Santa Barbara City Council
March 17, 2026

engagement, spanning affordable housing, economic development, real estate and fiscal health.

RSG has over 40 years of experience designing and administering rent stabilization and affordable housing programs throughout California including most recently for the cities of Santa Ana, Pomona, and San Jose. In Santa Ana, they were engaged from policy conception and best practices research though the launch and ongoing administration of the city’s Rent Stabilization and Just Cause Eviction Ordinance. Their work has included developing outreach materials, compliance tools, and public workshops, as well as staffing the city’s hotline, training staff, and preparing long-term implementation strategies to support program sustainability. In Pomona, RSG also played a central role from initial policy development and peer jurisdiction research to ordinance adoption and full program roll-out. They prepared informational content, petitions, and forms, and continue to support program administration, including hotline services and policy design studies. In San Jose, RSG assisted with a comprehensive evaluation of its multi-faceted Rent Stabilization Program by conducting demographic and housing trend analyses, facilitating community engagement workshops, and developing a three-year Strategic Plan to measure program effectiveness and guide policy recommendations.

Given the accelerated timeline established by City Council to adopt a Rent Stabilization Ordinance in July and implement a program by January 1, 2027, as well as the limited financial resources the City has available at this time, the technical assistance provided by RSG will be primarily in support of: (a) policy research; (b) data collection and analysis; (c) best practices research for ordinance development and program design; and (d) guidance on long-term considerations for program administration.

BUDGET / FINANCIAL INFORMATION:

Though the cost for this Agreement is within City Administrator approval authority, City Council directed staff to present any recommendation for use of Measure I budget appropriations for review and consideration, The proposed cost for the Agreement with RSG, Inc. is $65,105 and staff is recommending that this be allocated from the Fiscal Year 2026 Measure I Flexible Housing and Homelessness Fund. For Fiscal Year 2026, the following appropriations have been approved and/or are being recommended from this Fund:
(a) $500,000 in support of local immigrant-serving organizations in response to the impacts of federal immigration enforcement activities across the region; (b) $750,000 in support of the interim service provider agreement with Mercy House for the 816 Cacique Shelter;
(c) $145,972 in support of the daytime navigation and workforce development center at 621 Chapala Street; and
(d) $65,105 to execute the agreement with RSG, Inc. to support the development of a rent stabilization ordinance and program.

Council Agenda Report
Agreement with RSG, Inc. to Support the Development of a Rent Stabilization Ordinance and Program [Resolution; Agreement]
March 17, 2026

Upon approval of this request, there will be $38,923 in funds remaining in the Measure I Flexible Housing and Homelessness Fund.

A copy of the Agreement will be available for public view; please contact Talhia Dorado at [email protected] to request a copy.

PREPARED AND
SUBMITTED BY: Barbara Andersen, Sr. Assistant to the City Administrator APPROVED BY: Kelly R. McAdoo, City Administrator
RESOLUTION NO._________

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 25-066,
ADOPTING THE BUDGET FOR FISCAL YEAR 2026, TO
APPROVE AN ALLOCATION IN THE FISCAL YEAR 2026

EXPENDITURE APPROPRIATIONS IN THE FLEXIBLE

HOUSING AND HOMELESSNESS FUND IN THE AMOUNT
OF $65,105 TO FUND AN AGREEMENT WITH RSG, INC.

WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2025; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2025;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, as authorized by Resolution No. 25-066, this Resolution approves the amendment to the budget as provided herein
NOW, THEREFORE, be it resolved by the Council of the City of Santa Barbara that in accordance with the provisions of Section 1205 of the City Charter, the budget for the fiscal year 2026, as adopted by Resolution No. 25-066, is hereby amended as follows:

1. The Council approves of the expenditure appropriation of $65,105 in Measure I Flexible Housing and Homelessness Funds to support an Agreement with RSG, Inc. to develop a rent stabilization ordinance and program.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 17, 2026
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Professional Design Services for Downtown Parking Structures and Facilities Conditions Assessment [Agreement]
RECOMMENDATION: That Council:

A. Authorize the City Administrator to execute a Professional Services Agreement with Watry Design, Inc. (Watry), in the amount of $249,900 for professional design services to provide a Comprehensive Downtown Parking Structures and Facilities Conditions Assessment; and
B. Determine that the Project is exempt under California Environmental Quality Act Guideline § 15306 and direct the filing of a Notice of Exemption in compliance with California Environmental Quality Act Guidelines § 15062.

DISCUSSION:

Downtown Parking requests authorization to execute a Professional Services Agreement in the amount of $249,900 with Watry Design, Inc. for an updated Parking Structures and Facilities Conditions Assessment (Assessment). Downtown Parking’s most recent fiveyear Capital Improvement Program (CIP) identified $5.1 million in capital needs through Fiscal Year 2030, and an additional $6.3 million in future needs. This CIP was based on a Facilities Conditions Assessment performed in 2017. An updated Assessment is necessary to understand ongoing maintenance needs and inform future planning budgeting for the Downtown Parking CIP.

The Assessment will review five parking structures and six surface parking lots, evaluate distressed structural components and non-structural maintenance needs, examine electrical, mechanical, plumbing, and fire protection systems, and assess compliance with accessibility requirements. Recommendations for repairs and associated cost estimates will be provided for the short-, mid-, and long-term. Additionally, Watry will develop concept-level designs for self-service pay stations at all parking structures and surface lots, and permit-ready plans for the implementation of self-service pay stations at the Depot Lot (Lot 13). The Assessment work is expected to begin the first week of April and conclude at the end of June 2026.

Agenda Item No. 4
Council Agenda Report
Professional Design Services for Downtown Parking Structures and Facilities Conditions Assessment [Agreement]
March 17, 2026

Watry is a firm of architects, engineers, and planners that specializes in the design and conditions analysis of parking facilities. They are familiar with the City of Santa Barbara’s (City) Downtown Parking facilities and have successfully completed previous design projects and a facilities conditions analysis for the City. In October 2025, staff issued a Request for Proposals (RFP) for professional design services for the Assessment, and six proposals were received. The three firms with the top scores were interviewed in December 2025, and staff concluded that Watry is the most qualified consultant for this Assessment.

BUDGET/FINANCIAL INFORMATION:

There are sufficient expenditure appropriations in the Downtown Parking Capital Fund in Fiscal Year 2026 to cover the costs of the proposed assessment.

ENVIRONMENTAL REVIEW:

Under Santa Barbara Municipal Code (SBMC) § 22.100.070 and § 22.100.080, the Public Works Director has determined that the Project is exempt under California Environmental Quality Act (CEQA) Guidelines § 15306.

CEQA Exemption Criteria
CEQA Guideline § 15306 (also known as the Class 6 exemption) consists of basic data collection, research, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource. These may be strictly for information gathering purposes, or as part of a study leading to an action which public agency has not yet approved, adopted, or funded. The Project meets the 15306 exemption as the Downtown Parking Structures and Facilities Conditions Assessment will evaluate maintenance needs and provide recommendations for repairs and associated cost estimates.

For these reasons, the Public Works Director, exercising authority under SBMC § 22.100.080, has determined that the Project is exempt under CEQA. The City Council has final authority to approve the Project. Therefore, the City Council must confirm the exemption before Project approval. The recommended action will make the necessary environmental determination and authorize the filing of a notice of exemption for the Project.

A copy of the contract may be requested from the Public Works Department for public review by contacting [email protected].

PREPARED BY: Sarah Clark, Downtown Team Manager
SUBMITTED BY: Anthony E. Valdez, Deputy City Administrator APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 17, 2026
TO: Mayor and Councilmembers
FROM: Human Resources Department
SUBJECT: Amendment to City Attorney and City Administrator Employment Agreements [Agreement]
RECOMMENDATION:

That Council approve and authorize the Mayor to execute the First Amendment to the Employment Agreement with City Attorney John Doimas and the Second Amendment to the Employment Agreement with City Administrator Kelly McAdoo, which would modify the retirement contribution provisions to require the employees to pay the statutory member contribution to the California Public Employees’ Retirement System (CalPERS) and an additional 7.5 percent employee cost-sharing contribution toward the employer retirement contribution, resulting in a total employee retirement contribution of 15.5 percent of reportable compensation through Fiscal Year 2027, subject to compliance with applicable CalPERS laws.

DISCUSSION:

Under the current agreements, both employees participate in the California Public Employees’ Retirement System (**California Public Employees’ Retirement System (CalPERS)) under the retirement formula applicable to executive employees of the City.

The proposed amendments would require each of the employees to pay the statutory CalPERS member contribution together with an additional employee cost-sharing contribution equal to 7.5 percent of reportable compensation toward the employer retirement contribution, resulting in a total employee retirement contribution of 15.5 percent of reportable compensation.

This increased employee contribution is voluntarily offered by the employees and reflects a leadership commitment to assist the City in addressing its current fiscal challenges. As the City’s chief administrative and legal officers, respectively, the City Administrator and City Attorney have indicated their willingness to assume an increased share of retirement costs as part of their leadership roles within the organization and in recognition of the importance of maintaining the City’s fiscal stability.

Agenda Item No. 5
Council Agenda Report
Amendment to City Attorney and City Administrator Employment Agreements [Agreement]
March 17, 2026

The increased contribution will start June 27, 2026, and remain in effect through the end of the last full pay period in Fiscal Year 2027, at which time the retirement contribution provisions will revert to those otherwise applicable under the employment agreements unless further modified by mutual agreement of the parties and approval by the City Council.

This contribution structure differs from the standard executive employee contribution provisions contained in the City’s Management Performance and Compensation Plan and is intended to provide temporary fiscal relief to the City’s General Fund during the current budget cycle.

BUDGET/FINANCIAL INFORMATION:

Fiscal Outlook Flexibility
The employees and the City acknowledge that economic and fiscal conditions may change during the term of the amendments. Accordingly, if the City’s fiscal outlook materially improves during the applicable period, the parties may, by mutual written agreement and with City Council approval, determine that the additional employee costsharing contribution should be reduced, suspended, or discontinued prior to the end of Fiscal Year 2027.

The estimated savings to the City’s General Fund of this one-year increased cost sharing arrangement is approximately $51,404.

CalPERS Compliance
Implementation of the revised retirement contribution provision is subject to compliance with applicable CalPERS statutes, regulations, and reporting requirements. If CalPERS determines that the specific contribution structure described in the amendments cannot be implemented as contemplated, the parties may modify the mechanism used to achieve the intended level of employee cost sharing in a manner consistent with applicable law.

Such alternative methods may include, but are not limited to, an equivalent salary adjustment, alternative cost-sharing structure, or other compensation modification that produces a comparable fiscal outcome for the City.

If CalPERS determines that the contribution structure cannot be implemented and no reasonable alternative mechanism can be implemented consistent with applicable law and the intent of the parties, the City and the employee may mutually agree to vacate or modify the provision, subject to approval by the City Council.

Council Agenda Report
Amendment to City Attorney and City Administrator Employment Agreements [Agreement]
March 17, 2026

The proposed amendments do not modify the retirement benefit formula, eligibility for participation in CalPERS, or any other terms and conditions of employment for either employee. All other provisions of the employment agreements remain unchanged.

A copy of the First Amendment and Second Amendment to the respective Employment Agreements may be requested from Human Resources Department for public review by contacting [email protected].

PREPARED AND
SUBMITTED BY: Michael D. Arnoldus, Human Resources Director APPROVED BY: Randy Rowse, Mayor

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 17, 2025
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Amendment to City Net Agreement No. 28,759 Allocating Sufficient Funding to Complete Fiscal Year 2026 Funding Cycle [Agreement] RECOMMENDATION:

That Council authorize the City Administrator to execute a First Amendment to City Agreement No. 28,759 with Kingdom Causes, Inc. (dba City Net) to increase the HOME ARP Budget Allocation for Fiscal Year 2026, in the amount of $133,614, and to extend the term of the Agreement to June 30, 2026.

DISCUSSION:

Since 2019, the City of Santa Barbara has contracted with City Net to provide street outreach and case management services to people experiencing homelessness within the City of Santa Barbara. In 2023, the scope of work expanded to include evening and weekend street outreach in the Downtown and Waterfront regions from Thursday through Sunday. In 2024, the targeted regions expanded to include the Lower Eastside on Saturdays and Sundays and City Net provided outreach in 1,869 contacts with 160 unduplicated clients served. On August 19, 2025, Council authorized the City Administrator to execute nine-month agreement from July 1, 2025 to March 31, 2026.

Due to the positive visibility and successful outcomes of having an outreach team available seven days a week, staff recommends amending the existing agreement to extend the services through June 30, 2026, and increase the not to exceed contract amount from $401,919 to $535,533.

BUDGET / FINANCIAL INFORMATION:

The City of Santa Barbara received an allocation of one-time HOME funds through the American Rescue Plan (HOME ARP), which made funds available to local governments primarily to benefit qualifying individuals and families who are homeless, at risk of homelessness, or other vulnerable populations. Funds can be used to provide affordable housing, rental assistance, supportive services, and non-congregate shelter. HOME ARP Agenda Item No. 6
Council Agenda Report
Amendment to City Net Agreement No. 28,759 Allocating Sufficient Funding to Complete Fiscal Year 2026 Funding Cycle [Agreement]
March 17, 2026

funds have historically been used to fund City Net’s services, which are eligible as supportive services under regulations of the program.

Due to federal funding timelines not aligning with the City’s fiscal year, City Net’s contract cycle has been somewhat irregular; however, with the funding allocation included in this amendment, the contract schedule will now align with the City’s Fiscal Year moving forward.

On March 1, 2025, City Net submitted a program budget totaling $669,506 to cover street outreach and case management services from April 1, 2025 through June 30, 2026 (16 months). The City subsequently awarded Contract No. 28,758 for the initial period of April 1, 2025 through June 30, 2025 in the amount of $133,973. A new contract (Contract No. 28,759) in the amount of $401,919 became effective July 1, 2025 to continue services through March 31, 2026. However, in order to accommodate this required funding amendment associated with the HOME-ARP allocation plan, the contract term was not originally extended to the end of the fiscal year. This contract structure resulted in a remaining unallocated project balance. The proposed amendment to Agreement No. 28,759 will allocate the remaining funds to extend services through the end of the fiscal year on June 30, 2026.

A copy of the agreement is available for public view; please contact Talhia Dorado at [email protected] to request a copy.

