LatestJuly 28Council straw-voted revisions to the draft; the updated ordinance is expected in August. See what changed

The path of the ordinance · status as of Jul 29, 2026
  1. Sep 29, 2025Santamaria–Sneddon memo proposes Chapter 26.90

    Councilmembers Santamaria and Sneddon formally request an ordinance adding Chapter 26.90 — including, for the first time on paper, an annual increase capped at "sixty percent (60%) of the percentage increase in the California Consumer Price Index." The memo (with the attached RDN rent survey) is on file in the project repository.

  2. Oct 2025Rent stabilization reaches a council agenda

    The first council discussion of a rent stabilization ordinance appears on an agenda, taking up the September 29 memo. This is the window from which the market's repricing of Santa Barbara apartments dates — see the cap-rate chart on The Squeeze.

  3. Dec 16, 2025Council policy-direction session

    Council gives staff direction on a rent stabilization program (Item 12) and votes 4–3 to bring back a rent-increase moratorium; this meeting date later becomes the base-rent date. Source

  4. Jan 13, 2026Urgency moratorium fails; regular moratorium introduced

    The urgency version fails 4–3 (five votes required); the moratorium and an Ellis Act just-cause ordinance are each introduced as regular ordinances, 4–3. Source

  5. Jan 27, 2026Temporary rent-increase moratorium adopted (Ord. 2026-6206)

    Adopted 4–3 on second reading alongside the Ellis Act ordinance (2026-6207); rents for covered units are frozen at December 16, 2025 levels. Source

  6. Feb 26, 2026Moratorium takes effect

    The freeze runs until the earlier of a permanent program's operative date or December 31, 2026; it is now the subject of litigation the City is funding a defense for.

  7. Apr 7, 2026Council selects the cap formula

    Final policy direction 4–3 (Noes: Friedman, Jordan, Mayor Rowse): rent increases limited to 60% of CPI or 3%, whichever is lower, once per 12 months, with no banking. Source

  8. May 19, 2026Program-cost estimate presented

    RSG, Inc. sizes administration at roughly $2M/year (~$154/unit across ~13,000 covered units) — the record's closest thing to a fiscal analysis; no vote taken, prior direction stands. Source

  9. Jun 10, 2026Public Review Draft of Chapter 26.90 published

    Following the June 9 council review of the draft ordinance, the full text of draft SBMC Chapter 26.90 is released for public review — a draft, not an adopted ordinance. Source

  10. Jul 10, 2026Public comment period concluded

    The public-review window that opened June 10 concluded July 10. Comments went to the City Clerk; staff now incorporates them ahead of the ordinance's introduction. Source

  11. Jul 28, 2026Council walks the amendment matrix (Item 23)

    Council receives 655 written public comments and gives final drafting direction by straw vote across a 127-item amendment matrix — no formal motions. Key directions: exemptions narrowed to state-law-required plus housing-authority/government units; the owner-occupied-duplex exemption struck; deed-restricted and Section 8 exemptions deferred for staff analysis; ALL rental units to be registered (phased, covered units first); the rent board limited to recommending regulations; the MNOI fair-return standard retained. The 60%-of-CPI/3% cap was restated as settled. Source

  12. Aug 2026Expected: revised ordinance returns for introductionup next

    Staff said they are hopeful the revised ordinance returns in August but committed to no date; adoption follows at a second reading roughly two weeks after introduction. The Just Cause/Ellis Act companion ordinance follows about a month behind, with everything to be in place before launch. A third-party fee study ($35,000–$50,000, 12-week timeline) is being procured in parallel. Source

  13. Jan 1, 2027Program operative (if adopted on schedule)

    Confirmed unchanged at the July 28 session: rent caps take effect, phased registration of all rental units begins (covered units first), the moratorium sunsets, and the first annual general adjustment — approximately 2.1%, from the April 2026 CPI — applies.

