$3 million from the state is giving this Bellingham housing project a boost
A project to transform a crime-ridden part of Bellingham into affordable housing has received a $3 million boost.
The Bellingham Housing Authority received the money from the Washington State Department of Commerce. The dollars, which are from the state’s Housing Trust Fund, will help finance the first part of the redevelopment of the former Aloha Motel site on North Samish Way.
The funds were part of $22.8 million in grants and loans the state provided for nine affordable housing projects throughout Washington.
“This is a key piece of financing that will help us secure the rest of our financing package for the first 69 new rental homes,” said Brien Thane, executive director/CEO of the Bellingham Housing Authority.
Information from this story came from news releases, an email interview and previous stories by The Bellingham Herald.
The first phase of construction will cost an estimated $22 million, Thane said in an email. Groundbreaking is set for summer 2019.
As for the former Aloha property, the city of Bellingham obtained the site in 2015 under condemnation proceedings after declaring the motel a blight.
The motel at 315 N. Samish Way was demolished the same year.
And while the Aloha was known for housing criminal and unsafe activity — drug deals, deadly overdoses, violence — it also was one of the few places where people with little income and bad background checks could find a place to live in Bellingham.
In 2017, the Bellingham Housing Authority bought the property from the city for $1.83 million, using a loan obtained from the city’s low-income housing fund.
The housing authority plans to build 160 apartments and townhouses for residents with a range of incomes, as well as offices and commercial space. Some of the housing will be for seniors 62 years and older, as well as those with physical or mental disabilities.
The Bellingham Housing Authority is financing the project in a number of ways.
There’s the $3 million from the State Department of Commerce.
The authority also is selling 24 single-family homes and using the anticipated $7-plus million in proceeds to help finance the redevelopment.
It also has formed a public/private partnership to redevelop the site and is applying for federal tax credits to attract private investment in the development.
