The Mercury News

Cupertino promises to follow housing law

State wants plans for homes on old Vallco mall site to continue

- By Marisa Kendall mkendall@bayareanew­sgroup.com

CUPERTINO » Responding to the state’s threat to sue the city over a potential housing law violation, Cupertino wrote a letter promising to take all steps necessary to meet its production goals and remain in state officials’ good graces.

In an Aug. 2 letter, the California Department of Housing and Community Developmen­t warned that Cupertino could fall out of compliance with its state-mandated housing goals if plans to build new homes on the site of the old Vallco Shopping Mall are stymied. If that happens, the letter warned, the housing department may notify the attorney general’s office — a step that could lead to a lawsuit.

The city responded with a letter intended to assure state officials that all is well.

“As you are aware, all local government­s face the challenge of balancing competing interests when making land use decisions,” Cupertino City Manager Deborah Feng wrote in the letter to the housing department. “The City is dedicated to finding this balance to provide housing solutions for all members of its community. We look forward to working with HCD as we make progress towards implementi­ng the programs identified in our latest Housing Element.”

A representa­tive from the housing department did not respond to a request for comment on the letter.

At issue is a contentiou­s plan to turn the defunct Vallco Mall into a mixed-use housing, office and retail developmen­t. To meet its state mandate of planning for 1,064 new housing units by 2023, Cupertino was supposed to adopt a specific plan to build housing on the Vallco site. But in May, city officials rescinded that plan after opponents collected enough signatures to challenge the developmen­t on the ballot.

Developer Sand Hill Property Company is moving forward with another plan — to build 2,402 homes, 1.8 million square feet of office space and 400,000 square feet of retail on the site. That proposal was green-lighted under a new housing law — SB 35 — that requires cities to fast-track certain residentia­l and mixed-use

projects. But a group of residents who oppose the project, Friends of Better Cupertino, is suing the city to block

the project and rescind its SB 35 approval. If Friends of Better Cupertino wins, and the SB 35 project is halted, Cupertino could fail to meet its state-mandated housing goal, HCD said.

But even if that happens, Cupertino officials will

make sure the necessary housing gets built, Feng wrote in the letter.

“I can assure you that the City will do all that is necessary to remain in compliance if the City’s approval of the Vallco SB 35 project is overturned by the court,”

she wrote.

Feng also lauded the city’s prior efforts to build housing, including the recent opening of 19 affordable units at The Veranda, a $12 million developmen­t, to which Cupertino contribute­d more than $5 million.

Today, the City Council is set to discuss a proposal that could make it difficult to ever build housing on the Vallco site. Officials are considerin­g amending the city’s general plan to remove office space allocation­s from the site, which could make it economical­ly challengin­g to build housing there as well. The proposal would affect future developmen­t on the site if the SB 35 project fails.

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