Santa Barbara Council Reviewing Draft Ordinance to Limit Rent Increases

City Council Set to Review Final Draft

The Santa Barbara City Council will review the draft rent stabilization ordinance at Tuesday's meeting, marking a crucial step in the city's nearly year-long effort to establish a permanent rent cap program.

The Independent reported the draft ordinance is on schedule for the June 9 council meeting, which would begin a 30-day public review period before a final adoption vote by the end of July. If approved, the program would take effect January 1, 2027.

The proposed ordinance limits rent increases to one time within a 12-month period at 60% of the Consumer Price Index (CPI) with a maximum cap of 3%, whichever is lower. The city's official website confirms the meeting begins at 2 p.m. Tuesday, with the rent stabilization discussion starting at 5 p.m. at City Hall's Council Chambers.

Program Would Cost $2 Million Annually

Research from consulting firm RSG Solutions estimates the program will cost Santa Barbara $2 million annually to cover 13,000 units, according to Noozhawk. The costs would cover staffing, enforcement, developing a rental registry, petition fees, appeals process, outreach and data collection.

City officials will conduct a fee study to determine the exact cost per unit, after which the council will decide how fees are split between property owners and tenants. The Santa Barbara Independent reported early estimates predict an annual fee of $154 per unit to recover program costs.

The ordinance would cover rental units built before February 1, 1995, but exempts single-family homes, condos, townhomes, owner-occupied duplexes, mobile home parks, government-owned units and deed-restricted affordable housing.

Seven-Member Board and Rental Registry Planned

The program includes creation of a seven-member rent stabilization board appointed by the City Council. The board would have two rental tenants, two local landlords or property managers, and three members with no financial interest in rental housing. This board would be separate from the existing rental housing mediation board.

Landlords would be required to register each qualified unit by January 1, 2027, or within 30 days of forms being available. Registration must include unit address, number of bedrooms and bathrooms, landlord contact information, ownership date, current rent, last rent increase details, and tenant move-in date.

Property owners who don't register their units would be prohibited from collecting rent, evicting tenants, advertising units for rent, or petitioning for higher rents.

Ongoing Legal Challenge

While developing the permanent ordinance, the City Council established a temporary rent freeze through December 31, 2026. The freeze went into effect February 26 and applies to units built before 1995.

In response, the Santa Barbara Rental Property Association and four property owners filed a federal lawsuit in April challenging the rent freeze and eviction restrictions. The lawsuit, filed by attorney Barry Cappello of Cappello & Noël, alleges the ordinance violates constitutional property rights and was "rife with personal and political bias."

The association represents more than 1,000 property owners managing over 23,000 rental units in Santa Barbara, according to court filings.

What Comes Next

The City Council voted 4-3 in April to direct staff to draft the ordinance with the 60% CPI/3% maximum cap structure. Council members Wendy Santamaria, Kristen Sneddon, Meagan Harmon and Oscar Gutierrez supported the measure, while Mayor Randy Rowse and council members Eric Friedman and Mike Jordan opposed.

If the council approves the draft ordinance after the public review period, Santa Barbara would join cities like Alameda, Richmond and West Hollywood with rent stabilization programs. The rental registry would launch in late 2026 to generate startup funds for the full program beginning January 2027.

Public comments can be submitted in person during Tuesday's meeting or emailed to [email protected] before the meeting begins.