At a time when homebuilders are playing it safe and in some cases halting construction, the developer of an ambitious Simi Valley housing project is moving ahead, banking on the improvement of slumping market conditions.

Casden Properties is outpacing most builders to get approval of a 266-unit development with affordable housing, senior housing and single-family homes at Madera Road and Los Angeles Avenue.

"Upon approval, we plan to proceed," said Darren Embry, spokesman for Casden. "We're confident the market will adjust during our construction periods."

Embry said there was never a thought that the project — now five years in the making — would be put on hold. Casden hopes to break ground by the end of 2008.

Last week, the Planning Commission unanimously approved the project, which has been scaled down from three stories with 354 rental apartments to the current housing mix, which includes attached homes for sale. The project now goes to the City Council for final consideration.

"We have followed the direction of the City Council and suggestions from our neighbors, and together we've designed a project that will be a major asset to the city," Embry said.

Many projects on hold

But Casden is an anomaly when it comes to construction in Southern California, said a representative of the Building Industry Association.

"For the majority of our members, they are in a holding pattern or have stopped mid-stream," said Terra Donlon, vice president of government and public affairs for the Los Angeles and Ventura County chapter of BIA.

Donlon said most developers are just trying to sell their current inventory before starting new projects.

Statewide, building permits were pulled for just 3,151 single-family homes in November, down 50 percent from November last year, according to the BIA.

Last month, production of single-family homes fell nearly 50 percent while construction of multifamily units decreased 36 percent.

Nationwide, housing construction fell in November with single-family activity dropping to the lowest level in more than 16 years. Analysts said the recession in housing showed no signs of a turnaround.

Last month, Encino-based developer Larwin Co. announced that its high-profile 66-unit condominium development in Simi Valley will be put on hold. The Savannah project, now in its grading phase, is along Highway 118 near Kuehner Drive, by what is known as Happy Face Hill. It has been interrupted until at least March while the developer waits for an upswing in the housing market.

Larwin has another Simi Valley development that was approved, but construction has been put on hold. River Run, a planned 44-unit condominium complex on 3 acres, will not start grading until more homes sell at its other property, the developer said.

"Things are tight, certainly the City Council is aware of that," said Councilwoman Barbra Williamson.

She expressed concern the Casden development might end up like the two Larwin projects. "With all that's going on, the economy the way it is right now, why are they moving ahead when all others are backpedaling?" she asked.

Casden's is one of the largest housing developments to be taken before the city in recent years, and, if approved by the City Council, could be built on the last large piece of commercial land in Simi Valley.

That is a concern for Mayor Paul Miller, who said the use of valuable commercial property needs to be taken into consideration. The project will be heard by the City Council at its first meeting in January.

Miller said that since the project includes condos for sale, the buying market could respond favorably to the development. He also said the market could change by the time the project breaks ground.

"Just because we approve the project, that doesn't mean it will get built in six months," Miller said.

Other developments in works

Casden is in the application process for a residential project in Oxnard and is completing several projects in the Los Angeles area.

Embry said the developer does not plan to stop any of its projects.

For its Simi Valley project, Casden is also proposing about $7 million in public improvements, including a storm drain to improve drainage of the entire neighborhood, potentially removing some homes from the flood plain. Additional traffic lanes and protected turns also are proposed for Madera Road and Los Angeles Avenue.

Current Simi Valley residents and seniors with family members in the city will receive priority consideration for the affordable units. Affordable senior units would be available to those 62 and older.

The proposed project has 67 units of affordable housing, or 25 percent of the units. As detailed by Casden Properties, the 266-unit project includes:

- 55 units of "senior" homes for adults 55 and older.

- 30 non-age-restricted homes.

- 117 townhouses with private garages and stairways directly into units.

- 64 two-story, single-family triplex homes.

—The Associated Press contributed to this report.