Construction could start soon on the Brisa Encina affordable housing project in the Mission Hills community near Lompoc, but the high per-unit cost estimate raised eyebrows at the Santa Barbara County Board of Supervisors. 

The 49-unit supportive housing project was supposed to be completed by now, but delays pushed back the building and significantly increased the total cost, developers said. 

Neighborhood concerns about the size of the project prompted several redesigns, and the project now includes 49 apartments, 56 parking spaces, on-site child care, and other supportive services at 1498 Burton Mesa Blvd. 

The Board of Supervisors on Tuesday approved a $1.5-million loan for the project. Brisa Encina is funded by several public sources, including a state grant and tax credits. 

Frank Thompson of Frank Thompson Housing Consultants said the $1.5 million county funding commitment is “essential,” and developers have made significant changes in response to community concerns. 

The supervisors voted 4-1 to approve the funding, with Supervisor Bob Nelson opposed. 

Nelson, who represents Mission Hills, appreciated efforts to make the project better, but was concerned that the cost had “increased significantly” in the past two years.

County staff reported the total project cost increased from $22.1 million in 2023 to $37.6 million in 2025, which represents a per-unit cost of $756,000. 

“At some point you know enough is enough, it can’t be unlimited,” Nelson said. 

“We have a big challenge out there, and if projects are this expensive, there’s never going to be enough money to solve these problems,” he said before voting against the funding commitment.  

Brisa Encina includes 25 studio apartments, 12 one-bedroom apartments, and six duplexes with 12 two-bedroom units. 

“As developers, we push back as hard as we can, but we have had a very significant increase in construction costs,” Thompson said. 

The project is cutting some costs by having some units built off-site, “from foundation to roof,” including interiors, he said.

The county’s community services director, Jesus Armas, said his department sees rising construction costs with its own projects as well, explaining that “$750,000 (per unit) is outrageous, but unfortunately it’s what we’re experiencing, not just with this project but a couple others. We need to do a better job of trying to manage that cost.” 

The Housing Authority of the County of Santa Barbara is now listed as a Brisa Encina developer, replacing the Cabrillo Economic Development Corp. 

The supervisors previously approved funding in 2023, under the assumption the project was ready for construction. 

“However, the CEDC was unable to meet all of (the) conditions specified in the reservation letter, and the funding reservation expired,” Community Services Department staff said in a report to the Board of Supervisors. 

The project developers recently submitted a request for a new reservation letter, substituting the Housing Authority for the CEDC. The housing project has its approvals but still needs a building permit to start construction, according to county staff. 

The developers plan to reserve some of the affordable units for formerly homeless veterans and residents with mental illness. 

Supervisor Joan Hartmann, who represented the Mission Hills community before redistricting, recalled when “every sign at every house opposed this.” 

She said Thompson and his team “bent over backwards to hear what the community was saying,” like reducing the number of apartments from 70 to 49.