REPORT TO DEVELOPMENT REVIEW HEARING
SUBJECT
Title
Public Hearing: Adoption of a Mitigated Negative Declaration and Mitigation Monitoring Program (MMRP) and Action on the Architectural Review (PLN24-00633) for the Demolition of Existing Buildings and Construction of 147 Units in Seven Four-Story Stacked Flat Condos and Seven Three-Story Attached Townhomes Buildings and a 4,991 Square-Foot Commercial Building Located at 3521 and 3591 Homestead Road, Subject to Senate Bill (SB) 330.
Report
File No.: PLN24-00633
Location: 3521 and 3591 Homestead Road, two parcels totaling to an approximately 5.5-acre site located on the northeast intersection of Lawrence Expressway and Homestead Road; APN: 290-23-053 and 290-23-049; the property is zoned MU-NC - Mixed-Use Neighborhood Commercial.
Applicant: Pulte Group
Owner(s): SBH Homestead Properties LCC
Request: Adoption of a Mitigation Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP) and Architectural Review for the demolition of the existing buildings for the construction of a 147-unit residential mixed-use project that includes 90 four-story stacked condos and 57 three-story townhome units and 4,991 square-foot commercial building.
PROJECT DATA
The Project Data and Compliance Table is included as Attachment 2.
POINTS FOR CONSIDERATION
• The proposed project is bounded by Lawrence Expressway to the west, Homestead Road with commercial development across the street to the south, Lochinvar Avenue with multi-family development across the street to the north, commercial restaurant use, multi-family residential development, and daycare facility to the east. Kaiser Permanente Hospital is located to the southwest and two-story multi-family development to west across Lawerence in Sunnyvale. See Vicinity Map in Attachment 1.
• The site is currently developed with surface parking and three one-story commercial buildings totaling to 71,558 square feet.
• The site is zoned MUNC - Mixed-Use-Neighborhood Commercial and has a General Plan Land Use Designation of Neighborhood Mixed- Use that allows for residential density of 19 to 36 dwelling units per acre.
• Per the Santa Clara City Code 18.120.020.D.3 and 18.120.020.D.3, new construction of new multi-family development of any size requires Architectural Review approval through a Development Review Hearing.
• The project proposes 90 four-story “for-sale” stacked condos spread out in two 10-unit buildings and five 14-unit buildings and 57 three-story “for-sale” attached townhomes spread out in six nine-unit buildings and one three-unit building. The project also proposes a one-story 4,991 square-foot commercial building.
• The project has been submitted under Senate Bill (SB) 330 (2019), which allows a streamlined review if it complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application was deemed complete.
• The project proposes 22 affordable units, consistent with the City’s Affordable Housing Ordinance which allows the applicant to use State density bonus law to seek waivers and concessions from the Santa Clara City Code.
o The applicant requests four waivers: waive multi-story step-backs; waive 45-degree daylight plane requirement; increase in number of stories; and a height increase.
o The applicant requests a concession to reduce the commercial Floor Area Ratio (FAR) requirement.
• The project was deemed complete and cleared at the March 31, 2026, Project Clearance Committee meeting.
• Site Layout and Design
o The project involves the development of 14 buildings in total.
§ Seven buildings are proposed to be four-story stacked condos with 90 units total, located on the west side of the site along Lawrence Expressway. Out of the seven buildings, two buildings will have 10 units, and five buildings will have 14 units.
§ Six buildings are proposed to be three story attached townhomes. One building is proposed to be three-unit townhome building. These buildings are located on the east side of the site with the three-unit townhome building located next to the commercial building along Homestead Road.
§ Each stacked condo building and townhome building is proposed to have residential entries oriented towards private walkways and central paseos that lead to perimeter and internal walkways. Building 13 entries are oriented towards the common open space. Building 14 entries are oriented along Homestead Road.
o The project features a 5,300 square-feet common open space which includes a pavilion with tables, benches, and BBQ, nature play tot lot with planting on the sides, and usable lawn area with shade trees.
