REPORT TO PLANNING COMMISSION
SUBJECT
Title
Public Hearing: Action on a Vesting Tentative Subdivision Map (PLN24-00665) for 147 Units and One Commercial Building Located at 3521 and 3591 Homestead Road, Subject to Senate Bill (SB) 330 (2019). CEQA: Find that the Vesting Tentative Map Application is Within the Scope of the Already Adopted Mitigated Negative Document.
Report
REPORT IN BRIEF
Applicant: Pulte Home Company LLC / William Sadler
Owner: SBH Homestead Properties LLC
General Plan: Neighborhood Mixed-Use
Zoning: MU-NC - Mixed-Use - Neighborhood Commercial
Site Area: 5.5-acre
Existing Site Conditions: The site is currently developed with surface parking and three one-story commercial buildings totaling 71,558 square feet.
Surrounding Land Uses:
• North: Multi-family development across Lochinvar Avenue (R3)
• East: Commercial restaurant use (MU-NC), multi-family residential development (PD), and daycare facility (MU-NC)
• South: Commercial development across Homestead Road (MU-NC)
• West: Multi-family residential across Lawrence Expressway
Staff Recommendation:
Recommend approval of the Vesting Tentative Subdivision Map to the City Council for the reconfiguration of existing adjacent parcels and subdivision for condominium purposes for 147 units and for one commercial building located at 3521 and 3591 Homestead Road, subject to findings and conditions of approval.
BACKGROUND
On December 11, 2024, William Sadler, on behalf of Pulte Home Company LLC (“Applicant”), filed a formal Architectural Review application requesting approval for demolition of the existing commercial buildings and development of the proposed townhome units and commercial building (File No. PLN24-00633) (“Architectural Review Application”). The Architectural Review Application received approval at a Development Review Hearing on June 17, 2026.
On December 19, 2024, the Applicant, filed an application for a Vesting Tentative Subdivision Map (File No. PLN24-00665) proposing the reconfiguration of existing adjacent parcels comprising 5.5 acres, the subject site (APNs: 290-23-053 and 290-23-049) and subdivision for condominium purposes for 147 units and for one 4,991 commercial building (“VTM Application”).
On March 7, 2025, the applicant submitted an SB 330 Preliminary Application for the development of the proposed townhome units and commercial unit. SB 330 allows developers to submit a preliminary application for housing development projects to “freeze” the applicable fees and development standards that apply to the project while preparing the necessary information to submit a completed application. The SB 330 also limits the number of public hearings to five total.
Pursuant to the provisions of City Code Section 17.05.300(g) - Tentative Maps, the Planning Commission is responsible for reviewing each completed tentative map application and for making a recommendation of approval, denial, or conditional approval to the City Council. The City Council is the ultimate decision authority for Tentative Maps.
Summary of Development Review Hearing
Pursuant to Santa Clara City Code Section 18.120.020. D.3, requires approval for Architectural Review at the Development Review Hearing (DRH). The project provides 15% affordable housing units and uses waivers under State Density Bonus law to waive transitional development standards and allow for an increase in building height.
On June 17, 2026, a publicly noticed DRH meeting was held. Notice of the meeting was mailed to 1,332 tenants and/or property owners. Six public comment letters were received in opposition, and five public comment letters were received in support of the project prior to the meeting. Seven members of the public attended the meeting in person from the immediate neighborhood. Overall, the neighbors provided comments regarding privacy impacts due to the height, balcony placement, lack of multi-story step-backs, offsite parking concerns and lack of transitional development.
After listening to the neighbors’ concerns, the Development Review Officer (DRO) approved the project subject to findings and conditions of approval, with additional landscaping between the subject property and adjacent property, garages are to only be used for parking and adding windows to all garages to address privacy concerns. The DRH staff report is available as Attachment 4.
DISCUSSION
Subdivision
Tentative Map applications are reviewed for consistency with the City’s General Plan, Zoning Code (Title 18), Subdivision Code (Chapter 17.05), and conformance with the Subdivision Map Act, pursuant to Gov’t Code § 66474(a). In accordance with Chapter 17.05 of the City Code, the project requires a VTM because there are five or more lots proposed. The VTM Application includes the reconfiguration of existing adjacent parcels and subdivision for condominium purposes for 147 units and for one 4,991 commercial building.
