City briefs PLUSH on affordable housing strategy update: Priorities, preservation, & next steps

On Tuesday, February 17, City of Bellevue housing staff briefed the Chamber’s Permitting, Land Use, Sustainability, and Housing (PLUSH) committee on the City’s draft Affordable Housing Strategy update and key takeaways from recent Council discussion. The conversation reinforced a shared goal of increasing housing supply across income levels, while focusing on feasibility, preservation, and the steps ahead.

Affordable Housing Strategy Update: Scope, Structure, & a Phased Workplan

City Staff described the update as an evolution of Bellevue’s existing strategy, aligned with the recently updated Comprehensive Plan and organized around clear actions and timing. The draft is structured around five goal areas, with 24 strategies, roughly 80 tasks, and about 20 high-priority actions phased over a seven-year planning period.

Staff emphasized that updated housing goals are driven by need under 80% of Area Median Income (AMI), with the strongest emphasis on households under 50% AMI. While the City expects to meet or exceed goals in the 50% to 80% AMI range, staff acknowledged the most challenging gap is at the deepest affordability levels.

• Estimated under 50% AMI units needed over the next 10 years: Approximately 4,100

• Staff noted the City is not expected to fully meet the under 50% AMI need under current assumptions

Land Use Tools & Inclusionary Zoning: Pairing Policy with Capacity, Feasibility

Discussion centered on how Bellevue might expand affordable housing programs in transit-oriented development areas and in new high-density and mid-density residential zones. Staff emphasized that any potential land use incentives or requirements would be evaluated alongside development capacity increases and economic feasibility analysis.

Chamber members reiterated long-standing concerns about mandatory inclusionary zoning and stressed the importance of aligning any future revenue advocacy language with the Council’s legislative agenda.

Items noted include ...

• Land use incentives or requirements would be analyzed alongside feasibility and added capacity,

• Revenue needs remain under analysis; staff referenced a “double digits” magnitude over the next decade,

• The Chamber has asked that any revenue advocacy, including REET, be consistent with the adopted legislative agenda which the Chamber was successful in removing REET this year.

PLUSH also members emphasized the importance of preserving existing housing, particularly family-sized units. City Staff noted recent updates to the Multifamily Tax Exemption (MFTE) program and discussed limitations under state law that make preservation through acquisition difficult without major redevelopment.

Staff additionally highlighted local acquisition financing as a potential tool to help affordable housing developers move quickly when properties come to market.

Want Stability? Try Targeted Approaches, Not Broad Market Interventions

City Staff clarified that proposed housing stability measures are targeted to income-restricted units created through incentives, not broad market-rate interventions. Staff also shared that the City prefers statewide standards for tenant protections, rather than a patchwork of local rules.

A proposed rental registration concept has been de-prioritized based on case study research and concerns about potential cost pass-throughs, and the Chamber has been vocal in its opposition to the rental registration strategy — concerns that were echoed by Council at last month's council briefing. 

In summary ...

• Rent stabilization consideration is limited to income-restricted units created through incentives,

• Staff indicated tenant protection standards are best addressed at the state level,

• Rental registration was de-prioritized after research on potential unintended impacts,

• and the City will review its limited relocation assistance policy for potential targeted updates.