An Oakland developer wants to build 93 homes for sale on the shuttered Nazareth House property in Terra Linda, one of the few ownership-housing projects proposed in San Rafael in recent years.
Signature Development Group filed a formal application on July 3 to construct two- and three-story detached homes at 245 Nova Albion Way, according to city records. The 7.44-acre site housed a 120-room senior care facility run by the Sisters of Nazareth for 60 years before it closed in 2021 due to pandemic-related financial pressures.
"We're really excited to be able to bring some newly developed ownership opportunities within the city of San Rafael, where there hasn't been a lot in recent years," said Jonathan Fearn, a representative of Signature Development Group.
The filing triggers a 30-day review period under SB 330, the state's Housing Crisis Act. City planner Kristina Estudillo said staff must determine whether the application is complete by approximately Aug. 2.
Three home types proposed
The development would offer 22 three-story, three-bedroom homes at 1,840 square feet; 22 two-story, four-bedroom homes at 1,977 square feet; and 49 three-story, four-bedroom homes at 2,161 square feet. Each home would include a small yard and a two-car garage.
Ten of the 93 homes would be designated affordable for low-income households. The remaining 83 would be sold at market rate.
The project calls for demolishing all existing structures on the property. Of 146 trees on site, 132 would be removed. A single entrance from Nova Albion Way would lead to a main road with T-shaped streets, along with a stormwater basin and new landscaping.
Density increased after city feedback
The project evolved through multiple rounds. In January, the developer initially proposed 63 homes. City staff determined that density fell below the minimum required by San Rafael's general plan, according to Estudillo. A May pre-application bumped the count to 91 before the formal July 3 filing landed at 93.
San Rafael's housing element identifies the Nova Albion site as having a "realistic capacity" of 97 dwellings, part of the city's plan to accommodate 3,220 new homes by 2031. As of April 2026, the city had permitted just 150 units toward that target, a 4.7% completion rate that places San Rafael in "Behind" status on the Bay Area RHNA Progress Tracker.
CEQA exemption invoked
The applicant has invoked Assembly Bill 130, a CEQA exemption for urban infill housing projects that took effect when Gov. Gavin Newsom signed it on Monday, June 30, 2025. If city staff determines the project qualifies, Signature Development would not need to prepare a full environmental impact report.
The application notes the site sits within walking distance of three schools and the Kaiser Permanente San Rafael Medical Center campus at 99 Montecillo Road.
Amy Likover, president of the Federation of San Rafael Neighborhoods, said the federation reached out to neighbors to encourage discussion of the project. She noted the Terra Linda Neighborhood Association is inactive and suggested the city hold a neighborhood meeting to address resident concerns.
What's next
No planning commission hearing or city council vote has been scheduled. The 30-day completeness review clock expires approximately Aug. 2.
More project details are available at cityofsanrafael.org/245-nova-albion.
