The city’s Finance Committee supports the development as well as a $5 million loan to help fund it
by Joshua Molina, Noozhawk South County Editor
May 21, 2024 | 9:02 pm
That was smooth like honey.
While some housing projects in Santa Barbara are controversial, the proposal before the Finance Committee on Tuesday was not.
The committee enthusiastically supported a 48-unit new housing development that would serve families and children with developmental or physical disabilities.
“I love this project,” committee member Meagan Harmon said. “I so value that these are larger units and specifically targeting families and individuals with special needs.”
The Finance Committee, made up of three members of the City Council, recommended approval to the full City Council.
If all goes as planned, the city intends to loan the Housing Authority of the City of Santa Barbara $5 million to help fund the project at 220 N. La Cumbre Road. The loan to the Housing Authority would be for 30 years, at 3% interest.
The total cost to build the project is estimated at $53 million. The development would be funded primarily through the federal Low-Income Housing Tax Credit program that subsidizes the acquisition, construction and rehabilitation of affordable rental housing for low- and moderate-income tenants.
The federal program was approved in 1986. About $31.3 million would come from the Tax Credit Program. The Housing Authority is also seeking a $15.6 million loan. The rest would come from Housing Authority funding from the $5 million loan from the city. The Housing Authority has already spent $5.5 million from its reserves to purchase the property.
The Housing Authority plans to demolish the current building, which sits on a 1.6-acre parcel and is occupied by four, single-story medical and dental offices.
The new development would consist of one-, two- and three-story units, and “communal spaces will be designed to foster a sense of community among residents.”
The Housing Authority would manage the property and would be available for families with children and people with developmental or physical disabilities who earn 60% or lower of the area median income.
The current area median income for the city of Santa Barbara is about $98,000, according to the U.S. Census.
The development would accept Section 8 vouchers.
The only issue that arose during the meeting was the cost of construction for the project. The total cost of construction for the project per unit is about $1.1 million, but there’s not a lot anyone can do regarding the cost.
“The cost of construction has really gone up, as well as materials cost,” said Laura Dubbels, Housing and Human Services manager.
Rob Fredericks, executive director of the Housing Authority, added: “I know the over $1 million cost per unit is very eye-watering, but that’s the pricing we are seeing for tax-credit developments.”
Fredericks also explained that the larger units require more bathrooms than a studio, “and that adds to the cost.”
Committee member Eric Friedman said he supports the project.
“We have to have a variety of units and not just studios and microunits in town,” Friedman said. “Especially in this neighborhood, where there’s a couple of elementary schools, so a lot of those individuals will have families that are able to attend those schools.”
