City: 2024 housing report shows ADUs dominate permits; city far behind RHNA targets

Dan Gullett, principal planner in Long Range Planning, presented the City of Santa Barbara’s 2024 General Plan Annual Progress Report (APR) on March 18 and asked the council to accept the report for submission to state agencies. The APR summarizes 2024 progress toward General Plan and Housing Element goals and includes housing production and RHNA (Regional Housing Needs Allocation) reporting.

Gullett said the city’s 6‑cycle RHNA allocation requires 8,001 new units. "Our progress toward this 6th cycle RHNA: we have 592 total units to date, 204 in 2024," he said, and noted that roughly 1,500 units were included across 163 applications submitted in 2024, driven in part by large, one‑off projects. He added that 110 of the 204 units permitted in 2024 were accessory dwelling units (ADUs), and that ADUs represented 89% of applications in 2024. Gullett emphasized that about 5,000 of the 8,001 RHNA units are for very‑low, low and moderate income households and typically require subsidy.

Gullett reviewed recent and ongoing policy work intended to increase housing production and affordable units: objective design and development standards adopted in January, an adaptive‑reuse ordinance under development (targeted for late summer), a short‑term rental ordinance that staff plans to pursue with consultant support, creek buffer revisions, and an update to the inclusionary housing program and in‑lieu fee study.

A public commenter, Steve Johnson, urged staff to brief the Planning Commission on AB 1287 (state double‑density provisions) and suggested the state law could increase unit counts under some projects; Johnson said, "I do think there's light at the end of the tunnel as a result of AB 12 87 state bonus density, which will allow basically double density to any residential property in the city." Planning staff responded that state law and Department of Housing and Community Development (HCD) interpretation affect how local requirements apply and that staff raises concerns through the city’s legislative platform.

Council members focused on affordable housing shortfalls, especially for very‑low and low income units. Council Member Sneddon said the APR underscores that "most permitted units fall within the above‑market income category with limited approvals in low and very low income" and urged the city to prioritize deed‑restricted affordable housing and a permanent funding source. Council Member Harmon and others asked about timelines for the adaptive reuse ordinance (return to Planning Commission in May; council late summer) and the short‑term rental ordinance (staff expects to pursue consultant help and aim for the Coastal Commission within about a year).

Staff clarified several technical issues raised by council: ADUs are counted as above‑moderate in the current reporting; large projects such as the Macy’s redevelopment and the Sears/Comer project account for a substantial share of application unit counts but do not by themselves close the RHNA gap; and HOME/CDBG federal funds are distinct from local inclusionary/in‑lieu fees and the housing trust fund.

Clarifying details: RHNA 6‑cycle total = 8,001 units; reported progress to date 592 units; 204 units permitted in 2024 (110 ADUs); 1,500 units included in 163 permit applications filed in 2024; ADUs comprised 89% of applications; above‑moderate production outpaced lower‑income production (489 above‑moderate total, 150 in 2024 as noted in presentation). Staff timing: adaptive reuse to Planning Commission in May and to council late summer; short‑term rental ordinance expected to reach Coastal Commission in about a year; in‑lieu/inclusionary fee economic study (BAE consultant) administrative draft expected to staff in coming weeks.

Ending: Councilmembers from across the dais said the APR reinforces the need for a multipronged approach — preserving existing affordable units, pursuing local policy tools (adaptive reuse, FAR discussions, inclusionary/in‑lieu mechanisms) and seeking permanent funding — to meet local housing and workforce needs. The council received the APR; it will be submitted to state agencies as required.