CUPERTINO (KPIX 5) – The fate of the long-delayed project to replace the old Vallco Shopping Mall in Cupertino with housing could reportedly leave the city facing a lawsuit from the state.

Developers, who are planning to build more than 2,400 units, half of them affordable, along with 1.8 million square feet of office space and 400,000 square feet of retail, have faced a battery of roadblocks.

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The developers have invoked Senate Bill 35, a state law that aims to make it easier to build affordable housing units. Meanwhile, opponents have filed a lawsuit against the project.

Sign of the defunct Vallco mall in Cupertino. (CBS)

Sign outside the shuttered Vallco Shopping Mall in Cupertino. (CBS)

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According to the San Jose Mercury News, state housing officials are threatening to sue Cupertino if the project fails to materialize, because the city could fail to meet state housing goals.

Cupertino is responsible for zoning over 1,000 new housing units by 2023.

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In a statement to KPIX 5, Cupertino officials said “The City is aware that it will need to take action to ensure that sufficient sites are zoned for housing in the event the SB 35 project is overturned.”