KulshanCLT to Receive $8M State Appropriation to Advance Thornton Village Neighborhood in Ferndale

Capital budget investment unlocks workforce housing for Whatcom County families and establishes a scalable model for rural cities across Washington State

BELLINGHAM, WA — March 25, 2026 — The State of Washington has allocated $8 million in capital budget funding to Kulshan Community Land Trust (KulshanCLT) to support infrastructure and site readiness for Thornton Village, a planned 46-home permanently affordable neighborhood in Ferndale, WA. The investment leverages more than $10 million in additional funding from local government, private sources, and philanthropic partners, creating what KulshanCLT calls one of the highest returns on public housing investment available, homes that remain affordable not just for the first buyer, but for every family that follows.

"This appropriation is a game-changer for Ferndale and for Whatcom County," said Rose Lathrop, Executive Director of Kulshan Community Land Trust. "Thornton Village isn't just 46 homes, it's a permanent legacy. This appropriation will help us build a neighborhood where teachers, healthcare workers, and tradespeople can afford to live in the community they serve, for generations to come."

A Community in Crisis

The need for this investment is urgent. Ferndale home prices have more than doubled since 2018, now exceeding $650,000, while local wages have failed to keep pace. Fewer than one in five Ferndale households can afford a median-priced home. Rental costs have risen nearly 50% in the last five years, leaving working families with no clear path to homeownership. Whatcom County as a whole needs an estimated 34,377 new homes over the next 20 years to meet demand.

The consequences are visible and immediate. Individuals and families are increasingly forced into long commutes or out of the region altogether, creating a workforce housing crisis that threatens the economic vitality and social fabric of communities across Whatcom County.

"Our region's affordable housing crisis affects communities of all sizes, not just major cities,” said Ferndale Mayor, Greg Hansen.  “For small cities like Ferndale, options to address affordability are limited. The City of Ferndale is proud to work with KulshanCLT to bring permanently affordable homes to our community, and we are thrilled that Kulshan CLT has been allocated funds in the Washington State Capital Budget for the Thornton Village Project."

About Thornton Village

Thornton Village is a 46-home permanently affordable neighborhood planned for Ferndale, WA, developed by KulshanCLT in partnership with Whatcom County and the City of Ferndale. The project transforms privately owned land into a thriving community designed for working families who can no longer afford to live where they work.

Whatcom County secured the land for the project, and the City of Ferndale is an active funding partner. Significant pre-development work is already complete, with strong public partners at the table. However, the scale of Thornton Village and its substantial upfront infrastructure costs create a barrier that traditional funding sources such as the Housing Trust Fund are not designed to address. This $8 million capital appropriation is critical to getting the project moving, unlocking the site for construction, and building real momentum. While additional funding is still needed to fully realize all 46 permanently affordable homes, this investment marks a major step forward and signals strong confidence in the project’s success.

Homes at Thornton Village will be built using the proven community land trust model: public dollars are invested once and benefit generation after generation. KulshanCLT has completed 90 resales in its history, each one preserving affordability for the next family. This project is designed to do the same, creating stable, tax-paying homeowners rather than temporary fixes, and reducing the long-term public costs associated with displacement, workforce shortages, and long commutes.

About Kulshan Community Land Trust

Founded in 1999, Kulshan Community Land Trust has spent more than 26 years helping Whatcom County families earning under 80% of the area median income become first-time homeowners. KulshanCLT homes are available to eligible buyers at purchase prices dramatically below fair market value, frequently at 45-50% lower.

The community land trust currently holds 147 permanently affordable homes in trust, including condominiums, single-family homes, and modular homes, and has three active building projects underway: Telegraph Townhomes (24 homes), Birchwood LaFreniere Court (18 homes), and Thornton Village (46 homes).

Under the KulshanCLT model, homebuyers receive down payment assistance and a below-market purchase price in exchange for a fixed appreciation rate of 1.5% per year. A resale formula keeps homes affordable for future buyers while still providing a meaningful return for current owners. Homeowners typically pay significantly less on their monthly housing costs, which include any applicable mortgage payment, insurance, taxes, HOA dues, and ground lease fees, than if they were renting the home on the open market.

KulshanCLT brings deep expertise in complex financing structures, including Housing Trust Fund, HOME, CDBG, local funds, and philanthropy, and provides comprehensive homebuyer services including HUD-certified counseling, income qualification, and mortgage support.

A Scalable Model for Washington State

KulshanCLT and its partners believe Thornton Village represents more than a local solution. As a rural city with limited funding tools and a severe affordability gap, Ferndale's challenge mirrors that of communities across Washington State. The funding structure developed for Thornton Village, combining state capital investment with local government partnership and private leverage, is designed to be replicable, offering a practical model for other rural cities facing similar crises.

"Public dollars invested in community land trust homes don't disappear into the market," said Lathrop. "They are protected, passed forward, and put to work again for every family that comes after. That is what makes this investment so powerful, and so worth making."

KulshanCLT gratefully recognizes the advocacy of our local representatives. The appropriation would not have been possible without the support of Washington State Representatives Joe Timmons (D–Bellingham), Alicia Rule (D–Blaine), and Alex Ramel (D–Bellingham).

About Kulshan Community Land Trust Kulshan Community Land Trust strengthens community by holding land in trust for permanently affordable homeownership and other community needs, and by offering financial assistance and educational services to people of limited means. KulshanCLT works to grow livable communities everyone can afford, foster socioeconomically diverse neighborhoods, and steward land so that it remains productive and affordable in perpetuity. Learn more at www.kulshanclt.org.