Planning Commission - August 20, 2026

The City of Santa Barbara Planning Commission held a meeting on August 20, 2026, primarily focused on proposed amendments to the inclusionary housing ordinance. Staff presented detailed recommendations based on a recent study to update inclusionary housing requirements for rental and ownership residential developments, including adjustments to in lieu fee rates and the introduction of a fee-out option allowing developers to pay fees instead of building on-site affordable units. The commission discussed the feasibility of these fees, the balance between incentivizing on-site unit construction versus fee payments, and the potential impact on housing development downtown. Commissioners expressed concerns about the low number of moderate-income units produced under the current program and debated whether to lower fee rates specifically in the Central Business District to encourage more development. After extensive discussion, the commission voted to recommend the ordinance amendments to City Council, including clarifications on fee calculations, definitions, and a worksheet for applicants, with a substitute motion to set a lower fee rate for the Central Business District while maintaining higher rates citywide. The meeting also included public comments emphasizing the challenges of affordable housing development and the need for government funding. No final votes on fee amounts were made, as the matter will proceed to City Council for further consideration.