PREPARED BY: Caroline Paine, Housing and Homeless Services Manager SUBMITTED BY: Anthony Valdez, Deputy City Administrator APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 17, 2026
TO: Mayor and Councilmembers
FROM: Water Resources Department
SUBJECT: Letters to State and Federal Legislators Supporting Funding for Subsidence-Related Repairs to the State Water Project
RECOMMENDATION:

That Council authorize the Mayor to send letters to State and Federal legislators to include funding for subsidence-related water infrastructure repairs on the State Water Project’s California Aqueduct.

DISCUSSION:

Subsidence is a major threat to California’s water reliability, affordability, and climate resilience. Subsidence is a gradual, often permanent, settling of land caused by human activity, primarily the over pumping of groundwater. When water is extracted from underground aquifers faster than it can be replenished, the surrounding soil may compact, causing the ground above it to compress and settle, which can damage roads, pipelines, and water conveyance systems.

As land settles, the physical alignment and capacity of aqueducts, which are water conveyance infrastructure comprised of pipes and canals, are compromised, leading to inefficiencies, rising maintenance costs, and diminished performance of California’s water delivery systems, including the State Water Project (SWP). More than 200 of the nearly 705 miles of the SWP have been affected, creating low points along the canals that disrupt the grade of these facilities, which were constructed in the 1950s, 1960s, and 1990s. The California Aqueduct has already lost up to 44% of its capacity to deliver water due to soil subsidence. Without near-term repairs or actions to stabilize aquifers, the California Department of Water Resources estimates an 87% reduction in capacity over the next 10 years.

Water from the SWP is an important component of the City of Santa Barbara’s (City) water supply portfolio. As a Member Agency of the Central Coast Water Authority (CCWA), the City receives State of California (State) water via the Coastal Branch of the California Aqueduct. The Coastal Branch turnout is located on the California Aqueduct between the Dos Amigos Pumping Plant and the Edmundson Pumping Plant. This section of the California Aqueduct is the most affected by subsidence, settling as much as eight Agenda Item No. 7
Council Agenda Report
Letters to State and Federal Legislators Supporting Funding for Subsidence-Related Repairs to the State Water Project
March 17, 2026

feet from its original elevation. With the canal sinking so significantly, sections of the canal must be operated at lower levels to avoid overtopping or breaching the canal. Operating the canal at lower levels reduces the capacity of the canal to deliver State water, including water to the Coastal Branch, CCWA, and its Member Agencies, including the City.

Without collaborative and coordinated action between local, State, and Federal partners, California risks the complete failure of its water delivery backbone and increasing hardship for communities and ecosystems that depend on it. The costs for addressing soil subsidence impacts to the California Aqueduct are estimated to be $3.9 billion over the next 10 years. California cannot rely solely on ratepayers in cities and water districts to cover subsidence repair costs. In coordination with CCWA and other CCWA Member Agencies, staff request the Mayor send letters to State and Federal legislators to include funding for subsidence-related water infrastructure repairs.

BUDGET/FINANCIAL INFORMATION:

This action has no financial/budget impact on the City.

ENVIRONMENTAL REVIEW:

The Letters Requesting State Funding for Subsidence-Related Repairs to the SWP does not have any direct or indirect physical changes in the environment; therefore, the letter request falls outside the definition of a “Project” under California Environmental Quality Act (CEQA) Guidelines § 15378 (b)(5), as administrative activities of governments that will not result in direct physical changes in the environment are not subject to CEQA environmental review. Future subsidence-related repair project(s) as a result of the funding may be subject to CEQA environmental review.

WATER COMMISSION:

This item was presented to the Water Commission at its meeting on February 19, 2026, and the Commission voted 3-0-2 in support of staff’s recommendation.

ATTACHMENT: Template for FY 2026-27 Letter Requesting State Funding for Subsidence-Related Repairs to the SWP
PREPARED BY: Dakota Corey, Water Supply & Services Manager/JS/sjc SUBMITTED BY: Joshua Haggmark, P.E., Water Resources Director APPROVED BY: Kelly McAdoo, City Administrator

ATTACHMENT
[MMMM DD, YYYY]
[Addressee]
[Address1]
[Address2]
[City, State ZIP]
SUBJECT: FY 2026-27 Budget: Funding for Subsidence Repair Dear [Addressee]:

On behalf of the City of Santa Barbara, which provides water to over 90,000 residents and businesses, I write to urge you to include funding for water infrastructure repairs in the proposed FY2026-27 budget. These repairs are long overdue – subsidence has damaged California’s water delivery network and has significantly reduced the capacity, reliability, energy efficiency and affordability of water in the state.

Subsidence occurs when land shifts and settles, due to human activity like groundwater pumping and oil and gas drilling, which affects the alignment of canals and aqueducts like the California Aqueduct, an important component of the State Water Project (SWP).

More than 200 miles of critical water infrastructure has been damaged by subsidence, reducing water delivery capacity by up to 60% in some areas. The City of Santa Barbara is a Member Agency of the Central Coast Water Authority and receives water via the Coastal Branch of the SWP. Unfortunately, the turnout of the Coastal Branch off the California Aqueduct is significantly affected by subsidence, threatening our ability to deliver SWP water to Santa Barbara County in the future. Water from the SWP is an important component of Santa Barbara’s diverse water supply portfolio, improving water supply reliability for the community, especially in times of drought.

Unfortunately, this problem is not going away – while some progress has been made to limit groundwater pumping to reduce future subsidence risk, the impact of decades of over pumping have permanently damaged portions of our State Water delivery system.

Ignoring this reality will have devastating effects on California’s economy, climate resiliency, food security, ecosystem health, and public safety.

Committing to investing in subsidence repair provides an opportunity for California to repair these critical pieces of water infrastructure, ensuring we can maintain California’s $4.1 trillion economy, continue to provide water for at least 31 million people, irrigate nearly 3.25 million acres of farmland, and create nearly 13,000 new direct jobs.

Please consider utilizing resources from the State’s Greenhouse Gas Reduction Fund (GGRF) to provide funds for subsidence repairs in this year’s budget.

Sincerely,
Randy Rowse, Mayor
FY 2026-27 Budget: Funding for Subsidence Repair
[MMMM DD, YYYY]

City of Santa Barbara
DC:js
CC: City of Santa Barbara Councilmembers
City of Santa Barbara Water Resources Director
City of Santa Barbara Supply and Services Manager
CCWA Executive Director
CCWA Project Participants

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 17, 2026
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: City of Santa Barbara Public Comment on U.S. Department of Housing and Urban Development (HUD) Proposed Rule Changing Treatment of Mixed-Status Households in HUD-Assisted Housing and Rental Assistance Programs
RECOMMENDATION:

That Council authorize the Mayor to send a letter to the U.S. Department of Housing and Urban Development (HUD) opposing a proposed rule changing treatment of mixed-status households in HUD-assisted housing and rental assistance programs.

DISCUSSION:

The U.S. Department of Housing and Urban Development (HUD) is preparing a rule that would forbid mixed-status families – households with both eligible United States citizens/legal residents and ineligible immigrant members – from receiving any federal housing assistance or living in federally funded housing. The proposal is under review, with public comments being accepted until April 21, 2026.

According to data from the City of Santa Barbara Housing Authority, there are 148 mixedstatus families within the City of Santa Barbara that are currently receiving lawful federal housing assistance. These households include 252 children, the vast majority of whom are U.S. citizens.

Currently, under Section 214 of the Housing and Community Development Act of 1980, mixed-status families are allowed to stay together. Eligible members receive prorated assistance, while ineligible members do not receive assistance. This change would end proration entirely. Mixed-status families will be faced with the choice of splitting apart or facing eviction.

Current law already ensures no ineligible member benefits from housing subsidies.

Changing the rules now would separate families, create housing instability for hundreds of children in the City of Santa Barbara, and create significant stress and financial hardship for our neighbors and community members.

Agenda Item No. 8
Council Agenda Report
City of Santa Barbara Public Comment on U.S. Department of Housing and Urban Development (HUD) Proposed Rule Changing Treatment of Mixed-Status Households in HUD-Assisted Housing and Rental Assistance Programs
March 17, 2026

Staff recommends that Council authorize the Mayor, on behalf of the City Council, to send a letter to the U.S. Department of Housing and Urban Development (HUD) opposing a proposed rule changing treatment of mixed-status households in HUD-assisted housing and rental assistance programs.

BUDGET / FINANCIAL INFORMATION:

This action has no financial/budget impact on the City.

ATTACHMENT: U.S. Housing and Urban Development (HUD) Public Comment Letter

PREPARED AND
SUBMITTED BY: Anthony E. Valdez, Deputy City Administrator APPROVED BY: Kelly McAdoo, City Administrator
Please consider the environment before printing this letter.

March 10, 2026
Submitted via Regulations.gov
Office of the General Counsel
Rules Docket Clerk
U.S. Department of Housing and Urban Development
451 7th Street, SW, Room 10276
Washington, DC 20410–0500
RE: Docket No. FR-6524-P-01, Mixed Status Household Proposed Rule To Whom It May Concern:

I am writing on behalf of the City of Santa Barbara, California, regarding Docket No. FR6524-P-01, the proposed rule concerning Verification of Eligible Status under the Housing and Community Development Act of 1980. The City opposes implementation of this rule, as it is duplicative of existing law and represents a novel interpretation of current statute.

Existing Department of Housing and Urban Development (HUD) regulations and federal law already prohibit federal housing assistance from benefiting undocumented immigrants. Under current rules, assistance is pro-rated based on the number of eligible US citizens or otherwise eligible individuals within a household. The proposed rule would expand this prohibition to the entire mixed-status family unit. In doing so, it would threaten the housing stability of mixed-status households while imposing significant new administrative requirements on local governments and housing authorities responsible for administering these programs, without providing any additional funding or resources to support implementation.

In our community, implementation of the proposed rule would prevent 148 currently supported households from accessing federal housing assistance and threaten their housing stability.

Among these households, 56 contain no qualifying adults, and 252 children would face an increased risk of housing instability or homelessness if the rule were implemented as proposed.

Mixed-status families are our constituents and neighbors, federal law already contains the policy the proposed rule is attempting to codify, and implementation would be costly for local governments like ours. For these reasons, we urge HUD to withdraw the proposed rule. Thank you for your time and consideration.

Sincerely,
Randy Rowse
Mayor
City of Santa Barbara

ATTACHMENT

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 17, 2026
TO: Mayor and Councilmembers
FROM: Finance Department
SUBJECT: Ordinance Adjusting Tax Rates of Cannabis Businesses [Ordinance Introduction]
RECOMMENDATION:

That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Adjusting Tax Rates of Cannabis Businesses Pursuant to Santa Barbara Municipal Code Section 5.42.250 and Rescinding Ordinance No. 5831.

EXECUTIVE SUMMARY:

The proposed Ordinance aims to increase tax rates for cannabis businesses within the City of Santa Barbara to generate additional revenue for the General Fund. This change comes in response to directives from the Finance Committee and City Council in 2025, which aimed to explore tax rate increases as a means to bolster the General Fund amidst growing operating budget deficits. Following a comprehensive review of economic and industry data, staff recommends raising the non-medical tax rate for storefront retail and retail by delivery only businesses from 6.0% to 8.0%, effective July 1, 2026. This proposed increase seeks to balance the City's fiscal needs with the sustainability of the cannabis industry.

DISCUSSION:

On November 8, 2016, City of Santa Barbara voters approved a general tax of up to

20.0% on the gross receipts of both medical and non-medical cannabis businesses.

The City has adopted ordinances allowing for up to five (5) cannabis dispensaries (three permitted commercial dispensaries and two legal nonconforming medical dispensaries) and has adopted ordinances allowing for other cannabis businesses to operate within the City, including storefront retail, retail by delivery only, manufacturing, distribution, testing, and indoor cultivation of cannabis.

Agenda Item No. 9
Council Agenda Report
Ordinance Adjusting Tax Rates of Cannabis Businesses [Ordinance Introduction] March 17, 2026

On January 23, 2018, in light of a greater understanding of the industry, and the tax structure included within the Adult Use of Marijuana Act (AUMA), Council approved initial tax rates lower than the voter-approved maximum of 20.0% to not overburden the industry and avoid driving businesses to other communities with lower tax rates. The City can adjust these rates at any time in the future by Ordinance.

In late 2025, the Finance Committee along with the City Council directed staff to explore the possibility of increasing the non-medical cannabis tax rate. This measure aims to generate additional revenue for the General Fund to address the growing operating budget deficit. Staff reviewed the rates along with economic and industry data and are proposing a rate increase for non-medical storefront retail and retail by delivery only businesses only from 6.0% to 8.0%, effective July 1, 2026, as shown below.

Business Category Current Rate Proposed Rate
Storefront Retail 6.0% 8.0%
Retail by delivery only 6.0% 8.0%
Manufacturing 4.0% 4.0%
Distribution 4.0% 4.0%
Testing 4.0% 4.0%
Indoor Cultivation 2.0% 2.0%
State of California Excise Tax
In November 2016, Proposition 64 was approved by California voters. Proposition 64, known as the AUMA, allows for the sale of recreational marijuana, and imposes state taxes on the sale and cultivation of recreational marijuana, beginning on January 2, 2018.

The state taxes include a 15.0% excise tax on gross receipts from the sale of marijuana or any product derived therefrom as well as a cultivation tax of $9.25 per ounce of dried flower or $2.75 per ounce of dried leaf.

To support the long-term viability of the legal cannabis market, California stabilized the state excise tax at 15.0% through June 30, 2028. This rate reflects a recent legislative "rollback" via Assembly Bill 564, which was signed in September 2025 to reverse an automatic tax increase that had briefly pushed the rate to 19.0%. By returning the tax to

15.0% effective October 1, 2025, the State provided immediate price relief to consumers and helped licensed operators remain competitive with the lower-priced illicit market. This three-year stabilization period allows state regulators to monitor revenue impacts. A statelevel increase of up to 19.0% remains possible starting in the 2028-2029 fiscal year.

Council Agenda Report
Ordinance Adjusting Tax Rates of Cannabis Businesses [Ordinance Introduction] March 17, 2026

Total Tax Paid by Consumer
Consumers of cannabis products pay the City’s local cannabis tax (6.0%), the City’s sales tax (9.25%), and the state excise tax (15.0%). The state has compounding rules of how the taxes are calculated, an example is as follows:

Under the City of Santa Barbara’s current 6.0% local cannabis business tax, a $100.00 product first incurs a $6.00 local levy, creating a $106.00 subtotal that serves as the basis for the 15.0% state excise tax; this adds $15.90 to the price, after which the City’s 9.25% sales tax is applied to the cumulative $121.90 amount. The result is an additional $11.28 in sales tax for a final consumer cost of $133.18, representing an effective total tax rate of approximately 33.2%.

