The Cupertino City Council approved plans on Apr. 6 for a new multifamily development by Dividend Homes, a Bay Area developer, near the center of the Silicon Valley city.
The approval comes at a time when Cupertino is under increased attention from California’s housing authorities regarding its compliance with state housing laws and requirements to increase local housing supply.
Dividend Homes, based in Morgan Hill, will construct six buildings containing a total of 32 townhome-style apartments at 20045 Stevens Creek Boulevard. Of these units, six will be designated as affordable for moderate-income households. In Santa Clara County, this typically means an income limit of $164,000 for one person or $234,250 for a family of four. The apartments are expected to range from 1,550 to 2,150 square feet in size.
The developer is using Senate Bill 330 to streamline the application process and will benefit from the state’s density bonus system by providing affordable units in exchange for permission to build larger structures than normally allowed by zoning rules. The site is located near the former Vallco Town Center mall area that is set for redevelopment into a mixed-use neighborhood called The Rise. Project costs and construction timelines have not yet been announced.
Last summer, Cupertino faced criticism from California’s Department of Housing and Community Development over its handling of two proposed projects amid accusations that it violated state law regarding timely processing of development applications. Disputes arose about how many opportunities developers have to respond to city requests under the Permit Streamlining Act; while Cupertino argued there was only one ninety-day window per application cycle, state officials said multiple windows may apply if there are several rounds of communication.
A related lawsuit filed by Los Gatos seeks clarification on these timing provisions but states that its aim is “not to stop housing construction in Los Gatos, but rather to know how to comply with the law.”
Cupertino’s current housing element requires planning for an additional 4,588 homes by 2031.
