The purpose of the Housing Development and Preservation Program is to foster an inclusive and balanced community by promoting and facilitating rental housing that is affordable to very low and low-income households, and ownership housing that is affordable to primarily moderate-income households.
The City has done well in creating a level of affordable housing that constitutes approximately 15% of the City's housing stock. Program staff evaluate proposals from local housing providers requesting financial assistance and / or other development incentives from the City for construction of new rental or ownership housing or to preserve existing rental housing. Housing developed or preserved in partnership with the City remains affordable for 90 years pursuant to an agreement recorded against the title.
For further information about the Housing Development and Preservation Program, call (805) 564-5461.
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.
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.
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.
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:
To contact Affordable Housing Programs staff call or email:
Melissa Bonillo
Housing Programs Specialist
(805) 564-5461 x4585
MBonillo@SantaBarbaraCA.gov
Maria Schroeder
Housing Programs Specialist
(805) 564-5461 x4473
MSchroeder@SantaBarbaraCA.gov
Lucy Graham
Housing Project Planner
(805) 564-5461 x4578
LGraham@SantaBarbaraCA.gov
Laura Dubbels
Housing & Human Services Manager
(805) 564-5491
LDubbels@SantaBarbaraCA.gov
Mobile homes are a type of housing affordable “by design,” as the monthly costs are low compared with other non-deed-restricted housing. For the most part, mobile homes and mobile home parks are governed not by the city, but by state and federal regulations. For more information, including resources for resolving certain disputes between mobilehome owners and mobilehome-park owners, please visit the State of California Department of Housing and Community Development’s webpage on Manufactured and Mobile homes: https://www.hcd.ca.gov/manufactured-mobile-home/consumer-information/index.shtml