The Bellevue City Council recently met to advance several major housing initiatives, including the largest housing funding round in Bellevue’s history. These actions are part of the city’s ongoing effort to increase affordable housing in Bellevue and meet growing housing demand as the city continues to attract jobs and residents.
City leaders directed staff to prepare legislation approving up to $25.7 million from the Housing Stability Program and up to $11.3 million from the city’s Affordable Housing Fund. The funding will support four projects expected to create 271 new affordable housing units within Bellevue.
In addition, the council approved $1.3 million from the ARCH Housing Trust Fund to support these projects and additional developments across the Eastside. The contribution from ARCH (A Regional Coalition for Housing) will help fund another 234 affordable housing units in neighboring communities.
Together, these allocations represent the largest single housing funding round in Bellevue’s history, accelerating the development of affordable housing throughout the city.
Record Demand for Bellevue Housing Funding
The funding round followed a competitive application process after the city advertised available funds last year.
Two primary funding sources were offered:
- $20 million from the Housing Stability Program, funded through a state-authorized sales tax dedicated to housing
- $10 million from the Affordable Housing Fund, drawn from the city’s long-range planning reserves
Demand significantly exceeded available funding. Eight organizations applied, requesting a combined $55.3 million from the Housing Stability Program and $25.5 million from the Affordable Housing Fund.
City officials say the high demand reflects the ongoing need for affordable housing as Bellevue continues to grow.
Housing Policy Remains a Key Focus
The council also discussed how the city’s Multifamily Tax Exemption program may interact with affordable housing development. Staff was directed to return with additional analysis on potential updates to the program.
With population growth and ongoing regional job expansion, city leaders are exploring a combination of funding programs, incentives, and development support to ensure Bellevue remains a city with diverse and accessible housing options.