The proposed VTM was reviewed by the City’s Project Clearance Committee/Subdivision Committee and deemed complete and cleared on October 7, 2025. Staff confirmed that the proposed subdivision will not result in any inconsistencies with the General Plan and zoning designations for the property, Building Code, or other applicable requirements.
Senate Bill (SB) 330 Review
The project is subject to streamlining under SB 330 (2019). Enacted in 2019 to accelerate housing production in urban areas, and among other requirements SB 330 limits the number of hearings for a project to five, as long as the project complies with the applicable General Plan and zoning standards in effect at the time of application. Applicant-led meetings, including community meetings, do not count towards the five hearings allowed. For the purposes of SB330, staff anticipates the five public hearings to include the DRH, the Planning Commission and the City Council meetings. Additionally, if there is an appeal, then one meeting is reserved for the appeal process.
Summary
The VTM Application meets the requirements set forth in City Code Section 17.05 and the proposed subdivision, together with the proposed design and improvement, is compatible with adjacent land uses, consistent with the City’s General Plan and all applicable provisions of the City Code. The findings made to support the approval of the VTM Application are set forth in this Staff Report and in the attached Resolution (Attachment 2).
Summary of Community Concerns
As required by the City’s adopted Public Outreach Policy for Planning Applications, the project conducted community outreach through two community meetings.
On November 13, 2025, the applicant held a Community Meeting in both online and in-person format, with 38 community members attending in-person and 11 attending online. Notice of the meeting was mailed to property owners and tenants within 1/4-mile radius of the project site. Community concerns were related to the loss of existing commercial space, displacement of small business and neighborhood services, the project timeline, and questions regarding the entity that initiated the redevelopment process. In response, the applicant addressed some of these comments at the meeting by explaining the role of the State housing laws, and Regional Housing Needs Allocation (RHNA) requirements, the General Plan land use designation that allows residential development, and that the property owner initiated the sale of the site, which Pulte and Waymark are proposing to redevelop.
Following the first community meeting, the applicant worked with the property owner and management company to address tenant concerns regarding relocation assistance (i.e. free rent, extension of leases, broker assistance in finding new spaces to lease). Most tenants have vacated and relocated, with the last tenant staying through June 2026.
On February 25, 2026, a second Community Meeting was held in-person at the project site, with 30 community members attending. Notice of the meeting was mailed to property owners and tenants within 1/4-mile radius of the project site. Community concerns were related to the loss of existing retail, traffic, and the project timeline.
Proposed Planning Commission Actions
1. Recommendation on the Mitigated Negative Declaration (MND). If the Planning Commission finds that approval of the VTM Application is within the scope of the MND adopted on June 17, 2026, the Planning Commission would recommend that finding to the City Council, meaning no additional environmental review is required.
2. Recommendation on the VTM Application. The VTM Application is presented to the Planning Commission for review and to make recommendation of denial, approval or conditional approval to the City Council. The Tentative Subdivision Map is a quasi-judicial decision with a list of required findings set forth in City Code Chapter 17.30, including that the site is suitable for the density and design of development and that the project is consistent with the General Plan. For the Planning Commission to recommend approval of the VTM Application, it must find the following:
a. General Plan Consistency: The proposed subdivision, together with the provisions for its design and improvement, is consistent with the General Plan land use designation of Neighborhood Mixed-Use. The proposed subdivision creates additional residential development in proximity to jobs, incrementally advancing the City’s goals to produce new housing; provides a deed-restricted affordable housing unit, which forwards Mixed-Use Land Use Goal 5.3.4-G1 to provide mixed-use to support high quality uses and the City’s economic development; and encourages residential neighborhoods throughout the City (Policy 5.3.4-P2).
b. Site Suitability: The proposed subdivision, together with the provisions for its design and improvement, is suitable for the site because much of the surrounding area includes multi-family residential and commercial development, and it is consistent with the density requirements under the General Plan and Zoning for the site. See Attachment 1 for a vicinity map.
