The Santa Cruz County Board of Supervisors voted unanimously on Dec. 9 to take jurisdiction over an appeal of the Planning Commission’s approval of a 57‑unit, five‑story development at 841 Capitola Road and to schedule a de novo hearing within 60 days.

County planning staff summarized the application and the grounds for appeal, including claims that updated records from the Department of Housing and Community Development (HCD) show the county’s housing element may have been in substantial compliance earlier — potentially affecting whether the project vested under the state’s builder’s‑remedy provisions (SB 330). Jonathan DeSalvo (CDI planning staff) recommended declining jurisdiction because staff concluded the appellant had not shown procedural error, lack of a fair hearing, or significant new evidence; staff cited HCD’s formal substantial‑compliance letter dated April 23, 2024 and the county’s April 9 preliminary SB 330 application date as controlling.

The appellant, Michael Reese, said he obtained internal HCD workflow records after the Planning Commission hearing that show HCD staff found the county’s housing element responsive as early as March 15 and that an administrative HCD date error justified further review. Reese urged the board to assume jurisdiction so the record could be completed. Land‑use attorney Mark Wolf, speaking for the appellant, argued statutory language uses the phrase “determined” rather than “certified” and urged the board to examine whether the department had effectively determined substantial compliance earlier.

The developer, Tim Gordon, countered that legally controlling dates are the formal HCD certification letter and the dates of the applicant’s submittals; he noted the developer filed pre‑application materials in March and April and that state law limits a local agency’s ability to require new studies for builder’s‑remedy or density‑bonus projects.

Supervisor Koenig moved to take jurisdiction under County Code 18.10.340(c)(5) on the basis that the Planning Commission approved the project without adequate factual responses to commissioners’ expressed concerns and to schedule a de novo hearing within 60 days with staff prepared to address alternatives including Capitola Road access. The board voted unanimously to take jurisdiction and set the matter for a full hearing.

What’s next: the board will hear the application de novo, allowing full presentation of evidence and public testimony; staff said they will bring the application forward under the normal evidentiary standards for a de novo review.