Cannabis businesses are also required to have a business tax certificate and renew annually. The business tax is codified in Santa Barbara Municipal Code § 5.04.390 and is calculated in tiered rates of gross receipts: $400 plus $20 per $100,000 gross receipts or fraction thereof up to $3,000,000; $800 plus $15 per $100,000 gross receipts or fraction thereof between $3,000,000 and $6,000,000 gross receipts or fraction thereof, $1,250 plus $10 per $100,000 gross receipts or fraction thereof in excess of $6,000,000 gross receipts or fraction thereof. This tax calculation results in an annual business tax ranging from $200 to $2,000 for the cannabis businesses in the City of Santa Barbara.

The following table shows the current tax rates for local jurisdictions:

Cannabis Tax Rates
Jurisdiction
Local
Cannabis
Tax
Sales
Tax
State
Excise
Tax
Approximate
Total Tax Paid
by Consumer
City of Santa Barbara 6.0% 9.25% 15.0% 33.20%
County of Santa Barbara 6.0% 7.75% 15.0% 31.40%
Goleta 5.0% 8.75% 15.0% 31.30%
Ventura 4.0% 7.75% 15.0% 28.87%
Solvang (medicinal only) 5.0% 8.75% 15.0% 31.30%
In contrast to the fixed rates established by Santa Barbara County, neighboring cities such as Goleta and Solvang utilize a tax structure that distinguishes between the current operational rate and a maximum allowable rate (the voter-approved 'cap'). While the operational rate in these jurisdictions is presently set by resolution for retail storefronts, their respective ordinances (Goleta Measure Z and Solvang Measure F) grant the City Council the authority to adjust those rates as needed, provided they do not exceed the maximum cap. This provides these neighboring councils, and the City of Santa Barbara’s Council, with the administrative flexibility to respond to regional market shifts or budget Council Agenda Report
Ordinance Adjusting Tax Rates of Cannabis Businesses [Ordinance Introduction] March 17, 2026

requirements via a simple resolution, whereas any change to the County’s fixed 6.0% rate would require a new vote of the people.

The following table shows the maximum allowable retail cannabis tax rate for local jurisdictions:

Jurisdiction Current Retail
Tax Rate
Maximum Allowable
Retail Tax
City of Santa Barbara 6.0% 20.0%
County of Santa Barbara 6.0% 6.0%
Goleta 5.0% 10.0%
Ventura 4.0% 8.0%
Solvang (medicinal only) 5.0% 10.0%
Considerations
The increase from 6.0% to 8.0% for non-medical “storefront retail” and “retail by delivery only” was determined based on staff analyzing the following considerations:
1) Local and cumulative taxes should stay in line with neighboring areas so as not to encourage consumers to drive outside of the City of Santa Barbara to purchase cannabis products. Cannabis tax consultants have economic data that indicates consumers are willing to drive 15-20 miles to pay less for cannabis products. 2) Neighboring cities are either at or below 8% for the local cannabis tax. Cannabis tax consultants recommended to increase the tax up to 8% but not higher. 3) Increasing the tax above 8.0% may result in a significant enough decline in retail sales that city cannabis tax revenue would decline instead of increase. 4) No increase in tax is recommended for the manufacturing, distribution, testing, or indoor cultivation due to the reduction and/or lack of business operations in those categories.

Recent Cannabis Audit
The City contracted with HdL Companies to conduct cannabis tax audits of all six (6) cannabis businesses in the City. The purpose of the audit was to determine if sales reported to the City for the period of January 1, 2021, to December 31, 2023, were accurate and complete and to adjust taxes paid if necessary. In 2024, five (5) of the six (6) companies completed the audit, one (1) remains in progress. The findings of the audits were negligible, with some businesses having over collected the taxes, and other having small discrepancies in the revenues reported and taxes paid to the City. The net audit findings resulted in $32,000 being refunded to cannabis companies. City staff may consider completing another round of cannabis tax audits to ensure the 8.0% retail and delivery only rate is implemented correctly.

Council Agenda Report
Ordinance Adjusting Tax Rates of Cannabis Businesses [Ordinance Introduction] March 17, 2026

Communication Strategy & Timeline
To ensure a seamless transition of the increased cannabis rate, the City will conduct direct outreach to all impacted cannabis businesses, inviting them to an informational webinar designed to clarify new requirements and answer technical questions. Following the webinar, staff will provide an updated tax remittance form, allowing businesses a sufficient grace period to update their internal accounting systems and standard operating procedures. This proactive engagement strategy will ensure all stakeholders are fully prepared for compliance ahead of the effective date. The timeline of the key dates is as follows:

Finance Committee Review February 24, 2026
City Council Ordinance Introduction March 17, 2026
City Council Ordinance Adoption April 7, 2026
Updated Remittance Form Released April 27, 2026
Informational Webinar for Businesses April 30, 2026
Ordinance Takes Effect May 7, 2026
Effective Date of Rate Increase July 1, 2026
On February 24, 2026, staff presented an overview of the proposed cannabis excise tax rate increase to the Finance Committee. The Committee voted to recommend the City Council receive this proposal. The Committee also recommended not increasing the tax for cannabis products that are purchased for medical use.

BUDGET/FINANCIAL INFORMATION:

The City of Santa Barbara is expected to generate an additional $125,000 to $300,000 annually from a cannabis tax rate increase for non-medical “storefront retail” and “retail by delivery only” from 6.0% to 8.0%.

Shown in the table below, Fiscal Year (FY) 2025 revenue amounts are based on actual collections. FY2026 projections are based on year-to-date revenues, while FY2027 assumes gross receipts remain the same as FY2026 but with an 8.0% tax rate.

The estimated tax revenue increase from FY2026 to FY2027 is $223,000, though this may vary with changes in cannabis retail sales.

Cannabis Tax Revenue
Business Category Actual FY2025 Projected FY2026 Projected FY2027 Storefront Retail $978,506 $895,000 $1,109,000
Retail by delivery only $19,492 $25,000 $34,000
Manufacturing $40,654 $27,000 $27,000
Total Revenue $1,038,652 $947,000 $1,170,000
Council Agenda Report
Ordinance Adjusting Tax Rates of Cannabis Businesses [Ordinance Introduction] March 17, 2026

The additional revenues generated from this tax increase would be allocated to the General Fund to fund existing essential services and contribute to reducing the budget deficit in FY2027 and beyond.

SUSTAINABILITY IMPACT:

Under California’s Proposition 64, approximately 20.0% of net cannabis excise tax revenue is allocated to the Environmental Restoration and Protection Account. These funds support the California Department of Fish and Wildlife (CDFW) in remediating "trespass grows" on public lands and restoring watersheds damaged by illegal diversions and toxic pesticides.

However, excessively high tax rates create a "sustainability penalty" by making legal, ecocompliant products significantly more expensive than those in the illicit market. When consumers are driven to unregulated sources, it inadvertently fuels cultivation operations that ignore California’s strict environmental and water-usage standards. Consequently, the City must carefully calibrate local tax rates to ensure that legal, regulated businesses remain viable and continue to uphold these essential environmental protections.

ATTACHMENT: Cannabis Tax Rates in the Santa Barbara Region PREPARED BY: Lyndsay Maas, Assistant Finance Director
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: Kelly McAdoo, City Administrator
120 S. State College Blvd. Suite 200 | Brea, CA 92821 | 714.879.5000 | hdlcompanies.com February 5, 2026
Lyndsay Maas
Assistant Finance Director
City of Santa Barbara
735 Anacapa St
Santa Barbara, CA 93101
Re: Cannabis Tax Rates in the Santa Barbara Region
In 2016, voters in the City of Santa Barbara adopted the Santa Barbara Marijuana Control Act (Measure T-2018) as a means to raise revenue for general municipal purposes. The measure imposed a tax of up to 20% or gross receipts on both medical and non-medical cannabis businesses, with the actual rates being set by resolution of the City Council. The Act is codified as Section 5.42 of the Santa Barbara Municipal Code (SBMC).

In December of 2017 the City of Santa Barbara adopted Ordinance No. 5813 to regulate commercial cannabis businesses within the City. These requirements are codified as Section

9.44 of the SBMC. The City currently is home to 6 licensed cannabis retailers, 5 of which operate storefront locations and one which is a non-storefront delivery service.

The Santa Barbara City Council has directed staff to explore increasing the cannabis tax from the current 6% for retail to a higher percentage, with a goal of increasing tax revenues. The City has requested that HdL Companies provide a brief analysis to help the City identify prevailing cannabis retail tax rates within the Santa Barbara region and Southern California broadly to help inform this decision. The City has requested that HdL also include any other information that may be useful in considering appropriate and competitive cannabis tax rates.

To assist with this effort, the City has requested that HdL compile a selection of cannabis tax rates from other jurisdictions in the Central Coast region and other major Southern California cities. Figure 1, on the next page, lists all 28 jurisdictions in Santa Barbara, Ventura and San Luis Obispo counties, along with the cities of Los Angeles, Long Beach and San Diego and the counties of Los Angeles and San Diego.

Figure 1 shows whether each jurisdiction allows cannabis retailers and how many of each type (storefront and non-storefront delivery) they have. Green cells show that type of retail activity is allowed, while cells in red show that activity is prohibited. Some cities have regulations to allow retailers but have not yet implemented them or do not yet have any retailers that have made it through the permit process. The figure also shows the current cannabis tax rates for all jurisdictions that have a cannabis tax in place.

Only 17 of the jurisdictions in these 3 counties allow any type of cannabis retail businesses. The City of Carpinteria allows sales by delivery, only, but does not have any licensed businesses, nor does the City have a cannabis tax in place. The City of Solvang allows only medicinal cannabis sales but also does not have any licensed retailers. The County of San Luis Obispo and the City of Paso Robles also do not allow storefront retailers. Conversely, the City of Oxnard allows only storefront cannabis sales and does not allow any sales by delivery.

ATTACHMENT
Storefront Delivery
Only
Total Tax or Fee Rate
Santa Barbara 5 1 6 6.0%
Santa Barbara County 2 0 2 6.0%
Buellton - - - - Carpinteria - 0 0 -
Goleta 6 1 7 5.0%
Guadalupe 1 0 1 7.5%
Lompoc 7 1 8 6.0%
Santa Maria - - - - Solvang (medicinal only) 0 0 0 5.0% Ventura County - - - - Camarillo - - - - Fillmore - - - - Moorpark - - - - Ojai 3 1 4 3.0% Oxnard 10 - 10 4.0%
Port Hueneme 10 5 15 5.0%
Santa Paula - - - - Simi Valley - - - - Thousand Oaks 2 0 2 4.0% Ventura 3 0 3 4.0%
San Luis Obispo County - 6 6 6.0%
Arroyo Grande - - - - Atascadero - - - 6.0%
Grover Beach 4 0 4 5.0%
Morro Bay 2 0 2 5.0%
Paso Robles1 - 1 1 6.0%
Pismo Beach - - - - San Luis Obispo City 2 0 2 6.0%
57 16 73 5.3%
Los Angeles County - - - 4.0%
Los Angeles City2
275 66 341 10.0%
San Diego County 0 1 1 2.0%
San Diego City3
26 0 26 10.0%
Long Beach4
2 0 2 7.0%
HdL Recommended Range 4.0% - 7.0%
Red or - indicates not allowed; Green indicates allowed 1 Paso Robles has a rate of 6.0% for deliveries and 10.0% for storefront sales, but storefronts are not currently allowed. 2 The City of Los Angeles has a rate of 5.0% for medicinal sales and 10.0% for adult-use sales. 3 The City of San Diego recently increased its retail cannabis tax rate from 8.0% to 10.0%. 4 The CIty of Long Beach has a rate of 6.0% for medicinal sales and 7.0% for adult-use sales.

Total / Average Other
Figure 1: Santa Barbara County Ventura County San Luis Obispo County Cannabis Retail Types Allowed in Nearby Jurisdictions
City/County
Retail cannabis tax rate among these jurisdictions range from a low of 3.0% in Ojai to a high of

7.5% in Guadalupe1. The average rate among all jurisdictions in these three counties is 5.3%, but the average rate among jurisdictions in Santa Barbara County is just under 6.0%. The most common rate among all these jurisdictions is 6.0%2.

Figure 1 also includes a selection of other major Southern California cities (Los Angeles, Long Beach and San Diego) and the counties of Los Angeles and San Diego. The cities of Los Angeles and San Diego both have significantly higher rates than any of the jurisdictions in our 3-county sample set. The City of Los Angeles sets a rate of 10.0% for adult-use cannabis sales, though medicinal sales pay a much lower rate of 5.0%. The City of San Diego recently increased its retail cannabis tax rate from 8.0% up to 10.0%, bucking the current trend of reducing cannabis tax rates.

The City of Long Beach also has different rates for both medicinal and adult-use cannabis.

Medicinal sales pay a rate of 6.0% while adult-use sales pay a rate of 7.0%. For cities with separate rates, Figure 1 only shows the rate for adult-use sales, as these generally account for 90% or more of all sales.

Los Angeles County and San Diego County both have significantly lower rates than their largest cities. Los Angeles County has a rate of only 4.0% and San Diego County has a rate of just

2.0%. The County of Los Angeles has no licensed cannabis retailers as the County has not yet finalized its licensing and regulatory program. The County of San Diego has a regulatory program in place but has not yet issued any cannabis licenses. The sole non-storefront retailer in the County is a legacy Proposition 215-compliant medical marijuana dispensary that was “grandfathered in” to allow it to keep operating.

Lastly, Figure 1 shows the retail cannabis tax rates commonly recommended by HdL, ranging from 4.0% up to 7.0%. HdL provides this as a range rather than a specific recommended rate as the rates should be generally consistent with those in other nearby jurisdictions. Consumers are commonly willing to drive up to 15 or 20 minutes to make routine purchases and don’t necessarily limit their purchases to the nearest store in their own city. Setting a rate that is more than one or two percent above those in neighboring cities could have a noticeable effect on prices and potentially impact consumer shopping choices. Given the local average rate of 6.0%, we would recommend the City not exceed 8.0% so as to remain competitive.

In addition, even a small difference in retail tax rates can have an impact on profit margins and business competitiveness. Cannabis taxes are often incorporated into the list price for products, rather than added to the receipt at time of sale. Given this, if two nearby stores show the same list price but one pays a lower tax, that retailer gets to pocket the difference as profit (all other things being equal). Adding one or two percent to a business’s profit margin can be a significant factor in helping a retailer remain competitive.

