Lafayette approves six-story housing project with mixed-income homes downtown
LAFAYETTE, CALIFORNIA - A six-story housing project in the heart of downtown Lafayette is officially moving forward after the City Council voted Monday night to approve a new mixed-use development at 3458 Mount Diablo Blvd., right at Second Street.
For reference, that's the squat little building across from McDonald's, just east of the main section of downtown.
The project, proposed by local developer Nikhil Gera of OUTDO Lafayette LLC, will replace that existing one-story commercial building with a new six-story structure that city records say will include 31 for-sale units - including three below-market-rate homes - along with ground-floor commercial space.
The city lists the project at 50,167 square feet total, with 55 parking spaces and 23 bike spaces.
According to Lafayette's project page, the approved development includes 28 market-rate units, two very low-income units, one moderate-income unit, and a single commercial space on the ground floor. The site sits on about 0.64 acres and is planned to rise to 62 feet, 3 inches. The City Council approved the project in March 2026.
The vote came after months of design review and public hearings. In council minutes from the March 23 meeting, staff said the proposal was being processed under state housing laws including SB 330 and state density bonus provisions, allowing the project to exceed some of Lafayette's normal development standards.
Staff told the council the site could ordinarily support 23 base units, but the project qualified for a 27.5% density bonus plus a lot consolidation credit, bringing the total allowed to 31 units.
The development will also involve significant tree removal, and council members spent part of the hearing discussing protections for a heritage oak near the northeast corner of Mount Diablo Boulevard and Second Street.
Mayor Carl Anduri ultimately made the motion to approve the project, with an amendment calling for adequate protection for that oak tree.
The council then adopted Resolution 2026-24 on a 4-0-1 vote, with Councilmember Susan Candell absent. The minutes also note there is no appeal period.
The project evolved during the review process. Council minutes show that earlier versions of the proposal included questions over the distribution of below-market-rate units, the design of the ground-floor frontage, and whether a live-work unit would be appropriate on such a visible downtown corridor.
Vice Mayor Wei-Tai Kwok McCormick raised concerns during the hearing about preserving strong street-level commercial activity along Mount Diablo Boulevard, while staff said the proposal had already been revised several times in response to Planning Commission and Design Review Commission feedback.
The approval adds another sizable housing project to Lafayette's downtown pipeline. In a city roundup published a few days later, Lafayette noted that the council had approved the six-story mixed-use development at 3458 Mount Diablo Blvd. and said the project would include 31 residential units, including three below-market-rate units and one live-work unit, plus a ground-floor commercial space.
For downtown Lafayette, the vote is another sign of how the city's core is changing - with more housing, denser buildings, and bigger debates over what growth should look like in one of the East Bay's most closely watched downtowns.
