State determines proposed housing development is protected by the builder’s remedy law
CA Dept. of Housing and Community Development Confirms the City of Gilroy Cannot “Self-Certify” Its Housing Element
GILROY, CALIF. A July 2, 2024 letter from the Housing and Community Development Department to Sharon Goei, Gilroy’s Community Development Director, expressly states that the 315 Las Animas Ave. Project “is eligible for the protections of the Builder’s Remedy” – correcting the false claims made by Gilroy city officials and staff that the Builder’s Remedy does not apply.
Based on this letter (attached), William McGuinn, General Counsel for the developer of the 315 Las Animas Ave. project, issued the following statement:
“The July 2 letter from the state’s Department of Housing and Community Development definitively states that the 315 Las Animas Project is a Builder’s Remedy project and entitled to the rights and protections in the California Housing Accountability Act.
“To date, the City of Gilroy has refused to accept that 315 Las Animas Ave. is a Builder’s Remedy project and has wrongfully delayed the processing of this much-needed development that will help working families find much-needed housing. This letter clears up any doubt there may have been about the Builder’s Remedy question, and we hope the City will stop delaying processing the project.
“If the City of Gilroy refuses to process this project as a Builder’s Remedy, it can face up to $25 million in fines and millions more in litigation costs – a waste of valuable tax dollars and particularly troubling when the City Council proposes to increase taxes due to a budget shortfall.
Gilroy-HCD Letter
2-2-2
“Before we received HCD’s letter, we tried negotiating with City officials to reach a settlement offer that would allow us to build this much-needed project promptly while also providing millions of additional dollars in community benefits to Gilroy residents and families. Unfortunately, the City Attorney blocked this settlement offer from reaching the City Council.
About Las Animas:
The proposed multifamily development at 315 Las Animas would be the most beautiful and most amenitized multifamily community in the entire south San Jose area. The developer expects that the development will be the first in the region to receive a 5-star rating from the real estate industry leader CoStar. Although the specification level and amenities package proposed for 315 Las Animas exceed that of nearly all luxury multifamily developments across the state (and even many of the new for-sale housing in the region), the development would set aside 20% of its units to serve lower-income households – and the remainder of its “market rate” units would be targeted at moderate-income households.
