Hundreds of decorative sidewalk tiles, almost too beautiful to step on, adorn the courtyard. Here and there, on the faded walls of the four-story building, are pieces of art, like the one of two people kissing with fingers crossed. Even the cars here carry a message, like the Volkswagen bug with the bumper sticker that reads, “Save our stars. Turn down the lights.”
The El Zoco condominiums, a live-work development at 211 W. Gutierrez St. in Santa Barbara, don’t look like much from afar — a four-story building, surrounded by Highway 101 and a car lot where one can get a smog test.
But the nondescript units aren’t as they seem. They are homes for artists who live where they work, and are among the only below-market, for-sale condos in Santa Barbara. They were approved by the city in 1993, in partnership with developer Homes For People, which no longer exists.
Now, nearly 30 years later, problems have arisen.
The property, governed by the El Zoco Homeowners Association, is badly in need of repairs. Water damage wrecked one of the units, forcing the owners to move out. The homeowners association has about $24,000 in reserves, after spending nearly $200,000 to address the water damage and other problems, such as repairs to the trellis, stucco, plumbing and the staircases. Even the concrete sidewalks are lifted in parts, creating a tripping hazard.
With parts of the building falling apart, the residents need financial help. The units are price-restricted, so the owners can’t make a profit when selling them, a fact that hurt their ability to obtain loans from banks. There has to be a way, the residents contend.
“We want to preserve this,” said Shelagh Royce, president of the El Zoco Homeowners Association. “There isn’t anything else like it in Santa Barbara.”
The group recently asked the city’s Finance Committee for help to make repairs to the building before it’s too late. One unit is uninhabitable, and the residents worry that the rest of the building will become dilapidated.
At last week’s Finance Committee meeting, the three-member panel agreed to give $200,000 in affordable housing inclusionary funds to provide 30-year, ammortized loans at 3% simple interest to owners of the unit. In exchange, the city will ask that the homeowners sign 90-year affordability covenants on each unit. The current 30-year affordability covenant sunsets in two years.
The new covenants will only reflect the difference in years needed to total the city’s required 90 years. For example, if an owner has already completed 27 years under their original 30-year covenant, a new covenant for 63 more years will be recorded, so that their total covenant time will be 90 years.
It’s just one path toward financial stability for the development. Just last Thursday, the homeowners association agreed to raise its fees to help pay for repairs. The fee increases are intended to help pay for the unit that is inhabitable. In addition, the group has asked the city and the county for $400,000 to make sure the development survives long term.
The HOA board intends to drop earthquake insurance at $20,066 per year, which will free up $98 per monthly unit in HOA dues.
The tension over the development comes at a time when affordable housing is in high demand in the city. The residents say the city should do more to focus on exisiting affordable housing by investing in the money of an affordable housing development that already exists in the city.
“I like the people here,” said Marilee Krause, a resident of the development for the past 17 years.
Krause is a painter who said Santa Barbara has a great artists community. For Krause, the development is more than just a place where a couple dozen people live.
“It’s historical,” she said. “I would like more attention paid to this place, more appreciation and recognition.”
Ben Best is the treasurer for the development’s homeowners association.
“I never imagined I could be a homeowner in Santa Barbara,” said Best, a data programmer. Best said he has worked diligently for the past several months to find sources of income to fund the building’s repairs.
“Every time you poke at the building, something else falls apart,” Best said.
Resident Chelsea Lancaster said the city needs more of this type of affordable housing and that how it handles the El Zoco challenges could be a model for future projects.
“I would love to see money put aside to support these types of developments in making long-term repairs,” Lancaster said, adding that the residents are lucky to be there. “I was leaving. As a working, single mom, this place just became unaffordable for me; it’s unlivable for working-class people. This is my home. This is where I want to stay. “
She said the residents do all of their landscaping even though they pay high homeowners fees. The situation, however, has become untenable, with all of the repairs that are needed.
“I would love to see a meaningful investment long term in maintaining these developments,” Lancaster said. “And I would love for the city to ensure that when the work is done, it is quality work.”
The issue is headed to the Santa Barbara City Council in a couple of weeks. At least one council member is supportive of their cause.
“When I first met with residents of El Zoco Artists’ Lofts, their frustration was palpable,” Councilwoman Meagan Harmon said. “They had achieved homeownership, but those same affordability restrictions left them without sufficient borrowing power to make necessary repairs.
“Out of those conversations came the El Zoco affordable loan program, a truly great example of all stakeholders, including multiple government partners, collaborating effectively to solve a challenging problem. It’s a model I use to advocate for more affordable housing and cutting government red tape and inflexibility to meet the needs of local residents.”
— Noozhawk staff writer Joshua Molina can be reached at jmolina@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.