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The Ordinance

Santa Barbara does not yet have a permanent rent stabilization ordinance. What it has today is two things: a temporary rent-increase moratorium in force since February 26, 2026 (Ordinance No. 2026-6206), which freezes rents for covered units at their December 16, 2025 levels; and a Public Review Draft of the permanent ordinance — a new Chapter 26.90 of the Santa Barbara Municipal Code — published June 10, 2026, now being revised following the July 28 amendment session. The draft is exactly that: a draft. No first reading has occurred and nothing in Chapter 26.90 has been adopted. If the ordinance proceeds on the schedule staff described on July 28 — a revised draft returning for introduction sometime in August 2026 (staff committed to no date), adoption after a second reading — the permanent program becomes operative January 1, 2027, with a first annual rent adjustment of approximately 2.1%.

Status as of July 29, 2026.

The amendment direction is in. On July 28, 2026 (Item 23), the council received a summary of the 655 written public comments from the review period and walked a 127-item amendment matrix by straw vote — no formal motions. Staff framed the premise at the outset: the for-or-against question is closed, and the 60%-of-CPI / 3% cap was restated as settled. The council's direction: exemptions narrowed to those state law requires plus housing-authority/government-operated units ("Option B"); the owner-occupied-duplex exemption struck; deed-restricted-affordable and Section 8 exemptions deferred for staff analysis; all rental units to be registered (phased, covered units first — with staff's own warning that this may push owners of unpermitted units to end tenancies rather than register); the rent board limited to recommending regulations subject to council approval; and the MNOI fair-return standard retained with small language changes. The city attorney's office cautioned that several directions require constitutional vetting before the final draft.


Where things stand

The current effort dates to a September 29, 2025 council memorandum from Councilmembers Santamaria and Sneddon (with the RDN 2025 Rent Survey for the South Coast attached), followed by a city press release, "Preliminary Policy Discussions Begin on Rent Stabilization" (December 18, 2025).

On December 16, 2025, the council held its policy-direction session (Item 12, video; staff presentation on file, via docs.santabarbaraca.gov). Councilmembers gave staff feedback on the fundamental policy questions — coverage, the cap, pass-throughs, a board, a registry — targeting adoption by July 2026 and program launch in January 2027. The one formal action passed 4–3 (Noes: Friedman, Jordan, and Mayor Rowse): a direction to return in January with a rent-increase moratorium ordinance, including a rollback date. That meeting date — December 16, 2025 — later became the base-rent date for both the moratorium and the draft permanent ordinance.

On January 13, 2026 (Item 14, video), the council took three roll-call votes. The motion to adopt the moratorium as an emergency/urgency ordinance failed 4–3 — urgency requires five votes (Noes: Mayor Rowse, Friedman, Jordan). The motion to introduce the moratorium as a regular ordinance passed 4–3, and a companion just-cause/"Ellis Act" ordinance (adding SBMC §26.50.100) was introduced 4–3, with the same three dissents on all three votes.

On January 27, 2026 (pulled Consent Item 2, video), the council adopted both ordinances on second reading, 4–3 (Noes: Mayor Rowse and Councilmembers Friedman and Jordan): Ordinance No. 2026-6206, the Temporary Rent Increase Moratorium, and Ordinance No. 2026-6207, the just-cause/Ellis Act amendment. The moratorium took effect February 26, 2026. It froze base rents at the December 16, 2025 level and expires on the earlier of a permanent rent-stabilization program's operative date or December 31, 2026. The moratorium is now the subject of litigation against the City (see Open questions below).

On March 17, 2026 (Item 3, video), the council approved, 4–3 (Noes: Councilmembers Friedman and Jordan, and Mayor Rowse), a $65,105 agreement with consultant RSG, Inc. (Resolution No. 2026-019; Agreement No. 30007) to support development of the ordinance and program.