• Building Architecture
o Buildings 1-7 are proposed to be maximum 51 feet in height. Buildings 8-14 are proposed to be 36 feet in height. A density bonus waiver is requested to increase the maximum height of 32 feet to 36 feet and 51 feet.
o The commercial building is proposed to be 16 feet and 7 inches in height.
o A variety of residential entries are proposed. Stacked condo buildings feature stoop and covered porch entrance types. Attached townhome buildings incorporate grade-level covered porch and grade-level portico entrance type. The shopfront entrances for the commercial building are oriented towards Homestead Road with side entrances on the east elevation.
o The project is designed in a contemporary architectural style, using a mix of exterior materials and colors, flat and gable roofs, private balconies, dormer windows, metal elements, and entry types. Materials used are stucco, siding, and brick veneer with metal railings for balconies.
• Circulation and Parking
o Direct vehicular access to the site is provided from Homestead Road and Lochinvar Avenue with 26-foot-wide two-way driveways leading to an internal A Street that connects to seven driveways serving the residential buildings.
o Pedestrian walkways connect residential entrances to central paseos and with perimeter walkways.
o A two-car garage for each unit provides a total of 294 spaces with 47 guest and commercial parking spaces resulting in a total of 341 off-street parking spaces.
o The project would construct a six-foot wide separated sidewalk with a four-foot landscape strip along Homestead Road and Lochinvar Avenue.
o The project would provide 147 Class II bicycle parking (one in each townhome garage) and 12 Class I bicycle parking space in bike racks dispersed throughout the site.
• Landscaping and Open Space
o The project includes a landscape plan for the site that incorporates a mixture of plant species and trees for planting along both frontages, in the pedestrian walkways, along the perimeter, and common open space.
o A total of seventeen trees are proposed to be removed and replaced with 139 trees on site.
• The proposed project meets the required findings set forth in the Santa Clara City Code 18.120, Architectural Review.
• There are no active City code enforcement cases for this property.
• A neighborhood notice was distributed within a 1/4-mile radius of the subject site for this project review.
FINDINGS SUPPORTING STAFF’S RECOMMEDATION
Granting the Architectural Review approval requires the following findings consistent with City Code Section 18.120.020(F):
1) That any off-street parking area, screening strips, and other facilities and improvements necessary to secure the purpose and intent of this title and the general plan of the City area a part of the proposed development, in that:
• Each unit will have a two-car garage which provides the Code required two coverage parking spaces. SCCC Section 18.38.030, Table 3-3 requires two parking spaces for multi-family dwelling units with two or more bedrooms and four parking spaces per 1,000 square feet for commercial space. Forty-seven unbundled parking spaces are provided near the commercial building and throughout the site.
2) That the design and location of the proposed development and its relation to neighboring developments and traffic is such that it will not impair the desirability of investment or occupation in the neighborhood, will not unreasonably interfere with the use and enjoyment of neighboring developments, and will not create traffic congestion or hazard, in that:
• The proposed project would generate less than 100 net new peak hour trips. The number of vehicles entering/exiting the site at any time would be minimal and would not disrupt traffic flow in the existing neighborhood. The project met the threshold for vehicle miles traveled assessment. The Transportation Demand Management Plan lists measures to reduce the project’s residential vehicle miles traveled.
3) That the design and location of the proposed development is such that it is in keeping with the character of the neighborhood and is such as not to be detrimental to the harmonious development contemplated by this title and the general plan of the City, in that:
• The architectural features of the proposed design are true to the architectural form and appropriate for the neighborhood.
4) That the granting of such approval will not, under the circumstances of the particular case, materially affect adversely the health, comfort or general welfare of persons residing or working in the neighborhood of said development, and will not be materially detrimental to the public welfare or injuries to property or improvements in said neighborhood, in that:
• The project is subject to the California Building Code and City Code requirements, which serve to regulate new construction to protect public health, safety, and general welfare.
• The project proposed 15 percent (22 units and 0.05 in in-lieu fees) of the total units for household to be affordable. Affordable units shall be reasonably dispersed throughout the project and contain the same number of bedrooms as market rate units.
