Scofield Drive and Vista Heights Builder's Remedy Projects

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YIMBY Law and the California Housing Defense Fund sued in April 2025 after the city declared two builder's remedy applications expired. HCD issued a notice of violation in July 2025, and the Los Gatos ruling in January 2026 rejected the same legal theory. No Cupertino ruling reported.

In a suit by YIMBY Law and the California Housing Defense Fund, Judge Mary Arand rules that developers who filed affordable housing projects after the city missed its housing element deadline may use the builder's remedy until the state approves the element.

The two projects file preliminary applications on Feb. 20 and 21, invoking the builder's remedy because the city lacks a compliant housing element.

San Jose Spotlight reports that more than a dozen residents raised traffic and safety concerns near Faria Elementary School at a City Council meeting earlier in the month. The plan then called for 23 homes.

Filed Aug. 16 and 19, within the six months that keep the preliminary applications' vested rights.

The incompleteness determinations are dated Sept. 13 and 16, 2024.

On Jan. 9 and 10, the city tells the applicants that the Permit Streamlining Act allows a single 90-day period to complete an application, so the applications and their vested rights have expired.

YIMBY Law, the California Housing Defense Fund and the two applicants file two petitions in Santa Clara County Superior Court.

HCD says the 90-day period resets after each incompleteness determination and tells the city to honor the projects' vested rights. The city defends its reading in an August response.

In a suit the Town of Los Gatos brought over two other builder's remedy projects, Judge Helen E. Williams rules that each incompleteness finding opens a new 90-day period.

Says Cupertino is trying to stop two builder's remedy projects by claiming an applicant gets only one 90-day window to respond to an incompleteness letter. Executive director Sonja Trauss: "(Cupertino's interpretation) shows that they're desperate to prevent housing in their city."

"There's no reason to read the law that way, except that you want to defeat the builder's remedy." (April 2025)

"However, the 90-day deadline resets after each incompleteness determination made by the City." The notice told the city to honor the projects' vested rights, including builder's remedy status, and asked for a response by Aug. 15, 2025.

Executive director Dylan Casey: "Making sure these builder's remedy projects actually become homes eventually is really important to ensure that state housing policy is functioning as it's intended."

"We've won this argument in court already, and we fully expect to win it again in Cupertino." Also: "(The state's) notice of violation makes it crystal clear: Cupertino is breaking the law and will be held accountable." (August 2025)

Reads the Permit Streamlining Act to allow a single 90-day period to complete an application after an incompleteness finding. In August 2025 it answered HCD's notice of violation by defending the "plain meaning" of the statute.

"We remain committed to holding everyone to the same objective standards so that more housing can be approved in accordance with our general plan, zoning ordinance and state laws." (April 2025.) After HCD's notice: "Our goal is to ensure all applications meet clear and consistent standards and we treat everyone fairly."

"Once this gets approved, then there is no control." He said added traffic would endanger his children (July 2024).

"We support housing, but not anything everywhere." Also: "The problems with these two builders' remedies are, as the developers have designed them, they're just not a good fit as submitted."

No ruling in the Cupertino cases reported as of October 2026. In a separate Los Gatos case, Judge Helen E. Williams ruled on Jan. 29, 2026 that each incompleteness finding opens a new 90-day period.

The city found both full applications incomplete on Sept. 13 and 16, 2024, then counted a single 90-day period to cure and declared the applications expired in January 2025. HCD says each incompleteness determination starts a new 90-day period.

With the applications declared expired, the city treats the projects as having lost the builder's remedy rights they vested in February 2024, before the housing element was certified. HCD told the city to honor those rights. Two petitions are pending in Santa Clara County Superior Court.