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City staff preview 'Better Buildings' pilot to speed downtown housing and link projects to climate goals
Summary
City staff presented a proposed five-year "Better Buildings" pilot for the Central Business District that would let developers earn incentives by providing measurable community benefits — a voluntary, points-based alternative to the state density bonus aimed at speeding infill housing while meeting ecological and mobility goals.
City of Santa Barbara planning and sustainability staff on July 20 presented a proposed five-year "Better Buildings" pilot intended to accelerate housing development in the Central Business District while advancing local climate and mobility objectives.
"The premise is...rewarding outcomes, not prescribing the solutions," said Aleylia Parenteau, the city's sustainability and resilience director, describing a points-based system in which developers would earn incentives in exchange for community benefits such as family housing, low-carbon materials and mobility improvements. Parenteau said the pilot is meant to be voluntary and an alternative pathway that preserves local review while offering more predictable entitlement steps.
Lisonbee DeBuska, the city’s community development director, framed the pilot as a test of a "theory of change": whether adding flexibility to the permitting process can increase downtown housing supply and reduce vehicle trips by promoting infill near transit. "We are very behind on our housing development in the city," DeBuska said, noting that between 2020 and 2025 the city approved about 248 units — roughly 41 units per year — "well below our state targets."
City staff said the pilot would be limited to the Central Business District and apply to residential and mixed-use projects. Under the concept presented, projects would earn points for verifiable benefits; more substantial concessions (for example, unlimited density) would require a larger number of points. Staff emphasized the program would not supplant the state density bonus law but would offer a different pathway that retains local discretion in design review.
Several board members questioned whether the point matrix could introduce subjectivity or an additional layer of regulation. "It seems like this is another layer of regulations or maze," Board Member Sicks said, urging that the program not tie the board's hands on matters of design quality. Parenteau and DeBuska said the team plans iterative refinement, including sharing the matrix with review bodies; next steps include presentations to the Historic Landmarks Commission and the Sustainability Council Committee and a joint council–planning commission meeting on Aug. 17.
Staff also flagged statutory constraints that would remain in place. "This program wouldn't change" the Housing Accountability Act or the city's charter limits on maximum height, DeBuska said; staff noted the program could adjust how certain elements are counted for height but would keep the 60-foot ceiling set by charter.
Why it matters: staff said downtown reinvestment and more housing are needed to sustain State Street's commercial uses and to help the city meet its carbon neutrality goals by reducing vehicle trips. The pilot aims to make predictable trade-offs: developers receive regulatory incentives in exchange for specific public benefits.
What's next: staff said they will finalize the points and incentive menu and return to advisory bodies and elected officials for direction before seeking an ordinance to implement the pilot.
