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Board approves county loan for San Simeon Oaks housing after debate over regional fee equity
Summary
The Board approved a county loan to FLT San Simeon Oaks LP for an affordable housing project in Eastern Galita Valley amid debate that north-county inclusionary fees have subsidized south‑coast projects; the motion passed 4–1 with the board directing staff to revisit regional equity in the inclusionary housing ordinance.
The Santa Barbara County Board of Supervisors voted 4–1 on June 9 to approve a county loan to FLT San Simeon Oaks LP to support construction of a multifamily affordable housing development in the unincorporated Eastern Galita Valley.
The item drew sustained discussion about the county’s inclusionary housing fee structure. One supervisor objected to using development-fee revenue collected largely in the north county to subsidize a south‑coast project, calling the arrangement “unfair” and saying the county should look for alternative funding rather than drawing down north-county coffers.
Director Armis explained the county’s inclusionary housing ordinance framework: developers may provide units or pay an in‑lieu fee, and the geographic pattern of development has meant more fee revenue has accumulated in north-county areas while pipeline projects and unit production have been greater on the south coast. Staff said they would return with proposed changes in the next ordinance review cycle to address regional equity if the board directed them to do so.
The board approved staff’s recommendation with direction to staff to examine regional equity in the inclusionary ordinance and consider mechanisms to reserve repaid loan proceeds for the home-market-area where they were collected.
Procedural details: The motion to approve staff recommendation with direction was moved by Chair Nelson and seconded; the motion passed 4–1 (one supervisor voted no). No public commenters spoke on the item during the administrative agenda public-comment check; the clerk recorded the roll call vote as 4–1.
Why it matters: The item funds new affordable units while exposing tensions about redistributing inclusionary fees across county subregions. Supervisors who opposed the loan emphasized preserving funds for projects in the market areas where they were generated, and the board’s direction requires staff to study allocation and potential repayment/reserve strategies.
Next steps: Staff will process loan documents for the project and return with ordinance amendments and recommendations for retaining or earmarking repaid funds consistent with the board’s direction.
Sources and vote: Motion to approve staff recommendation with direction moved by Chair Nelson, seconded by Supervisor Hartman; vote recorded 4 in favor, 1 opposed. The board also asked staff to return with proposed changes to the inclusionary housing ordinance.
