New Housing Development Project at La Cumbre Plaza Macy's Site

The City of Santa Barbara received a preliminary application for a new development project at the Macy’s site within La Cumbre Plaza (3805 State Street). The proposed project, named "The Neighborhood at State & Hope" is an important development in the ongoing efforts to address the city’s housing needs while aligning with the 2023-2031 Housing Element and ensuring sustainable and strategic growth.

This mixed-use development project, located on an 8.7-acre site, proposes the construction of 642 rental housing units including studios, one-, two-, and a few three-bedroom units. Notably, 54 of these homes will be dedicated to very low- and moderate-income households, enhancing the city's affordable housing portfolio and providing diverse living options for residents at various stages of life.

"The Neighborhood at State & Hope" proposal allocates 5% of its housing units to very low-income households, entitling it to certain waivers under the State Density Bonus Law. In compliance with this law, the project has requested a waiver to exceed the City Charter’s 60-foot height limit by 16.5 feet to accommodate the increased density allowed under State Density Bonus Law.

While the City of Santa Barbara, as a charter city, typically enacts land use laws, state legislative mandates can override local laws in specific cases, especially concerning affordable housing. State Density Bonus Law requires cities to waive development standards, including height limits, to accommodate the density entitled under the law, unless specific conditions are met.

The project’s applicant team has invited all interested parties to a Community Open House on Wednesday, January 17th, from 5-7 p.m. to discuss the project elements. This gathering is open to the public and will be located in La Cumbre Plaza, at the Grace Fisher Foundation Inclusive Arts Clubhouse (across from Williams-Sonoma). View the Community Open House Flyer for more details.

For additional project information visit the City’s La Cumbre Plaza Redevelopment page and for questions please contact City Senior Planner, Megan Arciniega.