Issaquah council approves ARCH housing recommendations, revises down‑payment program and delegates legacy administration to Bellevue

The Issaquah City Council unanimously approved a package of ARCH (A Regional Coalition for Housing) items during its Feb. 2 meeting, including funding recommendations, changes to a regional down‑payment assistance program, and a housekeeping delegation of legacy administrative duties.

Lindsay Masters, executive director of ARCH, described the round as ARCH’s largest to date: ARCH initially advertised about $3.5 million for this funding round which grew during the year as loan repayments and returns added to the pool, and applicants requested roughly $15 million across 15 proposals. "Since the life of the program, we've put out over $120,000,000 in resources. That's leveraged, I believe, close to $2,000,000,000 ... and over 6,000 units of housing and shelter," Masters said.

Masters walked council members through recommended awards and noted a diversity of project types — large multifamily rental, homeownership preservation, group‑home models, and conversions of vacant office space. She highlighted specific items discussed: a Bothell urban project on surplus city land with family‑sized units; Bellevue projects (including a developer request for $1,000,000 where ARCH recommended $500,000 and Bellevue will contribute additional funds); Imagine Housing’s Forest Edge (100 units at 60% of median income using a religious‑site density bonus); Orchard Gardens (a preservation/homeownership project); and other projects in Kirkland, Redmond and Issaquah.

After members’ questions about federal 9% low‑income housing tax credit eligibility and program priorities, Deputy President Martz moved to approve Resolution 2026‑05 authorizing ARCH’s administering agency to execute documents necessary to fund the recommended projects using the City's Housing Trust Fund. The motion was seconded and passed unanimously.

Masters also summarized proposed revisions to the ARCH down‑payment assistance (DPA) program, a long‑standing pooled program administered with King County and the Washington State Housing Finance Commission. Proposed changes include streamlined administration (so adjustments can be made administratively through the City of Bellevue), lower interest rates and reduced buyer cash requirements, and higher maximum subsidies: the transcript records increases "up to $50,000 for households earning between 80–100% AMI and up to $75,000 for households under 80% AMI." Councilmember Walsh asked about expanding eligibility to 100% AMI; Masters said homeownership markets differ from rental markets and committed to monitoring program usage and reporting loan activity to the board after about a year. The council approved the revisions (Resolution 2026‑06), seconded and passed unanimously.

Finally, Masters proposed a housekeeping authorization to delegate administrative duties for ARCH financing agreements that predate a 2010 interlocal agreement to the City of Bellevue, enabling centralized contract administration and potential cost savings. Deputy President Martz moved and the council approved Resolution 2026‑07 unanimously.

Next steps: ARCH and partner cities will implement approved agreements and the revised DPA program; Masters said ARCH will monitor utilization and report back on DPA uptake and impacts.