1 The City of Guadalupe uses development agreements with a negotiated community benefit fee instead of a voter-approved tax. The one retailer in the City pays a fee of 6.0% to the City for general fund purposes and pays an additional 1.5% to support various non-profits and community organizations. The combined rate is 7.5%. 2 The City of Paso Robles has a rate of 6.0% for deliveries and 10.0% for storefront sales, but storefront sales are not currently allowed. Figure 1 only includes the rate for deliveries for this reason.

Figure 2, below, illustrates how the various state and local taxes applied to retail sales of cannabis are layered on one another to produce a higher cumulative tax rate. We have provided two pairs of columns to show both the City’s current rate of 6% (in red) and a higher rate of

10.0% which is in line with the cities of Los Angeles and San Diego.

Starting with a hypothetical purchase amount of $100, the product is first subject to the local cannabis tax. Applying the City’s current rate of 6.0% equals $6, increasing the total price up to $106. The state’s cannabis excise tax3 of 15.0% is then applied to that higher amount, adding another $15.90 and increasing the total purchase up to $121.90. State and local sales taxes are then applied to this increased amount. At the local rate of 9.25%, this adds another $11.28 and increases the total out-the-door purchase to $133.18. Of this, $33.18 is taxes. Adding all of these taxes together gives a combined rate of 30.25%, but a cumulative rate of 33.18% due to the way the taxes are stacked on top of each other.

Applying a higher local cannabis tax rate of 10.0% produces a higher basis upon which the state’s cannabis excise tax and the state and local sales taxes are applied. Since these taxes, in turn, are each being applied to a higher basis, they each produce a greater increase, amounting to a total out-the-door purchase of $138.20, or an increase of $5.02 on a purchase price of $100. Even though the difference between a rate of 6.0% and a rate of 10.0% is 4.0%, the net effect of the higher rate is a difference of 5.02% under this scenario. This illustrates how the layering of state and local taxes on top of one another creates a cumulative tax rate that is greater than the sum of its parts.

3 California’s cannabis excise tax increased from 15% up to 19% as of July 1 as a condition of previous legislation that eliminated the state’s separate cannabis cultivation tax. This increase was rolled back to 15% with Governor Newsom’s signing of AB 564 which became effective as of October 1.

Rate Amount Rate Amount
Purchase Amount $100.00 $100.00
Cannabis Business Tax 6.00% $6.00 10.00% $10.00
Subtotal $106.00 $110.00
State Cannabis Excise Tax 15.00% $15.90 15.00% $16.50
Subtotal $121.90 $126.50
State and Local Sales Taxes 9.25% $11.28 9.25% $11.70
Total Due $133.18 $138.20
Total Taxes 30.25% $33.18 34.25% $38.20
Total Cumulative Tax Rate 33.18% 38.20%
State and Local Cannabis Tax Calculation
Sources:
https://cdtfa.ca.gov/industry/cannabis/tax-facts.htm#note6 https://cdtfa.ca.gov/taxes-and-fees/rates.aspx
Figure 2:
1 ORDINANCE NO. _____

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA ADJUSTING TAX RATES OF CANNABIS

BUSINESSES PURSUANT TO SANTA BARBARA
MUNICIPAL CODE SECTION 5.42.250 AND RESCINDING
ORDINANCE NO. 5831

THE COUNCIL OF THE CITY OF SANTA BARBARA DOES ORDAIN AS FOLLOWS:

SECTION 1. The tax rate for medical cannabis businesses shall be up to 20.0%, except as reduced pursuant to SBMC section 5.42.250 for the different categories of medical cannabis businesses set forth below. These reduced rates are established effective July 1, 2026, subject to the City Council’s power under SBMC section §5.42.660.

Storefront Retail 6.0%
Retail by delivery only 6.0%
Manufacturing 4.0%
Distribution 4.0%
Testing 4.0%
Indoor Cultivation 2.0%
SECTION 2. The tax rate for non-medical cannabis businesses shall be up to

20.0%, except as reduced pursuant to SBMC section 5.42.250 for the different categories of non-medical cannabis businesses set forth below. These reduced rates are established effective July 1, 2026, subject to the City Council’s power under SBMC section §5.42.660.

Storefront Retail 8.0%
Retail by delivery only 8.0%
Manufacturing 4.0%
Distribution 4.0%
Testing 4.0%
Indoor Cultivation 2.0%
SECTION 3. Santa Barbara Ordinance No. 5831 shall be rescinded upon the effective date of the new rates established herein.

CITY OF CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 17, 2026
TO: Mayor and Councilmembers
FROM: Community Development Department
SUBJECT: 2025 General Plan Annual Progress Report (CITY2026-00006) RECOMMENDATION:

That Council receive the 2025 General Plan Annual Progress Report.

DISCUSSION:

State law (Senate Bill 1333) requires the City to prepare and submit a General Plan Annual Progress Report (APR) to the Governor’s Office of Land Use and Climate Innovation by April 1 of each year. In addition, the City must submit a separate Housing Element Annual Progress Report to the Department of Housing and Community Development. The attached 2025 General Plan APR documents the City’s implementation of its adopted General Plan policies and programs during calendar year 2025.

The 2025 General Plan APR provides a comprehensive overview of citywide planning and implementation efforts, including housing production and Housing Element program implementation, General Plan modernization initiatives, climate adaptation and environmental stewardship activities, historic resource preservation, and major City capital and infrastructure projects. The report evaluates progress toward General Plan goals, identifies ongoing initiatives, and acknowledges implementation challenges, particularly those related to lower-income housing production and adaptation of critical infrastructure to climate-related risks.

Housing Implementation and RHNA Progress
The City’s 6th Cycle Regional Housing Needs Allocation (RHNA) for the 2023–2031 planning period totals 8,001 units across all income categories. In this cycle, the City has issued building permits for a cumulative total of 863 housing units, including 255 units permitted in 2025. Most permitted units continue to fall within the above-moderate income category, while production of very-low, low-, and moderate-income units remains below targeted numbers.

Agenda Item No. 10
Council Agenda Report
2025 General Plan Annual Progress Report (CITY2026-00006) March 17, 2026

Although RHNA establishes the number of housing units the City must plan for, it does not require their production by the City. To address this shortfall, the City’s Housing Element includes new policies and programs aimed at increasing affordable housing opportunities, streamlining approvals, and leveraging state and local funding sources.

Key 2025 Housing Trends and Initiatives
Housing Applications and Permitting: The City received 185 housing applications determined complete in 2025, representing 1,973 proposed units, which is a 24 percent increase in unit count over 2024. Significant application submittals include 3805 State Street (680-unit mixed-use development at the Macy’s location at La Cumbre Plaza), 3845 State Street (443-unit mixed-use development at the former Sears location), and 505 E. Los Olivos Street (270-unit Builder’s Remedy project). In 2025, 133 projects were issued building permits, adding 255 RHNA-eligible units.

Accessory Dwelling Units (ADUs): ADUs continue to represent a significant portion of new housing, with 141 ADUs permitted in 2025, accounting for 55 percent of all permitted units.

Housing Element Program Implementation: Key accomplishments in 2025 include adoption of the Adaptive Reuse Ordinance and the Objective Design and Development Standards for multi-unit housing, drafting of the framework for short-term rental regulation, and adoption of Master Environmental Assessment (MEA) Guidelines for Archaeological Resources, Tribal Cultural Resources, and Historic Resources. Other Housing Element programs remain in progress, including zoning and process improvements (Single Family Streamlining Project), evaluation of inclusionary housing requirements, preparation of the final Short-Term Rental Ordinance for adoption, and development of additional MEA Guidelines for Hazardous Materials, Oil and Gas Wells, and Biological Resources.

Cumulative RHNA Progress (2022-2025)
Council Agenda Report
2025 General Plan Annual Progress Report (CITY2026-00006) March 17, 2026

Other General Plan Implementation Programs
The APR also highlights broader General Plan implementation efforts:
 Transportation and Infrastructure:
• Bikeways Master Plan Implementation: Ongoing construction and planning of Class I, II, and IV bikeways throughout the city, including protected bike lanes on key corridors.
• Vision Zero Implementation: Continued traffic safety improvements at high-injury corridors and intersections, including traffic signal upgrades, crosswalk enhancements, and traffic calming measures.
• Complete Streets Implementation: Integration of pedestrian, bicycle, transit, and vehicle needs in street redesign projects citywide.  Environmental and Open Space Initiatives:
• Open Space and Conservation Element Update: Proposed
consolidated update pursuant to Senate Bill 1425 and Assembly Bill 1889 addressing climate vulnerability, biodiversity corridors, habitat connectivity, and urban greening strategies
• Safety Element Update: Comprehensive update incorporating Local Hazard Mitigation Plan, climate risk assessments, wildfire evacuation planning, and updated flood and seismic hazard mapping. • Regional Shoreline Monitoring Program: Partnership with Beach Erosion Authority for Clean Oceans and Nourishment (BEACON) for comprehensive coastal erosion monitoring and adaptive management.

Conclusion
The 2025 General Plan APR demonstrates continued implementation of the City’s longterm planning framework through coordinated housing, environmental, infrastructure, and regulatory efforts. In 2025, the City achieve meaningful progress in the areas of regulatory improvements, climate adaptation planning, and market-rate housing production; yet challenges remain in its efforts to increase lower-income housing and adapt critical infrastructure to climate impacts. The General Plan APR provides an important accountability tool for tracking progress, informing future work programs, and ensuring alignment with State requirements and the City’s adopted policy framework.

Successful Housing Element implementation depends on adequate funding and staffing, which fluctuate due to economic conditions, policy changes, and funding availability. The City's ability to meet RHNA obligations, particularly for very-low- and low-income categories, is directly influenced by competitive state and federal grants, which are subject to annual appropriations and application cycles. Construction costs, interest rates, and market feasibility significantly impact housing production pace and type.

Evolving State mandates also necessitate ongoing adaptation of local regulations and procedures. Despite these variables, the City remains committed to advancing Housing Element programs through all available resources, partnerships, and policy tools.

Council Agenda Report
2025 General Plan Annual Progress Report (CITY2026-00006) March 17, 2026

Upon Council review, the final APR will be submitted to the Governor’s Office of Land Use and Climate Innovation and the Department of Housing and Community Development in compliance with State reporting requirements.

BUDGET/FINANCIAL IMPACTS:

This action does not have a budget/financial impact on the City.

ATTACHMENT: 2025 General Plan Annual Progress Report
PREPARED BY: Jillian Ferguson, Project Planner
SUBMITTED BY: Allison DeBusk, Community Development Director APPROVED BY: Kelly McAdoo, City Administrator
FINAL 2025 GENERAL PLAN

ANNUAL PROGRESS REPORT
City of Santa Barbara

ATTACHMENT

Contents

1. Introduction.................................................................................................................... 2-2

2. Background.................................................................................................................... 2-3 The General Plan............................................................................................................. 2-3 General Plan Update Requirements per State Legislation............................................... 2-4 Key Legislative Updates.................................................................................................. 2-4 Additional State Legislative Requirements ...................................................................... 2-5 General Plan Elements Under Update............................................................................. 2-7 Environmental Justice & Tribal Consultation.................................................................... 2-7

3. 2025 Housing Production and Program Implementation ............................................ 3-9 Key 2025 Housing Statistics:........................................................................................... 3-9 2025 Housing Applications ............................................................................................ 3-10 Housing Needs & Progress Toward RHNA.................................................................... 3-12 Housing Element Program Implementation ................................................................... 3-17 Completed Programs .................................................................................................... 3-18 Projects In Progress ...................................................................................................... 3-20

4. Other General Plan Implementation ........................................................................... 4-22 City Projects Completed ................................................................................................ 4-24 City Projects In-Progress ............................................................................................... 4-27

5. Conclusion .................................................................................................................. 5-32 Final 2025 General Plan Annual Progress Report 2-2

1. Introduction
Since 2019, State law has required all California cities and counties, including the City of Santa Barbara to prepare and submit two annual reports: a General Plan Annual Progress Report (General Plan APR) and a Housing Element Annual Progress Report (Housing Element APR).

Although both reports are prepared and transmitted on the same annual schedule, they serve different statutory purposes, are governed by different requirements, and are submitted separately. The General Plan APR does not substitute for, or fulfill, the Housing Element reporting requirements administered by HCD, but instead provides a broader, citywide assessment of General Plan implementation progress across multiple policy areas.

The General Plan APR, which is the subject of this document, provides a comprehensive update on the City’s implementation of its adopted General Plan policies and programs. The General Plan APR is submitted annually to the Governor’s Office of Land Use and Climate Innovation pursuant to Government Code Section 65400 and is used by the State to monitor local implementation of statewide planning objectives, General Plan consistency, and compliance with evolving statutory requirements.

The 2025 General Plan APR fulfills this requirement by documenting key accomplishments, ongoing initiatives, and implementation challenges during the 2025 calendar year. The report summarizes progress on housing production and program implementation, General Plan update efforts, climate adaptation and environmental stewardship initiatives, historic resource preservation, and major City capital and planning projects. Collectively, these efforts reflect the City’s continued commitment to sustainable development, housing growth, and regulatory clarity. While progress was made in 2025, the report also acknowledges ongoing challenges, particularly related to lower-income housing production and adapting critical infrastructure to climate impacts.

Separately, Government Code Section 65400 requires every city and county, including charter cities, to prepare an Annual Progress Report on the status of the Housing Element using standardized forms and definitions adopted by the Department of Housing and Community Development (HCD). The Housing Element APR focuses specifically on housing production, affordability, and implementation of Housing Element programs. This report is submitted directly to HCD, with a copy also provided to the Office of Land Use and Climate Innovation, to ensure compliance with State housing law and accountability toward regional and statewide housing goals.

Final 2025 General Plan Annual Progress Report 2-3

2. Background
The General Plan
The General Plan is a comprehensive framework that outlines the City’s long-term goals and the strategies to achieve them. It includes land use policies and programs that guide the public, City staff, and decision-makers on a wide range of development-related issues, including housing, transportation, and biological resources. The City Council adopts and periodically amends the General Plan in consultation with residents, advisory bodies, and City staff to address evolving community needs.

State law requires every city and county to adopt a general plan that addresses seven core topics, commonly referred to as “elements.” Cities may also include additional optional elements to address specific local priorities. By law, general plans must be comprehensive, internally consistent, and proactive to ensure long-term planning effectiveness.

