A long Tuesday night is ahead for the Santa Barbara City Council.
The council is set to consider extending the city’s temporary rent freeze while a referendum petition challenging the permanent rental control ordinance adopted Oct. 6 is reviewed.
That petition was submitted to the city on Thursday with 9,100 signatures, organizers announced. It needs 5,483 signatures to qualify.
Those signatures will now be verified by the County Elections Office.
The council will also consider extending a temporary order keeping State Street closed to cars while a separate referendum petition challenging the Sept. 1 approval of the State Street Master Plan is reviewed.
At Tuesday’s meeting, council members will consider directing staff to meet with the people behind the State Street referendum to discuss interim State Street operations and return to the council in early 2027 with ideas, per staff.
That referendum petition was submitted with 8,700 signatures. Organizers also needed 5,483.
A city spokesperson told Noozhawk on Thursday that the County Elections Office has not notified the city that they have completed reviewing the State Street petition signatures.
If both referendums’ signatures are separately certified, the council will either have to repeal the respective permanent ordinances or send them to the ballot box.
The council also can’t adopt similar ordinances immediately after repeal or voter rejection within one year, according to the city.
The Tuesday City Council meeting starts at 2 p.m. at City Hall Council Chambers, 735 Anacapa St. It can be viewed in person or online.
Challenging Rent Stabilization Rules
The temporary rent freeze was adopted in January. It covers residential rental units with certificates of occupancy that were issued on or before Feb. 1, 1995. It is set to expire Dec. 31. It was passed while the City Council considered a permanent rent stabilization ordinance.
The rent control referendum petition is backed by the Santa Barbara Rental Property Association, a vocal opponent of rent control. It sued the city in April over the temporary rent control ordinance.
The City Council’s permanent ordinance, adopted 4-3 in October, limits how much landlords can raise rents. It also creates a rental property registry and a seven-person rent-stabilization board that will oversee the program.
Under the permanent ordinance, rent increases effective Jan. 1 are limited to once within a 12-month period at a maximum of 3% or 60% of the rise of the Consumer Price Index (CPI) — whichever is lower.
State rules currently limit yearly rent increases to 5% plus a cost-of-living increase, with a maximum of 10%. In Santa Barbara County, the maximum yearly rent increase allowed under the state rule is 8.6%.
The city limits on rent increases do not apply to units constructed after Feb. 1, 1995, government-owned and operated units, privately owned single-family homes, condos and townhomes, and mobile home parks.
Early estimates say the rental registry program will cost the city at least $2 million per year.
Rent control supporters have argued rent control is needed in an area where some people work more than one job to keep up with rent.
Opponents have argued the permanent rent control ordinance will cost the city too much and hurt landlords.
If the council does not extend the temporary rent freeze Tuesday, it could create “financial difficulty for households unable to absorb additional housing costs,” per the city staff report.
On the other hand, a continued freeze would “restrict rent adjustments while housing providers may experience increases in insurance, utilities, maintenance, taxes, and other operating expenses,” per staff.
The proposal would extend the rent freeze essentially until the referendum and ordinance issues are settled.
Open State Street?
Eight blocks of State Street have been closed to cars since May 2020. The council has extended that closure over the years to encourage primary pedestrian use.
The Committee to Reopen State Street was behind the referendum petition targeting the City Council’s 6-1 approval of the State Street Master Plan.
The petition and the committee are backed by Jim Knell, the president of SIMA, a private real estate firm.
If the referendum signatures are approved, staff has recommended holding a special election in the first half of 2027, per the city staff report.
Opponents of the promenade have argued that prohibiting vehicles has hurt downtown businesses and allowed dangerous e-bike activity to flourish.
Proponents have said a State Street promenade creates a sense of community and makes the corridor safer for pedestrians. Restaurants and bars have created more permanent parklet dining areas in the street.
The State Street Master Plan redesigns the 300 to 1300 blocks with expanded 30-foot-wide sidewalks on both sides and two 10-foot travel lanes in the center of the street.
Retractable bollards at intersections could allow cars at certain hours, including delivery vehicles. The street could also be completely closed to vehicles for events at other times.
As of September, the city has estimated the project to cost $9 million per block. It could take six years to get it done at a current price tag of $96 million.
The city is pursuing grants but had not developed a funding plan as of October.
The council will consider extending the current closure rules on Tuesday, which seeks to avoid the “costly transitions that would occur if the configuration of State Street were to reopen only to be closed again,” per city staff.
Reopening the street to vehicles by Dec. 31 would cost the city $670,280 in the interim and another $868,000 for pavement treatment and permanent restriping, per staff.
If the street is reopened before the end of the year and closed again, it would cost the city $1,132,000 because of the work that would need to be done, according to a staff report.
Restaurants and businesses would also need to remove their parklets and outdoor facilities at their own expense to reopen the street.
If the council chooses not to extend it on Tuesday, the temporary order closing State Street to cars will expire on Dec. 31, 2026.
