### Meeting Overview The Mayor's Neighborhood Advisory Commission met on February 18, 2026, at City Hall with Mayor Kim Lund presiding. The meeting focused on three major topics: the new Bellingham Home Sharing Program in partnership with Nesterly, a critical update on the Justice Project (jail and behavioral health facility), and the debut of the city's first digital State of the City address. ### Key Terms and Concepts **Nesterly:** A Boston-based company selected through competitive procurement to provide an online platform for home sharing in Bellingham. Offers matching services, background checks, lease creation, and mediation support for hosts and renters. **Justice Project:** A comprehensive initiative to build a new 480-bed jail facility and behavioral health center, funded by a 0.2% sales tax approved by voters in 2023. Originally estimated at $150 million but now facing significant cost overruns. **Booking Restrictions:** The current jail's practice of turning people away due to overcrowding, which has existed for approximately 15+ years. The new facility aims to eliminate this problem. **Home Sharing:** A housing arrangement where homeowners rent rooms to tenants, either short-term (30 days) or longer (up to one year). The city requires hosts to own and live in their primary residence. **Behavioral Health Center:** Originally planned as an in-custody facility, now redesigned as an out-of-custody center to be located at the Ann Deacon Center for Hope on Division Street, serving the broader community. **Mayor's Neighborhood Advisory Commission (MNAC):** A body representing various neighborhood associations that meets monthly to discuss city issues and coordinate between neighborhoods and city leadership. **Ask Us Anything Series:** A new community engagement initiative where Mayor Lund and department heads host informal public meetings across different areas of the city, starting March 18th at the Cruise Terminal. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Kim Lund | Mayor of Bellingham | | Taylor Littrell | Planning and Community Development Department | | Kathleen Morton | Planning and Community Development Department | | Forrest Longman | Deputy City Administrator | | Jake Charlton | Happy Valley Neighborhood Association | | Katie Herson-Horvath | Birchwood Neighborhood Association | | Kate McDonald | Cordata Neighborhood Association (Alternate) | ### Background Context Bellingham faces a severe housing shortage with an estimated 14,000 vacant bedrooms that could potentially be utilized through home sharing. The city has struggled with jail overcrowding for over 15 years, leading to booking restrictions that prevent law enforcement from housing arrested individuals. After two failed ballot measures in 2015 and 2017, voters finally approved funding for a new jail in 2023, but rising costs and declining sales tax revenue now threaten the project's original scope. The home sharing program represents an innovative approach to immediately increase housing supply without waiting for new construction, while the jail project reflects decades of deferred infrastructure needs finally being addressed through voter-approved funding. ### What Happened — The Short Version City staff presented the new Bellingham Home Share Program, which currently has only three active listings but offers comprehensive support services including background checks, lease assistance, and ongoing mediation. Deputy Administrator Forrest Longman delivered sobering news about the Justice Project, revealing that cost overruns and revenue shortfalls may force difficult choices between jail features, behavioral health services, and the original 50-50 funding split between capital and ongoing programs. The meeting concluded with the premiere of the city's first digital State of the City address and a discussion of neighborhood association recruitment challenges. ### What to Watch Next - March 4th: Special meeting on encampments at Bellingham Covenant Church (6 PM, 1530 East Bakerview) - March 18th: First "Ask Us Anything" community meeting at Cruise Terminal Dome Room (5:30-7:30 PM) - City Council presentation on Justice Project scenarios (February 24th, 1:15 PM) - Summer 2026: Final decisions expected on jail design and funding allocations ---

**Q:** What company did Bellingham select to provide home sharing services? **A:** Nesterly, a Boston-based company founded in 2017 that was selected through competitive procurement. **Q:** How many room listings are currently active in the Bellingham Home Share Program? **A:** Only three listings are currently active on the platform. **Q:** What fees does Nesterly charge for its services? **A:** A one-time booking fee of $95-$195 plus a monthly 2.5% fee of the rent amount. **Q:** Where will the behavioral health center be located? **A:** At the Ann Deacon Center for Hope on Division Street, separate from the jail facility. **Q:** How much is the city paying Nesterly annually? **A:** $55,000 per year for a two-year contract totaling $110,000. **Q:** What requirement does the city have for home sharing hosts? **A:** Hosts must own the home and use it as their primary residence. **Q:** How long have booking restrictions existed at the current jail? **A:** Approximately 15+ years, meaning people are regularly turned away due to overcrowding. **Q:** What was the original estimated cost for the Justice Project? **A:** Around $150 million for both the jail and behavioral health center. **Q:** How much have sales tax revenues missed projections by? **A:** 9% below the projected 4% annual growth rate. **Q:** What is the current estimated jail capacity being planned? **A:** 480 beds, though the sheriff has requested 600 beds. **Q:** When and where is the first "Ask Us Anything" community meeting? **A:** March 18th at the Bellingham Cruise Terminal Dome Room from 5:30-7:30 PM. **Q:** How many estimated vacant bedrooms exist in Bellingham? **A:** Approximately 14,000 vacant bedrooms that could potentially be used for home sharing. **Q:** What sales tax rate funds the Justice Project? **A:** Two-tenths of 1% (0.2%) public health, safety, and justice sales tax approved by voters in 2023. **Q:** What is the most expensive jail scenario being considered? **A:** Scenario 3 at approximately $260 million, which would consume all available funding. **Q:** Where is the planned jail location? **A:** Near the ICE facility in what critics describe as a floodplain location. **Q:** What percentage of the Justice Project funding was supposed to go to ongoing services after the first 6 years? **A:** At least 50% was intended for implementation plan services including behavioral health programs. **Q:** How many people currently share cells designed for one person? **A:** Three people per cell in the current overcrowded facility. **Q:** What was unique about the 2026 State of the City presentation? **A:** It was the first digital/video format rather than a traditional in-person speech. **Q:** Which neighborhood association has an annual plant and tree sale? **A:** Fairhaven Neighborhood Association hosts their 38th annual sale on March 28th. **Q:** What challenge did multiple neighborhood associations report? **A:** Difficulty recruiting board members and maintaining consistent participation. ---