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City of Santa Barbara Recognized as State Partner in Addressing Housing Crisis and Receives $1M Grant

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City of Santa Barbara earns Prohousing Designation and receives a $1,000,000 grant.

The City of Santa Barbara has been designated a Prohousing Jurisdiction under the State’s Prohousing Designation Program by the California Department of Housing and Community Development. This designation recognizes the City’s partnership with the state in addressing the housing crisis through its commitment to accelerating housing production and implementing housing-friendly policies.

“We are honored to be recognized by the State as a Prohousing Jurisdiction. This designation reflects our ongoing commitment to addressing the housing crisis through innovative policies and partnerships that accelerate housing production and expand affordable options for our community.” Stated Allison DeBusk, Community Development Director.

In 2025, City Council adopted a resolution authorizing application to and participation in the Prohousing Designation Program. Threshold requirements include having a certified Housing Element, engaging in a public participation process, complying with applicable state housing law related to the Permit Streamlining Act and California Environmental Quality Act (CEQA), and more. This designation recognizes Santa Barbara’s commitment to enacting innovative, housing-friendly policies - such as streamlining multi-family development and promoting measures that reduce barriers and lower housing costs.

Key programs include: 

  • Average Unit-Size Density (AUD) Program – Encourages production of smaller rental units in areas close to transit and commercial centers.
  • Adaptive Reuse Projects – Facilitates the conversion of existing nonresidential buildings into housing, promoting efficient land use and revitalization of underutilized spaces.

As a result of the hard work that staff put into receiving the Prohousing Designation, the City became eligible to apply for Prohousing Incentive Program (PIP) funds, which are state investments from the Building Homes and Jobs Trust Fund, to create and conserve affordable housing. On April 7, 2026, the City Council approved a $1,000,000 grant application for PIP funding, and on August 20, 2026, received notice from the State that this generous grant award could be shared with the public. While the specific uses of the grant are still being finalized, this significant investment from the State will expand the City’s ability to support Affordable Housing projects. The designation also provides priority processing and additional scoring points when the City applies for various infrastructure and related funding programs.

To learn more, visit Prohousing Designation Program (SantaBarbaraCA.gov/Prohousing).

About the Prohousing Designation and Prohousing Incentive Program (PIP):
The Prohousing Designation Program recognizes local governments that implement policies that accelerate housing production, promote favorable zoning and land use, reduce construction and development costs, and provide financial subsidies. PIP is funded through the Building Homes and Jobs Trust Fund and administered by HCD. It rewards jurisdictions that demonstrate proactive policies to accelerate affordable housing development.

For more information, visit California Department of Housing and Community Development's Prohousing.