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New housing push introduced by city to address critical shortage

Highlights: Streamlining permits; seeking land for tiny home village and affordable housing

By Charlotte Alden General Assignment/Enterprise Reporter

Bellingham Mayor Kim Lund announced new moves Thursday, Nov. 21 to push efforts to increase the city’s housing stock.

In an executive order, three areas of actions were highlighted: diversifying and expanding housing options in all neighborhoods, streamlining the city’s permitting process, and offering incentives and partnering to create more permanent affordable housing and tiny homes.

“We have a critical shortage of housing in Bellingham,” Lund said in a news release. “We have yet to catch up from the deficit of housing that resulted from the 2008-2012 economic recession, and we aren’t adding enough new housing today. We need more housing overall, and more options that are within reach for everyone.”  

Lund said that in public comments about the city’s 20-year growth plan, staff heard “clearly” that there’s a need for more housing, and a variety of housing types, in all city neighborhoods.

“Even though many of these changes will come eventually because of state requirements, we are jumpstarting the process — and going above and beyond — because it’s what our community desires,” she said in the release. 

The number of new city residential units approved per year has dipped since a peak in 2021 of 1,286 new units permitted — 1,063 of those multi-family units. In 2022, the city permitted 853 units, and in 2023, 422 units, according to the city’s housing statistics. This year through Nov. 15, the city has issued permits for 413 units of housing, about half of its annual target.

Communications Director Melissa Morin said the executive order is intended to increase the number of units permitted, and expects it will spur more housing development in the coming years. She said increase in interest rates may have contributed the decrease in new units permitted in recent years, but it also tends to be “cyclical,” with a decrease in new units following a large year.

About 54% of Bellingham renters are housing “cost-burdened,” meaning they pay more than the widely advised rate of 30% of their income towards housing. Around 31% of renters pay more than 50% of income towards rent, according to a city report

City staff will bring three housing-related ordinances to city council in the next several months. The first would remove parking minimums throughout the city; council had previously asked staff to consider the issue due to the environmental and housing cost impacts of parking minimums.


The second would adopt the city’s “toolkit” for middle housing – which promotes the development of duplexes, cottage homes and accessory dwelling units — across the city. It is currently only applicable in select neighborhoods.

The third ordinance would streamline design review. 

In particular, the order directs the city’s Development Review Team to prioritize reviewing permits of developments that include low-income housing, infill development, or are in target areas, such as downtown and old town development. 

City staff are also directed to identify a new location for an additional tiny home village, as well as to continue seeking land for future affordable housing projects. 

The order also commits to continued review of the city’s Landmark Tree Ordinance, with a focus on “greater consistency and predictability.” 

The Landmark Tree Ordinance protects trees 36 inches in diameter or greater. At an October meeting, city staff said the ordinance had placed a heavy upfront burden on development to determine if a project is viable and following the ordinance. Some local developers have criticized the ordinance for delaying housing projects and hindering development. 

Charlotte Alden is CDN’s general assignment/enterprise reporter; reach her at charlottealden@cascadiadaily.com; 360-922-3090 ext. 123.

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