The BSD Development Office is set to close its doors for the next three months.
The decision comes as the city of Bellingham prepares to take over the troubled city development agency.
The city’s director of finance, Steven Sorenson, has been tasked with creating a new city development authority.
In a statement, BSD spokesman Ryan Raffa said, “The agency has not met its funding and staffing levels and has not made good on its commitments to the city.”
BSD has about $8 million in the bank for this fiscal year, which ended last September.
“BSD is facing a growing need to provide affordable housing and affordable housing affordability for the people of Bellingsham, including the elderly and disabled,” Raffi said.
The BSD will continue to operate under the supervision of the city and will not be subject to the oversight of the state or federal government.
A BSD spokesperson told the Associated Press that the office will be closed for a few months to prepare for the transition.
There are many city development agencies around the state.
Bellingham has about 15 agencies, including a BSD agency and several nonprofit agencies that help people in need.
The BSU has a small city development division and has also been dealing with homelessness.