Langley housing proposal returns as Habitat for Humanity project

A revived Coles Valley proposal in Langley could open a rare path to homeownership for working families priced out of Whidbey, with Habitat for Humanity of Island County now under contract to buy the full 40-acre parcel if the city approves a new land-use framework. The current concept calls for 65 single-family lots and two cottage tracts, each limited to 10 cottages, a much more modest buildout than earlier versions of the plan.

Mayor Kennedy Horstman brought the proposed agreement to the Langley City Council on Monday, replacing an older annexation deal that has constrained the property for years. No action was taken, and the proposal is scheduled to return June 1, keeping the project in the public process instead of moving it straight toward construction. Habitat CEO Orin Kolaitis said the development is meant to serve teachers, health care workers, first responders and retail employees who keep Langley functioning but cannot afford to buy there, and he said the financing would rely on a mix of loans, public funding and private donations. Habitat is also partnering with a Seattle-area affiliate, which leaders said could offer a model for similar work elsewhere.

The property’s history explains why the new plan matters. Langley says the Coles Valley parcel was annexed into the city in 2005 under a legal contract recorded at Island County and authorized by state law. That agreement reportedly limited the site to 24 single-family homes and required 30 acres of open space, far below what the land later drew in development proposals. In 2021, concept drawings showed seven subregions and roughly 115 to 135 units. A 2024 version reached 137 homes, with the potential for about 31 accessory dwelling units. The current Habitat concept is smaller, but it is also more tightly linked to the affordability crisis that has pushed many island workers out of the market.

The city’s Coles Valley page says the property owners withdrew a Planned Unit Development application in November 2024, then filed a preliminary long-plat application in July 2025. That application was deemed complete on August 5, 2025, and Langley issued a review letter on September 9, 2025 before pausing the process until corrected materials are resubmitted. City leaders, property owners and at least one school district representative have spoken favorably about the Habitat version, though neighbors have previously raised traffic, construction noise, environmental concerns and the project’s proximity to the wastewater treatment plant.

Habitat for Humanity of Island County, founded in 1998, says it has already provided affordable homeownership to more than 70 local families and has 11 homes in some stage of planning, pre-construction or construction across the county. Its Langley pipeline includes Grace Landing Cottages and Heron Park Townhomes. Against the backdrop of Langley’s 2021 PUD code update and later debate over inclusionary housing requirements, the question now is whether Coles Valley can finally become the kind of project that produces homes island workers can actually buy.