After years of planning, revisions, and community debates, the second phase of the North 40 development project in Los Gatos is finally gaining momentum. The proposal, spearheaded by developers Grosvenor and Eden Housing, would bring 450 new housing units and more than 15,000 square feet of retail space to a prime 15.6-acre site located along Los Gatos Boulevard and Burton Road. At the heart of the project is a focus on affordability and accessibility, two issues that have long been points of contention in the affluent Silicon Valley town.
The latest plans include a diverse housing mix: 127 townhomes, about 250 apartments housed in mid-rise buildings ranging from three to seven stories, and 77 affordable units. Sixteen of those affordable units are specially designated for adults with intellectual and developmental disabilities—a unique feature that has earned the project widespread support among residents advocating for inclusive housing. In addition to residential and commercial elements, the developers propose nearly eight acres of open space and a total of 768 parking spaces to serve both residents and visitors.
However, the proposal also involves the removal of eight existing single-family homes and over 100 mature walnut trees, remnants of the land’s agricultural heritage under Yuki Farms. While this aspect of the plan has drawn concern from some residents, the developers have committed to working with the current occupants to facilitate their return once construction is complete. Interestingly, Grosvenor had the legal option to invoke the builder’s remedy—a California law that allows developers to bypass local zoning rules when a municipality falls behind on state-mandated housing plans—but chose not to do so, instead engaging with local processes and community feedback.
The planning commission began its review of the second phase on May 1 and is expected to revisit the project once its environmental review is completed. Only then will the development move forward to the town council for a final decision. Commissioner Rob Stump emphasized the importance of maintaining the current commitment to affordable housing, expressing concern that the final version could backslide from earlier promises. Stump noted that while 77 units are commendable, increasing that number could better reflect the town's urgent housing needs, especially for those unable to afford market-rate homes.
Los Gatos, known for its wealth and exclusivity, faces mounting pressure to address the region’s growing housing crisis. According to U.S. Census data, the average household income in the town between 2019 and 2023 was more than $207,000 annually, underscoring the challenge for lower-income families and individuals to live there. As part of California’s housing goals, the town must add nearly 2,000 new homes by 2031, with 847 of them required to be designated as affordable to low-income residents. The North 40 site is a crucial part of that long-term plan.
While some neighbors voiced concerns about traffic, building height, and neighborhood impact, many attendees at the recent meeting expressed strong support for the initiative. Particularly impactful were the testimonies from parents of adults with disabilities. Katherine Mancuso, a longtime Los Gatos resident, spoke about her 28-year-old son, who has lived in a supportive apartment in Santa Clara. He does not drive, and Mancuso wants him to be closer to his family and support network. She shared her desire for inclusive housing options in the town where she raised her children, saying the current demographics of Los Gatos too often exclude younger generations and those with disabilities.
The developers, for their part, stressed that they worked to include as many affordable units as the project’s finances could support. Steve Buster, senior vice president of development for Grosvenor, stated that the team hopes to begin construction as soon as the necessary approvals are granted. He described the development as a potential vibrant community hub that could welcome both renters and new homeowners into Los Gatos—a town where available housing is increasingly out of reach for many.
As the planning process continues, the North 40 project remains a focal point in the broader debate over housing access and development in one of the Bay Area’s most sought-after suburbs. With the final environmental review pending, residents and officials alike are watching closely to see how this controversial yet promising project unfolds.
