Published February 26 2026
Plus, housing in mixed-use areas
During Tuesday’s meeting, the City Council advanced multiple housing funding recommendations and reviewed a proposal to expand housing opportunities in mixed-use areas as part of the city’s Next Right Work housing actions.
The council 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 to support four projects that will result in 271 new affordable housing units in Bellevue. The council also approved $1.3 million from the ARCH Housing Trust Fund to go toward those new units, as well as another 234 units throughout the Eastside.
Together, these allocations constitute the largest single funding round in the city’s history, accelerating projects throughout Bellevue. Developers applied for the funding after the city advertised funds from two sources last year – $20 million from the annual Housing Stability Program (generated through state-mandated sales tax) and $10 million from the one-time, limited-source, Affordable Housing Fund, a part of the city’s long-range planning reserves.
Eight organizations applied for funding, with requests totaling $55.3 million for the Housing Stability Program and $25.5 million for the Affordable Housing Fund. Details are available in the council materials.
Update on housing in mixed-use areas
The council also received the Planning Commission’s recommendation on the Housing Opportunities in Mixed Use Areas proposal, designed to encourage more housing overall, increase affordability and support active, walkable mixed-use areas in Bellevue.
The proposal began in 2022 in response to office development outpacing housing in some areas. Since then, the office market has shifted and the city has adopted updated housing goals, including new affordable housing targets.
Proposed changes would allow taller buildings and more residential development in designated mixed-use areas, increase floor area allowances and ease certain restrictions to make housing projects more feasible. The proposal has been refined to prioritize affordable housing and neighborhood vitality, while minimizing business displacement, all in alignment with the city’s Comprehensive Plan. The Planning Commission unanimously recommended approval following extensive review, multiple study sessions and a public hearing.
Following the study session, the council unanimously directed staff to bring the HOMA proposal back for final consideration at a future meeting. The council approved an amendment (with Deputy Mayor Dave Hamilton and Councilmember Jared Nieuwenhuis voting against) to retain existing stepback requirements along Main Street in Old Bellevue. The council also discussed the relationship between HOMA and the Multifamily Tax Exemption program and asked staff to return for a future discussion on potential updates.
Iran human rights proclamation
The council issued a proclamation regarding Human Rights in Iran and Everywhere.