“We made a commitment, a promise to the community, that we would address this loophole, this incentive to build nine units instead of 10 units — essentially an incentive to convert some of our rental stock into upper-income condominiums without a giveback to the community,” Councilmember Das Williams said.
-- [ From: DAILY SOUND, May 14, 2009 ]


[ From: City Council Squeezes Affordable Housing out of Smaller Projects - New Ordnance Targets Two- to Nine-Unit Constructions, Conversions," By Nick Welsh, SB INDEPENDENT, May 14, 2009 ]

By a vote of 6-to-1, the Santa Barbara City Council passed an ordinance that will require developers who build smaller housing projects -— between two and nine units -— or who convert the same numbers of apartments into condominiums... that 5 percent of what’s built is affordable.

Developers seeking to opt out will be required to pay an $18,000 fee in lieu of actual housing units, a provision denounced by councilmember Dale Francisco -— who cast the sole dissenting vote -— as “extortion.” The measure was championed by councilmembers Helene Schneider and Das Williams, who expressed alarm that the city’s existing ordinance -— which was triggered by developments of 10 units or more —- was missing most of the development or condo conversion.

Currently, City Hall has either approved -— or is processing applications —- 77 conversions from apartment units to housing units. Schneider and Williams argued that such conversions provide the owner a significant windfall in the form of appreciated property values, while removing much needed rental units from the south coast housing market.