Back to the case page

Who Killed the Building? · Case brief · October 22, 2026

40 Main Street Apartments (SB 35)

Los Altos · Santa Clara County · California · https://whokilledthebuilding.com/projects/los-altos-40-main-2018

40 Main Street is a 6,950-square-foot downtown lot in Los Altos where brothers Ted and Jerry Sorensen, through 40 Main Street Offices LLC, proposed a five-story, 66-foot building with ground-floor offices and 15 apartments, two of them affordable to low-income households, over two underground parking levels served by a car lift. They applied for SB 35 streamlined ministerial approval on November 8, 2018. City staff found the project ineligible in letters dated December 7, 2018 and February 6, 2019, citing parking, the residential share of the building, height and an incomplete application. The downtown height limit is 30 feet; the project reached 66 feet with a 35 percent density bonus and an 11-foot local increase. The council upheld the denial on April 9, 2019. The California Renters Legal Advocacy and Education Fund (CaRLA, now the California Housing Defense Fund) sued on June 12, 2019, and the case was consolidated with the owners' suit. On April 24, 2020, Santa Clara County Superior Court Judge Helen E. Williams ruled that the city had violated SB 35, the Density Bonus Law and the Housing Accountability Act and ordered it to issue permits; the owners' attorneys said the court also found the city acted in bad faith. The council voted to appeal, then dropped the appeal after the court required a $7 million appeal bond, and in September 2020 it rescinded the denial. In November 2021 the city approved a $1.2 million settlement. The old building was demolished in summer 2025, and construction was underway in May 2026. Disclosure: Los Altos Town Crier co-publisher Dennis Young, whose paper is a source here, is an investor in the project.

Project facts

JurisdictionLos Altos, Santa Clara County
StatusUnder Construction
Project typeMixed-Use
Address40 Main Street, Los Altos, CA 94022
Units proposed15
Affordable units2
Floors5
Date filedNovember 8, 2018
Date approvedSeptember 10, 2020
Date deniedApril 9, 2019
Delay22 months
Housing elementIn compliance (HCD)

Mechanism and what it did

Decision-making bodies

City Council · Court · Judge Helen Williams

Timeline

DateEventWhat the record shows
November 8, 2018Owners File SB 35 ApplicationTed and Jerry Sorensen apply for SB 35 streamlining for 15 apartments over offices; an earlier plan for the site was all offices. Mountain View Voice: https://www.mv-voice.com/news/2019/07/28/housing-advocates-file-suit-against-los-altos-for-blocking-project/
December 7, 2018Staff Rejects SB 35 StreamliningStaff cite an incomplete application, parking, the residential share of the building, and height and density. A second letter follows on Feb. 6, 2019. Mountain View Voice: https://www.mv-voice.com/news/2019/07/28/housing-advocates-file-suit-against-los-altos-for-blocking-project/
April 9, 2019Council Upholds Denial on AppealCouncilwoman Neysa Fligor urges colleagues to "disregard" HCD's guidance on parking. The council adopts Resolution 2019-13 on April 23. Mountain View Voice: https://www.mv-voice.com/news/2019/07/28/housing-advocates-file-suit-against-los-altos-for-blocking-project/
June 12, 2019Renters Group Sues Los AltosCaRLA sues, arguing the city did not identify objective standards within SB 35's 60-day window. The case is consolidated with the owners' suit. Mountain View Voice: https://www.mv-voice.com/news/2019/07/28/housing-advocates-file-suit-against-los-altos-for-blocking-project/
April 24, 2020Judge Rules City Violated Three State Housing LawsJudge Helen E. Williams finds violations of SB 35, the Density Bonus Law and the Housing Accountability Act and orders the city to issue permits. Holland & Knight: https://www.hklaw.com/en/news/pressreleases/2020/05/holland-knight-first-in-california-to-win-lawsuit-new-housing-law
July 8, 2020Council Votes To AppealThe city calls the project oversized and the single car lift a safety concern. City of Los Altos: https://losaltosca.gov/citycouncil/page/los-altos-city-council-appeal-court-ruling-40-main-street-case
September 2, 2020Judge Orders $7 Million Appeal BondThe court sets a $7 million bond for the city's appeal. Holland & Knight: https://www.hklaw.com/en/news/pressreleases/2020/09/holland-knight-first-in-california-to-secure-housing-approval-through
September 10, 2020City Drops Appeal, Votes To Issue PermitResolution 2020-33, rescinding the 2019 denial, follows on Sept. 22. Holland & Knight: https://www.hklaw.com/en/news/pressreleases/2020/09/holland-knight-first-in-california-to-secure-housing-approval-through
November 2, 2021Council Approves $1.2 Million SettlementThe deal offers about $800,000 in fee waivers if the owners switch to a four-story design; they keep the five-story plan. Los Altos Town Crier: https://www.losaltosonline.com/news/settlement-agreement-ok-d-for-40-main-developers-still-pursuing-5-story-building/article_6ffe7eba-4188-11ec-bb05-efbb0695bbdd.html
May 4, 2026Construction Continues on 66-Foot BuildingThe old building on the site was demolished in summer 2025. Los Altos Town Crier: https://www.losaltosonline.com/news/construction-continues-at-40-main/article_394921ab-ae26-4066-9491-c98d284d82e9.html

