RCD Housing Breaks Ground on 120-Unit Clara Gardens in Santa Clara

• Resources for Community Development (RCD) has started construction on Clara Gardens, a 120-unit deeply affordable housing community at 3550 El Camino Real in Santa Clara, California.

• Located at 3550 El Camino Real, Santa Clara, CA 95051, the 1.12-acre project will combine a renovated portion of the former Bella Vista Inn with a new seven-story apartment building.

• The development has received approval for up to $50 million in tax-exempt bonds, with RCD targeting completion in 2027.

What RCD Housing Is Building

Resources for Community Development is moving Clara Gardens into construction at 3550 El Camino Real, transforming the former Bella Vista Inn site into a 120-home affordable housing community. The project combines preservation and new construction, with part of the existing motel being renovated alongside a new seven-story residential building. The development is planned as a 100% affordable community and will include approximately 85,620 square feet across the new construction and associated improvements. RCD's current construction portfolio lists James E. Roberts-Obayashi Corp. as the general contractor and Van Meter Williams Pollack as architect, with completion targeted for 2027.

 

 

What The 120 Apartments Include

Clara Gardens will provide a mix of studios, one-, two- and three-bedroom apartments, serving households at multiple income levels. Project documents describe 119 affordable residences plus one manager's unit, with housing targeted to households earning between 30% and 60% of area median income and permanent supportive and rapid-rehousing components. The project will also provide 30 permanent supportive housing units for residents transitioning out of homelessness, according to the latest project description.

 

 

What The Development Adds To The Site

The project will include two interconnected courtyards, community rooms, resident services, a children's play area and a bicycle repair studio. Parking will include a 66-space garage and additional surface parking, bringing total vehicle capacity to approximately 81 spaces, along with parking for 120 bicycles. About 1,440 square feet of commercial space is also planned. The design by Van Meter Williams Pollack uses multiple façade materials, including cement plaster, fiber cement panels, wood-look panels and exposed concrete, with balconies and varied colors intended to break up the building's massing.

What The Financing Means

Santa Clara approved the issuance of up to $50 million in tax-exempt bonds for Clara Gardens in May 2026. The financing is being provided through the California Municipal Finance Authority for Clara Gardens LP, the project borrower. The city's housing documents now classify Clara Gardens as under construction, while Santa Clara's housing element identifies all 120 homes as affordable.

RCD Executive Director Dan Sawislak said, “Clara Gardens shows what is possible when we refuse to let a vacant motel sit empty while people sleep outside.” He added that the site had previously provided temporary housing before construction began on the permanent community.

What The Location Means For Residents

The project sits along El Camino Real and Flora Vista Avenue, across from Lawrence Square Shopping Center and near Lawrence Expressway Plaza. The location also provides access to VTA and Caltrain connections, while El Camino Real serves as one of Santa Clara County's major commercial and transportation corridors. With construction now underway and completion targeted for 2027, Clara Gardens is converting a former motel site into 120 permanent affordable homes in one of Santa Clara's established commercial corridors.