The Santa Barbara County Board of Supervisors voted unanimously Tuesday to move forward with plans to build workforce housing on county-owned land in downtown Santa Barbara.

The board authorized staff to issue a request for proposals for a new housing project at 117 E. Carrillo St., the site of the Probation Department, which is set to relocate to a new facility by late 2026. Supervisors also gave direction on tenant income eligibility and decided on an all-electric design for the project.

During a presentation to the board, county staff described the Carrillo Street project as a proof of concept for a public-private development model that could be used again in the future.

Joe Dzvonik, assistant director of Housing & Community Development, said the initiative began earlier this year as part of a broader strategy to address workforce housing needs. He told the board that the county received 15 responses from development teams after releasing a request for qualifications in October, and that after review from county staff, a shortlist will be selected to receive the upcoming RFP.

“We believe this two-step process results in more thoughtful responses,” Dzvonik said, citing stronger design concepts and clearer financial commitments.

The supervisors spent significant time discussing what income range the project should serve. 

The original draft RFP proposed targeting households earning between 51% and 120% of the area median income, which for a four-person household in Santa Barbara County in 2025 is $119,100, according to the county Community Services Department. That translates to an income range of roughly $61,000 to $143,000, meaning many local workers making nearly six figures still could fall into the county’s “low-income” category.

County staff said there is also growing demand among those earning up to 200% of AMI, or about $238,000, a group commonly referred to as the “missing middle.”

Supervisor Laura Capps said she was open to broader eligibility but that the county should stay committed to its initial goal.

“When we’ve taken away the exorbitant cost of land, we have such an opportunity to keep this reasonable, to keep this low cost, and I think we need to remain committed to that,” Capps said.

The income-level discussion also led into broader questions about who should benefit from the project, with supervisors expressing support for giving local workers — particularly county employees — some form of priority in the tenant selection process.

Public commenters also weighed in on both eligibility and prioritization.

Jeanne Sparks, speaking on behalf of the Santa Barbara County Action Network, said the county’s own data support focusing on the original range.

“The excellently crafted county workforce housing study states that 70%, or two-thirds, of our county workers are low-income; therefore, deed-restricted, low-income rental units should be the highest priority for county-owned land,” Sparks said.

Supervisor Steve Lavagnino said he did not have a strong preference on the income range but supported moving forward with the RFP process.

“I could go either way,” he said. “It’s just like inventory. Any inventory is going to create opportunities for folks that are in low income.”

The board ultimately agreed to include eligibility for households earning up to 200% of the area median income, but supervisors asked staff to include language in the RFP indicating their preference for units serving those in the 51% to 120% range.

Supervisors also directed staff to require an all-electric design for the project, allowing the county to apply its zero net energy policy since the land will remain under county ownership. 

Supervisor Joan Hartmann supported the requirement, saying it would “save money over time” and create a “healthier environment.” 

“I just think it’s keeping with our principles and the public purpose of reducing greenhouse gases,” she said.

Several public commenters also spoke in favor of the requirement.

The board unanimously voted to issue the RFP, incorporating new direction on tenant income levels and requiring an all-electric design. 

Staff said they will return with a land valuation, updates on tenant preference policies, a review of impact fees, and options to offset the loss of employee parking. Construction is expected to begin by 2028, staff said.