Santa Barbara’s council advanced a rent-stabilization ordinance in a 4-3 first-reading vote on Sept. 22. It would cap annual increases for covered units at the lower of 60% of the Consumer Price Index or 3%; the target launch is Jan. 1, 2027.
Affordable-housing exemptions were a point of dispute. In a separate 4-3 vote, the council approved Housing Authority-backed exemptions for some deed-restricted units, with a different lineup of yes votes. Councilmember Meagan Harmon said her support depended on including two exemptions; Wendy Santamaria warned the carve-outs could leave affordable-housing tenants without a clear way to address serious habitability problems.
The council is expected to take a final adoption vote on the ordinance and exemptions and continue discussions on eviction amendments. It also approved $500,000 in startup funding from the Measure I-supported housing and homelessness fund. Officials estimate the program will need seven staff members and cost $2 million to $2.5 million, with the rental registry expected to cover up to 80%. Registration is planned to start for covered units in April 2027, expand to all other rental units by October, and enter enforcement in 2028.
