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Affordable units in new housing (inclusionary) in Santa Barbara

Santa Barbara's own rules on affordable units in new housing (inclusionary), with the code text for every value.

Each rule below links to the section of the Santa Barbara Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Santa Barbara's code says

Santa Barbara code What Santa Barbara's code adds
Exemptions
  • Extra owner-occupied density bonus units are not counted when finding required Inclusionary Units.
    Applies: Applies to units authorized and approved as a density bonus.
    § 30.160.030 · code text
    Any additional owner-occupied units authorized and approved as a density bonus under the State Density Bonus law or the City's Affordable Housing Policies and Procedures will not be counted in determining the required number of Inclusionary Units.
Fee instead of units
  • The fee is 5 percent of the standard in-lieu fee times total units, instead of one owner-occupied Middle Income unit.
    Applies: At the applicant's election, for developments of 2 to 9 units; 2 to 4 new units (not condo conversions) pay on units above one.
    § 30.160.030 · code text
    pay to the City an in-lieu fee equal to five percent of the in-lieu fee specified by Subsection 30.160.070.B, Calculation of In-Lieu Fee, multiplied by the total number of residential units of the Residential Development
  • The fee equals 15% of the units that might eventually be built on the lots, or an applicant-proposed alternative.
    Applies: Applies to residential lot subdivisions allowing eventual development of 10 or more units.
    § 30.160.030 · code text
    the Applicant shall pay an in-lieu fee corresponding to 15% of the number of Residential Units that might eventually be built on the lots
  • The fee is 5 percent of the standard in-lieu fee, multiplied by the number of units above one.
    Applies: Applies to residential developments of 2 to 4 units that are not condominium conversions.
    § 30.160.030 · code text
    the required in-lieu fee shall equal five percent of the in-lieu fee specified by Subsection 30.160.070.B, Calculation of In-Lieu Fee, multiplied by the number of units in the Residential Development which exceed one residential unit
  • The fee covers the gap between producing a two-bedroom condo and the price a Low-Income Household can afford.
    Applies: Older zoning title (a newer inclusionary chapter also exists): applies to each required Inclusionary Unit not built on site.
    § 28.43.070 · code text
    The in-lieu fee for each required Inclusionary Unit that is not constructed on-site will be calculated as of the date of Planning Commission final approval in a manner sufficient to make up the monetary difference between the following:
  • The in-lieu fee is reduced by 15%.
    Applies: Older zoning title (a newer chapter also exists): applies when average market-rate unit size is between 1,400 and 1,699 square feet.
    § 28.43.070 · code text
    If the average Unit Size of the Market-Rate Units is between 1,400 and 1,699 square feet, the in-lieu fee shall be reduced by 15%.
  • The in-lieu fee is reduced by 20%.
    Applies: Older zoning title (a newer chapter also exists): applies when average market-rate unit size is between 1,100 and 1,399 square feet.
    § 28.43.070 · code text
    If the average Unit Size of the Market-Rate Units is between 1,100 and 1,399 square feet, the in-lieu fee shall be reduced by 20%.
  • The in-lieu fee is reduced by 25%.
    Applies: Older zoning title (a newer chapter also exists): applies when average market-rate unit size is between 800 and 1,099 square feet.
    § 28.43.070 · code text
    If the average Unit Size of the Market-Rate Units is between 800 and 1,099 square feet, the in-lieu fee shall be reduced by 25%.
  • The in-lieu fee is reduced by 30%.
    Applies: Older zoning title (a newer chapter also exists): applies when average market-rate unit size is below 800 square feet.
    § 28.43.070 · code text
    If the average Unit Size of the Market-Rate Units is below 800 square feet, the in-lieu fee shall be reduced by 30%.
Projects it applies to
  • The rule applies to projects of 10 or more units.
    § 30.160.030 · code text
    For all Residential Developments of 10 or more residential units, at least 15% of the total units must be constructed and offered for sale as Inclusionary Units
  • Developments must provide at least one owner-occupied Middle Income unit or pay an in-lieu fee.
    Applies: Applies to developments of more than 1 and fewer than 10 units.
    § 30.160.030 · code text
    For all Residential Developments of less than 10 units and more than one unit, the Applicant shall, at the Applicant's election, either provide at least one unit as an owner-occupied Middle Income restricted Unit, or pay to the City an in-lieu fee
Share of affordable units
  • At least 15% of total units must be built and offered for sale to Middle Income households.
    Applies: Applies to developments of 10 or more units; single-home lot subdivisions use Upper-Middle Income households.
    § 30.160.030 · code text
    For all Residential Developments of 10 or more residential units, at least 15% of the total units must be constructed and offered for sale as Inclusionary Units restricted for owner-occupancy by Middle Income Households

Who this affects

HomeownersContractorsDesigners

Frequently asked questions

Does Santa Barbara require affordable units in new housing?

Santa Barbara's code: Extra owner-occupied density bonus units are not counted when finding required Inclusionary Units. (Applies to units authorized and approved as a density bonus.) (§ 30.160.030); The fee is 5 percent of the standard in-lieu fee times total units, instead of one owner-occupied Middle Income unit. (At the applicant's election, for developments of 2 to 9 units; 2 to 4 new units (not condo conversions) pay on units above one.) (§ 30.160.030).

General information, not legal advice.

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