In a major move aimed at alleviating housing challenges faced by students, the Foothill-De Anza Community College District has officially taken ownership of McClellan Terrace Apartments in Cupertino. The $65.6 million acquisition was finalized on July 31 in a strategic attempt to convert the existing 94-unit apartment complex into roughly 332 affordable student beds. While the project is touted as a game-changer for student housing access, it comes at a cost: dozens of current residents will be displaced by June 2026 to make way for the redevelopment.
Funded by the district’s $898 million Measure G bond, the project has sparked controversy as it replaces long-term residential housing with student-oriented accommodation. The transition includes a relocation assistance package worth $3.2 million, which will be distributed to affected tenants. The assistance plan, expected to be formally approved in September, outlines support such as help finding comparable housing and financial relief up to $5,250 per household. Eligible households may also receive moving fees and additional support if they cannot secure replacement housing within the proposed limits.
Current residents pay between $2,537 and $4,245 in monthly rent, and the district has committed to locating similar rentals in the area. However, many residents worry that such properties are becoming increasingly unaffordable, and some have already experienced competitive rental practices, such as being outbid by other prospective tenants. If comparable housing options are not available by the mandated move-out date, the district plans to authorize further financial support as a last resort, especially for residents who would otherwise be burdened by paying over 30% of their income in rent or more than $5,250 monthly.
Chancellor Lee Lambert acknowledged the difficult nature of the decision but emphasized the urgent need to serve student populations struggling with housing insecurity. He noted that more than 40% of students in the Foothill-De Anza district recently reported housing instability, a figure that drove the district to choose acquisition over new construction due to the immediate availability of existing units.
Lambert, who himself is a renter, said the district weighed its options carefully. Though building new housing was on the table, the McClellan Terrace deal offered a quicker path to addressing student needs. Students are expected to begin moving into currently vacant units as early as this year.
One such student is Stephanie Naranjo, a single mother pursuing a degree in radiologic technology at Foothill College. She qualifies for the program under district rules requiring enrollees to be over 18, registered for at least eight credits, and free of a violent criminal record. For Naranjo, the housing opportunity means more than a shorter commute; it represents a pathway to academic and personal stability. She currently spends nearly an hour traveling to school, and relocating closer would ease logistical pressures while allowing her to focus more on her studies and children.
While many students view the transformation as a necessary step to address soaring living costs, displaced residents are less optimistic. Two current tenants expressed concern over the escalating housing market, explaining that even apartments listed at comparable prices are being bid up by wealthier applicants. Although they support student needs, they hope the district will respect the dignity and rights of those being forced to leave.
The controversy has also reached Cupertino officials, who attempted to block the deal but found themselves with little influence over a transaction between two private parties. Since the city has limited legal standing in such arrangements, it has largely had to watch the process unfold without a strong say in the outcome.
The planned redevelopment of McClellan Terrace is part of a broader strategy to address the Bay Area’s deepening housing crisis, especially among students. The hope is that by providing stable, affordable accommodation to those in higher education, the district can create better educational outcomes and ease the financial burdens that often interfere with academic success.
While the project delivers a bold vision for the future of student housing, it has also opened a complex debate over gentrification, displacement, and how best to meet community needs. As the Foothill-De Anza district proceeds with its plans, both residents and students will continue navigating a shifting housing landscape that reflects the growing tension between progress and preservation.
