NEW: Affordability Solutions
Bellingham is in a housing crisis. Current actions by the city only support market rate supply and impossibly expensive tax based affordable housing. This only helps developers, well off residents, and an extremely few at risk residents. The City can and must do more.
Concerns: Crisis * Affordability * Workforce Housing * Inclusionary Zoning * Parking Minimums * Multifamily Tax Exemptions * Density * Average Median Income * “Missing Middle” * City Wide Changes * Equity * Equality * Neighborhoods * At Risk * Manipulation * Multi-modal * Infill * Green Fill * Shortage * Housing Insecurity * Unaffordability * Supply * Advantage * Rent Burden * Urban Villages * Transit Oriented Development * Bellingham * Comprehensive Plan * Developers * Investors * Industry Lobby * Whatcom Housing Alliance * Sightline Institute
Local Lobby groups stop solutions for Affordability from within, causing confusion and stopping progress. Read: Who and How
Making decisions on a city wide basis they say is more equitable. They are mistaken. When inequality exists, the hoped for outcome is equality. The solution to get there is equity.
There are three important aspects to solve a housing crisis
- Zoning changes to increase supply – Density – ie. DADUs – Check
- The City Council loves this.
- Effect: Helping the well off and developers
- Accomplishes little to help the crisis.
- Permanent affordable and supportive housing projects for the most at risk – ie. Mill Works – Check
- This is ongoing, but extremely expensive.
- Accomplishes little to help the overall crisis.
- Affordability Zoning for Bellingham’s Work Force – Lacking
- Using opportunities to incentivize or require developers to create affordable housing throughout Bellingham.
- Commissioners and Council members have called on the city to fund a study. They have not.
- Commissioners and Council members have called on the city to take advantage of opportunities to create Affordability Zoning such as with Parking Minimums. They have not.
A super majority of recent Bellingham housing legislation has focused on density as a solution to Bellingham's affordability crisis. These acts, akin to failed policy by President Reagan aptly named Trickle Down Economics, will not help the challenges resident's face in affording housing in Bellingham.
Current housing starts prove that no City involvement is needed to create the 10% supply needed for AMI 80% to 120%, yet the city continues to make zoning changes that will only effect this group (ie. parking minimums, ADUs).
So, what does this mean?
In 2023, the city of Bellingham City Council declared a housing crisis, citing affordability for those who are forced to spend more than 30% of their income on housing. This demographic are those in the 0-50% AMI range, where residents are unable to find any housing in Bellingham that they can afford. The graphs above show the extent of that crisis.
- 75% of the housing supply we need, in the next 20 years, is for those who make 0-50% AMI (under $20 an hour). This housing supply needs a 150% increase to meet the need (difficult).
- Only 25% of the housing supply we need, in the next 20 years, is for those who make 50-120% AMI. This housing type needs a 10% increase, over 20 years (easy).
The 0-50% AMI section, shows the overwhelming need by households (green bar), for a very few number of housing units.
While the two sets in the middle (80-100% AMI) show considerable housing units available for the n
This means that any action taken by the city, under the guise of the housing crisis, must be for those who make 0-50% AMI, or who many call housing for the work force- ie Work Force Housing.
Questions and Answers:
What will the City's legislation do for Bellingham?
From DADUs, to Infill Housing Took Kits, to Parking Minimums, a super majority of actions taken by the city will only increase supply of already expensive housing. It will do nothing for affordability for those in need.
With the declared housing crisis, it is as if the City Council is fixing the roof, when the pipe in the basement is leaking. aka. We’re fixing something that doesn’t need to be fixed.
Why won't density bring down prices?
When supply increase is incremental, and demand is limitless, basic Supply and Demand economic theory breaks down.
Supply – If 10,000 units of various housing types were made available tomorrow, housing prices would be effected. This is not feasible in the real world.
Demand – Enough well off new residents are moving to Bellingham, who are willing to pay a high asking price, or even far above it at all housing levels, that demand based economics breaks down.
Bellingham leaders say they are doing all they can? What's really happening?
Organizations such as Sightlines, and developers, have made it so the City Council and Mayor feel they are taking considerable action. They truly feel that by reducing parking, and its costs for developers, that housing prices will be effected. That by reducing the size of a unit to inhumane sizes, ‘affordability’ has been reached. They are deeply mistaken, and the cost on the community can only be known years after they leave office.
Affordable Housing projects such as the Mill Works building on the Waterfront? Yes. These are truly affordable, and the organizations who built them should be commended for what they have created. Each unit though costs up to half a million dollars. It is only reasonable to expect a few of these projects to be built, while 10,000 affordable housing units are needed in the next 20 years.
So what's the solution? Affordability (Inclusionary) Zoning
The solution is for the City of Bellingham City Council and Mayor to take advantage of every opportunity to partner with developers, investors and builders. An example of this is the latest temporary ordinance on minimum parking requirements. With this ordinance now in effect, a developer has an ability to instantly make more profit, with nothing in return for the common good. A balance, for the benefit of the community, should have been made with a requirement for affordability built into projects large enough, or an equivalent solution for projects that are too small to build their own affordable units (ie. duplexes). Increased profitability, less wasted land for parking, and affordability without the excessive costs. A win win solution for everyone. Thankfully, the ordinance is only temporary, and the City has time to rectify the situation. We hope they do the right thing.
Another step, is to do what has been asked by members of the Planning Commission, and the City Council for 5 years; a study on inclusionary zoning. This would allow the city to take decisive action when the time presents itself to create affordability without the excessive cost of non-profit projects. People say that developers won’t build if they are required to create affordable units, and that we need the units due to the crisis. The graphs above show that we do not need just any units. We need affordable units.