On April 7, 2026 (Item 14, video; staff report on file), the council selected the centerpiece of the program in a series of straw votes: a rent cap of 60% of CPI or 3%, whichever is lower, one increase per 12 months — passed 4–3 (No: Friedman, Jordan, Rowse). The same 4–3 alignment carried no rent banking, exemptions only as mandated by state law, a comprehensive petition framework, an independent hearing officer with appeal to a board, a comprehensive rental registry, and related directions. Staff was directed to return with a working draft before a 30–45 day public comment period.

On May 19, 2026 (Item 10, video; staff report, "Additional Research on Rent Stabilization," on file), staff presented supplemental research, including RSG's preliminary program-cost estimate: roughly $2 million per year to administer — about $154 per unit across roughly 13,000 covered units. No vote was taken; the April 7 direction stood. Staff also corrected the record that 60% of CPI is not the majority approach among comparable programs.

On June 9, 2026 (Item 14, video; staff report, "Review of Draft Ordinance," on file), the council reviewed the draft of Chapter 26.90 and opened the 30-day public comment period running June 10 through July 10, 2026. No vote was taken on the ordinance itself; the item's only formal vote — to release the related Just Cause/Ellis Act amendments for public comment alongside the rent stabilization ordinance — passed 4–3 (Friedman and Jordan abstaining; Rowse dissenting). The Public Review Draft of SBMC Chapter 26.90 was published June 10, 2026.

On July 28, 2026 (Item 23, video), the council closed out the comment period: staff summarized the 655 written comments received (expressly not tallied for or against) and the council gave final drafting direction by straw vote across a 127-item amendment matrix — no roll-call motions were taken. Beyond the exemption, registry, and rent-board directions summarized above, staff disclosed that the program's fee structure will be set later by separate resolution, with a third-party fee study ($35,000–$50,000, 12-week timeline) only now being procured; the Just Cause/Ellis Act companion ordinance will follow roughly a month behind the revised rent ordinance; and items touching pass-through limits and owner classifications were referred for constitutional research.

That is where the process sits today: comment period closed, amendment direction given, and staff drafting the revised ordinance — "hopeful" it returns in August 2026, with no committed date. Introduction (first reading), a second-reading adoption roughly two weeks later, and the companion ordinance all still stand between here and the unchanged January 1, 2027 operative date.


What the draft ordinance says, section by section

Everything below summarizes the June 10, 2026 Public Review Draft of SBMC Chapter 26.90 (City of Santa Barbara; full text on file in the project repository). It is subject to change before introduction and adoption. Section numbers are the draft's own.

§ 26.90.010 — Application (coverage and exemptions)

The chapter applies to "all residential rental units in the City except" nine listed categories. The central cut-off is age: units with a certificate of occupancy issued — or final inspection on the building permit completed — "on or after February 1, 1995" are exempt, mirroring the Costa-Hawkins new-construction line. Single-family homes and condominiums ("alienable separate from title") are exempt, unless the owner is "a real estate investment trust… a corporation… [or] a limited liability company in which at least one member is a corporation" — in which case the unit is covered. Other exemptions: owner-occupied duplexes (where neither unit is an ADU/JADU), hotel stays of 30 days or fewer (with anti-churning rules), hospitals/dormitories/treatment facilities, deed-restricted affordable units run by public agencies or non-profits, government-owned units exempted by state or federal law, mobilehome parks (Chapter 26.08), and permitted short-term vacation rentals. Subsection B requires landlords claiming the single-family/condo exemption to give tenants a prescribed written notice — which, in the draft, cites "Chapter 26.20" rather than 26.90, an apparent drafting error.

§ 26.90.020 — Definitions

The definitions carry most of the program's mechanics. Base rent is "the rent for a rental unit in effect on December 16, 2025" for tenancies that began on or before that date; for later tenancies, the initial rate set in accordance with state law. Base year for fair-return purposes "means the 2025 calendar year," resetting after each granted petition. CPI means "the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations" (DIR), switching to a metro CPI-U if one covering Santa Barbara County is ever published. The change in CPI is measured April-to-April and "shall be rounded to the nearest one-quarter of 1 percent." Note one drafting error here: the definition of fair return points to "the maintenance of net operating income (MNOI) standard outlined in Section 26.90.060" — but the MNOI standard actually appears in §26.90.050; §26.90.060 is the capital-improvements petition.

