Committee of the Whole

The Committee of the Whole held a work session focused primarily on proposed updates to Bellingham's Multi-Family Tax Exemption (MFTE) program, designed to incentivize affordable housing development. Long Range Planning Manager Chris Behee presented comprehensive amendments aimed at expanding both the 8-year market rate program to all urban villages and improving the viability of the 12-year affordable housing program, which has produced zero units since its inception. The proposed changes would adjust income requirements from the current complex structure to a flat 80% Area Median Income (AMI) threshold, add a new 20-year homeownership program, and allow existing 8-year projects to extend for additional 12-year periods if they provide affordable units. The work session comes after Council direction from September 2024 following an ECOnorthwest market study showing current construction conditions are "super challenging" for multifamily housing development. Staff research indicates median market rents in Bellingham currently range from 70-100% AMI, suggesting the current 12-year program requirements may be too restrictive to attract developers while still providing community benefit. The meeting also featured a celebration of retiring Public Works Superintendent Marty Gray's 30-year career, with Gray delivering heartfelt remarks about the city as an employer and Council members expressing appreciation for public works' critical but often unrecognized contributions to city operations. #