BelRed code update advances with HOMA, parking, & housing policy at PLUSH
At our January 27, 2026 PLUSH meeting, the City of Bellevue shared a preview of a working draft for the BelRed Land Use Code Amendment (LUCA), alongside near term updates related to HOMA, parking reform, and changes to the Multifamily Tax Exemption (MFTE) program. For employers, property owners, and developers, the conversation underscored where timely feedback can influence zoning capacity, mobility outcomes, and housing tools that affect project feasibility and neighborhood vitality.
BelRed LUCA: Progress, What the Community Said
City staff described the BelRed code refresh as a comprehensive update that builds on the subarea’s momentum while implementing newly adopted policies, housing and jobs targets, and a clearer mixed use code structure aligned with the approach used in Wilburton.
That broader context matters. Staff noted that since the 2009 subarea plan, BelRed has delivered more than 1 million square feet of office in the Spring District, supported roughly $300 million in transportation and arterial investments, and added around 3,000 housing units. Recent outreach also reinforced consistent themes from stakeholders, including mobility, parks, activation, and the desire for more flexibility in how local street connections are implemented.
Zoning & design updates, with an Arts District focus
The working draft aligns BelRed zoning directly with the updated future land use map and expands midrise and high rise designations, with higher maximum heights and floor area ratios near station areas. Staff also previewed a new citywide mixed use standards section intended to reduce duplication and keep BelRed and Wilburton overlays more targeted.
A notable refinement is the introduction of seven neighborhood districts and an Arts District intensive area. The goal is to better calibrate amenity scoring and support arts, culture, and small business in a way that reflects different places within BelRed.
Developers should expect a Wilburton style approach to uses that is permitted unless prohibited or conditional, with continued coordination across the City on nonconforming provisions and MFTE updates.
Local streets & mobility: Moving toward outcome-based connectivity
A major focus of discussion was the local street network. Responding to concerns about parcel constraints and feasibility, the draft shifts from a rigid grid concept toward an outcome based approach that emphasizes walkability, access, and connectivity, while allowing more flexibility in how those outcomes are achieved.
Under the approach described, larger sites would still be expected to create smaller blocks, but the tools could include a mix of public and private street types. Block standards would apply to sites larger than 105,000 square feet. Staff also acknowledged that the street framework will remain a key topic for stakeholder input as the draft evolves. PLUSH members continued to raise concerns regarding development feasibility with the added constraints a street grid would bring.
Amenities and feasibility, calibrating incentives to place
Staff also shared direction on redesigning BelRed’s amenity incentive system. The goal is to move away from a tiered structure that has limited uptake and toward a downtown like menu, with a more focused list for the Arts District. Stakeholders emphasized the importance of fairness across neighborhoods, as well as flexibility in achieving maximum FAR where the code intends higher capacity.
Additional comments cautioned against copying Wilburton wholesale across all of BelRed, pointing to differences in topography, proximity to SR 520, and other site conditions, along with distinct needs in areas such as 116th and medical focused districts. City staff indicated that those nuances will be part of continued refinement in subsequent drafts.
HOMA, MFTE, & Parking: Practical Adjustments to Keep Projects Moving
The meeting also covered near term actions on HOMA, including changes to downtown’s amenity system where the first 25 percent of points above base would be devoted to affordable housing or a fee in lieu option. Staff also discussed sizable upzones in non growth center mixed use areas and a proposed citywide mandatory affordability requirement in those areas.
PLUSH’s letter highlighted several refinements intended to support feasibility and delivery, including aligning mandatory programs with MFTE “supercharger” tools like those used in Wilburton, as many pro formas remain challenging in today’s environment. The letter also raised targeted ideas to encourage participation, including a narrow floor plate adjustment for downtown nonresidential projects using fee in lieu, and right sizing the duration and flexibility of ground floor use covenants tied to FAR exemptions.
“We’re suggesting that the covenant should be a 25-year covenant to align with the grocery stores, and then have some language in there that says, if you want to get out of the covenant, you can pay the affordable housing fee.”
Separate from HOMA, stakeholders raised a targeted midrise adjustment.
On parking, the Chamber supported aligning with state law and encouraged further right sizing of minimums, especially where current requirements create unnecessary cost and constrain project design.
“Bellevue requires a restaurant that allows takeout, which is every restaurant now, to have 16 stalls per 1,000 square feet, which is by far the highest ratio anywhere."
What’s Next & How to Stay Engaged:
City staff outlined a busy first half of the year for BelRed engagement and upcoming Council items related to MFTE and affordable housing policy.
For BelRed LUCA, staff shared that a revised draft is targeted for late March or April, followed by Planning Commission study sessions and a hearing. Council action is anticipated in Q2 or Q3, with a goal of wrapping the process in the fall. MFTE updates are expected to be before Council in early February.
From the Chamber’s calendar, our next PLUSH meeting is February 17. We will also be at East King Chambers Coalition Chamber Day in Olympia on February 18, the Women’s Leadership Conference on February 24, and the Eastside Real Estate Symposium on April 2.