§ 26.90.030 — Stabilization of rents

The operative prohibition, effective January 1, 2027: a landlord may not charge rent for a covered unit exceeding the base rent plus lawful increases, and may not increase rent except as permitted by §§26.90.040–.060. Vacancy decontrol is preserved: on a lawful vacancy, the landlord "may set the initial rent for a new tenancy… subject only to limitations of California statute" (Costa-Hawkins). Subsection D addresses the transition: if a landlord lawfully raised rent "after December 16, 2025, but before January 1, 2027… the amount of the increase will be counted in full against rent increases authorized under this Chapter" until fully amortized. (In practice the moratorium barred increases for covered units from February 26, 2026, so this mainly reaches increases taken in the intervening window.) One increase per 12 months; a violation occurs on mere delivery of a prohibited increase notice; and every rent-increase or lease notice must disclose the chapter's existence.

§ 26.90.040 — Annual general adjustment (the cap formula)

The formula the council chose 4–3 on April 7: the annual general adjustment (AGA) "will be equal to 60% of annual percentage change in the Consumer Price Index or 3%, whichever is less. If the percentage change in the Consumer Price Index is negative, the annual general adjustment will be zero." The Program Administrator must post each year's AGA by October 1, effective January 1 of the following year. There is no banking: a landlord who does not take the AGA in its calendar year "may not defer implementation… to a later year or from year-to-year." Increases require at least 30 days' written notice, and no AGA may be applied to a unit out of compliance with state habitability codes or with outstanding ordered repairs. Applied to the April 2026 CPI reading (+3.60% April-over-April, per DIR), the formula yields a first AGA of approximately 2.1%, effective January 1, 2027.

§ 26.90.050 — Fair-return petition (MNOI)

The ordinance's escape valve. A landlord may petition the Program Administrator for an upward adjustment; the section's stated intent is that individual increases "be granted only when the landlord demonstrates that such adjustments are necessary to provide the landlord a fair return as required by the California and United States Constitutions." Two presumptions apply: that base-year (2025) net operating income provided a fair return, and that the base rent did when established. The core standard is maintenance of net operating income: the landlord "has the right to obtain a net operating income equal to the base year net operating income adjusted by the change in the Consumer Price Index from the base year to the current year." The presumptions are rebuttable — e.g., unusually high or low base-year expenses, or base-year income "disproportionately low due to exceptional circumstances."

NOI is gross rental income minus operating expenses, with detailed inclusion/exclusion lists (subsection H.1–H.4). Gross income counts rents at 100% occupancy plus other occupancy-related income, but excludes sub-metered utilities, cost-pass-through refuse/sewer charges, laundry, storage, and supplementary charges such as "pet rent." Operating expenses include reasonable operation/maintenance and management costs, landlord-paid utilities, base-year and current-year property-tax assessments, legally required license/registration fees, documented landlord-performed labor (capped at 5% of gross income absent a showing of greater services), certain attorneys' fees, and the rental registry fee "in an amount not to exceed 50%." They exclude capital improvements (routed to §26.90.060), mortgage or other debt service, penalties, land-lease expenses, political contributions and lobbying payments, depreciation, reimbursed expenses, "unreasonable increases in expenses since the base year," master-metered utilities, and expenses attributable to unreasonable maintenance delays. Amortized costs earn an interest allowance at the Freddie Mac 30-year PMMS rate plus 2%. If a decision takes more than 120 days, the landlord may recover the increases that a timely decision would have allowed. No upward adjustment is available for units out of habitability compliance.

