### Meeting Overview The City of Bellingham Community Development Advisory Board (CDAB) met on September 11, 2025, to discuss affordable housing funding, review the annual performance report to federal agencies, and examine local rental market data. The meeting addressed significant budget constraints facing human services programs and ongoing federal funding challenges. ### Key Terms and Concepts **CAPER:** Consolidated Annual Performance and Evaluation Report - an annual report to HUD documenting how the city spent federal housing and community development funds and what was accomplished. **HOME-ARP:** HOME American Rescue Plan - special one-time federal funding provided during the pandemic for homeless services and housing, with a seven-year spending timeline. **Payment Standard:** The maximum rent amount that rental assistance programs will cover, based on local market research rather than federal fair market rent calculations. **Leveraging:** The practice of combining city funds with other funding sources to maximize total project investment - currently about $6 in outside funding for every $1 of city money. **HUD Fair Market Rent:** Federal calculation of reasonable rent amounts by region, historically lagging behind actual local market conditions. **GRACE Program:** Ground-level Response and Coordinated Engagement - a partnership program with Whatcom County for coordinated services. **Housing Levy:** Voter-approved property tax that funds affordable housing production and preservation through 2028, totaling $40 million over 10 years. **General Fund:** The city's primary operating budget that funds basic services like police and fire, currently facing significant financial constraints. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Shannon Laws | CDAB Chair | | Samya Lutz | City Staff - Housing Programs | | Kathleen Morton | City Staff - Development Specialist | | Andrew Calkins | Board Member - Housing Authority Executive Director | | Ben Spicer | Board Member | | Matt Unger | Board Member (virtual) | | Jace Cotton | City Council Member | ### Background Context The meeting occurred during a period of significant budget stress for local governments. The city faces potential cuts of $150,000 to food bank funding and additional reductions to human services contracts, while federal HUD funding remains uncertain due to ongoing litigation over federal policy requirements. Meanwhile, the city continues managing millions in affordable housing investments while conducting annual assessments of local rental markets to ensure assistance programs remain effective. This financial tension reflects broader nationwide challenges where federal funding has stagnated while local housing costs have continued rising, placing greater burden on local funding sources like the housing levy and sales tax to fill gaps in affordable housing and services. ### What Happened — The Short Version Road to Home was scheduled to present but cancelled last minute. Staff presented the draft CAPER showing the city committed to 175 new affordable housing units and completed 86 preservation projects, with most funding serving households earning less than 30% of area median income. The board opened and closed a public hearing on the report. Budget discussions revealed significant upcoming cuts: $150,000 to food bank funding is already eliminated, with an additional $111,000 in cuts needed from human services grants. Staff received HUD contracts with new federal policy requirements that the city is challenging through legal amendments. The rental market study showed minimal rent increases (0.1% average) with city payment standards now closely aligned with HUD's calculations, validating the local research approach while requiring significant staff time to complete. ### What to Watch Next • City Council budget decisions in late fall will determine final human services funding levels • HUD contract resolution through legal department review and potential amendments • November CDAB meeting to review service provider performance stories and outcomes • October Housing Week events including home sharing program presentations ---