San Marcos Planning Commission Denies 31-Unit San Elijo Hills Condo Project

The Coast News reported that the San Marcos Planning Commission voted 4-2 on Monday, Oct. 5, 2026, to deny a proposed 31-unit condominium project near the San Elijo Hills Town Center. City staff had recommended approval. The developer, Encinitas-based Ambient Communities, has until Oct. 15 to appeal to the City Council before the denial becomes final.

What was proposed

The city agenda places the site southwest of where San Elijo Road splits into San Elijo Road South and North, between Schoolhouse Way and Elfin Forest Road (case numbers SDP24-0009 and TSM26-0001). The Coast News described a half-acre, wedge-shaped parcel with 20 one-bedroom and 11 two-bedroom units, six of them designated for low-income residents, a 10-space ground-floor garage, and 11 more spaces in a lot. The building would range from three to five stories and reach 64 feet at its highest point. Because it includes affordable units, the project qualified for a state density bonus. Staff said it met the site's zoning, the general plan, and fire safety requirements.

More than two dozen residents spoke against the project, citing wildfire evacuation, traffic, and parking. An attorney for one of the homeowners associations said the city had received more than 200 opposition letters and a petition with more than 3,000 signatures. One commissioner said he saw no legitimate reason to oppose the project under recent state housing laws and worried about the city's financial risk. A member of the city attorney's team told commissioners they would need written findings to deny it.

Why it matters

  • The denial is not final until the Oct. 15 appeal deadline passes. If the developer appeals, the City Council decides.
  • The project was the only one in San Elijo Hills offering one-bedroom condos, according to the developer's representative.
  • For San Elijo Hills buyers and owners, the vote leaves the Town Center's new condo supply where it was for now, and an appeal could reopen the question.

Sources: The Coast News on the Planning Commission denial (Oct. 6, 2026); City of San Marcos agenda file for the Oct. 5, 2026 hearing.

Related on this site: North City housing goals. That is a different part of San Marcos.

More San Marcos mortgage help and the San Marcos news board.

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