Drafting errors to note soberly: the subsection lettering in §26.90.050 skips from F to H (there is no G), and within the operating-expense exclusions the letter "h" is used twice (reimbursed expenses; master-metered utilities), so the list runs …g, h, i, h, j. Together with the definition's miscite of §060 for the MNOI standard (see §020 above), these are exactly the kind of mechanical errors the public comment period exists to fix.

§ 26.90.060 — Capital-improvements petition

A separate petition lets a landlord pass through the cost of "reasonable capital improvements," but only from a closed list of eligible categories: new roof; foundation/seismic upgrades; new or substantially new plumbing, electrical, or HVAC systems; exterior painting or siding/stucco; wood-destroying-pest repairs; water-conservation and energy-efficiency installations (including solar, gas-to-electric conversion, and dual-glazed windows); accessibility upgrades; fire sprinkler/alarm systems; stairs and railings; EV charging stations; and lead-paint stabilization and abatement. Improvements ordered to correct code violations are ineligible, as are improvements completed before or during the 2025 base year; petitions must be filed within two years of completion. Costs are amortized over the improvement's useful life (with the same PMMS + 2% interest allowance), but the monthly pass-through "may not…exceed[] 10% of the current monthly rent or $100 whichever is less." Pass-throughs must be separately itemized and are excluded from future rent-adjustment math; insurance or other reimbursements must be deducted first. (Drafting note: the section contains two subsections labeled "B," and the eligible-improvements list skips item 11.)

§ 26.90.070 — Tenant petitions for downward adjustment

Tenants may petition for rent reductions on three grounds: (1) failure to maintain the unit in habitable condition — which the draft declares "constitutes an increase in Rent"; (2) a decrease in housing services, maintenance, or deterioration beyond ordinary wear and tear without a corresponding rent reduction — likewise treated as a rent increase; and (3) rent demanded or retained above the lawful level, in which case the landlord is ordered to refund the overcharge. If a landlord fails to refund within 30 days, the hearing officer or board may authorize the tenant to withhold a fraction of rent until made whole, and the petition order is a defense to any unlawful-detainer action based on that withholding. A tenant who vacates before full recovery must be paid the balance within two weeks. Petitions on the first two grounds require showing the landlord had notice and an opportunity to correct.

§ 26.90.080 — Petition procedures

One procedural track serves all three petition types. The Program Administrator must accept or reject a petition within 30 days on completeness only, notify all parties within 14 days of acceptance, and schedule a hearing before "an impartial hearing officer" within 60 days of acceptance, with at least 20 days' notice. Landlord petitioners must be current on program fees; repeat petitions on substantially the same grounds are barred for 180 days. Hearings are informal — "[f]ormal rules of evidence shall not apply," hearsay is admissible if credible and relevant — with the burden of proof on the petitioner by a preponderance of the evidence. The hearing officer must deliver a written decision within 30 days of the hearing. Either party may appeal to the Rent Stabilization Board within 30 days; decisions are not stayed pending appeal, but a reversal requires retroactive true-up payments. If no board exists, the hearing officer's decision is final, subject to judicial review within 30 days.

§ 26.90.090 — Rent Stabilization Board

A seven-member board appointed by the City Council: two tenants, two landlords or property managers, and three at-large members "with no financial interest in or ownership of rental housing in the City." All must be city residents; terms are four years (with some initial two-year terms to stagger), and "the City Council may remove a board member at any time for any reason." The board's duties are comparatively contained: meet at least annually, approve regulations promulgated by the Program Administrator, hear appeals from hearing-officer decisions, conduct studies, and perform duties the council assigns. Four members are a quorum, and granting or denying a petition requires four affirmative votes. Appeals are decided on the hearing record unless the board elects a de novo hearing; board decisions are subject to judicial review within 30 days. The Program Administrator serves as the board's secretary. (Whether regulatory authority should sit with the board or the council was a live dispute at the June 9 review — see The Council Record.)

