Proposed Penryn housing project moves forward with tentative approval

The Hope Way Apartments project slated for Penryn received tentative approval following an eight-hour meeting Tuesday. The housing project is proposed as 240 units in 12 three-story buildings with a mix of one-, two-, three- and four-bedroom energy-efficient units, to serve qualified individuals and households in need of affordable housing. The project would include two manager units, two play structures and two clubhouses/recreation centers on the 11.43-acre site as well. The project was halted with a 3-2 vote, with one abstention, on the design review agreement and the denial of one of nine concessions by the Placer County Planning Commission on Oct. 16. Appeals were then filed by the applicant, USA Properties Fund Inc., and Placer Citizens for Neighborhood Rights, a coalition of individuals concerned about the Placer County Housing Element and its impact on Penryn, on Oct. 24. A third appeal was filed Oct. 27 by YIMBY Law, a non-profit whose mission is to increase the accessibility and affordability of housing in the state. Chris Pahule, planning director for the county, kicked off the item by providing the board with an overview of the project's history and a summary of supplemental materials accessible for the public's review. Pahule also advised the county received a notice of potential violation and corrective action from the Department of Housing and Community Development (HCD) on Dec. 11, which warns that denial of the project or any of its concessional waivers without specific findings would be a violation of the Housing Accountability Act and state density bonus law. "HCD advised that failure to correct issues could jeopardize the county's housing element compliance, pro-housing designation, eligibility for certain state funding and could result in referral to the attorney general or other enforcement action," Pahule told the board. Pahule confirmed Placer has 30 days (Jan. 9, 2026) to respond to HCD's letter in writing. During county staff's presentation, Supervising Planner Kally Kedinger-Cecil confirmed key topics and issues included traffic, emergency response, compliance with the Horseshoe Bar/Penryn Community Plan, compliance with Placer's Housing Element and emergency evacuation and public safety. She also confirmed project denial could result in a 30-day period of rezoning additional sites and housing element amendment to ensure compliance, builder's remedy, decertification of the housing element, loss of pro-housing designation, legal action from HCD or other entities and fines of up to $50,000 per unit. Following staff's presentation, the board heard from each appellant and received 57 public comments, with 10 comments in support of the housing project to meet Placer's affordable housing needs or avoid possible penalties. "Hope Way will serve working families, seniors, individuals with disability and modest income members of our local workforce, including the workforce that all of us are going to need as we age …," said Natalie Cooper, a Placer resident and member of Future for Our Kids. "Approving this project means allowing people who grew up here whose families have invested in this community for decades to stay here. I respectfully urge you to approve the Hope Way Project and send a clear message that Placer County is a place where all residents, including those with disabilities, belong." John Dangberg, board member of Housing Trust Placer, shared the city of Elk Grove faced a costly settlement, including $160,000 per unit in costs, after denying a project and noted, "Making no assumptions here, but with 240 units at Hope Way, if you use those unit costs as a benchmark, the settlement cost could be over $35 million. That does not include potential state penalties that we've also heard about tonight. This could be a costly outcome for the county, wasting your affordable housing resources and also losing a prime affordable housing site on Hope Way." Other comments were either against the project, asked the board to protect the public safety of its constituents or broached concerns about the project's size in comparison to the size of the Penryn community and impacts to various factors like the schools, air quality and traffic. "It's clear that this project is too much both in size and serious consequences," said Sheila Travnikar. "I've read the threats from HCD. Has anyone from HCD actually visited the site or is it they just don't care? I would never have imagined safety as being negotiable. How sad that that is where we are today. Penryn doesn't have a problem with affordable housing; it's this unplanned, unsafe haphazard project we're against." In speaking about the proposed roundabout for the project, Dr. Susan Gillen stated, "The design is not a delay. It is an entrapment hazard that you're being asked to approve. Deny the project today. You've an obligation to do the right thing. Please protect the children and residents of Placer County." Following staff and appellants' responses to comments, the board deliberated for nearly an hour on the project's appeals, whether there were any public safety risks to deny the project and potential consequences. The board also noted its understanding of the challenge of balanced growth and having affordable housing for the local workforce. "I don't love having to do this, but it's really the cards that we've been dealt," Board Chair Bonnie Gore said. "And I think that, based on what the state will do, I can't find any background to say no. … This site was identified and has been identified, and if it wasn't in the RHNA (Regional Housing Needs Allocation) process, it would have been by-right already. They would've already moved forward a year ago. So I think we have to move forward because I can't find any reason to base it on a public safety risk." District 5 Supervisor Cindy Gustafson noted it was anticipated the first project following the RHNA process would create legitimate concerns and it would be a tough decision. "I think the premise that some have shared with me is we should just, you know, point a certain finger at the state and say we don't have to do this," Gustafson said. "We heard that during RHNA - 'Stand up to them,' 'Push back,' 'Don't do it,' and we see what has happened in other jurisdictions. I can't in good conscience say that we should do that, that we can stand up to the state seeing the evidence that we have, receiving the letters we have." District 4 Supervisor Suzanne Jones noted she could see a better use for taxpayer dollars than paying millions in fines. Before the board's vote, she stated, "I had hoped that we could find a health and safety issue here that we could substantiate, that would pass muster with HCD, but I just don't think we have it. So I'm not going to try to fall on that sword for you guys." The board approved the project's design review agreement and nine waivers in a 3-2 vote, with District 2 Supervisor Shanti Landon and District 3 Supervisor Anthony DeMattei voting no for each motion. After two attempts and gaining clarification, the board also voted to grant the appeals of USA Properties and YIMBY Law and deny the appeal made by Placer Citizens for Neighborhood Rights in a 4-1 vote, with Landon being the vote of dissent. Placer County Counsel Clayton Cook confirmed the board's vote is a tentative approval until the items are brought back to the board for final action. The board unanimously voted to continue the item to a special meeting at 9 a.m. Monday, Jan. 26, 2026. Pahule confirmed the county will provide HCD with an update of the board's actions by the deadline.