Rules for Me, but Not for Thee

A publicly circulated letter to the Santa Barbara Independent is drawing fresh attention to an uneven enforcement mechanism buried inside the city's 36-page draft Rent Stabilization Ordinance — a document that, if adopted on schedule this summer, would reshape the housing landscape for an estimated 13,000 to 15,000 rental units across Santa Barbara.

What the Draft Ordinance Actually Says

The criticism centers on the rent registry fee structure and how the city proposes to collect it from landlords and tenants alike. Under draft section 26.90.110(C), any unpaid registry fee or penalty "shall be deemed a debt to the City," and section 26.90.120(B) authorizes the City Attorney to "seek recovery of costs, expenses, and attorney's fees as allowed by law" — enforcement teeth directed squarely at landlords who fail to comply.

But section 26.90.100(D) of the same draft introduces a notable wrinkle on the tenant side. While the proposal allows landlords to pass up to 50 percent of registry costs through to tenants, that fee-pass-through must be separately itemized and cannot be counted as rent for purposes of calculating any rent increase. More significantly, if a tenant leaves without paying the pass-through amount, the landlord must absorb the unpaid balance — it cannot be pursued after the tenancy ends, and non-payment cannot trigger an unlawful detainer action against the tenant.

Santa Barbara resident David Sullins, writing in the Independent, argues the asymmetry is neither accidental nor minor. He contends that the inability to collect unpaid pass-through fees — combined with the city's robust enforcement powers over property owners — reveals the ordinance's true intent and raises constitutional questions about whether the regulations impede an owner's right to a fair return on investment.

The Bigger Picture: $2 Million a Year and 13,000+ Units

The registry fee dispute is one piece of a far larger policy fight that has consumed Santa Barbara City Hall for more than a year. The Santa Barbara City Council voted 4-3 in April to pursue limits on rent increases and form a rental registry as part of the proposed rent stabilization ordinance, with councilmembers Kristen Sneddon and Meagan Harmon among those in the majority and councilmember Mike Jordan among those who abstained or voted against.

Early estimates project the program could cost roughly $2 million a year to operate, with an annual fee of approximately $154 per unit to cover staffing, enforcement, the rental registry platform, the petition process, outreach, and data collection. Registration fees collected from covered units would fund the program itself.

The rental registry is envisioned as the first-of-its-kind database for the city, collecting information on covered units' addresses, bedroom and bathroom counts, landlord contact and ownership data, and rental rates to track compliance. Non-compliant landlords would be prohibited from collecting rent or listing their units — a significant sanction. City staff still needs to conduct a formal fee study before the council determines the final split between owners and tenants, according to a staff report cited by Noozhawk.

A Contentious Road to This Draft

The current draft is the product of a months-long process that began in earnest in late 2025. On January 27, 2026, the City Council adopted Ordinance No. 2026-6206, temporarily freezing rent increases on certain residential rental units, which took effect February 26, 2026. That moratorium automatically expires on December 31, 2026, or on the operative date of a permanent rent stabilization program, whichever comes first.

Property owners were not silent. The Santa Barbara Rental Property Association and four individual property owners filed a federal lawsuit on April 3, 2026, challenging the temporary moratorium and seeking an injunction to stop enforcement of eviction restrictions. The suit, filed by Santa Barbara attorney Barry Cappello of Cappello & Noël, argues the council "failed to conduct adequate due diligence" before acting. That litigation is ongoing.

The 36-page draft ordinance was unveiled at a City Council meeting in early June, with deliberations running past 10 p.m. before the council's four-vote majority pushed the plan forward. The council then opened a 30-day public comment period. If adopted, the ordinance would cap annual rent increases at 60 percent of the Consumer Price Index or 3 percent — whichever is lower — and would apply to residential units built before February 1, 1995. Exempted units include single-family homes, condominiums and townhomes, owner-occupied duplexes, mobile home parks, government-owned units, and deed-restricted affordable housing.

What Comes Next — and Who Is Affected

The council agreed to a formal introduction of the ordinance for adoption on July 28, with implementation set for January 1, 2027. If approved, the city would stand up a rental registry in late 2026 to begin collecting startup funds before the full program launches.

For Santa Barbara renters — particularly the tens of thousands living in older apartment buildings that have seen steep increases in recent years — supporters say the ordinance would provide meaningful stability. Housing advocates from groups including the Santa Barbara Tenants Union and CAUSE (Central Coast Alliance United for a Sustainable Economy) have urged the council not to delay, arguing the pending federal lawsuit by property owners only "heightened the urgency" for a permanent program.

For landlords and property managers, the fee pass-through provisions flagged in Sullins' letter represent a concrete financial exposure: if a tenant departs owing a portion of the registry fee, that cost lands entirely on the owner, with no legal mechanism to recoup it. Whether that arrangement survives legal scrutiny — or whether the council will modify it before July 28 — remains an open question as the public comment period winds down.

Residents who wish to weigh in on the draft ordinance can submit written comments to [email protected] or attend City Council meetings at City Hall, 735 Anacapa Street. The City of Santa Barbara's official rent stabilization page at santabarbaraca.gov includes links to the full draft ordinance and meeting materials.

A Fight Far From Over

The fee-asymmetry debate spotlighted by Sullins' letter is unlikely to be the last controversy before July 28. As the Independent has reported, the ordinance has drawn polarizing comments at every public hearing, with property owners opposing any form of rent regulation and housing advocates concerned that the latest draft is missing stronger enforcement provisions. Brian Johnson, CEO of the Santa Barbara Association of Realtors, has said the council's policy choices could "shape Santa Barbara's housing market" for the next few decades.

With the federal lawsuit still pending, a council vote scheduled for late July, and a program launch targeted for New Year's Day 2027, the argument over who bears which costs — and who gets to enforce what — is just getting started.