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Santa Barbara Finance Committee approves $400,000 grant for Habitat for Humanity homes on East Cota Street
Summary
The Santa Barbara City Finance Committee voted unanimously to authorize a $400,000 Local Housing Trust Fund grant to Habitat for Humanity of Southern Santa Barbara County to rehabilitate a 100‑year‑old house and build a deed‑restricted ADU at 710 East Cota Street, creating two affordable ownership homes and advancing a five‑unit pilot project.
The Santa Barbara City Finance Committee on June 30 unanimously approved a staff recommendation to award $400,000 from the Local Housing Trust Fund to Habitat for Humanity of Southern Santa Barbara County for redevelopment at 710 East Cota Street.
City staff presented the proposal. "The recommendation today is to authorize the Deputy City Administrator to execute a local housing trust fund grant agreement for the amount of $400,000 to be awarded to Habitat for Humanity of Southern Santa Barbara County for the development of affordable housing at 710 East Cota Street in downtown Santa Barbara," said Carrie Payne, the Housing and Homeless Services Manager.
The project would rehabilitate a roughly 100‑year‑old structure into a two‑bedroom, one‑bath single‑family home sold with a deed restriction and construct a two‑bedroom, one‑bath accessory dwelling unit on the same parcel, creating two deed‑restricted affordable homeownership opportunities at 60–80% of area median income (AMI). Payne told the committee the Local Housing Trust Fund balance was "approximately $730,000" as of March 2026 and explained state match dollars must follow requirements by HCD.
Representing Habitat for Humanity, Susan Renehan thanked staff and described the broader development plan. "By putting new approaches into action, we are creating a total of five new affordable homeownership opportunities, of which uh you just heard about two, while piloting a model designed to be replicated on other similar parcels in our community," Renehan said. She added that the project leverages donated land, private philanthropy, volunteer labor and homeowner "sweat equity," and that each homeowner will contribute 250 hours of work.
Councilmember Santa Maria asked for clarification about the fund balance, noting that the $730,000 figure did not include any upcoming Fiscal Year 2027 allocation; staff confirmed that was correct. Councilmember Harmon and other committee members voiced support for the recommendation, emphasizing the role of deed restrictions in preserving long‑term affordability.
Member Santa Maria moved to accept the staff recommendation; member Harmon seconded. The committee recorded the motion as passed unanimously with no opposing votes or abstentions. The item will move to the full City Council later in the day for final action and the recommended budget amendment would increase appropriations in the Local Housing Trust Fund by $400,000 to fund the grant.
The committee adjourned after the vote.
