A proposed development on Graham Hill Road would include 117 single-family homes and 44 townhomes. (Fletemeyer & Lee Associates Inc.)

SANTA CRUZ >> Forty acres of horse pasture on Graham Hill Road near Rollingwoods Drive could be transformed into a 161-unit development of houses and townhomes, according to a recent pre-application to Santa Cruz County planners. 

Although the development far exceeds county development rules, state law allows the development and county staff and supervisors have very little leeway to block or change it.

The project, called The Haven, would include:

• 117 market-rate single-family homes.
• 11 market-rate townhouses.
• 7 moderate-income townhouses.
• 26 low-income townhouses.
• A community building.
• 14.3 acres kept undeveloped and connected with existing hiking trails.

When developers submitted a pre-application for the project, the county did not have a valid Housing Element of the county’s General Plan. It is a state-mandated housing development plan. 

When local governments don’t have a state-approved Housing Element, state Builder’s Remedy rules are in effect. According to those rules, most projects with at least 20% affordable housing can bypass local restrictions on housing. 

The Builder’s Remedy rules went into effect after the county missed the state’s Housing Element deadline on Dec. 25, 2023. Developers submitted a pre-application for the Graham Hill development in early April, nine days before the state accepted the new Housing Element and released the county from the Builder’s Remedy. The county also received two other Builder’s Remedy applications for apartment buildings on Paul Sweet Road and Capitola Road.

Because the pre-application for The Haven was filed before the state accepted the county’s Housing Element, Builder’s Remedy rules apply to the project. 

County planners awaited permit fees for the Graham Hill Road project application as of Sept. 27. Once the developer pays those fees, county staff will have 30 days to review the project. If county staff deem the application incomplete, they can return it to the developer for amendments.

Once the application is considered complete, the developer is required to complete an environmental review. The environmental review would go to the County Planning Commission and the Santa Cruz County Board of Supervisors for public hearings, said county spokesperson Tiffany Martinez.

Keep track of the project on Santa Cruz Local’s Housing and Construction page.

A map shows the location of a proposed development in unincorporated Santa Cruz County. (Fletemeyer & Lee Associates Inc.)

A housing proposal on Graham Hill Road would be near Henry Cowell Redwoods State Park. (Fletemeyer & Lee Associates Inc.)

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