In 2011, the City of Santa Barbara adopted the Plan Santa Barbara General Plan, updating the City’s long-term vision to reflect evolving sustainability goals, land use priorities, and community needs. This General Plan update resulted in:
• A newly structured General Plan introductory framework focused on sustainability; • A comprehensive update to the Land Use Element; and
• The creation of new citywide goals and policies across all General Plan Elements.

The 2011 General Plan update also reorganized previously separate elements into a unified document that aligns with both the City’s Sustainability Framework and State law (refer to Table 2-1 below). This reorganization consolidated six prior volumes into a single, streamlined document, ensuring greater accessibility, efficiency, and clarity in implementing the City’s longterm growth strategy.

Table 2-1: City of Santa Barbara General Plan Elements
Element Last
Updated Other Components
Housing* 2023
Safety* 2013
Historic Resources 2012
Open Space*, Park and Recreation 2011
1972 Open Space Element
1982 Parks and Recreation Element
Land Use* 2011
Final 2025 General Plan Annual Progress Report 2-4
General Plan Update Requirements per State Legislation
The State of California has enacted multiple amendments to Government Code §65302 that require cities to update specific General Plan Elements to address emerging statewide priorities, including climate resilience, environmental justice, wildfire risk, and open space protection. The following legislation establishes mandatory General Plan update requirements applicable to the City of Santa Barbara.

Key Legislative Updates
SB 379 – Climate Change and Safety Element Updates (2015) SB 379 requires cities to integrate climate change considerations into the Safety Element, including a climate change vulnerability assessment, identification of climate-related risks such as wildfire, flooding, extreme heat, and sea level rise, and the adoption of measures to reduce and adapt to those risks. Although the 2013 Safety Element was adopted prior to this legislation, it incorporates these requirements to strengthen hazard risk reduction and adaptation measures, emergency response planning, and long-term community resilience.

SB 99 – Evacuation Route Planning (2019), AB 747 (2019), and AB 1409 (2021) SB 99 requires the City to update the Safety Element upon the next revision of the Housing Element (i.e., the 2023-2031 Housing Element) to identify residential developments in any hazard area that do not have at least two emergency evacuation routes. AB 747 and AB 1409 require, upon the next revision of a local hazard mitigation plan (last updated in 2023), an identification of evacuation routes and their capacity, safety, and viability and evacuation locations under a range of emergency scenarios. These requirements will inform the City’s Safety Element update policies related to wildfire preparedness, land use planning, and emergency response coordination.

AB 1889 – Room to Roam Act (2022)
AB 1889 establishes a statewide policy to identify and protect wildlife corridors and habitat connectivity as part of land use planning. Specifically, it mandates that wildlife connectivity goals, policies, and objectives must be adopted in a wildlife connectivity element or other Element Last
Updated Other Components
Economy and Fiscal Health 2011
1979 Conservation* Element
1982 Noise* Element
Circulation* 2011 1997 Circulation Element
*Mandated Elements
Final 2025 General Plan Annual Progress Report 2-5
elements upon the next revision of the General Plan after January 1, 2028. For efficiency and General Plan consistency, the City plans to fulfill this requirement by consolidating and updating the Open Space and Conservation element simultaneously. AB 1889 also informs the Safety Element update by supporting landscape-scale planning, wildfire resilience, and ecosystembased strategies.

SB 1425 – Open Space Element Updates (2022)
SB 1425 requires cities to review and update their Open Space Elements by January 1, 20261, to address equitable access to open space, climate resilience, and environmental co-benefits, and to ensure consistency with the Safety Element. The City initiated an Open Space Element update and is coordinating the effort with the Parks and Recreation Master Plan. Many of the SB 1425 objectives are already implemented through adopted plans, and the forthcoming consolidated Open Space and Conservation Element will further strengthen alignment with Safety Element policies.

Additional State Legislative Requirements
• Complete Streets Policy (AB 1358) – The Circulation Element must prioritize multimodal transportation, including walking, cycling, and public transit. • Compliance: The City’s Circulation Element, originally adopted in 1997 and readopted in 2011 as part of Plan Santa Barbara, plans for Santa Barbara’s transportation future so that people can move safely and efficiently using all forms of transportation and aims to create a more integrated multi-modal transportation system to connect people, places, goods, and services by providing a choice of transportation modes. The City implements the Circulation Element through the Bicycle Master Plan (2016), Pedestrian Master Plan (2006), and Vision Zero Strategy.
• Flood Risk and Management (SB 5, AB 162) – The Safety and Conservation Elements must incorporate floodplain management and mitigation strategies. • Compliance: The City participates in FEMA’s National Flood Insurance Program and maintains comprehensive Floodplain Management regulations. The City has undertaken major flood control projects to reduce flooding and property damage, including the Lower Mission Creek Flood Control Project. The City also implements creek setback requirements and stormwater management programs, and coordinates with the Santa Barbara County Flood Control and Water Conservation District.
• Wildfire Risk Assessment (SB 1241) – The Safety Element must address wildfire risks in high-hazard zones.
1 The State has yet to release a final SB 1425 Open Space Technical Advisory. There is no consequence in state law for delayed adoption of the update.

Final 2025 General Plan Annual Progress Report 2-6
• Compliance: The City’s Safety Element identifies safety hazards and includes policies to reduce the potential short- and long-term risk of death, injuries, property damage, and economic and social dislocation resulting from fires, floods, droughts, earthquakes, landslides, climate change, and other hazards.

Additionally, in 2021, the City of Santa Barbara Fire Department comprehensively updated the Community Wildfire Protection Plan, which identifies high-fire-hazard areas in the city, presents policies and management actions to reduce wildland fire hazards and impacts, and provides a framework for coordinating community-wide protection efforts.
• Climate Adaptation and Resilience (SB 379) – The Safety Element must include a climate vulnerability assessment and climate adaptation and resilience strategies. • Compliance: An update to the Safety Element is currently underway and will evaluate new information relating to flood and fire hazards and climate adaptation and resilience strategies. The City has also adopted supporting climate adaptation documents, including the 2021 Sea Level Rise Adaptation Plan, the 2023 Local Hazard Mitigation Plan, and the Climate Action Plan (Together to Zero).
• Sea Level Rise (SB 272) – Coastal cities must develop sea level rise adaptation plans as part of new or updated Local Coastal Programs by January 1, 2034. • Compliance: In 2019, the California Coastal Commission and Council certified a comprehensive update to the City of Santa Barbara Coastal Land Use Plan that factors sea level rise into development review standards. In 2021, Council adopted a City of Santa Barbara Sea Level Rise Adaptation Plan that recommends a phased approach to planning for sea level rise, based on monitoring changing conditions and taking actions to reduce vulnerabilities once defined thresholds are reached. The City has also launched major climate adaptation projects such as the Regional Coastal Adaptation Monitoring Program, Wastewater and Water Systems Adaptation Project, 30-Year Waterfront Adaptation Project, and Airport Adaptation Plan. • Sustainable Communities Strategy (SB 375) – Metropolitan Planning Organizations must develop Sustainable Communities Strategies that integrate land use and transportation planning to reduce greenhouse gas (GHG) emissions from passenger vehicles.
• Compliance: The City’s General Plan Land Use and Circulation Elements align with the Santa Barbara County Association of Governments’ (SBCAG) Regional Transportation Plan/Sustainable Communities Strategy. The City’s Climate Action Plan (Together to Zero) supports regional GHG reduction by promoting active transportation, transit-oriented development, and clean energy through Santa Barbara Clean Energy.

The City of Santa Barbara remains committed to meeting state requirements and maintaining a General Plan that aligns with state mandates for resilience, equity, and sustainability. By adapting to legislative changes, the City continues to ensure a well-planned, environmentally responsible, and inclusive future for its residents.

Final 2025 General Plan Annual Progress Report 2-7
General Plan Elements Under Update
Open Space and Conservation Element Update
The Open Space Element, currently
combined with the Parks and Recreation
Element, identifies City-designated parks
and open space areas throughout Santa
Barbara. Staff proposes to consolidate the
City’s Open Space and Conservation
policies into a single Open Space and
Conservation Element, consistent with the
State General Plan Guidelines. This update
will address equitable access to open
space, climate resilience, habitat protection,
and wildlife connectivity. Although the City will not meet the January 1, 2026, SB 1425 deadline, many of the bill’s objectives are already implemented through adopted plans outside the General Plan, including the Climate Action Plan, Sea Level Rise Adaptation Plan, and Local Coastal Program.

Safety Element Update
The Safety Element aims to reduce the
risks of death, injury, property damage, and
economic and social disruption caused by
hazards such as fires, floods, droughts,
earthquakes, landslides, climate change,
and other threats. An update to the Safety
Element is required with each revision of
the Housing Element or Local Hazard
Mitigation Plan, both of which were updated
in 2023.

The Local Hazard Mitigation Plan will serve
as the technical foundation for the comprehensive Safety Element update, ensuring compliance with SB 379 and other state laws. The update will incorporate new information, goals, and policies related to flood and fire hazards, as well as climate adaptation and resilience strategies.

Environmental Justice and Tribal Consultation
The Governor’s Office of Land Use and Climate Innovation evaluated local General Plans based on the degree to which they align with the State’s General Plan Guidelines, including consideration of environmental justice, consultation with California Native American tribes, and coordination with other relevant planning frameworks. The City of Santa Barbara reviews and conforms to these Guidelines when undertaking General Plan updates and amendments, and documents progress and compliance through the Annual Progress Report.

Final 2025 General Plan Annual Progress Report 2-8
Environmental Justice Considerations (SB 1000)
State law requires jurisdictions with identified disadvantaged communities to address environmental justice either through an Environmental Justice Element or through integration into other General Plan elements. Although Santa Barbara does not contain CalEPA-designated disadvantaged communities as defined by SB 1000, the City incorporates environmental justice principles into General Plan updates and related policy documents as a matter of practice.

The City’s commitment to environmental justice is reflected in recent planning efforts, including the 2023–2031 Housing Element’s Affirmatively Furthering Fair Housing (AFFH) analysis, which evaluates barriers to opportunity and identifies strategies to support lower-income households, special-needs populations, and protected classes. Environmental justice considerations are also incorporated, where applicable, into Safety, Open Space, Conservation, and Land Use planning efforts.

Tribal Consultation Requirements
In compliance with state law and City Master Environmental Assessment (MEA) Guidelines, the City conducts tribal consultation prior to adopting or amending the General Plan, Specific Plans, and Open Space Designations, as required under SB 18.

AB 52 requires public agencies to consult with California Native American Tribes during the CEQA process. Accordingly, tribal consultation is also required for review of certain projects, including:
• Environmental Impact Reports
• Mitigated Negative Declarations
• Negative Declarations
Additionally, tribal consultation is required for certain housing projects under AB 168. AB 168 requires developers to submit a notice of intent to local agencies via a preliminary application before proceeding under SB 35. Upon receiving a preliminary application, local agencies must invite California Native American Tribes to consult regarding a proposed development's potential effects on tribal cultural resources.

While the General Plan does not currently include a standalone tribal consultation policy, the City's planning and environmental review processes are governed by applicable state statutes, including SB 18 and AB 52, and are implemented consistently across departments. Where feasible, the City incorporates measures to protect tribal cultural resources and sacred sites.

Final 2025 General Plan Annual Progress Report 3-9

3. 2025 Housing Production and Program Implementation
This section provides an overview of housing production trends in 2025 and Housing Element Program implementation based on data submitted to the State Department of Housing and Community Development (HCD) as part of the Housing Element Annual Progress Report (APR). The information below summarizes data that the City reports annually to HCD through the required APR Excel tables and data forms, which are used by HCD to track local progress toward statewide goals.

Data included in the Housing Element APR, and reflected in the narrative below, are drawn for the standardized HCD APR tables, including building permit activity, development applications, and progress toward the City’s Regional Housing Needs Allocation (RHNA). One primary purpose of the Housing Element APR data is to enable HCD to monitor jurisdictions’ performance in meeting their RHNA obligations over the current planning cycle, with issued building permits serving as the key benchmark for annual production.

Key 2025 Housing Statistics2:
• Total new housing applications submitted (deemed complete): 185 • Total units proposed: 1,973
• Total units with completed entitlement: 338
• Total units issued building permits: 255
• Total units that received certificate of occupancy: 162 Housing Application and Building Permit Status
The housing application data reports on projects and number of units for which an application was determined complete (Table A in the HCD APR Tables, linked above). Permit status reports projects and number of units issued a building permit, which is then counted as RHNA progress.

Table 3-1 provides an overview of the number of applications determined complete3 and proposed units and building permits issued for housing projects by type. 2 Key housing statistics are subject to minor adjustments following final quality control checks for the Housing Element APR submission.
3 Per HCD, complete applications are those that the City has confirmed include all required information. If an application was missing information when first submitted, the date shown reflects when the City determined the application was complete, not the original submission date.

Final 2025 General Plan Annual Progress Report 3-10
Table 3-1: Housing Application Status by Project Type
2025 Housing Applications
As shown in Table 3-1, 185 housing applications were submitted to the City and determined complete in 2025.

The three largest housing applications determined complete in 2025 were:

1. 680 units – 3805 State Street: This proposed project is the demolition of one commercial structure (Macy’s location at La Cumbre Plaza) and construction of a 680- unit rental housing development composed of 39 very-low-, 54 moderate-, and 587 above-moderate-income units.

2. 443 units – 3845 State Street: This proposed project is the demolition of two commercial structures (former Sears store and auto center) and construction of a 443- unit rental housing development composed of 44 moderate-income and 399 abovemoderate-income units.

3. 270 units – 505 E Los Olivos Street: This is a revised Builder’s Remedy project4 . The
proposed project is demolition of all structures and construction of a 270-unit rental housing development composed of 54 low-income and 216 above-moderate-income units.
4 “Builder’s Remedy” refers to a provision in California’s Housing Accountability Act (Government Code Section 65589.5) that allows housing developers to bypass local zoning standards when a jurisdiction lacks a compliant Housing Element. Projects must include at least 20 percent lower-income or 100 percent moderate-income units to qualify.

Housing
Type
Complete
Applications
Units in Complete
Applications
Projects Issued
Building Permits
Units in Projects Issued
Building Permits
Accessory
Dwelling
Unit
166 187 122 141
Single-Unit 3 5 5 5
Multi-Unit
2–4 units 1 2 3 8
Multi-Unit
5+ units
15 1,779 3 101
Total 185 1,973 133 255
Final 2025 General Plan Annual Progress Report 3-11
The three largest housing applications approved in 2025 were:

1. 90 units – 418 N. Milpas Street: This approved project is a mixed-use development composed of nine very-low-, six moderate-, and 75 above-moderate-income units.

