Santa Barbara residents enjoy a beautiful environment bordered by mountains and seashore, with clean air, a temperate climate, and charming ambiance. But this beautiful City exacts a high price from those who live here. Housing costs are among the highest in the nation, and vacancy rates are among the lowest.

The high housing costs and low vacancy rates result in problems for many residents and local employees. Many people live in outlying areas that provide less expensive housing and commute long distances to work in Santa Barbara. Families must frequently live in overcrowded conditions to afford their housing. Further, the City faces a situation in which households of all income groups are leaving Santa Barbara. Young adults, many of whom grew up here, are often forced to leave the area in search of housing they can afford. The low vacancy rate also contributes to substandard housing, as unscrupulous landlords often charge the same rent for units they have allowed to deteriorate as for well-maintained units.

The City Council has made a commitment to address the City’s housing problems to the extent feasible by implementing the policies and strategies of the Housing Element of the General Plan, which is the City’s housing policy document and which sets forth the City’s action program for housing. One of the central goals identified in the Housing Element is the availability of affordable housing for all social and economic segments of the community.

The term “affordable” may have a wide range of meanings to the public, but in the City’s usage, it has a specific meaning. “Affordable” rental housing means housing that does not cost more than 30 percent of a household’s gross income. For example, an affordable monthly rent for a household earning $2,000 per month would be $600 (including utilities). For ownership housing, “Affordable” means housing that does not cost more than 40 percent of a household’s gross income. Affordable monthly housing expenses for an ownership household earning $5,000 per month would be $2,000 (including mortgage payments, taxes, insurance and condominium association fees).

The City’s affordable rental housing programs are targeted to very low or low-income households. The Affordable ownership housing program is targeted primarily to moderate-income households. Under the City’s Density Bonus Program the City allows development of a greater number of units than would normally be allowed under the existing zoning. As a trade-off, some or all of the units on the site are subject to rent restrictions or resale controls, which provide for continued long-term affordability to low-income renters, and to buyers who are moderate income, middle income or upper-middle income. The maximum limits for these and other income levels are based on the Area Median Income (AMI) the federal government calculates annually for Santa Barbara County, with adjustments made for household size. Income eligibility is based on total gross income (before taxes) from all household members.

The City does not own or manage rental properties. The following is a list of owner/managers of affordable rental housing.

• The Housing Authority of the City of Santa Barbara is a local public agency that provides affordable housing as well as supportive services to eligible persons with limited incomes. The Housing Authority owns and manages hundreds of units throughout the City and also offers rent subsidies to eligible households. Contact them by calling 965-1071 or by visiting their website .
• People’s Self-help Housing Corporation and The Duncan Group own and manage hundreds of units of affordable housing throughout Santa Barbara County and provide on-site community services. Contact them by calling their local office at (805) 962-5152 or by visiting their website .
• The Community Housing Corporation owns and manages several affordable housing projects throughout the City. Those interested can pick up applications at their offices located at 11 E. Haley Street in downtown Santa Barbara. Call (805) 963-9644 for more information.
• St. Vincent’s, in partnership with Mercy Housing California, a prominent not-for-profit developer of community housing solutions, has developed 75 affordable units for low-income families (St. Vincent’s Gardens) and 95 affordable units for low-income seniors (Villa Caridad) on St. Vincent’s 19-acre site. For more information, visit their website .
  

Hundreds of condominium units and single-family residences have been constructed under the City’s Housing Development and Preservation Program for eligible low, moderate, middle and upper middle income homebuyers. In acquiring their affordable homes, these owners have agreed to comply with resale restrictions that limit the resale price and require a new buyer to be of low, moderate, middle income, or upper-middle income.

When an owner of an affordable home elects to sell, they contact the City to find out what the allowable resale price will be. Owners are free to sell to any City-qualified household. The City maintains an Interest List and upon request, it is provided to owners. There is no guarantee that they will select their buyer from the list . The interest list is also provided to developers when new projects are being marketed.

An interested buyer’s name remains on the Interest List for six months from the date submitted. It is the interested buyer’s responsibility to submit a new written request every six months.

The City’s Housing Development and Preservation Program provides assistance to affordable housing developers in several ways, including loans, grants, and through the granting of density bonuses. This assistance is provided in exchange for a recorded agreement that some or all of the housing units will remain affordable to a certain income group (for example, “low-income” or “moderate-income”) for a specified number of years.

Direct Financial Assistance

Based upon funding availability, the program solicits proposals from local nonprofit housing providers requesting financial assistance either for the construction of new housing units or for the preservation of existing housing units. Housing developed or preserved in partnership with the City remains affordable for 90 years pursuant to an agreement recorded against the title.

Primarily, the City provides direct financial assistance to nonprofit housing developers. (For-profit developers generally participate in the density bonus program described below.) This assistance generally provides gap financing that is the last portion of financing that enables the developer to create a project with rents and home prices low enough to be affordable by low- and moderate-income households. Financial assistance generally comes in the form of a 30-year, three percent loan.

Density Bonus

Through the City’s density bonus program the City allows development of a greater number of units than would normally be allowed under the existing zoning. As a tradeoff, some or all of the units on the site are subject to rent restrictions or resale controls which provide for continued affordability to low income renters or moderate income purchasers for at least 90 years. Since the beginning of the City’s Density Bonus Program in the early 1980s, the Planning Commission has approved 58 projects with density bonus. These projects contained approximately 415 bonus units and 961 affordable units.

The City of Santa Barbara has helped finance the operation and in some cases, the construction of homeless housing shelters throughout the City. Listed below are the homeless housing shelters and centers currently in operation:

• PATH Santa Barbara provides full service, sobriety-based shelter care to homeless individuals and families. The shelter offers beds for up to 200 men and women on a first-come first-served basis during the winter months from December through March and offers 100 beds year-round for special populations. PATH Santa Barbara is located at 816 Cacique Street. For more information, call (805) 979-8712 or visit their website.
• Transition House operates a homeless family shelter for up to 63 families. In conjunction with the shelter services, Transition House offers childcare and job-training services, along with other housing opportunities. Transition House is located at 434 E. Ortega Street. Contact them at (805) 966-9668, or visit their website .
• The Salvation Army provides year-round shelter and support services to those employed or seeking employment and to people referred by various social service agencies. There are 60 beds in the shelter. The Salvation Army provides breakfast to shelter residents at the center and operates a mobile meal program at various locations. The Salvation Army is located at 423 Chapala Street in downtown Santa Barbara. For more information, call them at (805) 962-6281 or visit their website.
• The Rescue Mission primarily provides drug and alcohol rehabilitation for both men and women. It also provides sleeping quarters for the homeless at night, which includes breakfast and dinner. Stays at the mission are generally limited to ten nights per month. The Rescue Mission is located at 525 East Yanonali Street. Contact them at (805) 966-1316 or visit their website.
  

To contact Affordable Housing Programs staff call or email:

Melissa Bonillo
Housing Programs Specialist
(805) 564-5461 x4585
mbonillo@santabarbaraca.gov

David Rowell
Project Planner
(805) 564-5461 x4578
drowell@santabarbaraca.gov

Deirdre Randolph
Community Development Programs Supervisor
(805) 564-5461 x5511
drandolph@santabarbaraca.gov