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Contact

Dana Falk
Project Planner
InclusionaryHousing@SantaBarbaraCA.gov

Title

Inclusionary Housing Requirements

Body

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 (Chapter 30.160 / Chapter 28.43 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 (Inclusionary Housing and In-Lieu Fee Study) 

The 2026 Inclusionary Housing and In-Lieu Fee Study analyzes the existing inclusionary housing requirements for ownership and rental housing developments to assist the City in considering changes to the program. 

Zoning Ordinance Amendments 

Based on the Study and guidance provided at public hearings in Spring 2026, staff will draft Zoning Ordinance Amendments to adjust the inclusionary housing requirements for multi-unit residential developments. 

Public Engagement

A draft Inclusionary Housing and In-Lieu Fee Study was released for public review and comment in Winter 2026 (January 28 through March 1). Eighteen comments were received.

The final Inclusionary Housing and In-Lieu Fee Study will be presented to Planning Commission and City Council for feedback on recommendations and guidance to staff for the Zoning Ordinance Amendments. See the Timeline below for more.

The Zoning Ordinance Amendments will go to Planning Commission, Ordinance Committee, and City Council for adoption. See the Timeline below for more.

Interested in staying engaged with the Inclusionary Housing and In-Lieu Fee Study and Zoning Ordinance Amendments? Subscribe with your email or contact staff.

Sections

Timeline

1
Spring 2024 through Fall 2025 

(Evaluation) Inclusionary Housing and In-Lieu Fee Study underway

2
Winter 2025/2026

(Evaluation) Inclusionary Housing and In-Lieu Fee Study draft released for public review and comment, revised based on public input, and publication of the final Study

3
Spring 2026

Public hearings to discuss the (Evaluation) Inclusionary Housing and In-Lieu Fee Study recommendations and to request guidance for Zoning Ordinance Amendments 

  • Planning Commission on April 16th
  • City Council on May 5th (continued to June 2nd as needed)
4
Spring/Summer 2026 

Staff drafts Zoning Ordinance Amendments 

5
Summer/Fall 2026

Public hearings to adopt Zoning Ordinance Amendments 

6
December 2026

Program completion per Housing Element

Latest News

Inclusionary Housing and In-Lieu Fee Study
The final Inclusionary Housing and In-Lieu Fee Study is now available. The Study will be presented and the inclusionary housing requirements will be discussed at public hearings this Spring: 
Draft Inclusionary Housing and In-Lieu Fee Study - Public Review Period Closes Soon
Comments Accepted through March 1, 2026The public review period of the draft Inclusionary Housing and In-Lieu Fee Study ends in less than a week—on March 1. Staff is…
Public Review of Draft Inclusionary Housing and In-Lieu Fee Study
Public Review and Comments through March 1, 2026City staff invite the community to participate in public review of the draft Inclusionary Housing and In-Lieu Fee Study and provide comments. The City’s Inclusionary Housing Requirements are…
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