2. 33 units – 3055 De la Vina Street: This approved project is a change-in-use from hotel (former Quality Inn) to permanent supportive housing composed of 33 very-low-income units. It also was one of the two largest projects issued building permits in 2025 (see below).

3. 27 units – 1529 State Street: This approved project at the former Cantwell’s Market location is a mixed-use development composed of three moderate- and 24 abovemoderate-income units.

Final 2025 General Plan Annual Progress Report 3-12
Housing Projects Issued Building Permits
As shown in the chart below, Accessory Dwelling Units (ADUs) were the most prevalent type of permitted housing in 2025, accounting for 55 percent of permitted units.

The two largest projects issued building permits in 2025 were:

1. 63 units – 400 W Carrillo Street: This is a new residential building on a former City parking lot composed of seven low-income, 55 moderate-income, and one above-moderate-income units.

2. 33 units – 3055 De la Vina Street: This is a change-in-use project from hotel to permanent supportive housing composed of 33 very-low-income units.

Housing Needs and Progress toward RHNA
Every eight years, California assesses future housing needs through the Regional Housing Needs Allocation (RHNA) process. This process estimates how many housing units are needed across different income levels based on projected population growth. The Santa Barbara County Association of Governments (SBCAG) distributes these housing targets among local jurisdictions, requiring each to develop a Housing Element that outlines how they will accommodate future housing demand.

Housing Elements ensure that enough land is zoned for residential development and include programs to promote housing construction at all affordability levels. Although jurisdictions track housing production, there is no requirement to meet RHNA allocations exactly; rather, the focus is on planning for and facilitating housing opportunities.

Chart 3-1: Permitted Units by Structure Type
5 8
101
141
0 20
40 60
80 100
120
140
160
Single Unit 2-4 Units 5+ Units ADUs
Permitted Units by Structure Type
Final 2025 General Plan Annual Progress Report 3-13
6th Cycle Regional Housing Needs Allocation
The current 6th cycle RHNA period (2023–20315) marks a significant increase in regional housing targets. SBCAG allocated 24,856 units countywide, a 125 percent increase from the 5th cycle (2014–2022), which allocated 11,030 units. Of that, the City’s 6th cycle allocation is 8,001 units, a 95 percent increase from the 5th cycle, which allocated 4,100 units.

To help meet these housing goals, the City of Santa Barbara’s Housing Element includes strategies that will be implemented over the course of the 6th cycle to encourage development across all income levels; however, external challenges, including high construction costs and labor shortages, have impacted housing production.

The Housing Authority of the City of Santa Barbara plays a major role in addressing affordability by developing new lower-income housing, securing funding, and preserving existing affordable units. While private sector investments, such as redeveloping underutilized sites into mixed-use housing, continue to support overall housing production, the majority of new units are in the above-moderate-income category, with limited progress in lower-income categories.

The median home price in Santa Barbara remained disproportionally high, relative to the national average. In 2025, median single-family home prices on the South Coast generally ranged from approximately $2.0 million to $2.5 million, depending on timing and property type, reflecting sustained strength in the coastal real estate market6 . However, demand continued to
outpace supply, sustaining elevated home prices across coastal neighborhoods. Rental costs also continued to place significant pressure on households, with median rents for a twobedroom apartment consistently exceeding $3,200 per month7 . These conditions underscore
the ongoing housing affordability crisis and the importance of expanding housing opportunities for lower-income residents. Although the Housing Authority and local development incentives seek to address these challenges, high construction costs and financing constraints continue to limit the pace and scale of new affordable housing production. 5 Although the 6th cycle RHNA planning period is officially 2023–2031, the State’s “projection period” begins June 30, 2022. Units permitted on or after this date are credited toward 6th cycle RHNA progress. This accounts for references to 2022 data in housing production tables.
6 Think Locale. Santa Barbara South County MLS Statistics – 2025. https://thinklocale.com/blog/santa-barbara-southcounty-mls-statistics-for-september-2025/ 7 Santa Barbara Independent. Santa Barbara South Coast 2025 Mid-Year Real Estate Market Update: Inventory Is Rising—and So Is Demand. July 31, 2025. https://www.independent.com/2025/07/31/santa-barbara-south-coast-2025- mid-year-real-estate
Final 2025 General Plan Annual Progress Report 3-14
Chart 3-2: 6th Cycle RHNA Progress
Chart 3-2 illustrates Santa Barbara’s progress toward meeting its 6th cycle RHNA goals (2023– 2031), which total 8,001 units across all income categories. Since the projection period began in June 2022, the City has issued building permits for 863 units, representing 10.8 percent of the total allocation.
2025 Progress by Income Category:

In 2025, the City issued building permits for 255 units:
• Very Low-Income: 33 units
• Low Income: 8 units
• Moderate Income: 55 units
• Above Moderate Income: 159 units
38 93 69 663
2,147
1,381
1,441
3,032
0 1,000
2,000
3,000
Very Low Low Moderate Above Moderate
2023-2031 RHNA Progress
2023-2025 RHNA Progress 6th Cycle Allocation (8,001)
Final 2025 General Plan Annual Progress Report 3-15
The majority of permitted units continue to fall within the Above Moderate-Income category, which has achieved 21.9 percent of its allocation. In contrast, lower-income housing production remains limited, with only 130 units permitted in the Very Low- and Low-Income categories combined (3.7 percent of the 3,528-unit lower-income allocation). Moderate-Income units total 69, representing 4.8 percent of that category’s allocation.

With 89.2 percent of the total RHNA allocation (7,138 units) still unmet, the City continues to implement Housing Element programs aimed at increasing affordable housing production, streamlining approvals, and leveraging state and local funding sources. To address this gap, the 2023-2031 Housing Element incorporates new policies and incentives to boost affordable housing production, including:
• Zoning amendments to allow for greater housing flexibility. • Streamlined permitting processes for ADUs and affordable housing projects. • Funding initiatives to develop affordable and workforce housing.

The City remains committed to collaborating with developers, nonprofit partners, and state agencies to implement these strategies and increase housing opportunities for all residents.

Tracking Housing Production
In addition to the overall housing unit numbers presented above, the City is required to comply with Housing Element law “No Net Loss” provisions to ensure there is adequate capacity to accommodate remaining unmet RHNA target throughout the eight-year planning period.

Specifically, Program HE-15: Track Housing Production requires the City to include the following in this report:
• Status of project listed as “Pending” on the Suitable Sites Inventory (Table 46 in the Housing Element)
Table 3-2 Cumulative Progress (2022-2025)
Income Category RHNA Allocation Cumulative
Progress
% of Allocation Met
Very Low 2,147 38 1.8%
Low 1,381 93 6.7%
Moderate 1,441 69 4.8%
Above Moderate 3,032 663 21.9%
Total 8,001 863 10.8%
Final 2025 General Plan Annual Progress Report 3-16
• Status of projects proposed on sites identified for housing in the sites inventory including:
• Unit count and income/affordability assumed on these parcels • Actual number of units permitted and constructed by income/affordability • Net change in capacity and remaining capacity by income level to meet remaining RHNA
The Suitable Sites Inventory Pending projects (Table 46 in the Housing Element) listed 20 pending projects of 10 or more units as of August 2023. In January 2024, just prior to Housing Element certification, HCD required the City to update the Suitable Sites Inventory by removing nine projects that completed entitlement (i.e., received final design approval) or received building permits. These projects are still counted towards meeting the City’s RHNA targets when they receive building permits but their status as “pending” no longer needs to be tracked.

Attachment A includes an update of project status from Table 46 in the Housing Element.

No Net Loss Status
The City tracks development activity on sites included in the Suitable Sites Inventory in compliance with Senate Bill 166 (2017) and 2023-2031 Housing Element Program HE-15. This process ensures the City: 1) evaluates development proposed on inventory sites; 2) determines whether approved projects are developed at a lower residential density or serve different income categories than assumed in the inventory; 3) calculates remaining residential capacity by income category to meet RHNA; and 4) makes required no net loss findings.

Because project descriptions may change between application submittal and final approval, no net loss calculations are conducted at the time of building permit issuance, when unit counts and affordability levels are finalized.

The Suitable Sites inventory is based on assumptions regarding unit capacity and income categories based on site characteristics and HCD guidance. Property owners are not required to propose projects that match these assumptions, and the City is not required to approve projects consistent with the inventory assumptions, nor can the City deny a housing project simply based on noncompliance with the inventory assumptions. To account for this flexibility and avoid a loss of capacity, the inventory was designed with surplus capacity by income category above RHNA requirements, providing a buffer if projects are built at lower densities or different affordability levels. Based on building permits for projects of two or more units issued from the projection period (June 30, 2022) through calendar year 2025, five housing projects have been issued building permits on inventory sites (1.2 percent of the inventory) and 17 projects have been issued building permits on sites not in the inventory. This indicates that there are multiple sites available for housing throughout the City, and the remaining capacity on sites in the inventory continues to be sufficient to meet the City’s RHNA obligations.

Final 2025 General Plan Annual Progress Report 3-17
Housing Element Program Implementation
Program Overview
The 2023-2031 Housing Element’s Housing Plan (Chapter 5) includes 32 programs that form the core of the City’s housing plan by translating goals and policies into specific actions. Each program identifies an assigned funding source, responsible party, and an implementation timeline, with timeframes organized by year and quarter. These timeframes were informed by state law requirements, HCD priorities, direction from City decision makers, community input, and available staff resources.

Oversight and Reporting
Program implementation is subject to review and direction by the Planning Commission, City Council, and relevant City Departments. Implementation activities include ordinance amendments, resolutions, development incentives, and outreach and education efforts. Some programs include quantifiable outcomes that are actively tracked by the Community Development Department, while others involve ongoing program support that continue throughout the 6th Housing Element Cycle (2023-2031).

Successful implementation depends on the availability of funding and staff resources, which can change over time due to economic conditions, City Council priorities, and federal, state and funding agency requirements, and other conditions. Program status is summarized on the City’s Housing Element Implementation webpage and is reviewed in detail through this Annual Progress Report and the Housing Element APR. In 2025, HCD significantly expanded reporting requirements for Housing Element program implementation, as reflected in Table D of the Housing Element APR.

In this third year of implementation, staff has identified critical interdependencies between programs aimed at increasing housing production and affordability (i.e., HE-5: Process Improvements, HE-10: Multi-Unit Housing Program, HE-12: Prioritize Deed-Restricted Affordable Housing, and HE-13: Evaluate Inclusionary Housing Ordinances) and those prioritizing residential use over visitor-serving uses (i.e., HE-19: Short-Term Rental Framework and Ordinance, HE-20: Evaluate Hotel Zones, and HE-21: Residential Units Conversion Ordinance). These do not function as standalone actions; rather they form an integrated policy framework. Their successful implementation relies on a shared foundation of feasibility studies and data evaluation, alongside sequential policy direction from Planning Commission and City Council.

Lastly, evolving state law can complicate program implementation. A primary example is the interaction of State Density Bonus Law (SDBL) with the City’s current inclusionary housing requirements. Because the affordability requirements of these two programs cannot be combined, the City’s ability to secure moderate-income units—essential for meeting Regional Housing Needs Allocation targets—is significantly restricted. Additionally, the broad incentives, concessions, and waivers available under SDBL makes it increasingly difficult for the City to develop a local program that offers meaningful further incentives for developers. As noted in the Final 2025 General Plan Annual Progress Report 3-18
summaries below, further evaluation and direction will be needed to successfully complete these closely related programs.

Program Status Categories
This section summarizes the information in Table D to highlight the City’s progress in implementing Housing Element programs. Consistent with HCD’s reporting format, program status is categorized as Not Yet Started, In Progress, Continuous, or Completed. The list below focuses on programs identified as Completed or In Progress. For programs with multiple components, completed portions are included in the list below.

Completed Programs
HE-1: Facilitate Conversion of Nonresidential Buildings to Housing This program included drafting an adaptive reuse ordinance and outreach materials. The Adaptive Reuse Ordinance was adopted in 2025.

HE-6: Facilitate Production of Accessory Dwelling Units This program has multiple components to facilitate production of ADUs. Pre-Approved ADUs are complete and outreach and guidance is continuous. Other components are in process.

HE-7: Objective Design Standards (also includes HE-3: Amend the Zoning Ordinance for Special Needs Housing)
Objective Design and Development Standards for multi-unit housing were adopted in 2025. The first phase of ordinance amendments for HE-3: Amend the Zoning Ordinance for Special Needs Housing was also completed.

HE-8: Innovative Housing Types
This program includes outreach for input on housing trends and review of the Zoning Ordinance to determine if amendments are necessary to incentivize innovative housing types. The outreach and research component of this program is complete. Zoning amendments are in process for large and small family day care homes, group residential, guest houses and temporary housing with program HE-5: Process Improvements (see below).

HE-9: Resource Protection and Development Certainty
This program aims to create clear processes, better development certainty, and reduce the need for site-specific technical studies. MEA Guidelines for Archaeological Resources, Tribal Cultural Resources, and Historic Resources were completed in 2025.

To streamline permit application reviews and provide clarity to applicants, the City has also drafted proposed minimum buffers from City creeks that will be applied objectively throughout the City. Additional MEA Guidelines currently in progress include Hazardous Materials, Oil & Gas Wells, Biological Resources, and Noise.

HE-10: Multi-Unit Housing Program (also includes HE-5: Process Improvements) Final 2025 General Plan Annual Progress Report 3-19
This program implements results of the Average Unit-Size Density Incentive Program (AUD) Progress Report (2023) and ensures continuation of the AUD program. The AUD Ordinance expiration period was removed in 2023, and the Zoning Ordinance was amended in 2025 to change residential projects’ density calculations from rounding fractions down to rounding up in response to findings of the AUD Program Progress Report that revealed that rounding fractions down negatively affected density calculations. Further amendments to the AUD program based on prior Planning Commission and City Council direction, the progress report evaluation, and staff input are being evaluated for inclusion in Phase 2 of HE-5: Process Improvements.

HE-12: Prioritize Deed-Restricted Affordable Housing.

This program includes multiple strategies intended to incentivize and increase production of deed-restricted affordable housing. The handout to promote lot consolidation (Voluntary Lot Merger)8 and adoption of the Water and Sewer affordable housing priority Resolution No. 24.135 were completed in 2024. Further implementation of this program is closely related to the feasibility study for inclusionary housing in progress for HE-13 (see below) and consideration of what the City can offer to further incentivize affordable housing beyond State Density Bonus and other state laws that streamline approvals for projects with a certain percentage of affordable housing.

