Habitat for Humanity outlines Willow Path Cottages, a permanently affordable 8‑unit project

Steven Lee, executive director of Habitat for Humanity of Snohomish County, told the Mountlake Terrace City Council on July 16 that the organization is pursuing an eight‑unit cottage housing project called Willow Path Cottages in Lynnwood and is exploring legal mechanisms to keep the homes permanently affordable.

Lee said housing costs in Snohomish County have risen sharply and cited a current median home price of $750,000, which he said equates to a typical monthly mortgage of more than $5,000. To expand attainable homeownership, Habitat plans to use cottage housing and cottage courts—smaller footprints and shared spaces—to reduce construction and maintenance costs. The Willow Path Cottages site was donated by the family of former Representative Ruth Kagey, Lee said.

The project, located near Edmonds College and transit, would occupy about 0.5 acre and include eight cottages arranged around a common courtyard. Two floorplans are proposed: a modest two‑bedroom roughly 650 square feet and a larger three‑bedroom with two bathrooms. Lee said the homes would be sold to households at or below 80% of area median income and that Habitat is working with attorneys to record resale restrictions—via a land trust, ground lease or covenant—to preserve long‑term affordability.

Lee described this project as a test case for contractor‑led construction to improve efficiency and scale while retaining volunteer opportunities in parts of the build. He said the group is still finalizing construction financing and hoped to break ground late this year or early next year and complete the project by the end of 2027.

Councilmembers welcomed the design and asked about scalability, land acquisition and the legal approach to permanent affordability. Lee said donations and partnerships help make such designs viable and reiterated the need for creative financing and legal frameworks to retain affordability for future resales.