Campbell Fast-tracks Townhome Development, First in State

A Campbell townhome complex that broke ground on Friday tests a 2023 state law designed to fast-track small-scale homeownership opportunities for middle-income families.

The six-unit Mercury Lane Townhomes, located at 300 Redding Road in Campbell, is believed to be the first construction under SB 684, a state law known as California’s Starter Home Revitalization Act, state Sen. Anna Caballero said Friday.

SB 684 streamlines permitting for qualified projects that have two to ten units, like Mercury Lane, bypassing the public hearings and environmental reviews typically required for a new development.

Units are expected to be completed in early 2027 with projected prices starting at around $1.15 million — well below the median home price in Campbell, which exceeds $1.8 million.

“Today’s event represents progress, partnership and practical solutions to California’s housing shortage,” said Caballero, who authored the bill, at the Friday groundbreaking ceremony. “Proof that smart policy can translate into real homes for real families.”

Nolan Gray, California YIMBY’s senior director of legislation and research, said the bill was designed to mitigate the lengthy approval process that otherwise slows down construction across the state.

Homeownership in California has become increasingly out of reach, as the state holds the second-lowest homeownership rate in the country.

The state’s median home price is roughly eight times higher than the state’s median household income. Homeownership has skewed older, with younger buyers often banking on inherited wealth or property to get a foothold.

“You essentially need intergenerational wealth to become a homeowner, or you have to sort of morbidly wait for your parents to pass away and inherit their home,” said Gray.

“This is not how we’re going to build the next generation of middle-class California families.”

Under standard permitting, projects can face months or years of discretionary review, environmental analysis and potential litigation, Gray said. SB 684 created what is known as ministerial review — meaning if a project meets the legal requirements, it must be approved within 60 days.

“It’s impossible to scale housing production as long as you have these sorts of delays,” Gray said.

Campbell Mayor Daniel Furtado said projects like Mercury Lane are precisely what the city needs. Campbell, a city of about 47,000 in Santa Clara County, already has roughly equal shares of single-family and multi-family housing. Campbell is the first city in Santa Clara County with a state-certified housing plan and a pro-housing designation.

The project’s developer, AlphaX RE Capital, is a Silicon Valley firm that has used new state housing laws to build more than 500 units. In this case, the company submitted its application under SB 684 in January 2025 and received approval eight months later.

Ruby Huo, a director at the firm, said the streamlined process led to a viable project that would have otherwise been financially unworkable.

Huo said the streamlined review process helped the developer and builder reduce the holding and financing costs. Each unit will range from roughly 1,400 to nearly 2,000 square feet, with floor plans offering three or four bedrooms and two-car garages.

AlphaX said that midway through construction, it plans to open an interest list for buyers, with a focus on younger families and first-time buyers. Huo said the firm is already using the same state law as it works on about 20 similar projects across the Bay Area, including four additional developments in Campbell.

California YIMBY’s Muhammad Alameldin noted that while 60-day approval is a meaningful step forward, housing advocates would like to see more aggressive policy changes.

“Our goal here is for homes to be approved within 24 hours, just like it is in many other states,” he said. “This is a good start, but we’re in a housing crisis, and we’re treating it like a crisis.”