A quiet neighborhood in Santa Barbara is in disarray over the possibility of a federal designation that has pitted neighbor against neighbor.

A group of longtime residents of the Bungalow Haven Historic District has been pushing for federal recognition of the six-block district on the lower Riviera.

However, some residents of the neighborhood organized to block the designation. The dissent has sparked rancor in an otherwise quiet and cozy neighborhood.

The tension escalated so high that late Wednesday, proponents withdrew their federal application for recognition through the California Office of Historic Preservation.

“We were shocked and surprised at the sudden and vehement opposition to the largely
ceremonial national recognition of our neighborhood’s historic value, as well as the antipathy and misinformation circulated by a group of neighbors unfamiliar with our long history,” said Steve Dowty, a 40-plus-year resident of the district and one of its founders. “We regret the loss of the opportunity to gain prestigious national recognition for our historic neighborhood and the loss of the civility that’s always been a characteristic of Bungalow Haven.”

In an interview with Noozhawk, Dee Duncan, who is married to Dowty, said the situation had turned too mean-spirited over a designation that would have been largely ceremonial.

“What new neighbors do not realize is that we have been working on protecting the Bungalow Haven from development for many years, maybe 20-plus years,” Duncan said. “It is a really unique neighborhood. This national recognition is only that.”

She added that the situation turned too divisive.

“Some neighbors gravely misunderstood what was proposed and added their own opinions to why this was a ‘disastrous’ thing to happen to the neighborhood,” Duncan said.

Steve Sereboff has owned his home for about eight years. His house on De la Vista Avenue is designated as historically significant, which limited the scope of a remodel he did six years ago.

Sereboff said increased real estate prices and the burdens of historic preservation regulations have gentrified the neighborhood.

“In a city where we need more housing to begin with, certainly more workforce housing, the kind of impact of the historic designation that is proposed will obstruct increased density in the region, in the neighborhood,” Sereboff said. “It’s a problem.”

Under the federal designation, Sereboff said all houses would need to undergo Historic Landmarks Commission review for changes, even those that are not historic. From his experience, he said it raises issues of extra cost and uncertainty. 

Sereboff said federal designation could further hurt the neighborhood’s diversity. 

“Before we run forward on this railroad toward federal designation, I think some comparisons should be done between the houses that have been subject to historic preservation for the past 20 years,” Sereboff said. “Why don’t we take a look at how 20 years of preservation regulations have impacted the Bungalow Haven vs. craftsman bungalows outside of the Bungalow Haven.”

There are other concerns. He has questions about whether a federal designation would increase fire insurance premiums and availability, a concern that is validated by the National Trust for Historic Preservation. In addition, what happens if homes in the Bungalow Haven burn down? He spoke to his broker and said the situation is unclear. 

“The cost to replace a historically protected house is significantly higher than a normal replacement,” Sereboff said, citing a study by New York University.

Another resident of the district, Marny Randall, said maintaining or obtaining homeowners insurance can be a particular challenge for owners of properties that are on the register nationwide.

“At this point in history, after the unimaginable losses in the Los Angeles County fires, I am extraordinarily concerned about any designation that could be applied to the properties in this neighborhood that would make it more difficult to retain homeowners insurance policies,” Randall said before Wednesday’s withdrawal of the application.

Duncan, Dowty, Brad Parks, Cheri Rae and John McKinney are the founding members of the Bungalow Haven Neighborhood Association, formed 20 years ago.

The homes in the district were built between 1888 and 1933. The single-story bungalows are designed in the craftsman and Spanish colonial revival styles.

“The neighborhood reflects changing trends in architecture, town planning, and transportation, including the expansion of the city’s streetcar line, and subsequently, the introduction of affordable mass-produced automobiles,” according to California State Parks. “Improvements to the city’s infrastructure made practical the development of this modest working-class neighborhood, critical to Santa Barbara’s economic viability by establishing a place for the working and middle classes to live and prosper.”

The area is bound by East Victoria Street, Olive Street, East Micheltorena
Street and Colina Lane. About 151 homes are in the district.

Duncan told Noozhawk on Wednesday that they were pulling the application because the situation was divisive, not because “there is any truth to the fears that have been circulated.” The national designation, she said, was largely ceremonial.

She said the neighbors have been agitated by “a few not-very-civil people.”

“The Bungalow Haven has always been a very peaceful, sedate neighborhood,” Duncan said. “A few people with incorrect opinions have riled up the neighbors unnecessarily.”

Nicole Hernandez, the city’s architectural historian, said recognition on the national register gives more benefits to the property owners because the State of California recently adopted a State Historic Tax Credit that offers the credit on historic restoration projects, including residential projects, with a credit of up to 20% of project costs.

The credit applies only to buildings listed on the national and state registers.

“Locally designated historic districts would not qualify for these tax credits and therefore cannot qualify for state’s benefit/incentive for historic preservation efforts,” Hernandez said. “This credit is on top of the Mills Act Property tax credit that is a property tax reduction for 10 years of typically about 50% that the designation would qualify for once designated.”

Hernandez said a national register nomination would not cause any additional restrictions or design review that is already required from the city. 

“In addition, national register status is not a protective measure and adds no additional restrictions to a historic resource but primarily an honor, meaning that a district has been researched and evaluated according to established procedures and determined to be worthy of preservation and provides financial incentives,” Hernandez said.

Santa Barbara City Councilwoman Meagan Harmon oversees the Bungalow Haven Historic District. She spoke with Noozhawk on Wednesday.

“I appreciate the Bungalow Haven Neighborhood Association’s action to withdraw the designation application because, regardless of one’s position on the designation effort, the lack of consensus and the very strong feelings on both sides of the debate had the potential to seriously and permanently damage that thing which truly makes this incredible neighborhood so special — not its houses, though they are spectacular, but its sense of community,” Harmon said.

She said regardless of whether the application moves forward, her hope is that the residents have the opportunity to make their perspectives known and have their questions answered in a timely manner, well in advance of any designation hearing.

“In the coming weeks and months, I will be connecting with neighbors on both sides to debrief and look for lessons learned, both in terms of their organizing efforts and any role the city might have played or could play in the future,” Harmon said. “I have no doubt that this special neighborhood will come together, as it always has, for the love of these beautiful old houses and for one another.”

Seberoff said he is pleased with the situation.

“I’m pleased that the applicants heeded the voices of the residents and property owners of the Bungalow Haven,” he told Noozhawk. “Our local elected officials showed that they cared and worked hard to find a good solution to a hard problem. This shows that the system, though sometimes messy, works.”

Duncan said she is disappointed.

For decades, she has worked to bring the neighborhood together through parties and gatherings so people would know each other. She said the situation is not worth it anymore, and “a sign of the times.”

“I don’t want any more of this negativity,” Duncan said.