This development could help Whatcom families struggling to find affordable housing

Feb. 17--BELLINGHAM -- Mercy Housing Northwest is working to develop 80 units of affordable housing in the Barkley area.

The proposed four-story, L-shaped building would focus on serving lower-wage working families and individuals, who are increasingly priced out of the housing market, according to Mercy Housing Northwest.

"That's definitely a big target demographic for us," Marcia Wright-Soika, director of philanthropy and strategic partnerships for Mercy Housing Northwest, said to The Bellingham Herald. "We know that the affordable housing supply is very crunched in the Bellingham area."

One-, two- and three-bedroom apartments are planned for the building, which would be on Barkley Boulevard across from the Whatcom Family YMCA's early learning center on Rimland Drive.

The proposed development also would include an expanded YMCA child care center on the ground floor. That center would replace the YMCA's existing center on Rimland Drive.

The project would address two of Bellingham's needs, affordable child care and affordable housing.

About 39 percent of Whatcom County households struggle to afford basic necessities that include child care, food and housing, according to United Way's ALICE report. In Bellingham, 44 percent of households struggle to do so.

Mercy Housing Northwest is negotiating with Barkley Co. to buy land for the development.

"As part of our master planning, ownership has continually strived to seek a balance in all areas of workplace, services and housing. Affordable housing is a key component of the future growth of the village and we feel that Mercy Housing will be an excellent partner in that component. We are very excited about this project," said Michael Bayless, chief executive officer for Talbot Services/Barkley Co.

The project is in the early stages and still needs to secure its funding and construction permits, according to Colin Morgan-Cross, director of real estate development for Mercy Housing Northwest.

Mercy Housing Northwest has applied for funding from the city's voter-approved housing levy, according to Samya Lutz, Housing and Services Program manager for Bellingham.

Known as the Bellingham Home Fund, it helps pay for low-income housing programs citywide.

Other possible funding sources include the State Housing Trust Fund and Low-Income Housing Tax Credit program.

The earliest construction could start would be in 2021, according to Morgan-Cross.

If built, the proposed development would be Mercy Housing Northwest's seventh affordable housing project in Whatcom County. It's most recent was the $22-millionEleanor Apartments for seniors, which had 80 apartments and opened in Bellingham in 2017.

The project's genesis was an introduction between Barkley Co. and Mercy Housing Northwest that was led by former Bellingham Mayor Kelli Linville and Bellingham staff, according to Bayless.

"Having worked with Mercy Housing in my previous position at Dawson Construction on their Eleanor Apartments project in Bellingham, I had familiarity with Mercy Housing and could provide some confidence to ownership of the synergies between our two companies and type of product and programs they could bring to Barkley," Bayless said.

Mercy Housing Northwest has developed other properties that include space for housing and child care, but this would be the first such effort in Whatcom County.

Morgan-Cross said the nonprofit was "excited for the opportunity to co-locate affordable child care and affordable housing."

The proposed development in Barkley also would have programs to help residents improve their economic situation and maintain stable housing. Plans include working with the Bellingham School District and Western Washington University to help children living there be successful in school, according to Mercy Housing Northwest's application with the city of Bellingham for levy money.

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