§ 26.90.100 — Rental registry

Every landlord must register each covered unit with the Program Administrator — initial registration due "not later than January 1, 2027, or within 30 days after the Program Administrator has made the registration form available whichever is later" — and pay the registry fee per unit at filing. Registration discloses, per unit: address, bedrooms/bathrooms, landlord and manager contact information, date ownership was assumed, current rent, date and amount of the last increase, and the current tenants' move-in date; the Program Administrator "shall not require a landlord to provide identifying information of tenants." Exemption claims must be filed with supporting documentation under penalty of perjury. Ownership changes, management changes, and re-rentals after vacancy each trigger a 30-day update obligation. The enforcement teeth are broad: an unregistered landlord may not advertise, demand or accept rent, or evict — and no AGA, and no petition of any kind, is available for an unregistered unit.

§ 26.90.110 — Rental registry fee

The fee that funds the program. It is set (and adjustable "at any time") by City Council resolution, with a cost-recovery cap: "Revenue generated from fees shall not exceed the amount found by the City Council to be necessary to administer the provisions of this Chapter." The draft does not state a dollar amount — the closest sizing on the record is RSG's estimate of roughly $2 million per year, about $154 per unit across roughly 13,000 covered units (staff report, May 19, 2026). After timely payment, a landlord "may pass through up to 50% of the fee" to the tenant in 12 equal monthly installments, separately itemized and excluded from rent for cap purposes; no pass-through is allowed for tenants of deed-restricted affordable units, and unpaid pass-throughs cannot be collected from departing tenants. Late filers face charges and penalties set by council resolution; unpaid fees become a debt to the City.

§ 26.90.120 — Remedies and enforcement

Violations are punishable offenses under SBMC Chapter 1.28, and the City Attorney may enforce the chapter "through civil or criminal action," including injunctions, with recovery of costs and fees. The chapter also creates a private right of action: "Any aggrieved person may bring a civil action for damages for any violation," by a preponderance of the evidence, with no administrative exhaustion required before suing. A landlord's noncompliance with any requirement of the chapter "may be asserted as a complete affirmative defense" in an unlawful-detainer or other possession action, and attempts to recover possession in violation of the chapter expose the landlord to wrongful-eviction damages, with costs and attorneys' fees to the prevailing party. Remedies are expressly non-exclusive.

§ 26.90.130 — Hearing officers

The City Administrator may staff hearings four ways: hiring city-employee hearing officers; appointing a volunteer panel of at least five active or retired attorneys or retired judges (four-year terms); contracting with attorneys or retired judges ad hoc; or contracting with a dispute-resolution firm. Non-employee hearing officers are independent contractors who may provide no other services to the City, and — a structural independence guarantee — their "appointment, selection, employment, performance evaluation, compensation, and benefits… shall not be directly or indirectly conditioned upon the outcome of hearings."

The companion pieces: the moratorium and Chapter 26.50

Two measures already in force sit alongside the draft. Ordinance No. 2026-6206 — the Temporary Rent Increase Moratorium, adopted 4–3 on January 27, 2026, effective February 26, 2026 — freezes rents for covered units at the December 16, 2025 level and expires on the earlier of a permanent program's operative date or December 31, 2026. It is currently being defended in litigation (below). SBMC Chapter 26.50 — Just Cause for Residential Evictions — is the city's existing eviction ordinance (just-cause grounds, notice requirements, relocation-assistance payments for no-fault evictions). Ordinance No. 2026-6207, adopted the same night as the moratorium, added §26.50.100: an owner removing a unit from the rental market must remove all units on the parcel, and the property is barred from residential rental use for five years after removal (the draft's "completed within one year" sentence was deleted at introduction, with staff directed to return with the remaining Ellis Act provisions). On June 9, 2026, the council voted 4–3 to release further Just Cause/Ellis Act amendments for public comment alongside the draft rent stabilization ordinance.


