More affordable housing projects are set to break ground or be completed in 2025 in Whatcom County. Last year, several were finished, creating hundreds of new units.
As Bellingham works to incentivize construction of new units to meet growth needs and address a shortage in housing stock, nonprofits continue to take on affordable housing projects, even with scant funding available.
Samya Lutz, housing services program manager at the City of Bellingham, said that previously, affordable housing developers were strained by land availability, capacity and service providers. But now, the main barrier is access to funding.
“Not just our dollars locally, but State Department of Commerce dollars and federal Low-Income Housing Tax Credit dollars,” Lutz said in a statement to Cascadia Daily News. “These state and federal dollars available for development have stayed mostly flat over the past five years, while development costs have nearly doubled.”
Despite those challenges, a number of projects expect to break ground, or be completed, in 2025 or 2026. Here’s a list.
Upcoming developments
The Opportunity Council’s Bellis Fair project, phase one, a partnership with the City of Bellingham, has started construction and is expected to be complete by late spring of 2026, Communications Coordinator Emily Martens said. The first phase of the project will provide 65 units for families and children at or below 60% of adjusted median income, with 20% of the units reserved for families exiting homelessness, and another 20% reserved for families with a disabled family member.
Phase two of the project — providing 64 units for seniors — will begin construction in 2026 and be completed by spring of 2027.
Kulshan Community Land Trust’s project with Habitat for Humanity on Telegraph Road, the Telegraph Townhomes Project, will eventually provide more than 60 units of affordable homes for purchase through either organization’s new-home programs. Sixteen homes have been constructed already, with another eight expected to be constructed by September 2026, said Molly McKinney-Holcomb, the grants and communications coordinator. The second phase will likely include an additional 40 homes.
Another project by KulshanCLT in Bellingham at 2912 Birchwood Road, called LaFreniere Court, will provide 18 affordable homeownership opportunities by spring 2026. KulshanCLT will begin construction on March 6.
Habitat for Humanity has projects happening all over the county in the next several years. Mateo Meadows in Everson will provide 30 townhomes: the first four will be complete this fall, with move-in before the year ends, said Marcelo Pratesi, development director for Habitat of Humanity Whatcom.
Habitat is also undertaking some smaller-scale projects scattered across the county. In Sumas, they’re hoping to break ground this year on a triplex, but are working through the conditional use permit process, Pratesi said.
In Custer, Habitat is working on a two-bedroom, single-family home, expected to start this spring and finish by the fall. In Sandy Point, another single-family home should be completed by 2026.
Longer-term developments
Work is in progress on several projects that may not break ground for a year — or five.
Mercy Housing NW is working on a 70-unit senior housing development at 900 W. Holly St. in Old Town Bellingham, which will serve seniors earning between 30% to 60% of area median income.
Depending on funding, construction could start in late 2026 or early 2027, Senior Vice President of Marketing & Communications Kate Peterson said in an email.
Bellingham & Whatcom Housing Authority is working on a 60- to 70-unit project at 202 Unity St. in downtown Bellingham. The project will aim to serve people who make between 30% and 60% of area median income. CEO Andrew Calkins said they aim to begin construction in late 2026, with occupancy by early 2028.
The housing authority is also eyeing a site in the King Mountain neighborhood. The vision, Calkins told Bellingham City Council in October 2024, is a mixed-income project with about 110 rentals, with construction to tentatively begin in 2030. Calkins said the authority is working to acquire the site in mid-February.
In Sumas, the housing authority hopes to secure funding to rehabilitate Sumas Square Apartments, where 11 units of senior housing haven’t been operational since the 2021 floods, Calkins said.
KulshanCLT has a project in Ferndale on Thornton Road, intended to provide 55 homes on site, with phased construction to begin in fall 2026. McKinney-Holcomb said they expect construction to be complete by 2028.
Even further out, Catholic and Community Services is working with the Whatcom Transportation Authority to build 60 units, up to 75% reserved for farmworkers, at 1945 Front St. in Lynden. The project will focus on three-bedroom units, and 30% to 50% area median income, Jeanne Le Duc, director of real estate, told Bellingham City Council. Le Duc said the nonprofit will likely complete the project in two phases.
In Blaine, Madrona Community Development is in predevelopment for an affordable housing project downtown, but is waiting on direction from city council to move forward. The vision is to provide 40–60 condos on land next to the library, said Paul Schissler of Madrona. Blaine City Council is expected to discuss this proposal at its Feb. 21 meeting, said Alex Wenger, community development services director at the City of Blaine said.
The City of Bellingham has also purchased a property at 3300 Northwest Ave. to develop future affordable housing.
Charlotte Alden is CDN’s general assignment/enterprise reporter; reach her at charlottealden@cascadiadaily.com; 360-922-3090 ext. 123.
