City Council unanimously approves 59-unit townhouse project with affordable housing, public plaza
Cupertino continues to grow its housing supply as the City Council unanimously approved a project that will convert a mostly vacant commercial strip into 59 for-sale townhomes.
Developer Summer Hill Homes will build three and four-story townhouses, including 12 affordable units and a public plaza. The developer will also contribute approximately $2.54 million in park in-lieu fees.
The project, located at 20770–20850 Stevens Creek Boulevard, spans nearly three acres and was formerly home to Fontana’s Italian Restaurant, Pizza Hut, and a Staples still in operation. Though the project eliminates about 30,000 square feet of retail space, city officials say the tradeoff is necessary to help meet Cupertino’s housing obligations.
The council voted unanimously on July 1 to approve the development, which will also include landscaped walkways, a children’s play area, and a central plaza open to the public. The Planning Commission unanimously recommended the project in June.
Both neighboring business owners and housing advocates expressed support for the project, arguing it would increase foot traffic as well as the supply of badly-needed homes.
Because the project designated 12 units, or 20 percent, of the 59 units as affordable, the project was deemed eligible to receive concessions and waivers under SB330, California’s density bonus law. Initial city plans reportedly called for as many as 200 units, but some advocates suggested the smaller yield of for-sale townhomes including affordable units provide needed starter home housing stock for Cupertino.
The project was granted several waivers and concessions from existing City requirements, including a retail requirement, reduced setbacks, increased height, smaller private outdoor space, increased lot coverage, reduced parking, and others. State law prevents the City from denying these concessions and waivers except under specific circumstances, such as if the project creates adverse impacts to historic property, health, or public safety.
Cupertino is under pressure to add thousands of new homes in the coming years. The state of California requires the city to plan for 4,588 new housing units between 2023 and 2031, under the Regional Housing Needs Allocation (RHNA) process. This includes specific quotas for very low, low, moderate, and above moderate-income housing. Failure to comply could open the city up to legal challenges or state intervention.
While this development alone won’t make a significant dent in the total, the inclusion of 12 deed-restricted affordable homes is a meaningful contribution toward Cupertino’s lower-income housing targets. Notably, for-sale housing proposals are far less common than rental projects.
SummerHill also has proposed a 51-home townhome-style condominium community including ten below-market homes on a 2.5-acre site at Linda Vista Drive and Evulich Court adjacent to the Cupertino Hills Swim and Racquet Club. That application is currently under review.
Construction of the project is expected to begin in early 2026, following the expiration of Staples’ lease in February of that year. Sales are expected to begin in late 2027 or early 2028.