What happens next

The expected path, per the council record:

  1. July 28, 2026 — amendment direction given (done). The council received the 655-comment summary and directed the final round of amendments by straw vote (Item 23). Staff and the city attorney's office are now drafting the revised ordinance, with several directed amendments undergoing constitutional review.
  2. August 2026 — revised ordinance returns for introduction (first reading), expected. Staff told the council on July 28 they are "hopeful" the revised ordinance returns in August but committed to no date. As of July 29, no hearing has been noticed; check the council agenda archive at docs.santabarbaraca.gov. The noticed first-reading hearing is the next opportunity for public input on the record.
  3. Adoption after a second reading. Santa Barbara ordinances are adopted at a second reading, typically about two weeks after introduction (the moratorium's own path: introduced January 13, adopted January 27, effective 30 days later). The Just Cause/Ellis Act companion ordinance follows roughly a month behind the rent ordinance, with both to be in place before launch.
  4. January 1, 2027 — program operative, if adopted on schedule (confirmed unchanged on July 28). §26.90.030's prohibitions take effect; the first annual general adjustment — approximately 2.1%, from the April 2026 CPI — becomes available; phased registration of all rental units begins (covered units first; January 1, 2027, or 30 days after forms are available, whichever is later); and the moratorium terminates by its own terms on the permanent program's operative date. The program's fee remains unset pending the third-party fee study now being procured.

If adoption slips past year-end, the moratorium still expires December 31, 2026 by its own sunset.

Public comment was submitted through the City Clerk's office during the June 10 – July 10 window; for the upcoming noticed items, see santabarbaraca.gov (Rent Stabilization Program page) and docs.santabarbaraca.gov for agendas and eComment.


The open questions

  • The moratorium is in litigation. The City is defending a lawsuit over the temporary rent-increase moratorium. On April 28, 2026 the council took up — and voted 5–2 to continue — a $400,000 litigation-defense appropriation (described in the record as a $300,000 increase over $100,000 already spent), which returned on the May 12, 2026 consent calendar. The outcome could affect the moratorium, the base-rent date, or the permanent ordinance's design.
  • There is no fiscal or economic-impact analysis of the policy. The record repeatedly notes its absence: the City Administrator conceded on December 16, 2025 that no cost/fiscal analysis existed; the Finance Director listed the program as an unbudgeted "unknown" at the April 21, 2026 budget overview. The RSG estimate (~$2M/year, ~$154/unit) sizes administration cost only — not market or economic impact. Mayor Rowse has repeatedly cited Santa Monica's ~$6M/year program as a cost benchmark.
  • Implementation is unsettled. From the council record: whether regulatory authority sits with the board or the council; the fee structure (the council directed staff to explore fee "options B and C"); the Housing Authority's request for Section 8 and deed-restricted exemptions (brought back for future discussion on a 6–1 vote, April 7); staff's June 9 commitment to red-line the exemptions and the health-and-safety capital-improvements definition; and the draft's mechanical errors catalogued above. Three to four councilmembers will be termed out before the January 2027 launch. See The Council Record for the quotes and votes behind each.

Sources

Ordinance and municipal-code text (City of Santa Barbara; full text on file in the project repository)

  • City of Santa Barbara, Rent Stabilization Ordinance — Public Review Draft (draft SBMC Chapter 26.90), published June 10, 2026 for the public comment period opened at the June 9, 2026 council meeting. The primary text for every section summary above.
  • City of Santa Barbara, Ordinance No. 2026-6206, Temporary Rent Increase Moratorium (adopted January 27, 2026; effective February 26, 2026; base rent as of December 16, 2025; sunset the earlier of a permanent program's operative date or December 31, 2026).
  • City of Santa Barbara, Ordinance No. 2026-6207 / SBMC §26.50.100 — Just Cause "Ellis Act" eviction requirements (adopted January 27, 2026), and SBMC Chapter 26.50, Just Cause for Residential Evictions (codified text).

