Yes, you would need new construction building permits in both Santa Clara and Santa Cruz counties. In fact there are numerous permits and tests you would need for Blu Homes or a custom home.
Although I have never built a home in Santa Cruz county I have built / remodeled dozens of homes in Santa Clara county and am very familiar with the process. I would be happy to help walk you through the process if you have already located a lot. In addition, I have numerous, excellent contractors for everything from wells and septic systems to electrical and roofs. Depending upon your needs and desires I am certain I can help you complete your project on time and very close to your budget.
It should be noted that you are sometimes better off finding an existing home and remodeling or demolishing vs starting from scratch. Actually, you maybe able to live in the existing home while you build your new Blu Home; and then later keep it as a rental. There are size restrictions for a granny unit, but all of this information is easily accessible. Living on the property during construction is not only efficient; it is extremely helpful to manage your contractors (confirm they maintain your schedule)
Do you have a large family?
I am curious if you are working with a rep at Blu homes. A good friend of ours Milli Josifovska; email@example.com is a rep for Blu Homes. I would highly recommend working with Milli if you don't have a Blu Homes rep.
Please let me know if you have any questions; if I don't know the answers I will know where to quickly and easily find them.
I am a 2nd generation real estate and mortgage broker with over 20 years of experience. Furthermore I am a Los Gatos native who has lived in Los Gatos for almost 50 years. Besides helping you locate your new building site I can also help with construction financing and contractors.