Inclusionary Housing Requirements

Housing Element Program HE-13

The City of Santa Barbara requires inclusionary housing—units at affordable prices—for both ownership and rental multi-unit residential developments (since 2004 and 2019, respectively). Inclusionary housing requires a certain number of units—calculated as a percent of total units in a development—to be sold to middle income households or rented to moderate-income households. A multi-unit residential development may be required to pay an inclusionary housing in-lieu fee. More information about the existing inclusionary housing requirements can be found in the City’s Zoning Ordinance (Section 30.160 for ownership developments and Section 30.150.110 for rental developments). 

As part of the 2023-2031 Housing Element, staff is working on implementing Housing Element Program HE-13: Evaluate Inclusionary Housing Ordinances. This effort is being completed in a two-parts: 1) Evaluation, and 2) Zoning Ordinance Amendments.  

Evaluation (Feasibility Study) 

A Feasibility Study (by consultant) is underway to evaluate the existing inclusionary housing ordinances. The Feasibility Study's evaluation is reviewing the inclusionary requirements, including the percentage of inclusionary units and the amount for in-lieu fees, with recommendations for adjustments. See the Timeline below for more about the current progress and upcoming public events. 

Zoning Ordinance Amendments 

Based on the findings and recommendations in the Feasibility Study, staff will draft Zoning Ordinance Amendments to adjust the inclusionary housing requirements for multi-unit residential developments. See the Timeline below for more.