c. Zoning Code Compatibility: The proposed subdivision, together with the provisions for its design and improvement, meet the development standards of the Zoning Code, utilizing concessions, incentives and waivers under State density bonus law. The previously approved Architectural Review Application included the following waivers: waive multi-story step-backs; waive 45-degree daylight plane requirement; increase in number of stories; and a height increase; and included one concession: reduce the commercial Floor Area Ratio (FAR) requirement by 20%. The proposed subdivision, together with the provisions for its design and improvement meets the applicable provisions of the City’s Zoning Code utilizing the waivers and concession under the State Density Bonus Law.
d. No Adverse Effects: The design of the subdivision and type of improvements will not cause substantial environmental damage, as the project is a small-scale residential development with one commercial building that will comply with current Building Code requirements, including health effects as it will be subject to Covenants, Conditions, and Restrictions for operation and maintenance of the buildings and site improvements and does not propose the use of hazardous materials.
e. Conflicts with Easements: As designed, the project would not conflict with any recorded public easements for access through or use the proposed subdivision. The VTM application was reviewed for potential conflicts with public easements by the Project Clearance Committee/Subdivision Committee which includes Public Works, Silicon Valley Power, and Water and Sewer departments.
f. Natural/Passive Heating and Cooling: The project will adhere to CALGreen energy efficiency measures to conserve energy through building design and site planning.
Approval of the VTM Application will facilitate the development of a project consistent with the City’s Zoning Code and General Plan, thereby incrementally advancing the City’s goals to produce new housing and providing commercial space.
CONDITIONS OF APPROVAL
The Vesting Tentative Subdivision Map includes the conditions of approval in the form drafted by staff (Attachment 3).
ENVIRONMENTAL REVIEW
An Initial Study and Mitigated Negative Declaration (IS/MND) was prepared for the Architectural Review in accordance with the California Environmental Quality Act (CEQA) to address the potential environmental impacts of the project. The Initial Study did not find any substantial evidence that the project will have a significant effect on the environment after implementation of required mitigation measures. The MND and Notice of Intent were posted on the City’s website and were circulated for 20-day public review on May 8, 2026, and was approved at the DRH on June 17, 2026, a publicly noticed meeting.
The proposed Vesting Tentative Subdivision Map is consistent with the approved MND and would not result in a new impact on the environment or significantly increase the severity of any previously identified impact.
FISCAL IMPACT
There is no fiscal impact to the City for processing the requested application other than administrative
time and expense typically covered by processing fees paid by the applicant.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Planning Commission 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 at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. 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.
On July 30, 2026, the notice of public hearing for this item was mailed to 1,331 property owners and tenants within ¼-mile of the project site for the August 12, 2026, Planning Commission meeting and August 25, 2026, City Council hearing. Newspaper notice of this item was published in The Weekly, a newspaper of general circulation, on July 29, 2026. At the time of this staff report, no comments have been received by the Planning Division in support or opposition to the Tentative Map.
Notices for both community meetings were mailed to property owners and tenants within 1/4-mile radius of the project site. Public notification and comments received at the meetings are summarized in the staff report section above under “Summary of Community Concerns.”
The June 17, 2026, DRH was noticed with a mailing radius of ¼-mile, as summarized in the above staff report section “Summary of Development Review Hearing.”
RECOMMENDATION
Recommendation
1. Recommend that the City Council find that the proposed subdivision is within the scope of the adopted Mitigated Negative Declaration (MND) prepared for the project and no further environmental analysis is required.
2. Adopt a resolution recommending the City Council approve the Vesting Tentative Subdivision Map for the reconfiguration of existing adjacent parcels and subdivision for condominium purposes for 147 units and for one commercial building located at 3521 and 3591 Homestead Road, subject to findings and conditions of approval.
Staff
Prepared by: Meha Patel, Associate Planner, Community Development Department
Reviewed by: Alexander Abbe, Assistant City Attorney
Approved by: Lesley Xavier, Planning Manager, Community Development Department
ATTACHMENTS
1. Vicinity Map
2. Resolution to Recommend Approval
3. Conditions of Vesting Tentative Subdivision Map Approval
4. Web Link to June 17, 2026, DRH
5. Vesting Tentative Map