If you’re considering an affordable townhome at Hillcrest Homes, the October changes affect which income tier a home serves, its outdoor space and the ownership documents you’ll need to understand. The project at 384 N. Erbes Road still has 78 affordable for-sale townhomes. The revised mix includes more moderate-income homes, and the plans remove all balconies.
This is general information and not legal advice.
What did the council approve in October?
The Acorn reports the council approved the changes 5-0 on October 13. Its October 22 coverage describes the shift in income tiers and removal of balconies.
The City of Thousand Oaks staff report for agenda item 10.A explains the recommended changes. It is a recommendation document; the reported vote comes from the Acorn.
Status as of October 30, 2026: the First Amended and Restated Disposition and Development Agreement remains to be negotiated and drafted after the vote. Financing is not final. People’s Self-Help Housing Corporation, or PSHH, is working toward obtaining it.
The underlying agreement is Contract No. 13646-2024 among the City, Housing Land Trust Ventura County, or HLTVC, and PSHH. For a buyer, that agreement and the recorded affordability restrictions matter alongside the townhome plans.
We spoke with someone following Hillcrest Homes who had saved an earlier description of the project. After the later city action, he wanted to know whether the homes, conditions or approval status had changed. We compared the newer decision with the version he had seen rather than assuming the original project description still told the whole story.
How did the income tiers change?
The amended mix has 40 lower-income homes and 38 moderate-income homes, with all 78 remaining affordable.
The original agreement provided for 59 lower-income homes and 19 moderate-income homes. Both versions include the same 10 lower-income homes tied to the City’s Housing Successor Fund and density bonus. The change shifts 19 homes from the lower-income tier to the moderate-income tier.
For a four-person household, the staff report gives these income limits:
- Lower-income homes would serve households at or below $113,050.
- Moderate-income homes would serve households at or below $146,450.
Those are the report’s figures, not permanent limits. Applicable income limits will be updated as required under the agreement and recorded affordability restrictions.
Income qualification also does not supply a purchase price or explain the full eligibility process. The report provides neither. You should ask HLTVC and PSHH which current limits apply and what other qualification requirements govern a purchase.
For context on another city’s approach, the Jurupa Valley inclusionary housing guide discusses affordable new homes under that city’s rules.
What would you own under the ground lease?
You would buy a townhome with a 99-year ground lease from HLTVC upon completion and sale of the home.
The land transfer comes earlier, but only after full financing is verified. The City then conveys the property to HLTVC, which enters a five-year ground lease with PSHH for development.
Ground rent for homebuyers will be established at fair market value, taking the applicable affordability restrictions into account, as determined by an appraiser. The report gives no ground-rent amount. That leaves an important cost unanswered when you’re considering what you can afford.
The agreement requires all 78 homes to be sold at affordable purchase prices to qualified buyers during a 99-year affordability period administered by HLTVC. The ground lease and affordability restrictions therefore belong in your review of the purchase documents. You should ask HLTVC and PSHH for the applicable documents and ground-rent terms rather than infer them from the project’s affordable designation.
What do the resale rules mean for your budget?
The resale price methodology would be revised to meet funding and affordability requirements, so the report does not establish a future resale price.
The proposed revisions address California Department of Housing and Community Development CalHome requirements, along with other funding, affordability and underwriting requirements. They include maximum sales prices, housing-cost ratios and final underwriting. Initial purchase prices would also follow the revised methodology.
No sale prices appear in the report. No HOA dues or ground-rent amounts either. You should ask for those figures and the applicable resale calculation before treating an income limit as a complete affordability answer.
An affordable purchase can also involve a separate assistance program. The Covina down-payment loan guide provides context on that city’s program; it does not establish assistance at Hillcrest Homes.
Why are all the balconies being removed?
The balconies are being removed because staff identified recurring inspection, maintenance and insurance costs for the homeowners association.
The earlier plan had 70 balconies on unit types 3, 4, 5, 6 and 7. The modification replaces sliding glass doors with large windows, trim and recessing.
Thousand Oaks Municipal Code section 9-4.2205(c)(2) requires balconies on a share of street-facing or courtyard-facing units. Staff supported relief from that requirement because the HOA would otherwise bear balcony inspection obligations under Senate Bill 326, along with maintenance and insurance costs that could necessitate higher dues.
That reasoning does not establish an HOA dues amount or a specific saving. Buyers still need the HOA documents and budget. The California HOA disclosure guide offers related background for that review.
The changes also waive the private-yard standard in section 9-4.904(e)(4) and remove Condition of Approval 15 concerning private usable open space. You should review the revised plans for the outdoor space attached to the particular home you’re considering.
What changes would neighbors see around the site?
Neighbors would see revised building details and retaining walls, while transmission poles along Hillcrest Drive and Glenwood Place stay overhead for now.
Condition 37 limits exposed retaining wall height to 6 feet. Walls 2, 3, 4, 5 and 6 exceed that limit in the revised plans. Only Walls 2 and 6 are visible from Erbes Road; their maximum exposed heights are 7 feet 11 inches and 6 feet 1 inch. Conditions requiring landscaping, horizontal articulation and decorative materials remain.
The underground utility waiver addresses adjacent utilities. The Hillcrest Drive segment is in the City’s Underground Utility Master Plan for future undergrounding, and the waiver does not preclude that work. Southern California Edison design work would determine which poles may be removed.
The access ramp at the southeast edge connecting the development to Estella Park must remain. Conditions 160 and 161 still require it. The open-space standard previously treated as a density bonus concession is reallocated as a waiver.
Is financing complete, and when could construction start?
Financing is not complete, and the Acorn estimates construction will start in March 2027.
The staff report estimates total development cost at $47,924,385. The permanent financing plan includes public funding awards and anticipated home-sale proceeds. A construction loan is expected, but it is not a permanent funding source. The October actions request no additional City financial assistance.
The City bought the site in 2021 for $10 million using General Fund and Housing Successor Fund dollars. That land purchase does not mean development financing is final.
The Acorn also reports that the developer may phase construction. Its construction estimate is not a start date supplied by the staff report.
The report says the project could qualify for certain traffic and police facility impact fee waivers under Ordinance 1750-NS, approved September 15, 2026. It does not establish that those particular fees have been waived.
The short version
Hillcrest Homes retains 78 affordable townhomes, with revised income tiers, no balconies and a ground-lease ownership structure.
You should ask HLTVC and PSHH about current income limits, purchase prices, ground rent, HOA dues, resale restrictions and sales timing. The report does not describe an application or selection process.
Keep the October 30, 2026 status in view: the amended agreement remains to be drafted, and financing is not final. The Acorn’s March 2027 construction estimate does not answer when sales open.
For a separate look at a property’s value, use the home value tool.
Common questions
Are all 78 Hillcrest Homes townhomes still affordable?
Yes. The amended mix has 40 lower-income homes and 38 moderate-income homes. All 78 remain affordable for-sale townhomes.
What income limits does the staff report give?
For a four-person household, the report gives limits of $113,050 for lower-income homes and $146,450 for moderate-income homes. Applicable limits will be updated as required.
Will buyers own the land beneath their homes?
The ownership structure provides for Housing Land Trust Ventura County to enter a 99-year ground lease with each homebuyer upon completion and sale.
What will the homes and HOA dues cost?
The staff report gives no sale prices, HOA dues amounts or ground-rent amounts. Buyers should ask Housing Land Trust Ventura County and People's Self-Help Housing Corporation.
When will construction and sales begin?
The Acorn estimates construction will start in March 2027 and reports that the developer may phase the project. The staff report does not give a sales opening date.
