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Ojai council extends Habitat tiny‑home MOU, directs legal review and short-term check‑in
Summary
The council extended the MOU with Habitat for Humanity for the 408–410 N. Montgomery tiny-home project by 180 days with a staff/legal check-in at 150 days, and directed legal counsel to research vacancy/alternative housing taxes and a city building fund; debate focused on HOME grant timing, NEPA review and the need for a ground lease.
The Ojai City Council on Dec. 2 voted to extend the memorandum of understanding with Habitat for Humanity for a proposed tiny-home development at 408–410 North Montgomery Street, adding 180 days to the agreement while directing staff and legal counsel to meet a 150-day check-in and return to council with recommendations to accelerate the project.
Community Development Director Lucas Seibert told council the project is in the design-review phase and not yet complete; the applicant requested a date that would align with HOME grant drawdown and other milestones, including a final expenditure deadline in 2028. Seibert said the applicant’s timeline shows breaking ground in April 2026 and completion of home sales by May 2027 under their grant application schedule.
Katie Norris of Habitat for Humanity described the grant timetable, the need for NEPA review, and said that entering a ground lease would be the single most important document needed to move contracting with HUD forward: “In order to enter into a contract with HUD, some things need to happen before 05/15/2026, one of which is a building permit,” she said, adding that Habitat would accept a more permanent ground lease if needed and that if federal funds don’t arrive the organization would make the project happen by shifting other sources.
Councilmembers raised concerns about a three-year extension. Some said a shorter extension or a prompt scheduling of a ground lease would better match construction initiation. Councilmember Whitman proposed, and the council adopted, a motion to extend the MOU by 180 days with direction to legal counsel to return with recommendations within 150 days on how to facilitate and accelerate the project; the motion also asked the city attorney to research options for a vacancy/second-home tax or alternative housing/resident tax and the creation of a building fund.
Public commenters, including neighborhood representatives and local advocacy groups, expressed support for affordable homeownership while urging that the city prioritize the lowest-income tiers and explore funding options such as a housing trust or direct loans.
The action preserves the city’s ability to work with Habitat as federal grant reviews continue and creates a near-term accountability point for staff and legal counsel to report back with options to secure funding, ground-lease terms and next steps.
