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Under a state rule known as the “builder’s remedy,” Santa Clara-based developer ROEM Development is proposing to build 62 housing units in an empty lot located at the intersection of Sunnyslope Road and Versailles Drive in Hollister.
The proposed project includes 49 single family units, 13 of which have attached accessory dwelling units that would be deeded for low income families.
The project site is zoned for both residential and commercial development.
Jim Campbell, ROEM director of development and entitlements, said the original project submitted in 2021 included commercial development, but because the company could not get the city to reduce the area for that use, it is pursuing only residential units.
The company is pursuing the development through the builder’s remedy provision, Campbell said, because of “the city’s inability to work with us on an agreement on the retail side.”
He said at one point the city wanted about 50,000 square feet of commercial space at the site and eventually reduced it to about 15,000 square feet. He said the various iterations of the project included up to 150 housing units.
“We could not get the city to reduce the commercial space to a reasonable level,” he said, noting there is already a shopping center adjacent to the property that includes SpeeDee, Hollister Brass Tap and Goodwill.
The current proposal does not include a commercial component.
Campbell said the project is currently on hold with the city because of a disagreement over density requirements.
“[City’s comments] are being responded to on our end,” Campbell said. “Both from our development team and legal team, (we’re working) to try to get the city to move to the next steps.”
He said once that is done, the next steps are to conduct the environmental studies and submit the report and the final design to the city for approval.
“I believe Hollister has adopted a no-growth stance,” he said. “We’re trying to provide housing in the best manner that works for the site.”
According to the Hollister zoning map, the site is zoned neighborhood mixed-use, which under the city’s municipal code allows between 25 and 40 units per net acre, as well as a commercial component. That zoning designation allows between 207 and 332 units to be constructed at that parcel.
The site is about 8.3 acres, setting the density for the proposed project at 7.5 units per acre, according to the application. That would mean the site could support about 62 units.
In 2019, the state legislature passed the builder’s remedy provision allowing developers to bypass local zoning laws under specific circumstances to expedite construction of residential projects.
The provision applies only in cities or counties that don’t have a state-certified Housing Element, a document which shows where jurisdictions have planned for residential development for a variety of household income levels. The state requires jurisdictions to update their Housing Element every eight years.
The law was enacted in response to what it calls the state’s “housing supply and affordability crisis.” It also notes there is an unmet housing backlog in the state of nearly 2 million units.
Hollister has been assigned to plan for 4,163 residential units through 2031. Of those, 22.2% are to be very low income, 17.8% low income, 18.9% moderate income and 41.1% above moderate income.
Like Hollister, San Benito County and San Juan Bautista have been subject to builder’s remedy projects since the start of 2024. Hollister recently held a public review period for its draft Housing Element.
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