Another project taking advantage of state exemptions, this one containing 147 condominiums and townhouses, is coming to Santa Clara.

At its Aug. 25 meeting, the Santa Clara City Council approved the proposed development, located on 5.5 acres at 3521 and 3591 Homestead Road. The development will also include 4,991 sq. ft. of commercial space.

The project will feature 90 four-story stacked condos and 57 three-story townhouses. It includes 22 below-market-rate condos.

Just like the more controversial project earlier on the agenda, because the developer, Pulte Group, met the below-market-rate requirement, it qualified for unlimited waivers and a concession. Similarly, the developer availed itself of four waivers and one concession. 

The waivers were also similar to the other project, with exemptions for setbacks, building height, number of stories and daylight plane requirements. The concession was the same, with a reduction to the commercial floor space requirement, decreasing it from 22,215 sq. ft.

Resident concerns were also similar, many of whom were those displaced by the development. 

At two community meetings in late 2025 and early this year, neighbors complained about privacy concerns due to the building height, the loss of retail, traffic and the project timeline, said Afshan Hamid, the city’s community development director.

Jim Sullivan, with Pulte Group, said that although it wasn’t required to, the developer did a great job alleviating concerns by extending leases, offering free rent and hiring a broker to assist displaced tenants in finding new locations.

Of the 16 displaced businesses, nine have relocated in Santa Clara, and three have relocated elsewhere. The remaining tenants either retired or went out of business.

No public members commented on the development. 

Council Member Karen Hardy said she appreciated the developer’s effort to address residents’ concerns.

“When a developer does their work, it really, really helps and makes us a little more superfluous, which is nice,” she said.

But, just as with the prior development, Council Member Kevin Park was displeased. He said he remembers when the city used to require that developments provide supportive retail for large-scale projects. Projects like the one proposed will harken the death of retail in the city, he said.

“You can’t just bring people in and give them nowhere to shop, nowhere to go,” he said, later adding, “We are supposed to have a planning department, not an approval department.”

Mayor Lisa Gillmor interjected to chastise Park, asking city employees to explain to him how state law hamstrings the council’s ability to deny the project. She accused him of “pontificating” and “monologuing.”

City Manager Jovan Grogan said he shares Park’s concern but that the city is in “an unfortunate situation.”

In a 5-0-1 vote, the motion to approve the project passed. Park abstained, and Council Member Kelly Cox was absent.

Contact David Alexander at d.todd.alexander@gmail.com 

Previous Santa Clara City Council Meetings:
Sparks Fly Over State-Protected Townhouse Development
Santa Clara Residents May no Longer Have to pay for City ADA Upgrades
Interim Supportive Housing Development in Santa Clara to Assist Families 
Lack of Consensus Kills Comprehensive Santa Clara Charter Update