Ordinance Committee - October 6, 2026

The City of Santa Barbara Ordinance Committee met on October 6, 2026, to review proposed amendments to the city’s inclusionary housing requirements. Staff described changes intended to consolidate rules for rental and ownership projects, standardize rounding and fee-payment procedures, allow inclusionary units to count above density, and add alternative compliance options, including off-site units, rehabilitation of existing units, and an offset fee. Proposed offset fees are $91 per square foot for rental projects and $72 for ownership projects; the Planning Commission had recommended a $73-per-square-foot rental rate in the central business district. Staff said the proposed fee rates reflect the study’s legally defensible maximums, though projects may be less financially feasible at those rates. Fees would be directed to the Local Housing Trust Fund.

Committee members discussed affordability goals, downtown housing, nonprofit partnerships, and whether to reduce or standardize the offset fees. One public commenter expressed support for affordable housing efforts. A motion was made and seconded to forward staff recommendations A, B, and C, with comments—including a recommendation to use the maximum allowable fee rates—to City Council; the transcript does not include a recorded vote or final disposition. No procurement activity was identified.