City to build third tiny home village

The new Division Street community will be run by HomesNOW!

July 20, 2026 - by Kelsey Thomas, Assistant Communications and Community Relations Director

A new tiny house village of 35–40 homes is set to open in Bellingham in early 2027, expanding local support for people experiencing homelessness. The village will provide transitional shelter with a focus on helping residents move toward stable, permanent housing.  

The City is partnering with HomesNOW!, a Bellingham‑based nonprofit, to manage the new site. The City and other community partners are funding construction and initial setup, while HomesNOW! will oversee day‑to‑day operations. 

This project builds on the success of the City’s two existing tiny home communities: North Haven Tiny Home Village, also operated by HomesNOW!, and Gardenview Tiny House Village. It will be located on City-owned property at 2140 Division St. 

“Opening this new tiny house village is an important step in expanding housing opportunities of all kinds in Bellingham,” said Mayor Kim Lund. “This new village builds on what we’ve learned from our existing sites, and together with HomesNOW!, we’re creating a community that helps residents rebuild and move toward long-term housing.

“I am incredibly proud that City of Bellingham staff have worked tirelessly to answer my call to bring another village site onsite as quickly as possible and build upon the momentum of North Haven,” added Mayor Lund.

HomesNOW! uses a self‑governing model in which residents take an active role in managing the community, ensuring shared responsibility and strong peer support. 

“HomesNOW has proven what happens when people are given a safe place and the opportunity to directly take part in the housing and shelter solution,” said Doug Gustafson, chairman of HomesNOW!. “We’re thrilled to partner with the City of Bellingham to open that door for more people, and to let them hold it open for the next person. Let’s do this! Warp speed ahead!” 

Planning is underway for electrical, water, and sewer infrastructure, as well as purchasing tiny homes and shared kitchen, bathroom, and laundry facilities. Construction is anticipated to begin this winter, with the village opening in early 2027. 

Funding  

The initial project cost is $1.2 million, funded by:  

  • City of Bellingham Affordable Housing Levy – $500,000  
  • City of Bellingham portion of Justice Project Sales Tax – $400,000  
  • Community partners: $300,000 

About tiny home villages

Tiny home villages operate as temporary shelters under rules outlined in Bellingham Municipal code. Each village must receive a permit to operate. Permits are issued for two years, with the opportunity to renew for additional years if all permit conditions are met.


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City Communications Team: media@cob.org


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