Santa Barbara Mayor Randy Rowse, who has spoken out against implementing the rent stabilization ordinance, says he worries that it will cost the city more than expected.
Santa Barbara Mayor Randy Rowse, who has spoken out against implementing the rent stabilization ordinance, says he worries that it will cost the city more than expected. Credit: Rebecca Caraway / Noozhawk photo

Santa Barbara’s controversial proposed rent stabilization ordinance is expected to cost the city $2 million a year to cover 13,000 units, according to research from RSG Solutions.

The $2 million would cover the cost of staffing, enforcement, developing the rental registry, petition fees, the appeals process, outreach, and data collection.

The ordinance is proposed to limit yearly rent increases at 60% of Consumer Price Index (CPI), with a maximum of 3% per year; create a detailed rental registry; and include multiple petition types for tenants and landlords, with a pathway for landlords to petition for a rent increase above the allowed cap. 

While no action was taken at Tuesday’s meeting, the Santa Barbara City Council had a final chance to provide direction on the rent stabilization ordinance before a draft is presented on June 9. 

Mayor Randy Rowse, who has been vocally against implementing the ordinance, said he worried that it would cost the city more than expected. 

“I disagree with the direction we’re going here, and I think we’re going to spend a whole lot of money to create something that isn’t going to be a positive in the long run,” Rowse said.

Abby Cunniff, a postdoctoral scholar at UC Santa Barbara, was one of numerous speakers who advocated for the ordinance, specifically for the rental registry to track rental costs. 

“As a tenant myself, I’ve seen firsthand how unregulated and unstable Santa Barbara’s rental market is,” Cunniff said. “I moved here last August from Berkeley, where I lived in a rent-controlled unit. I appreciated how the clarity and simplicity of the rent-control law made my relationship with my landlord transparent and straightforward.”

One of the main points of discussion was about whether Section 8 housing should be exempted from the ordinance.

Veronica Loza, deputy executive director of programs and operations for the Housing Authority for the City of Santa Barbara, said Section 8 and deed restricted housing should be exempt from the proposed ordinance as those units are already regulated by federal laws and participants’ income. 

“Adding another layer of local rent regulations on top of these existing systems risks duplication, administration conflict and unintended consequences that would discourage landlord participation in the voucher program at a time where we need more participation and not less,” Loza said. 

However, many tenant advocates said Section 8 and deed restricted housing should be included in the ordinance, specifically for the tenant protections.

Barbara Andersen, senior assistant to the city administrator, explained that Section 8 housing is included in the existing city tenant protections. The only thing that the rent stabilization ordinance would create for Section 8 housing is a tenant petition process to petition for lower rent because of habitability issues.

Councilwoman Wendy Santamaria argued that including Section 8 housing in the ordinance would be critical to protect families with mixed immigration status.

“Including them in this ordinance, I wouldn’t see it as adding a layer of bureaucracy,” Santamaria said. “I’m seeing it as adding a layer of protection for those tenants because it’s the only way that a tenant is able to go and make it heard and not have to go through HUD, to the Trump administration, to make their case about habitability or paying much more than the cost that they should be paying.”

Earlier this year, Housing and Urban Development Secretary Scott Turner proposed prohibiting households that have both eligible U.S. citizens and ineligible immigrants from receiving federally funded housing assistance or living in federally funded housing.

Under the current law, which has been around for decades, mixed-status families are allowed in federal housing programs if the rent is prorated, meaning assistance is provided only for eligible members of the household. 

If the rule change in enacted, 302 Santa Barbara families could lose housing assistance.

Tuesday’s hearing was a follow-up to a lengthy April 7 vote on policy for the rent stabilization ordinance.

Staff plans to bring a draft ordinance to the council in June and, if approved, the ordinance could go into effect at the start of 2027. 

While the city works on the ordinance, the City Council established a temporary rent freeze for the rest of 2026. In response, the Santa Barbara Rental Property Association filed a lawsuit in federal court challenging the rent freeze and eviction restrictions.