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Planning Commission backs higher in‑lieu fee ranges and flexibility in inclusionary housing study
Summary
After a lengthy presentation and public comment, the commission gave staff direction to forward a package of recommended changes to City Council: expand applicability, count rental inclusionary units as bonus density, increase proposed in‑lieu fee ranges (staff/consultant cited defensible maxima of about $91.41/sq ft for rental and $72.53/sq ft for ownership), and allow broader fee payment options. Commissioners asked staff to refine fee index choices and feasibility scenarios before council review.
The Santa Barbara City Planning Commission on April 16 reviewed a lengthy inclusionary housing and in‑lieu fee study and provided guidance directing staff to transmit a revised package of recommendations to City Council.
Staff planner Dana Folk and consultant Aaron Barker of BAE Urban Economics presented an evaluation of the city’s inclusionary program and financial feasibility testing. Folk reviewed current rules: ownership projects generally have a 15% inclusionary requirement (targeting middle‑income units) while the city’s rental requirement applies predominantly to projects using the city’s AUD program and sets a 10% moderate‑income requirement. Folk told the commission the ownership rules have produced 45 deed‑restricted units and collected about $933,000 in in‑lieu fees; rental rules produced 13 deed‑restricted units and nearly $400,000 in fees since enactment.
Barker summarized the firm’s prototype pro forma work and said many baseline prototypes are not financially feasible under current market conditions…
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