5) That the proposed development, as set forth in the plans and drawings, are consistent with the set of more detailed policies and criteria for architectural review as approved and updated from time to time by the City Council, which set shall be maintained in the planning division office. The policies and criteria so approved shall be fully effective and operative to the same extent as if written into and made a part of this title, in that:
• The proposed development is consistent with the objective standards set forth in the General Plan and Zoning Code, and with the waivers and concession, comply with the MU-NC zoning district’s development standards.
CONDITIONS OF APPROVAL
Conditions of approval are proposed for the project and are contained in Attachment 3.
ENVIRONMENTAL REVIEW
The action being considered considers the potential environmental impacts of the project addressed in a Mitigated Negative Declaration (MND) in accordance with the California Environmental Quality Act (CEQA). The MND and Notice of Availability were posted on the City’s website and were circulated for 20-day review on May 8, 2026, and closed May 28, 2026, in accordance with CEQA.
The MND analyzed the project’s impact in the various environmental topics covered by CEQA. Most topics were found to have less than significant impact or no impact. The following topics were found to have potential impacts that could be reduced to less than significant with mitigation: air quality, biological resources, cultural resources, hazards and hazardous materials, noise, and tribal cultural resources. The mitigations and responsible parties for mitigation are included in the MMRP (Attachment 5).
Findings
There is no substantial evidence that the project will have a significant effect on the environment and that the negative declaration or mitigated negative declaration reflects the lead agency’s independent judgment and analysis.
Public comments received on the IS/MND are available as Attachment 6. The City received two comment letters during the public comment period from Santa Clara Valley Transportation Authority (VTA) and Valley Water. VTA provided comments requesting to include more information on the TDM program for the residents, changing the annual driveway count to quarterly, providing an online portal for information, providing a secure bike storage room for commercial, and expanding the bike share program. Valley Water’s comments include protection of groundwater, permitting for the water well, and suggestion to provide a Water Supply Assessment. The response to comments memo is provided as Attachment 4.
PUBLIC CONTACT
Public contact was made by posting the Development Review Hearing agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
A public hearing notice was mailed to property owners and tenants within a 1/4-mile radius of the project site on June 4, 2026. As of the writing of this report, planning staff has received public comments for this application which are available as Attachment 7. Comments received generally discussed the loss of existing commercial space, displacement of small businesses, traffic concerns, and impacts on privacy due to the height with no daylight plane or multi-story step-backs. Staff provided responses to address the comments by explaining the role of the state housing laws regarding concession and waivers and General Plan land use designation’s allowance for residential development.
Community Meetings
An online and in-person Community Meeting was held for the project on November 13, 2025, where 38 members of the public were in attendance in-person and 11 members attended online. The overall concerns were regarding the loss of existing commercial space and displacement of small business and neighborhood services, project timeline, who initiated the redevelopment process. The applicant addressed some of the comments in-person by explaining the role of the state housing laws, RHNA requirements, General Plan land use designation’s allowance for residential development, and the property owner initiated the sale of property which Pulte and Waymark are redeveloping.
A second Community Meeting was held in-person at the project site on February 25, 2026, where 30 members of the public were in attendance. Concern regarding the loss of existing retail, traffic, and project timeline were raised.
RECOMMENDATION
Recommendation
Adopt the Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP) based on findings and Approve the Architectural Review for the demolition of the existing buildings for the construction of a 147-unit residential mixed-use project that includes 90 four-story stacked condos and 57 three-story townhome units and 4,991 square-foot commercial building.
Staff
Prepared by: Meha Patel, Associate Planner, Community Development Department
Approved by: Sheldon S. Ah Sing, Development Review Officer, Community Development Department
ATTACHMENTS
1. Vicinity Map
2. Project Data and Compliance Table
3. Conditions of Approval
4. Weblinks - Environmental Documents
5. Mitigation Monitoring and Reporting Program (MMRP)
6. MND Public Comments
7. Public Comments
8. Development Plans