HE-15: Track Housing Production.

Most of this program is continuous tracking of housing production. There is a component that requires tracking production, intended use, and rents of new ADUs every two years.

The first ADU tracking portion of the program was completed by Santa Barbara County Association of Government’s ADU survey (2024)9 for the County and incorporated cities.

HE-16: Create Affordable Housing Funds
The Local Housing Trust Fund was established in 2024. Use of the funds is tracked on the Local Housing Trust Fund website.

HE-19: Short-Term Rental Framework and Ordinance
This program includes drafting a framework and ordinance for adoption to address shortterm rentals. The framework was presented to City Council and Planning Commission in 2025 and the first internal draft of the ordinance was completed. Although considered complete per the program parameters, final ordinance adoption and submittal to the Coastal Commission as a Local Coastal Program Amendment, anticipated to occur in 2026.

HE-20: Evaluate Hotel Zone
This program addresses the proliferation of hotels in the City’s zones that also allow housing. It includes multiple components and is closely linked to HE-19. Monitoring trends, reviewing zone districts, and the fractional ownership study were completed.

Preliminary zoning ordinance amendments were drafted for adoption to limit hotels and 8 Purpose is to promote merging adjoining smaller parcels and thus increase the potential for larger projects with more affordable units.
9 Accessory_Dwelling_Unit_Owner_Survey.pdf
Final 2025 General Plan Annual Progress Report 3-20
similar uses in areas of the City that are also zoned for multi-unit housing. Final ordinance review and adoption is planned to follow implementation of the short-term rental ordinance, which will have a greater impact on preserving long-term housing for residents than the hotel zone changes.

HE-21: Residential Units Conversion Ordinance
This program was intended to ensure that there is no net loss of affordable units when non-AUD projects10 are converted to condominiums, hotels, or similar uses. In the case of multi-unit conversions, no net loss of affordable units is already required by the ordinance. There is, however, the ability for a single residential unit to convert to a shortterm rental (which the City currently classifies as a hotel) with a change-in-use permit, thereby bypassing the no net loss of affordable units’ provision in the residential unit’s conversion ordinance. Under HE-19, the STR ordinance has been drafted to no longer classify STRs as hotels, limit where STRs are allowed (no residential single-unit or twounit zones), prohibit deed-restricted affordable housing to convert to a STR, and prohibit conversion of one unit to a hotel, thus completing the intent of this program.

HE-31: Secure Permanent Affordable Housing Funding
This includes studies and potential measures for a permanent source of funding for affordable housing. The voters passed the Santa Barbara Essential Local Services Measure I, a ½-cent sales tax measure, and one of the funding priorities is improving housing affordability by directing a portion of the funds to the Local Housing Trust Fund.

Other tax and financing measures are in progress (see below).

Projects In Progress
HE-5: Process Improvements (also includes HE-3: Amend the Zoning Ordinance for Special Needs Housing and HE-8: Innovative Housing Types)
The first phase of HE-5 is in progress with the Single Family Streamlining Project. The zoning ordinance amendments associated with single family streamlining will also fulfill HE-3: Amend the Zoning Ordinance for Special Needs Housing and HE-8: Innovative Housing Types. Future process improvements for multi-unit housing (HE-10) are to be determined in the second phase.

HE-6: Facilitate Production of Accessory Dwelling Units.

Amending the ADU ordinance to simplify the ordinance and comply with new state laws will be initiated in 2026.

HE-9: Resource Protection
A Master Environmental Assessment for Hazardous Materials and Oil and Gas Wells is in progress, along with a creek buffer ordinance that was released for public review in 2025.

HE-12: Prioritize Deed Restricted Affordable Housing (also includes HE-4: Use-by-Right Permitting, HE-5: Process Improvements, HE-13: Evaluate Inclusionary Housing Ordinances, and HE-31: Secure Permanent Affordable Housing Funding) 10 AUD projects are already not allowed to convert to a hotel or other similar uses.

Final 2025 General Plan Annual Progress Report 3-21
The feasibility study described in HE-13 and the commercial linkage fee described in HE-31 are in progress. Other strategies mentioned in the program are continuously implemented such use-by-right-approval for certain housing projects (HE-4). Due to changes in State Density Bonus Law since adoption of the Housing Element, higher densities and concessions and waivers of development standards are already being pursued for projects with deed-restricted affordable units. Zoning ordinance amendments in progress with HE-5 single family streamlining process improvements also fulfill the strategy to provide more flexibility for open yard requirements and reduce the minimum dimensions of required open yard for multi-unit and mixed-use projects.

HE-13: Evaluate Inclusionary Housing Ordinances
A consultant was hired to conduct the feasibility study and the study will be released for public review in early 2026, to be followed by zoning ordinance amendments.

HE-14: City Land Registry
City-owned land has been mapped. The evaluation of these areas for use for potential affordable housing projects has not yet been initiated.

HE-26: Renters’ Rights Information
Landlord and tenant rights information is provided on the City’s webpage in English and Spanish. Bilingual office and walk in hours are offered as well as phone services.

Information on tenants’ rights is presented at the annual Housing Santa Barbara Day. In addition, in 2024 City Council adopted Municipal Code amendments relating to Just Cause Eviction, Tenant Right of First Refusal to Re-rent, Occupancy following a Substantial Remodel, and Protection of Tenants from Harassment. These amendments provide greater tenant protection than state law.

HE-31: Secure Permanent Affordable Housing Funding
The City’s initial priority for funding sources was the 2024 Essential Local Services Sales Tax. In 2025, City Council adopted a Strategic Plan and Year 1 Implementation includes completing an analysis of an Enhanced Infrastructure Financing District and identifying sustainable funding sources for the Local Housing Trust Fund. A commercial linkage fee (i.e., housing impact mitigation) nexus study is included with Program HE-13:

Inclusionary Housing Study.

Final 2025 General Plan Annual Progress Report 4-22

4. Other General Plan Implementation
The General Plan is the City’s comprehensive, long-range policy framework for guiding growth, conservation, and public investment in a manner that protects quality of life, supports a resilient and diverse economy, ensures safe and well-designed development, and responsibly manages the City’s natural and built resources. This section highlights some of the key initiatives completed and in progress in 2025 that advance General Plan policies and implementation actions and support the City’s long-term vision.

Completed
Historic Resources
Historic Structures of Merit Designations
Historic resources are a vital part of Santa Barbara’s heritage, reflecting the City’s historical, architectural, and cultural character. To support preservation of this character, the Structure of Merit designation recognizes buildings of architectural, cultural, archaeological or aesthetic value that do not meet the criteria for landmark status. In 2025, the Historic Landmarks Commission designated 13 new Structures of Merit, further advancing the City’s commitment to preserving its historic fabric.
• General Plan Implementation: Historic Resources Element • Policies and/or Implementation Actions: HR7 promotes protecting cultural landscapes and HR8.4 is to designate identified resources expeditiously, at least annually.

Local Register of Historical Resources
The Local Register of Historical Resources (formerly known as Historic Resources Inventory) is a list of structures, sites, and features designated or recognized as historically significant by the Historic Landmarks Commission or the City’s Architectural Historian. Properties included in the Local Register may be eligible for formal designation as a Landmark, Structure of Merit, Historic District, or contributing resource within a potential Historic District.

In 2025, 17 properties were added to the Local Register of Historical Resources, reflecting the City’s ongoing commitment to preserving and recognizing its historic and architectural heritage. • General Plan Implementation: Historic Resources Element • Policies and/or Implementation Actions: HR8 promotes surveying and documenting all historic resources.

Mills Act Historic Property Program
The Mills Act program provides property tax reductions to owners who preserve and maintain historic structures in exchange for ten-year preservation commitment. In 2025, seven new Final 2025 General Plan Annual Progress Report 4-23
Property Tax Reduction Contracts and three contract renewals were approved, reinforcing the City’s commitment to historic preservation through partnerships with property owners. • General Plan Implementation: Historic Resources Element • Policies and/or Implementation Actions: HR4.1 provide incentives for adaptive reuse of historic buildings; HR5.3: Provide property owners with support and incentives, and HR 10.5: Adopt government incentives toward preservation and protection of privately owned historic resources.

Master Environmental Assessment (MEA) Guidelines for Archaeological Resources & MEA Guidelines for Tribal Cultural Resources
The City completed updates to the Master Environmental
Assessment (MEA) Guidelines for Archaeological
Resources, providing clear, consistent direction for
archaeological review and strengthening protections for sensitive resources. The updated Guidelines refine
archaeological sensitivity mapping and incorporate
procedural improvements consistent with current local and State requirements. The Archaeological MEA Guidelines
were adopted by the City Council on April 29, 2025.

In conjunction with this effort, the City also completed new MEA Guidelines for Tribal Cultural Resources to ensure
compliance with the California Environmental Quality Act (CEQA) and other applicable laws. These Guidelines
formalize tribal consultation procedures and integrate tribal perspectives into City planning and development review.

This work was funded by a grant from the California Office of Historic Preservation and informed by extensive coordination with Native American tribal representatives, local archaeologists, the Archaeological Advisor to the Historic Landmarks Commission, and the California Historical Resources Information System Information Center.
• General Plan Implementation: Historic Resources Element • Policies and/or Implementation Actions: HR7.2 seeks to identify and preserve historic landscapes and HR9.4 and HR9.5 promote awareness, appreciation and understanding of all inhabitants of Santa Barbara. In addition, HR1.5 serves to protect archeological resources.

Final 2025 General Plan Annual Progress Report 4-24
Master Environmental Assessment (MEA) for Historic Resources The City completed updates to the Master
Environmental Assessment (MEA) Guidelines for
Historic Resources in 2025, ensuring consistency
with current California Environmental Quality Act
requirements and applicable provisions of the
Santa Barbara Municipal Code. The updated
Guidelines provide clear procedures for evaluating
historic resources and support effective
implementation of the Historic Resources Element.
• General Plan Implementation: Historic Resources Element • Policies and/or Implementation Actions: HR10: Ensure Governmental Effectiveness, provide adequate resources to enable implementation of the goals and policies of the Historic Resources Element.

City Projects Completed
City-Wide Development Projects
Cabrillo – Los Patos Roundabout Project
Completed in Spring 2025, Phase I of the new
roundabout at East Cabrillo Boulevard now
enhances safety and improved traffic flow. It
features updated crosswalks with traffic
islands in all four quadrants and new
landscaping in the center island. Additionally, a
striped pedestrian and bicycle path was added
along northbound Channel Drive, along with a
new left-turn lane from southbound Cabrillo Boulevard to Channel Drive. • General Plan Implementation: Circulation Element; Pedestrian Master Plan (PMP) and Bicycle Master Plan (BMP).
• Policies and/or Implementation Actions: C.1, 2.1, 4.2, 5.1, 5.5, 5.6, 12.2. and PMP Policy 1.2 improving pedestrian safety and comfort at intersections.

Final 2025 General Plan Annual Progress Report 4-25
Casa Las Palmas Patio and Minor Interior Renovation Project Completed Fall 2025, the Casa Las
Palmas Patio and Minor Interior
Renovation Project included construction
of a new steel arbor on the Casa Las
Palmas patio overlooking the Chase Palm
Park Great Meadow. The arbor provides
shade, enhances user comfort, and
contributes to the visual quality of the park
setting, with new planters installed along
the stairway leading to the patio. Additional exterior improvements included new landscaping, fencing, entrance gates, enhanced nighttime lighting, and Americans with Disabilities Act (ADA) accessibility upgrades to the building and patio entrances. Interior improvements included new flooring and paint, as well as refurbishment of the kitchen and adjacent service building. • General Plan Implementation: Open Space, Parks, and Recreation Element; Land Use Element; Circulation Element
• Policies and/or Implementation Actions: OP1 and OP2 support the maintenance, enhancement, and accessibility of public park facilities; LG6 promotes safe, accessible, and attractive public spaces; and Circulation Element policies support improved pedestrian access, safety, and equitable use of public facilities through accessibility upgrades and enhanced lighting.

Carrillo Street Gym Exterior Renovation Project
Completed in 2025 to repair and restore
the historic structure while preserving its
original design, the Carrillo Street
Gymnasium, a designated City Landmark
designed in 1926 by architect Julia
Morgan, underwent exterior renovations.

Improvements included waterproofing,
stucco and column repairs, window replacements, painting, and completion of a seismic evaluation report, ensuring the facility’s continued use as a year-round indoor recreational venue.
• General Plan Implementation: Historic Resources Element • Policies and/or Implementation Actions: HR1, HR1.1, HR2, HR2.2, HR3 and HR3.1 all guide efforts to repair and restore, while preserving historic character.

Final 2025 General Plan Annual Progress Report 4-26
Douglas Family Preserve Improvements
Completed Spring 2025, the Douglas
Family Preserve Improvements project
enhanced trail conditions within the 70-
acre open space park in the Mesa
neighborhood, which is known for its
scenic ocean views and coastal bluff
walking trails. Improvements included
trail tread rehabilitation, removal of poison oak from primary trail corridors, and elimination of remaining hazards associated with the site’s former use as a nursery. Drainage improvements were also implemented to reroute trail users around low-lying areas that remain seasonally saturated, improving safety, accessibility, and long-term trail sustainability. • General Plan Implementation: Open Space, Parks, and Recreation Element; Environmental Resources Element
• Policies and/or Implementation Actions: OP1 supports the preservation and enhancement of open space and recreational trail systems; OP2 promotes maintenance and improvement of public open space facilities; and Environmental Resources Element policies encourage protection of sensitive habitats, erosion control, and sustainable drainage practices to support ecological health and safe public access.

Vision Zero State Street Undercrossing
Completed in 2025, the Vision Zero
State Street Undercrossing Project
improves safety and connectivity
between Downtown and the Waterfront
by enhancing pedestrian and bicycle
infrastructure along State Street
between Gutierrez Street and Yanonali
Street. Improvements included widened sidewalks, new pedestrian lighting, buffered bike lanes, and travel lane reconfiguration, addressing collision risks and supporting safe, active transportation along this high-use corridor.
• General Plan Implementation: Circulation Element
• Policies and/or Implementation Actions: C6, C6.1, C6.2 focus on improving traffic flow in conjunction with improving access for pedestrians, bicycles and public and private transit through measures that include physical roadway improvements.

Final 2025 General Plan Annual Progress Report 4-27
City Projects In-Progress
Plans
San Roque Historic Context Statement
The City of Santa Barbara retained South Environmental to prepare a historic context statement and perform a historic resources survey for the San Roque neighborhood. The project is expected to be completed by April 2026.

