Council approves 59-unit townhome project on Stevens Creek Boulevard; 12 units set as below-market-rate

Cupertino City Council voted unanimously on July 1 to approve a 59-unit townhome condominium project at 20840 Stevens Creek Boulevard, a site currently occupied by small commercial buildings including a Staples store and two former restaurants.

What the council approved: the project, proposed by Summerhill Homes, includes eight buildings containing 59 townhome-style units and 12 below-market-rate (BMR) units (six for median-income buyers and six for moderate-income buyers). Units range from roughly 1,800 to 2,700 square feet; most buildings are three to four stories. Each home is designed with a two-car garage and the development includes guest parking and a central outdoor open space. The developer presented the project as all-electric, with solar-equipped homes and EV-ready garages.

Why the project was proposed under state housing laws: the applicant filed a preliminary SB 330 (Housing Crisis Act) application in January 2024, which vested standards in effect at that time. The project also uses the state density bonus provisions to request waivers and concessions. Summerhill requested two concessions (including waiving the requirement to include a commercial component on-site) and 10 waivers affecting height, setbacks, lot coverage and parking-space dimensions. Staff reported that state law restricts denial of density bonus concessions unless they would adversely affect historic resources, public health or safety.

Public benefits and fees: Summerhill proposed 12 owner-occupied BMR units, estimated park in-lieu fees of approximately $2,500,000, school fees around $550,000 and a $120,000 contribution to the Stevens Creek Boulevard Class 4 bike lane project. Staff and the planning commission found the project consistent with objective standards in the General Plan and the Heart of the City Specific Plan where applicable; Planning Commission voted unanimously to recommend approval.

Community feedback: Public comment was mixed. Supporters — including nearby business owners and civic groups — said the site has been underused for years and that new residents could provide needed foot traffic to nearby retail. Several neighbors and members of the Scofield Drive community said they had worked with the developer on design changes, including increasing the rear setback and enlarging screening trees along the southern property line; Summerhill said it modified Building 7 and 8 orientation and increased tree sizes from 24-inch to 36-inch box to improve privacy. Opponents voiced concerns about loss of roughly 30,000 square feet of retail space and cumulative traffic impacts from multiple SB 330 projects in the area.

Staff findings and environmental review: Staff reported the project qualified for a Class 32 categorical exemption under CEQA and that a third-party environmental review did not identify significant impacts. The project includes a vesting tentative map for condominium purposes and will be required to provide public art or in-lieu funds.

Council action and vote: Vice Mayor Moore moved to adopt staff recommendations to (1) find the project exempt from CEQA, (2) make the required no-net-loss findings under state law, and (3) approve the project permits, waivers and concessions as conditioned in the staff report. The motion was seconded and carried unanimously (Council members Fruin, Mohan, Wong, Vice Mayor Moore and Mayor Chow voting yes).

Timing and next steps: the applicant said it expects to finish working drawings within a year of approval and begin onsite activity within 12 months; construction of site improvements could take eight to ten months. The developer forecasted first move-ins in late 2027 (Q3–Q4 2027). The applicant also said it will work with staff immediately to begin the BMR application process so sale-ready units are available once construction starts.

What to watch: loss of retail square footage along Stevens Creek Boulevard has drawn sustained council and community attention; future similar SB 330 projects will affect cumulative traffic and retail availability in the Heart of the City specific plan area.