The Bellevue City Council in Washington approved more than $37 million in affordable housing funding in April, the largest single round of affordable housing funding in the city’s history, according to the city’s Office of Housing. The awards will support four developments in Bellevue totaling 271 new affordable units. Another 234 units will be supported across the Eastside through a regional partner fund.
The funding round was approved within weeks of the City Council’s adoption of the 2026-2032 Affordable Housing Strategy, a long-range plan outlining how developers can access local subsidy, incentives and partnership opportunities through 2032.
The current funding pool combined three mechanisms: up to $25.7 million from the city’s Housing Stability Program, up to $11.3 million from a one-time Affordable Housing Fund and $1.3 million from A Regional Coalition for Housing’s (ARCH) Housing Trust Fund.
The four projects span rental, ownership and predevelopment-stage developments serving households earning between 30% and 80% of area median income (AMI).
Two of the awards support rental developments, including a 100-unit project on faith-owned land and a 145-unit project near light rail that sets aside 37 units for families exiting homelessness, with on-site supportive services planned.
The remaining awards fund a 25-unit ownership development of permanently affordable three-bedroom homes and predevelopment work for a 127-unit rental project planned on a city-owned site near a light rail station. That project remains in an earlier planning phase and is not among the two developments expected to break ground this year.
Beyond the projects themselves, the awards reflect priorities laid out in the new long-range plan, which the City Council adopted in April to replace the city’s original 2017 strategy. The updated framework is meant to guide affordable housing investment, partnerships and policy in Bellevue over the next seven years.
At its core, the plan sets a 10-year goal of producing or preserving 5,700 affordable units for households earning under 80% AMI. The plan outlines 24 strategies across five goal areas: affordable housing, housing equity, housing stability, housing for unique needs and housing supply and diversity.
Each goal area addresses a distinct piece of the city’s housing picture. The affordable housing goal focuses on expanding the supply of income-restricted units, while housing equity works to reduce disparities in housing outcomes across demographic groups. Housing stability is meant to help low- and moderate-income households remain in their homes and neighborhoods. Housing for unique needs addresses households with specialized requirements, such as seniors, families with children and people with disabilities. Housing supply and diversity focuses on expanding the overall housing stock and the range of housing types available citywide.
A companion Affordable Housing Action Plan operates as the implementation arm, translating the broader goals into 20 high-priority actions for the seven-year planning period. Those actions range from expanded fee waivers and expedited permitting for affordable housing projects to prioritized use of city-owned surplus land.
The action plan also calls for continued exploration of new financing tools, including credit programs, bonding and levies, alongside expanded partnerships with nonprofit developers, faith-based landowners and regional employers.
Coordination of these efforts runs through the Office of Housing, established in February 2025 within the City Manager’s Office. The office serves as the central hub for affordable housing investments, partnerships and project pipelines in Bellevue.
Developers will have another opportunity to compete for city funding later this year, with Bellevue expected to release a 2026 Housing Stability Program request for proposals (RFP) in early summer.
Photo by D Goug from Pexels
For more of the latest from the expansive government marketplace, check Government Market News daily for new stories, insights and profiles from public sector professionals. Check out our national contracting newsletter here.
