice system. "We gathered to update the sequential intercept model for 2026," Hamill explained, noting that 75 attendees included everyone from people impacted by the criminal justice system to social service providers, courts, law enforcement, and diversion programs. Given ongoing discussions about jail facilities and criminal justice services, Hamill moved to have the Public Health, Safety, Justice and Equity Committee receive a presentation on the SIM results at their first April meeting — a motion that passed unanimously. ## Behind Closed Doors: Watershed Land Acquisition The evening included a brief executive session to discuss a property acquisition, with council returning to authorize the purchase of an 11.7-acre property in the Lake Whatcom watershed for $400,000. The property, purchased from Tracy M. Joelos, will be acquired through the city's watershed land acquisition and preservation program using funds from a dedicated surcharge on water bills. Council President Stone explained that "The property will be acquired through the city's Lake Whatcom watershed land acquisition and preservation program using restricted funds dedicated to that purpose. The program is funded by city water customers through a watershed surcharge on their utility bill." ## Routine Business and Looking Ahead The meeting concluded with passage of several routine consent agenda items and final approval of an ordinance extending landmark tree preservation regulations for an additional six months. The landmark tree ordinance passed 7-0 on final reading, providing continued protection while the city develops permanent regulations. Council President Stone also provided a legislative update, noting that the 2026 session would end on March 12th — just three days away. Beyond the day center funding, the city continued to track various bills working through the reconciliation process between the House and Senate. ## Public Comment and Civic Engagement As the formal meeting concluded at approximately 8:20 p.m., the council transitioned to public comment, which is not broadcast on television but continues via Zoom and phone access. Twelve community members spoke during the public comment period, which extended until the meeting's adjournment at 9:06 p.m. The meeting represented local government at its most fundamental level — wrestling with complex policy questions, celebrating public servants, conducting routine but essential business, and maintaining channels for public input. The rental fee survey discussion revealed the ongoing challenge of balancing tenant protection with regulatory burden, while Henry's swearing-in highlighted the human relationships and personal commitment that make local government function. As the city moves forward with deeper analysis of the rental market, establishment of the day center, and continued refinement of its regulatory framework, the March 9th meeting served as both a snapshot of current challenges and a foundation for future policy development. The decision to move the rental survey discussion to the Planning Committee ensures that the detailed feedback from hundreds of landlords and property managers will receive the thorough consideration it deserves, while the addition of Judge Henry to the municipal court strengthens the city's ability to deliver justice fairly and efficiently.