Why Affordable Housing Numbers Changed at Town Square West and What It Means for Cupertino’s Future
Last Updated: May 2026
Few development projects in Silicon Valley have generated as much debate as The Rise and its first major district, Town Square West.
For the full overview of the project, including housing, retail, parks, timelines, and buyer implications, visit our main guide to The Rise at Town Square West .
What began years ago as an ambitious proposal to transform the former Vallco Mall site into a dense mixed-use urban center has now evolved into one of the Bay Area’s most controversial housing discussions.
At the center of the debate:
Why were affordable housing numbers reduced at The Rise?
The answer is more complicated than many headlines suggest.
To understand the controversy, it’s important to understand:
- how California housing laws changed,
- how the economics of large-scale development shifted after COVID,
- and why both supporters and critics believe they are fighting for Cupertino’s future.
What Is The Rise Cupertino?
The Rise is a massive redevelopment project planned near Apple Park on the former Vallco Mall property in Cupertino.
Current plans include:
- thousands of housing units,
- retail and restaurant space,
- parks and public plazas,
- affordable housing,
- and large-scale mixed-use urban development.
The first major phase is known as Town Square West.
Supporters see the project as:
- a long-overdue revitalization effort,
- a major housing solution near jobs,
- and the beginning of a more walkable urban Cupertino.
Critics worry about:
- traffic,
- density,
- infrastructure strain,
- school impacts,
- and changes to Cupertino’s suburban identity.
But the most heated debate now centers around affordable housing.
Why Did Affordable Housing Numbers Change?
Earlier versions of the Vallco redevelopment proposal included substantially higher affordable housing totals.
At one point, discussions surrounding the project referenced approximately 890 affordable units.
More recent revisions reduced that number to approximately 356 affordable homes.
That dramatic reduction triggered criticism from:
- housing advocates,
- some city officials,
- and residents who believed the original affordability promises were being weakened.
However, developers argue the situation is more nuanced.
The Role of SB35 and California Housing Law
A major factor in the controversy involves California’s SB35 housing law.
SB35 was designed to accelerate housing production in cities failing to meet state housing goals.
Under SB35:
- qualifying projects can bypass portions of local discretionary review,
- approval timelines are streamlined,
- and developers can pursue projects under state housing rules rather than lengthy local political processes.
But SB35 calculations and project requirements evolved over time.
As the project changed, developers adjusted:
- office square footage,
- residential density,
- financing assumptions,
- and affordable housing ratios.
One major change involved reducing nearly 500,000 square feet of planned office space.
That reduction significantly altered the economics of the project.
Developers argued that after COVID:
- office demand weakened,
- construction costs surged,
- financing became more difficult,
- and the original project structure was no longer economically realistic.
Their position is essentially:
a financially viable project with fewer affordable units is better than a stalled or unbuilt project.
What Developers Argue
Developers behind The Rise argue the revised project:
- still delivers substantial housing,
- still includes hundreds of affordable homes,
- and remains one of the largest housing developments planned in Silicon Valley.
Supporters also point to:
- proximity to Apple Park,
- transit and walkability improvements,
- reduced commuter pressure,
- and the importance of building housing near jobs.
Recent plans continue to include:
- approximately 2,669 housing units,
- approximately 356 affordable homes,
- 200,000 square feet of retail and dining,
- and more than three acres of parks and open space.
Developers also emphasize that the first affordable housing phase alone includes 232 affordable homes in partnership with Eden Housing.
From their perspective:
the project remains transformational even after revisions.
What Critics Argue
Critics see the issue differently.
Many argue:
- the affordable housing reductions fundamentally changed the social balance of the project,
- Cupertino lost a major opportunity for deeper affordability,
- and SB35 allowed developers to significantly alter commitments after gaining momentum.
Some residents also worry that:
- luxury housing will dominate,
- traffic and congestion will increase,
- and Cupertino’s infrastructure may struggle to keep pace with rapid density growth.
Others argue the project reflects a broader statewide problem:
California desperately needs housing, but affordable housing is often the first casualty when financial pressures rise.
For many critics, the debate is not simply about one project.
It’s about:
- trust,
- growth,
- and who gets to live in Silicon Valley long term.
Why This Matters for Cupertino
Regardless of where people stand politically, The Rise is likely to shape Cupertino for decades.
If completed as planned, the project could:
- dramatically increase housing inventory,
- reshape the area near Apple Park,
- create a new walkable urban district,
- and influence long-term real estate values throughout Cupertino.
The project may also become a major case study in:
- California housing policy,
- SB35 implementation,
- post-COVID development economics,
- and the future of suburban redevelopment across Silicon Valley.
In many ways, The Rise represents a larger statewide question:
How does California build enough housing while preserving affordability and community trust?
That debate is far from over.
What Happens Next?
Recent reporting suggests:
- vertical construction at Town Square West could begin before the end of 2026,
- permit applications for the first affordable housing phase are moving forward,
- and the project is continuing to advance despite ongoing controversy.
The next few years will determine whether The Rise becomes:
- a model for future Silicon Valley redevelopment,
- or a cautionary tale about the challenges of balancing growth, affordability, and politics.
Either way, it is already one of the most important development stories in Cupertino history.
About Bruce Wagg
Bruce Wagg tracks major Bay Area redevelopment projects including The Rise at Cupertino, Town Square West, and other transformative mixed-use communities shaping the future of Northern California real estate.
For a complete breakdown of the entire redevelopment, see our main The Rise at Town Square West resource page .
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