Bellevue moved to bring at least 172 affordable apartments to a city-owned lot next to the BelRed light rail station after the City Council approved a predevelopment agreement with nonprofit builder BRIDGE Housing on Tuesday, June 23.

The council passed Resolution 10645 on its consent calendar, authorizing a Predevelopment Agreement and future ground lease with BRIDGE Housing for the Kelly transit-oriented development (TOD) parcel at 1500 130th Ave. NE. Under the ground lease structure, the city retains ownership of the land while BRIDGE Housing designs, finances, and builds the project.

The 1.15-acre site, formerly Kelly's Auto Body, sits directly south of the 2 Line's BelRed station in the BelRed Arts District. The project would serve households earning at or below 80% of area median income and include family-size units, integrated arts and cultural space, and public gathering areas connected to the station.

"This marks a significant opportunity for the city of Bellevue, in both housing development and support of the arts and cultural ecosystem," Bianca Siegl, director of the city's Office of Housing, said in July 2025 when the developer was selected.

The city originally envisioned up to 300 units on the site when it released its Request for Qualifications in March 2025. BRIDGE Housing's proposal landed at a minimum of 172 homes. The RFQ closed June 2, 2025, and the city selected BRIDGE Housing the following month.

BRIDGE Housing, a San Francisco-based nonprofit, is already active in Bellevue. The developer broke ground in early 2025 on a 234-unit affordable project in the Spring District for renters earning up to 60% of AMI.

The Kelly TOD agreement fits the city's broader push. Bellevue adopted its 2026–2032 Affordable Housing Strategy in May 2026, targeting 5,700 affordable units built or preserved by 2032. The city's 2044 Comprehensive Plan, approved in October 2024, calls for 35,000 new housing units citywide, with growth concentrated in downtown, Wilburton, and BelRed.

Next steps include finalizing the ground lease and completing predevelopment work. The city has not announced a construction timeline.