Santa Barbara is moving forward with a rent stabilization ordinance after a contentious City Council debate nearly stalled the proposal.
As currently outlined, the policy would limit annual rent increases for covered units to the lower of 60% of the Consumer Price Index or 3%.
Here's what to know
On Sept. 22, the Santa Barbara City Council moved the ordinance through its first reading and approved $500,000 in startup funding from the Measure I-supported housing and homelessness fund, according to the Santa Barbara Independent. The city is still targeting a Jan. 1, 2027, launch.
One of the biggest disagreements centered on whether the ordinance should carve out some deed-restricted affordable housing units.
"My support for rent stabilization has been clear over the years. My support is still strong. But this ordinance, specifically — for me to vote yes — must include those two exemptions," said Councilmember Meagan Harmon, per the Santa Barbara Independent.
Councilmember Wendy Santamaria took the opposite position on those exemptions, warning that tenants in affordable housing could be left without a clear route to address serious habitability issues, the outlet reported.
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During the hearing, she said of current systems for those complaints, "That isn't working, unfortunately."
The ordinance passed 4-3. In a separate 4-3 vote, the council also approved the Housing Authority-backed exemptions, with a different lineup of yes votes.
More background
The proposal reached this stage only after an extended planning process. Barbara Andersen, a senior assistant to the city administrator, said the city had spent years preparing and had already held at least 10 months of public hearings on the current version, the Santa Barbara Independent reported.
The process began with a work plan in December 2025. It then moved through stakeholder outreach in February and March, public meetings in April and May, a draft release in June, and additional council hearings in July.
Under the proposal, registration would start with covered units in April 2027, expand to all other rental units by October 2027, and move into enforcement in 2028.
Officials estimate the program would require seven staff members and cost between $2 million and $2.5 million, with the rental registry expected to cover up to 80% of those expenses.
What's being done?
Several major steps still remain before the ordinance is fully in place. The council is expected to take a final adoption vote on the measure and the newly added affordable housing exemptions, while also continuing discussions about eviction amendments.
The city must also appoint members to its rent stabilization board, complete a fee study, and hire a consultant to help launch the program.
"I want to see this pass," Councilmember Kristen Sneddon, a longtime supporter of rent stabilization, said during deliberations, per the Santa Barbara Independent.
Andersen also stressed the shortened timeline, saying, "We cannot emphasize enough the time sensitivity around council deliberations this afternoon if we want to meet your expectations of a Jan. 1 launch."
Where can I learn more?
Other California communities are wrestling with similar questions about renter protections and rising housing costs.
• Redwood City voters will decide a rent cap rollback and tenant protections in November.
• Sacramento capped annual rent hikes at 8.6% and attached penalties up to $25,000.
• In Los Angeles County, post-fire rent gouging protections expired as families feared 50% increases.
• In San Jose, residents pushed back after garbage and water rates rose sharply.
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