The historic context statement will provide the background information necessary for the historic resources survey by documenting the neighborhood’s development history and identifying important themes, property types, architectural trends, patterns of development, community groups, significant events, and people that are associated with that history. Throughout the course of the survey, properties will be identified as potentially eligible and not eligible for local designation. The goal of the project is to identify and promote the preservation of important cultural and historic resources within the San Roque neighborhood.

State Street Master Plan
In response to the COVID-19 pandemic, the City
temporarily closed downtown State Street to automobile
traffic in May 2020, opening the corridor to pedestrians, bicyclists, outdoor dining, and community activity. This effort demonstrated State Street’s potential as a vibrant public space and renewed community interest in
reimagining Downtown’s public realm.

Building on this momentum, the State Street Master Plan will establish a long-term framework for revitalizing the corridor with cohesive design direction that supports all users, with particular focus on Downtown’s civic and
cultural core between Ortega and Carrillo Streets. The Plan will provide an overarching vision, guiding principles, and design direction for State Street - from Sola to Gutierrez Streets, to guide reinvestment and public realm improvements through 2050.

Following extensive community engagement and technical analysis, City staff are finalizing the draft Master Plan, which is anticipated to be presented to City Council for consideration and adoption in mid-2026.
• General Plan Implementation: Circulation Element & Economy and Fiscal Health Element
• Policies and/or Implementation Actions: CE5.3.4 and CE5.5.4 recommend closing streets to create pedestrian plazas, and EF9 calls for infrastructure improvements to assist with business retention or expansion.

Final 2025 General Plan Annual Progress Report 4-28
30-Year Waterfront Adaptation Plan
The purpose of this project is to create a
practical plan that prepares the Santa
Barbara Waterfront for increased storm
surges, erosion, and flooding by
providing solutions that preserve and
enhance recreation, commerce, beach
access, habitat, and critical
infrastructure for the near term and future generations. The Waterfront is already at risk of flooding, storm surge, and erosion during coastal storms that will become exacerbated with even small amounts of sea-level rise. Some of the adaptation measures the plan will consider are raising or modifying the Harbor breakwater and groins, flood protection measures for the Harbor Commercial area, and realignment of portions of the beach multiuse path. A draft Adaptation Plan is anticipated to be released for public review by the end of 2026. • General Plan Implementation: Environmental Resources Element, Safety Element & Land Use Element
• Policies and/or Implementation Actions: ER12, ER12.3, S23.4 and LG6 guide efforts to protect the waterfront from increased storm surges, erosion from flooding, while preserving and enhancing recreation.

Regional Coastal Adaptation Monitoring Program
The City has partnered with Beach
Erosion Authority for Clean Oceans
and Nourishment (BEACON), a joint
power authority with member
agencies from the coastal cities and
counties between Point Mugu and
Point Conception, on the
development of a regional shoreline
monitoring program. This monitoring program is key to implementing the City’s Adaptation Program with a data-driven approach, including tracking how soon actions are needed and the effectiveness of adaptation projects as they are implemented. A draft monitoring plan was released in August 2025.
• General Plan Implementation: Environmental Resources Element, Safety Element & Land Use Element
• Policies and/or Implementation Actions: ER12, ER12.4, S23.5 and LG6 support a data-driven approach to coastal adaptation and resilience planning.

Final 2025 General Plan Annual Progress Report 4-29
Santa Barbara Airport Climate Adaptation Plan
The Santa Barbara Airport is preparing
a Climate Adaptation Plan that builds on
the City of Santa Barbara’s Sea Level
Rise Adaptation Plan (2021) and the
Goleta Slough Area Sea Level Rise and
Management Plan (2015). The Climate
Adaptation Plan will address potential
impacts from increased flooding due to projected sea level rise and heightened rainfall associated with climate change. The first phase, which involved a hazards analysis and vulnerability assessment, was completed in December 2024. The next phase will focus on reviewing adaptation measures, with completion expected in 2026. • General Plan Implementation: Environmental Resources Element, Safety Element & Land Use Element
• Policies and/or Implementation Actions: ER12, ER12.3, S23, S23.4, LG6 and LG6.2 guide efforts to assess vulnerabilities and develop strategies to mitigate the impacts of sea level rise and increased flooding on airport operations and infrastructure.

Wastewater and Water Systems Climate Adaptation Plan
This plan will evaluate vulnerabilities of
the City’s wastewater and water
infrastructure from sea level rise,
changes in rainfall patterns, and rising
groundwater levels. It will identify
alternatives for relocating, floodproofing,
and/or hardening of major sewer mains
and water lines currently located under the beach and in the sea level rise area. The plan will primarily focus on impacts in the next 30 years but will also consider mid- and long-term options and thresholds for action for El Estero Water Resource Center and other portions of the wastewater and water systems. A draft Adaptation Plan was released for public review on December 9, 2025 and the Final Plan will be presented to City Council for approval in May 2026.
• General Plan Implementation: Environmental Resources Element, Safety Element & Land Use Element
• Policies and/or Implementation Actions:ER12, ER12.3, S23, S23.4, LG6 and LG6.2 all encourage strategies to protect the City’s wastewater and water infrastructure from climate change impacts.

Final 2025 General Plan Annual Progress Report 4-30
City-Wide Development Projects
Dwight Murphy Field Renovation Project
Dwight Murphy Field, acquired by the City in 1925,
is undergoing major renovations to modernize and
expand its recreational facilities. The project
includes a new multi-sports field, upgraded
restrooms and picnic areas, an expanded fitness
area, and an all-abilities playground developed in
partnership with the Gwendolyn Strong Foundation. Construction began in June 2025, with the park anticipated to reopen in spring 2027. Funding is supported through a combination of City funds, federal Community Project Funding, private philanthropy, and contributions from nonprofit partners.
• General Plan Implementation: Open Space, Parks, and Recreation Element • Policies and/or Implementation Actions: OP1 supports diverse recreational opportunities and facilities; OP2 promotes investment in the maintenance and improvement of public parks and open space.

San Roque Creek Restoration at Stevens Park
Planning is underway for a creek restoration project
at Stevens Park that will restore approximately 900
feet of San Roque Creek through the planting of fireresilient native vegetation. The project will enhance riparian habitat, reduce erosion and sedimentation,
and improve wildlife habitat within this City open
space park. Additional improvements include
revitalization of the demonstration garden near the
playground and installation of new interpretive
signage.
• General Plan Implementation: Environmental Resources Element • Policies and/or Implementation Actions: ER1, ER4, ER6.3, ER14.1, and ER14.2 support restoration of creeks and riparian habitats, enhancement of native vegetation, erosion control, and long-term ecological health Final 2025 General Plan Annual Progress Report 4-31
Santa Barbara Police Station Project
On November 18, 2024, the City of
Santa Barbara held a groundbreaking
event for its new Santa Barbara Police
Station. The new police station will be a
modern, net-zero energy building
spanning approximately 64,000 square
feet, with a secure parking structure of
around 81,000 square feet, including
one level below grade. It will house the entire police department, including all fleet and department vehicles, as well as personal vehicles.

The facility will feature a 560-kilowatt solar array and battery storage system. Located at 601 Santa Barbara Street, the new station will include a large community room, a fitness center, an open locker room with changing rooms, a forensics lab, evidence storage, and a 10-lane shooting range, among other amenities.

The site is currently under construction, with an anticipated completion date in Summer 2027. • General Plan Implementation: Land Use Element, Economy and Fiscal Health Element & Safety Element.
• Policies and/or Implementation Actions: LU-1, LU-6.1, LU-6.2, EF-6.2, EF-7.1, S-1.3 and S-2.1 promote sustainable design, energy efficiency, and ensure public facilities meet community needs, by prioritizing investment in modern, resilient public safety infrastructure.

Westside and Lower West Neighborhoods Transportation Management Plan Implementation Project
The Westside and Lower West Neighborhoods
Active Transportation Plan Implementation
Project provides safe pedestrian and bicycle
routes to schools, parks, and neighborhood
services, and completes major infrastructure
gaps. The enhancements complement the
Westside Community Paseos Project. The project is currently in design with construction anticipated in 2027.
• General Plan Implementation: Circulation Element – Pedestrian Master Plan (PMP) and Bicycle Master Plan (BMP).
• Policies and/or Implementation Actions: C.1, 2.1, 4.2, 5.1, 5.5, 5.6, 12.2 and PMP Policy 2.1 expanding the bikeway network, while closing gaps in the existing system.

Final 2025 General Plan Annual Progress Report 5-32

5. Conclusion
In 2025, the City of Santa Barbara made measurable progress in implementing its General Plan by advancing housing programs, strengthening climate resilience planning, and preserving both the natural and built environments. Key accomplishments include adoption of the Adaptive Reuse Ordinance and the continued use of pre-approved ADU designs. The City also continued to build long-term affordable housing capacity through the Local Housing Trust Fund and partnerships supporting deed-restricted housing, consistent with the recently adopted Citywide Strategic Plan (2026–2028) priorities to strengthen housing affordability and community services.

The City also advanced significant climate adaptation and environmental stewardship efforts aligned with the Strategic Plan’s focus on community resilience and safety. In 2025, the City adopted the Master Environmental Assessment (MEA) Guidelines for Archaeological and Tribal Cultural Resources, improving regulatory clarity and formalizing tribal consultation procedures.

Additional progress included continued development of the 30-Year Waterfront Adaptation Plan, release of a draft Wastewater and Water Systems Climate Adaptation Plan, and initiation of regional shoreline monitoring efforts, helping to inform future infrastructure and shoreline resilience investments.

General Plan modernization efforts also moved forward, including initiation of the consolidated Open Space and Conservation Element Update and advancement of a comprehensive Safety Element Update informed by updated climate risk assessments and the Local Hazard Mitigation Plan. These efforts respond to evolving State requirements related to climate change, wildfire risk, evacuation planning, and habitat protection while improving consistency across General Plan elements and implementation tools.

Looking ahead, the Strategic Plan’s First-Year Work Plan provides a focused framework for advancing priority initiatives already underway. Over the coming year, the City will concentrate on continuing implementation of Housing Element programs, progressing major master planning efforts such as the State Street Master Plan, completing remaining MEA Guidelines, and advancing climate adaptation plans. Through continued coordination, public engagement, and disciplined implementation aligned with both the General Plan and Strategic Plan, Santa Barbara remains well positioned to advance a resilient, inclusive, and well-planned future.

Achieving this vision will require continued efforts to streamline permitting processes and incentivize housing production, while navigating external obstacles such as high construction costs, labor shortages, and financing constraints.

Final 2025 General Plan Annual Progress Report 5-33
Attachment A: Status of Suitable Sites Inventory – Pending Projects of 10 or More Units
1529 State
PLN2024-00226
Mixed-use with 27 units:
3 Moderate
24 Above Moderate
Completed entitlement
222 E. Canon Perdido
PLN2023-00502
24 units:
2 Moderate
22 Above Moderate
Application incomplete.
201 E. Haley
PLN Void
48 Units:
5 Lower
4 Moderate
39 Above Moderate
No longer an active project. Project
requires Phase 1 or 2
Environmental Site Assessment and
clearance from the Regional Water
Quality Control Board. The site is
being monitored and remediated.
3805 State
PLN2024-00227
Mixed-use with 680 units:
39 Lower
54 Moderate
587 Above Moderate
Application deemed complete
2/13/25.
113-117 W. De la Guerra
PLN Expired
Mixed-use with 23 units:
23 Above Moderate
Completed entitlement and building
permit issued but expired. This
project was removed from the final
inventory as pending per HCD’s
instructions.
401 and 409 E. Haley
PLN2016-00508
Lot merger of 2 lots and mixed-use
with 26 units: 3 Moderate
23 Above Moderate
Completed entitlement. This project
was removed from the final
inventory as pending per HCD’s
instructions.
219 E. Haley
PLN2016-00078
Mixed-use with 34 units:
34 Above Moderate
Completed entitlement and building
permit issued. This project was
removed as pending from the final
inventory based on HCD’s
instructions.
425 Santa Barbara
PLN2020-00426
Multi-Family Residential with 19
units:
2 Very-Low
1 Moderate
16 Above Moderate
Completed entitlement.
27 E. Gutierrez
PLN2020-00220
Lot merger of three parcels and
mixed-use with 78 units:
8 Moderate
70 Above Moderate
Project complete. This project was
removed as pending from the final
inventory based on HCD’s
instructions.
115 W. Anapamu
PLN2020-00074
Lot merger of two parcels and
mixed-use with 34 units:
34 Lower
Building permit issued. This project
was removed as pending from the
final inventory based on HCD’s
instructions.
630 Chapala Street & 25
W. Ortega
PLN2021-00189
Lot merger of two parcels and
mixed-use with 39 units:
4 Moderate
35 Above Moderate
Completed entitlement. This project
was removed as pending from the
final inventory based on HCD’s
instructions.
809/815 De La Vina &
208 W. De La Guerra
PLN Expired
Lot merger of three parcels and 31
units:
31 Above Moderate
Project Design Approval was
granted and a one-year time
extension request was submitted in
2023 for final approval but
subsequently expired. This project
Address Project Description Status (as of December 2025) Final 2025 General Plan Annual Progress Report 5-34
was removed as pending from the
final inventory based on HCD’s
instructions.
701/711 N. Milpas
PLN2021-00513
Mixed-use with 82 units:
16 Moderate
66 Above Moderate
Completed entitlement. This
project was removed as pending
from the final inventory based on
HCD’s instructions.
428 Chapala
PRE2024-00092
33 units with 15 percent very low
with a state density bonus
Project was revised and the new
preapplication is complete.
425 Garden
PLN2021-00523
36 units:
4 Very Low
2 Moderate
30 Above Moderate
Building permit issued.
220 N. La Cumbre
PLN2022-00186
48 units:
48 Low
Building permit issued. This project
was removed as pending from the
final inventory based on HCD’s
instructions.
400 W. Carrillo
PLN2022-00354
63 units:
7 Low
55 Moderate
1 Above Moderate
Building permit issued.
418 N. Milpas/915 E.

Gutierrez
PLN2024-00156
Lot merger of 2 lots and mixed-use
with 90 units:
9 Very Low
6 Moderate
75 Above Moderate
Completed entitlement.
821 State
PLN2022-00085
Mixed-use with 14 units:
3 Lower
1 Moderate
10 Above Moderate
Project complete.
932 De la Vina
PLN Expired
22 units:
2 Moderate
20 Above Moderate
This project changed to a
commercial remodel that received
project approval on 7/30/25 under
separate application (PLN2025-
00094).