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SBCAG approves REAP actions: terminates Housing Trust Fund 3D home project, reallocates unspent funds to Santa Maria
Summary
SBCAG voted to terminate the Housing Trust Fund's REAP 3D‑printed home agreement after cost overruns and technical vendor failures, and to reallocate the unspent $245,576.17 to the City of Santa Maria's downtown revitalization project; the board requested additional accounting and confirmation from HCD about repayment/clawback risk.
The SBCAG board on Nov. 20 approved staff recommendations on Regional Early Action Planning (REAP 2) grants that included terminating an agreement with the Housing Trust Fund of Santa Barbara County for a 3D‑printed affordable housing unit and reallocating the unspent grant funds to the City of Santa Maria.
Staff reported the Housing Trust Fund had been awarded $372,414 but incurred $126,837.83 in allowable expenses, leaving an unspent balance of $245,576.17. Mike Becker told the board that HCD staff advised SBCAG it could allocate the unspent funds to another REAP 2 award so long as the receiving project could meet program deadlines; TTAC recommended the City of Santa Maria because it can scale work and meet fiscal deadlines.
John Peterson, CEO of the Housing Trust Fund, explained why the 3D‑printed home could not proceed: seismic code requirements required design changes, and the contracted printing firm experienced an irreparable printer failure and would not have new equipment until 2027. He said HTF completed preconstruction work and will produce a white paper documenting lessons learned.
Vice Chair Bob Nelson and others pressed for accountability. Nelson asked whether expended funds would need to be repaid and requested documentation from HCD confirming no clawback. Staff said the REAP agreement did not include an automatic repayment clause and that HCD indicated reallocation was permitted, but staff recommended follow‑up and an accounting of the expenditures already incurred. The board directed staff to investigate potential contract breach, provide an accounting of HTF expenditures, and ensure deliverables were received for funds spent.
The board then approved actions 1–5 on REAP 2 by roll‑call vote (motion by Director Silva, seconded by Director Brown). Staff noted a corrected total award figure for the Santa Maria action as $2,598,508.17. The motion included direction to follow up on the HTF accounting and to report back if any additional action was needed.
