San Mateo County eyes 3 properties for housing

San Mateo County Executive Officer Mike Callagy said the location makes it ideal for development, and the county will make every attempt to maximize the number of below-market-rate units.

“We want to look at the max amount of affordable housing units we can. It’s a great location to have for public transit, restaurants and other amenities,” he said. “This could even house teachers, police officers, restaurant employees or lower income workers. It could be a variety of people that need affordable housing.”

Callagy added he is unaware of previous interest from other developers but wanted to take advantage of current market dynamics. The move will also benefit the city of San Carlos, as a new Regional Housing Needs Allocation cycle — a state mandate that determines the number of new homes an area must approve to accommodate residents of all income levels — requires the city plan for an extra 2,735 units over the next eight years. 

“We’ll keep working and collaborating with San Carlos to see what works best for them. They’ll benefit with what we’re building with RHNA and to make sure they fill their housing element. It’s really a benefit to them,” Callagy said. “The proximity to everything and the fact it’s walkable … it’s all the things you’d really hope for in affordable housing. You can’t get a better location.”

The properties were previously under ownership of the now-defunct Veev Group, which has since been acquired by Lennar Corporation. The 626 Walnut St. property had faced opposition from neighboring residents during the approval process in 2020, as the proposed five-story building was the tallest residential development approved at that time. The Lennar Corporation also owns the Black Mountain project at 808 Alameda de las Pulgas, which had also received community pushback before being approved in May.  

The county is undergoing the due diligence process and has until the end of March to finalize its investigation. The current properties include two commercial buildings and one two-story residential building — comprising about 26,500 square feet total. The item will be discussed at the upcoming Board of Supervisors meeting Tuesday, Feb. 13.