Decisions

DateBodyActionVoteStaff rec.Source
April 9, 2019City Councilappeal rejected
Upheld the staff denial of SB 35 streamlining; Resolution 2019-13 was adopted April 23, 2019.
—UnknownMountain View Voice: https://www.mv-voice.com/news/2019/07/28/housing-advocates-file-suit-against-los-altos-for-blocking-project/
June 12, 2019Courtlawsuit filed
CaRLA sued in Santa Clara County Superior Court; the case was consolidated with the owners' suit.
—UnknownMountain View Voice: https://www.mv-voice.com/news/2019/07/28/housing-advocates-file-suit-against-los-altos-for-blocking-project/
April 24, 2020Courtruling issued
Ruled that the city violated SB 35, the Density Bonus Law and the Housing Accountability Act and ordered it to issue permits.
—UnknownHolland & Knight: https://www.hklaw.com/en/news/pressreleases/2020/05/holland-knight-first-in-california-to-win-lawsuit-new-housing-law
July 8, 2020City Councilappeal filed
Voted to appeal the trial court ruling. The appeal was dropped in September 2020.
—UnknownCity of Los Altos: https://losaltosca.gov/citycouncil/page/los-altos-city-council-appeal-court-ruling-40-main-street-case
September 10, 2020City Councilapproved
Dropped the appeal and voted to issue the permit; Resolution 2020-33 rescinding the denial followed on Sept. 22, 2020.
—UnknownHolland & Knight: https://www.hklaw.com/en/news/pressreleases/2020/09/holland-knight-first-in-california-to-secure-housing-approval-through

Sources

  1. Housing advocates file suit against Los Altos for blocking project, Mountain View Voice (Kevin Forestieri), July 28, 2019 [News Article]. https://www.mv-voice.com/news/2019/07/28/housing-advocates-file-suit-against-los-altos-for-blocking-project/
  2. Court rules in favor of Silicon Valley YIMBYs, Bisnow (Dean Boerner), April 29, 2020 [News Article]. https://www.bisnow.com/news/san-jose/multifamily/court-rules-in-favor-of-silicon-valley-yimbys-104152
  3. Holland & Knight First in California to Win Lawsuit Under New Housing Law, Holland & Knight, May 19, 2020 [Other]. https://www.hklaw.com/en/news/pressreleases/2020/05/holland-knight-first-in-california-to-win-lawsuit-new-housing-law
  4. Los Altos appeals court decision ruling the city must allow a downtown housing project to proceed, Mountain View Voice, July 8, 2020 [News Article]. https://www.mv-voice.com/news/2020/07/08/los-altos-appeals-court-decision-ruling-the-city-must-allow-a-downtown-housing-project-to-proceed/
  5. Los Altos City Council to appeal court ruling in 40 Main Street case, City of Los Altos, July 8, 2020 [Planning Document]. https://losaltosca.gov/citycouncil/page/los-altos-city-council-appeal-court-ruling-40-main-street-case
  6. Holland & Knight press release on the 40 Main Street approval, Holland & Knight, September 11, 2020 [Other]. https://www.hklaw.com/en/news/pressreleases/2020/09/holland-knight-first-in-california-to-secure-housing-approval-through
  7. Resolution rescinding in its entirety Resolution No. 2019-13, City of Los Altos, September 22, 2020 [Planning Document]. https://www.losaltosca.gov/ordinances/resolution-rescinding-its-entirety-resolution-no-2019-13-resolution-denying-appeal
  8. Settlement agreement OK'd for 40 Main; developers still pursuing 5-story building, Los Altos Town Crier (Bruce Barton), November 9, 2021 [News Article]. https://www.losaltosonline.com/news/settlement-agreement-ok-d-for-40-main-developers-still-pursuing-5-story-building/article_6ffe7eba-4188-11ec-bb05-efbb0695bbdd.html
  9. Construction continues at 40 Main, Los Altos Town Crier (Christina Casillas), May 4, 2026 [News Article]. https://www.losaltosonline.com/news/construction-continues-at-40-main/article_394921ab-ae26-4066-9491-c98d284d82e9.html

Data quality

Rating 4 of 5. Primary records for the key facts; minor details may rest on reporting. Corrections: https://whokilledthebuilding.com/corrections.

Case brief: 40 Main Street Apartments (SB 35) | Who Killed the Building?