"Santa Barbara Affordable Housing - An Oxymoron?" This response is provided pursuant to the*

R1

That the Santa Barbara City Council develop and implement a plan for the creation of low and middle-income housing units. Response to Recommendation 1: Recommendation has been implemented. A_ brief summary of implementation actions taken is below. The City’s Housing Element identifies housing needs for very low, low, moderate, and above moderate income households, consistent with the City’s share of the Regional Housing Needs Allocation (RHNA) as determined by the Santa Barbara County Association of Governments. City Land Use and Housing Element policies prioritize housing, and specifically housing for extremely low, very low, low, moderate, and middle income households, over all other new development. Even with those policies in place, the City is not meeting the state’s current housing production targets through 2022. The preliminary target numbers for the City’s share of the Regional Housing Needs Allocation for the next housing cycle (2022 to 2030) are substantially higher, indicating that approximately four times the current annual housing production will be needed to meet the targets. The City’s Affordable Housing Policies and Procedures, Density Bonus Program, Inclusionary Housing requirements, decision-maker findings that offer additional incentives for affordable housing units, and the development incentives in the AUD Program for market-rate units all implement Housing Element policies that direct the creation of low and moderate-income housing units. Updates to those programs are underway and expected to be completed in 2021. Once completed, additional mandates and/or incentives for low and moderate income housing should be in place.

R2

That the Santa Barbara City Council obtain or create continuous reliable sources of funding to facilitate the development of low and middle-income housing units.

R3

That the Santa Barbara City Council identify and obtain publicly owned properties that would be appropriate for low and middle-income housing units.

R4

That the Santa Barbara City Council fully implement the State of California directives related to Accessory Dwelling Units. Recommendation will be implemented. Due to the significant changes in state law effective January 2020, the City temporarily paused allowing ADUs on properties in several high fire hazard areas to allow staff to review updated wildfire hazard data under preparation by the City's Fire Department. The updated wildfire hazard data will allow decision-makers to make an informed decision about public health and safety conditions with respect to ADUs, in compliance with state law. That information, along with amendments to the Zoning Ordinance for ADUs in compliance with state law, was presented to the Planning Commission on August 6, 2020. The Planning Commission will hold a second hearing on September 3, 2020 and forward a recommendation to City Council. The Zoning Ordinance amendments are tentatively scheduled for Ordinance Committee recommendation to City Council on September 29, 2020. The City Council hearing is tentatively scheduled for November 10, 2020.

R5

That the Santa Barbara City Council require inclusionary or low and middle-income housing units when approving housing projects with ten units or more.

R6

That the Santa Barbara City Council instruct the Community Development Department to bring to the City Council recommendations for adoption of an ordinance for form-based zoning.

R7

That the Santa Barbara City Council instruct the Community Development Department to revise the zoning ordinance to allow for cost effective alternative building types, such as modular housing, small homes, and 3-D printed housing.

R8

That the Santa Barbara City Council instruct the Community Development Department to bring to the City Council recommendations for adoption of an ordinance that amends the zoning code to allow for multi-use zoning in all parts of the City.

R9

That the Santa Barbara City Council develop and implement a plan to lower costs for development of inclusionary or low or middle-income housing units through the use of subsidies, lower fees or incentives. Response to Recommendation 9: Recommendation will not be implemented immediately because it requires further analysis. This recommendation can be considered with the Housing Element update in 2022. The City does not currently have a reliable funding source to subsidize affordable housing projects. The City supports state legislation that provides for new mechanisms to fund affordable housing projects with developer subsidies. The City’s AUD Program and Density Bonus Program provide incentives for all types of residential development, including affordable housing projects. Any fee reductions would need to be considered by the City Council as part of budget deliberations. Should the Grand Jury have and questions regarding the City’s response or wish to follow up with the City, please contact me, City Administrator Paul Casey or City Attorney Ariel Calonne. Sincerely, Cathy Murillo Mayor Ce: City Councilmembers Paul Casey, City Administrator Ariel Calonne, City Attorney Rebecca Bjork, Interim Community Development Director Laura Dubbels, Housing and Human Services Manager Renee Brooke, AICP, City Planner Daniel Gullett, Principal Planner