Milpitas council approves modified Pulte Homes plan at 1355 California Circle, preserving 75 affordable rental units

The Milpitas City Council on April 15 adopted a resolution approving an amendment to the previously authorized site development permit for the 1355 California Circle project and a density bonus permit that modifies the design and unit configuration of a planned apartment building.

Planning staff said the revised design, proposed by Pulte Homes in partnership with Waterford Property Company, reduces the apartment building height from six stories to five, changes the layout from an L-shaped to a U-shaped building and replaces smaller studio units with larger family-oriented units. The revised apartment will contain 75 rental units, which planning staff and the applicant said will be preserved as affordable housing targeted to low- and very-low-income households. The new unit mix is 31 one‑bedroom units, 21 two‑bedroom units and 24 three‑bedroom units.

Senior Planner Michael Fasati told the council the project preserves the previously approved total of 75 affordable units and that the proposal uses state density-bonus provisions to request concessions and incentives, including setback adjustments, a height exception and a parking reduction consistent with density-bonus law. Planning Director Jay Lee and staff said an addendum to the November 2023 environmental impact report found no new significant environmental impacts requiring a subsequent EIR under CEQA sections 15162 and 15164.

Jim Sullivan, representing Pulte Homes, said the redesign lowers the building’s height by roughly 20 feet, increases resident open space and enlarges unit sizes to better serve families. Sullivan told the council the project team also intends to prioritize Milpitas Unified School District employees for a portion of the apartments under a right-of-first-refusal arrangement.

In addition to project design changes, Pulte requested temporary flexibility tied to the townhome portion of the overall site: the company asked for permission to occupy 11 of its 31 approved for‑sale townhomes before construction of the affordable apartment building begins. Staff said the flexibility is intended to allow Pulte to continue progress on the for‑sale portion while the rental partner completes financing and scheduling.

After public comment and staff responses on traffic, schools and construction impacts, the council voted to approve the site development permit amendment and density bonus permit. The motion to approve was made by Council member Lin and seconded by Council member Chua. The vote was unanimous.

Council members and city staff noted that the project was analyzed previously in the certified project EIR and that mitigation measures in the earlier document remain applicable. Staff also noted that the project must pay applicable development impact fees, including school impact fees, and comply with city construction standards and mitigation measures during construction.

Support letters presented to the council included endorsements from Milpitas Unified School District leadership and several employee association representatives who said the project’s local preference for qualified district employees would help district recruitment and retention.