Board approves contested 57-unit Capitola Road housing project under state 22builder27s remedy22 rules, 4-1

The Santa Cruz County Board of Supervisors on Feb. 10 approved, by a 4-1 vote, a development permit for a 57-unit, five-story multifamily housing project at 841 Capitola Road after a de novo hearing that centered on whether state "builder27s remedy" law applied when the developer filed its preliminary application.

Background and legal issue: The applicant submitted a qualifying SB 330/SB 3 30 preliminary application while the county27s housing element remained under HCD review. Under state housing law, projects that meet specific timing and completeness requirements can qualify for density and waiver relief (the so-called builder27s remedy). The appellant argued HCD had effectively determined the county27s housing element was in substantial compliance by mid-March 2024 and therefore builder27s remedy was not available when the developer applied. The applicant and county staff pointed to HCD guidance and later letters, and argued the project met statutory builder27s remedy and density-bonus…