Chelan expands flexibility in housing fund with ordinance updates

CHELAN — A set of ordinance updates approved April 28 may not have drawn much discussion, but they quietly expand how Chelan can respond to one of its most persistent challenges.

The Chelan City Council unanimously adopted three measures updating the city’s affordable housing code, aligning local rules with changes in Washington law and allowing more flexibility in how housing funds can be used.

City Finance Director Heidi Evans described the changes as largely administrative. But taken together, they remove limits that had made Chelan’s rules more restrictive than state guidelines.

Councilmember Tim Hollingsworth asked whether the changes would commit the city to new spending.

“This doesn’t obligate us beyond any obligations that may come with the funds into the account or other statutory requirements?” he asked.

Evans said the updates instead clarify how existing housing funds can be used, noting that recent changes in state law allow for more flexibility than Chelan’s code previously permitted.

“These updates really earmark how we can spend the tax dollars,” she said.

Previously, the city’s code limited much of that spending to households at lower income levels. The updated language allows for a wider range of uses, including projects serving residents at higher income thresholds, particularly in owner-occupied housing.

In practical terms, that gives the city more options as it considers how to support housing in a market where rising costs have affected not only low-income residents, but also middle-income workers.

The ordinances also reorganize how the city’s housing fund is structured. One chapter was repealed and replaced, and related sections were consolidated to make the code more consistent and easier to navigate. Provisions related to donations were moved to better align with the rest of the chapter.

Councilmembers asked few additional questions before approving the measures, generally framing the changes as a necessary update to keep city policy in step with state law.

The changes do not commit the city to any specific project or spending decision. Instead, they give council more flexibility in how housing funds can be used in the future.

As Chelan continues to face housing pressures tied to growth, tourism and workforce demand, that added flexibility could play a role in shaping how the city responds.

Andrew Simpson: 509-433-7626 or andrew@ward.media