### Meeting Overview The Community and Economic Development Committee met on May 5, 2025, to review the city's 2025 federal housing funding plan and get an update on the North Haven tiny house village. The committee recommended approval of $27 million in housing investments and learned about progress on consolidating two existing shelter communities into one new location. ### Key Terms and Concepts **HUD Consolidated Action Plan:** The federal government's required annual plan showing how cities will spend Community Development Block Grant and HOME program funds, plus local housing dollars. **Community Development Block Grant (CDBG):** Federal funding for community development activities that benefit low and moderate-income residents. **HOME Investment Partnership Program:** Federal program providing funding for affordable housing development and rental assistance. **Housing Levy:** Local voter-approved tax dedicated to affordable housing, also called the "Home Fund." **Affordable Housing Sales Tax (AHST):** Local sales tax revenue dedicated to affordable housing projects and services. **Low Income Housing Tax Credits (LIHTC):** Federal tax credit program that provides financing for affordable rental housing development, available in 4% and 9% credit versions. **CDAB:** Community Development Advisory Board that reviews funding applications and makes recommendations to city council. **Rental Assistance and Supportive Services (RASS):** Portion of the housing budget dedicated to services like rental assistance, homelessness prevention, and support services. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Jace Cotton | Committee Chair, City Council | | Daniel Hammill | Committee Member, City Council | | Edwin "Skip" Williams | Committee Member, City Council | | Samya Lutz | Housing & Services Program Manager | | Tara Sundin | Community & Economic Development Manager | | Kathleen Morton | Community Development Staff | ### Background Context Bellingham receives federal housing funds that must be allocated according to a five-year plan and annual action plans. The 2025 plan reflects ongoing challenges with rising construction costs—the city now commits more than double per housing unit compared to just a few years ago. Despite having $27 million available, much of this comes from prior-year carryover funds rather than new revenue. Affordable housing sales tax revenue has declined, forcing the city to be more strategic about which projects to support. The North Haven project represents the city's effort to consolidate existing tiny house villages into a more permanent location that can eventually serve future affordable housing development. This reflects the reality that these "temporary" shelters are becoming longer-term solutions due to ongoing housing shortages. ### What Happened — The Short Version The committee approved staff recommendations for spending $27 million in housing funds, with 61% going to housing production, 23% to rental assistance and services, and smaller portions for preservation, homeownership, and community facilities. Two major new housing projects received funding: a 68-unit senior project by Mercy Housing Northwest and a 63-unit project by Bellingham Housing Authority. The committee also learned that North Haven tiny house village is nearly ready to consolidate Swift Haven and Unity Village residents into one location by the end of May. ### What to Watch Next • City council will vote on the resolution at the evening meeting • North Haven village relocation scheduled for completion by end of May • City council will consider code changes to remove the five-year limit on tiny house villages • Tax credit funding decisions expected later this year for the two major housing projects ---