City staff reports, memos, and releases (City of Santa Barbara; via santabarbaraca.gov and the docs.santabarbaraca.gov OnBaseAgendaOnline agenda archive; on file in the project repository)

  • Councilmembers Santamaria and Sneddon, council memorandum, Rent Stabilization, September 29, 2025 (with the attached RDN 2025 Rent Survey for the South Coast).
  • Council staff presentation, Policy Direction & Work Plan for Development of a Rent Stabilization Program (Item 12), December 16, 2025.
  • Council staff report, Update on Development of a Rent Stabilization Program (Item 14), April 7, 2026.
  • Council staff report, Additional Research on Rent Stabilization (Item 10), May 19, 2026 — includes the RSG, Inc. program-cost estimate (~$2M/yr; ~$154/unit across ~13,000 covered units).
  • Council staff report, Review of Draft Ordinance (Item 14), June 9, 2026.
  • City of Santa Barbara press release, Preliminary Policy Discussions Begin on Rent Stabilization, December 18, 2025.
  • City of Santa Barbara, Executed Contract No. 30017 — legal-services agreement with Colantuono, Highsmith & Whatley, PC (May 12, 2026 amendment).

Council meetings (City of Santa Barbara City Council, Regular Meetings; official video; approved minutes on file where published — December 16, 2025 and January 13/27 and March 17, 2026; later tallies transcribed from the meeting audio)

Other

  • California Department of Industrial Relations, California Consumer Price Index (CPI-U, All Items) — the index named by the draft's §26.90.020; April 2026 reading (+3.60% April-over-April) drives the first AGA estimate.
  • Santa Barbara Association of REALTORS, letter to the City Council opposing the moratorium and Ellis Act just-cause amendments, January 13, 2026 (on file in the project repository).

SBRSO — Santa Barbara Rent Stabilization Observatory. Every claim above traces to a document or meeting listed here; see also Sources and The Council Record.

Common questions

Short answers, with the full detail linked — current as of the July 28, 2026 council session.

Is Santa Barbara’s rent stabilization ordinance adopted?
No. Chapter 26.90 is a public review draft (June 10, 2026); the council directed final amendments on July 28, 2026, and the revised ordinance is expected back for a first reading in August 2026. What is in force today is a temporary rent freeze, adopted January 27, 2026 — the timeline above tracks each step.
What is the rent cap in Santa Barbara?
Under the draft, the cap is 60% of the annual change in California CPI, rounded to the nearest 0.25%, or 3%, whichever is lower — applied once per 12 months with no banking of unused increases. From April 2026 CPI the first adjustment computes to about 2.1% (2.25% under an alternate reading of the rounding clause), scheduled for January 1, 2027. Until then, covered rents are frozen at their December 16, 2025 levels — The Squeeze charts that cap against owner costs.
When does the ordinance take effect?
January 1, 2027, if it is adopted on the expected schedule — introduction expected August 2026, with adoption at a second reading about two weeks later. The temporary freeze remains in force until then or December 31, 2026, whichever comes first.
Is my building covered?
A building is covered if its certificate of occupancy was issued (or final inspection completed) before February 1, 1995. Single-family homes and condos are generally exempt unless the owner is a REIT, a corporation, or an LLC with a corporate member. In all, roughly 13,000 Santa Barbara rental homes would be covered (RSG estimate). A coverage check is part of the free building analysis.
Can I raise rents at all right now?
For covered units, no: the moratorium in effect since February 26, 2026 freezes rents at their December 16, 2025 levels while the permanent ordinance is finalized. Units exempt from the local ordinance may still be subject to the state cap (AB 1482), which has its own coverage rules.
What if the cap doesn’t cover my cost increases?
The draft’s own answer is the fair-return petition (§26.90.050): if your documented net operating income falls below the 2025 base year grown at full CPI, the gap is the indicated adjustment. Run the numbers with the calculator, or see The Petition Pathway for how the process works.