Bellingham residents have a chance to speak directly to the City Council on Monday about a proposed ordinance that could reshape how affordable housing is developed in the city. The Bellingham City Council is holding a public hearing at 7 p.m. on August 24, at the start of its regular meeting, to take public comment on the proposed "Low-Income Housing Development Incentive." If approved, the ordinance would allow some city-funded development projects to bypass most of the city's standard zoning and land use regulations.
What the Proposed Ordinance Would Do
The core mechanism is a zoning exemption. Under the proposed Low-Income Housing Development Incentive, certain city-funded development projects would be freed from most zoning and land use regulations that typically govern where, how large, and under what conditions new housing can be built. Those regulations include standards around building height, lot coverage, setbacks, parking requirements, and density limits, among others. Removing those barriers lowers the cost of development and in many cases allows more units to be built on a given parcel.
The exemption would not be available to all projects. It would apply only to developments that include permanently affordable housing units, defined as housing available to households earning less than 80 percent of Area Median Income. In Whatcom County, 80 percent of AMI works out to income levels that exclude a significant share of lower-wage workers, renters in service industries, and households with part-time employment, making this threshold a meaningful target for the population most squeezed by the local housing market.
The city's argument for the approach is economic: removing zoning barriers lowers the cost of development and makes it more financially attractive for developers to build affordable units rather than defaulting to market-rate construction where profit margins are more predictable. In a housing market like Bellingham's, where rising prices have pushed homeownership and rental costs well above what many lower-income households can afford, reducing the cost side of the affordability equation is one of the few direct levers local government can pull without relying on state or federal funding.
The ordinance targets city-funded projects specifically, meaning developments where the city itself is providing financial support, rather than any private project that happens to include affordable units. That scope limits how broadly the zoning exemption could be applied in any given year and ties the incentive directly to projects where the city has a financial stake in the outcome. It is likely part of why the planning commission moved to recommend it without significant modification.
Where the Proposal Stands
The proposal has already gone through one round of public input. A public hearing before the city's planning commission was held on July 9, after which the commission recommended the ordinance for approval. That recommendation moved the proposal to the City Council for a second public hearing before the council votes on whether to adopt it. The two-hearing process, once before the planning commission and once before the council, is standard for land use ordinances in Bellingham and ensures multiple opportunities for public engagement before a final vote.
Monday's hearing at Bellingham City Hall is the second and final opportunity for public input before the council decides. The council is expected to consider a vote on first and second readings of the ordinance following the hearing, though the exact timing of that vote will depend on the scope of public comment and the depth of council discussion on specific provisions. If the council approves a first reading Monday, a second reading and final vote could come as soon as the following regular meeting.
The City of Bellingham has been working on multiple fronts to address housing affordability, including density bonuses, accessory dwelling unit policy reforms, and development incentive structures like this one. Bellingham's housing challenges mirror those facing cities across western Washington, where job growth, limited buildable land supply, high construction costs, and constrained financing for affordable projects have combined to keep housing prices out of reach for a significant share of residents. The Low-Income Housing Development Incentive is one piece of a broader set of tools the city is assembling to respond to that pressure.
How to Participate Monday
The public hearing is at the beginning of the regular City Council meeting on Monday, August 24, at 7 p.m. at Bellingham City Hall, 210 Lottie Street. Residents who want to speak can sign up online on the day of the meeting or in person outside the council chambers starting at 6:30 p.m. Speakers typically receive two to three minutes at the podium, and sign-up is generally first-come, first-served. Written comments may also be submitted to the council in advance; check the city's website at cob.org for submission details and deadlines.
The council's regular meeting follows the public hearing and will address other city business on the agenda. Residents who want to attend but are not planning to testify are welcome to observe. Council meetings are also typically available for remote viewing through the city's website and public access television, making it possible to follow the proceedings without attending in person.
For those who cannot attend Monday but want to follow the outcome, the council's decision on first reading would be a significant signal of whether the ordinance is on track for adoption. A unanimous or near-unanimous first reading vote typically indicates strong support heading into a final vote. The full legislative record, including the staff report prepared by the planning department and the planning commission's recommendation letter, is available through the city's online agenda portal for anyone who wants to review the technical analysis before or after the hearing. For related housing policy coverage, the story of the Mud Bay Cliffs subdivision appeal shows the range of development decisions the council is navigating simultaneously, and the Whatcom County housing page provides regional context on affordability trends across the county.
