Live Oak Builder's Remedy Projects (841 Capitola Road and 3500 Paul Sweet Road)

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The Planning Commission continued 3500 Paul Sweet Road (105 units) in January 2026; the developer then sued claiming it is approved by operation of law. Neighbors sued over the 57-unit 841 Capitola Road approval. The county asked HCD to backdate its housing element certification; no response reported.

The deadline for HCD certification in the Monterey Bay region is Dec. 15, 2023.

Records cited by the neighbors, and later by the supervisors, show no substantive HCD review of the housing element after this date.

The SB 330 preliminary application is followed by a formal application on Oct. 3, 2024. Workbench says it filed for 3500 Paul Sweet Road the same day.

Lance Tate files for 157 homes on rural land. The project has not had a hearing.

According to an HCD memo cited by the hospital's lawyers, the compliance letter first dated April 23 was revised to show compliance as of April 12.

The county's project page gives this date. Workbench says it was a second filing and its operative application dates to April 9.

The vote is unanimous. Chair Trina Barton tells neighbors the commission's hands are tied.

Michael Reis files for Supporters of Reasonable Development for Live Oak, arguing the builder's remedy does not apply.

At a jurisdictional hearing the board unanimously orders a new review within 60 days.

The commission asks for nine items, including fire access, ambulance travel times, an evacuation plan and helipad compliance, and wants the fire marshal present.

Justin Cummings dissents. County counsel says seeking a court ruling on the compliance date would risk nearly $3 million.

The board agrees to write to HCD. Its March 18 letter asks that the element be found compliant as of March 15, 2024.

Live Oak residents, including Michael Reis, sue the county and the Board of Supervisors.

Workbench says the county is "dragging their feet and refusing to issue an approval." The item is pulled from the commission's March 25 agenda.

"This is a straightforward case of the county failing to make a decision by its deadline." Of the neighbors' suit: "Unfortunately, NIMBY opposition never stops." (April 2026)

"It's the appellants grasping at straws to try and prevent housing from being built in their neighborhood." (February 2026)

"It's our responsibility to represent the people and not the developers." (March 10, 2026, on the letter to HCD)

"We believe, based on the evidence, that the county was compliant on the 15th with state law, and therefore this project was never eligible, or shouldn't be eligible for the builder's remedy." (December 2025)

"This proposed development, given its scale, presents a direct and perilous risk to patient and resident safety." (March 2026)

HCD found the adopted element in compliance as of April 12, 2024. County spokesperson Jason Hoppin said at the end of March 2026 that the county had not received a response to its request.

"It's very frustrating to be in this position." (Feb. 10, 2026) He said the neighbors' arguments were good but the risk of siding with the appeal influenced his decision.

Chair Trina Barton: "We want to make this project better for you, but our hands are tied, and it's very frustrating for us." (October 2025)

Its March 18, 2026 letter asked that the housing element "should be determined to be in substantial compliance and certified as of March 15, 2024."

On asking a judge to decide the compliance date: "I would not recommend that." He said it would risk nearly $3 million in state fines and legal fees. (Feb. 10, 2026)

Neighbors argue the housing element was effectively compliant on March 15, 2024, before the applications were filed, so the builder's remedy does not apply. They appealed the 841 Capitola Road approval and sued after the supervisors upheld it. On March 18, 2026 the supervisors asked HCD to find the element compliant as of that date. Dominican Hospital's lawyers argue that 3500 Paul Sweet Road was filed too late. No court ruling or HCD response has been reported.

The commission continued 3500 Paul Sweet Road to a date uncertain with nine requests for information. Staff answered them and recommended approval for March 25, 2026, but Workbench sued on March 23, alleging a missed decision deadline, and the item was pulled. The county still lists the project as continued.