Laying the Path to Rent Stabilization in Santa Barbara

Santa Barbara City Council is laying the groundwork for a rent stabilization ordinance, and while there’s still a long path to final approval, councilmembers offered a road map for city staff to follow over the next several months, including direction to pursue a temporary moratorium on rent increases until the details of the new rent cap are worked out in full.

After a four-hour hearing on Tuesday, the City Council voted 4-3 in support of moving toward the temporary rent freeze. Councilmembers also offered specific comments to help guide planning staff as the city moved toward a finalized ordinance, a process that is expected to take place over the next six months.

Tuesday’s council hearing was just the latest chapter in the city’s move toward rent stabilization, a citywide cap on rent increases that housing advocates have been pushing for years. Now, with a majority of councilmembers expressing support for rent stabilization, it’s become clear that a local version will likely be passed within the next year.

City Administrator Kelly McAdoo set the stage for the planning process, which will begin with the city bringing on a consultant in January 2026 to help gather hard data to make sure the city’s rent cap is tailored to local housing needs. In February, the city will take that info to stakeholder focus groups to help develop the policies. By March, the City Council will get another chance to check in before a draft is ready for a round of public review, committee hearings, and a final draft by the end of the summer.

McAdoo said the city will be moving with “thoughtful urgency” during that period and quickly enough to get the ordinance done in a timely manner, but not so quickly that city residents and property owners feel left out of the public process.

The room was packed with community members, housing advocates, and landlords eager to weigh in on the issue. More than 40 tenants spoke, sharing stories of renters struggling, handing over more than half of their incomes on rent, and being crammed into studios and small apartments. Many said they were one rent increase away from being forced out of town, like their family, friends, and former classmates who have long since moved away.

Some longtime locals worried that their hometown was losing its vibrancy as rent prices continued to go up, while others said the constant instability and rising rents interfered with major life choices, such as getting married or starting a family.

“When rent goes up faster than wages, community members aren’t only losing housing; we’re losing our sense of safety, stability, and community,” said Santa Barbara renter Sophia Lake. “Stable housing allows us to stay rooted, support local businesses — so they can flourish — keep our kids in the same schools, and continue contributing to the community that we all care about.”

Property owners vehemently opposed the rent cap, calling it a disturbing government overreach, a legal minefield, and a step toward the illegal taking of private property. Real estate professionals and landlords worried that the city was not accounting for the growing costs of owning property or the unique needs of small-scale property owners.

“How will this ordinance protect small local owners who live in the community and personally manage their properties?” asked Miguel Avila, a Realtor who spoke against the ordinance. “And what safeguards exist to prevent policies that unintentionally push small owners and invite the large corporate investors instead?”

Councilmember Mike Jordan has spoken out against a rent cap, saying the costs of administering the program would be “crippling” and that the ordinance would only benefit current tenants. “It’s a current tenant benefit that will not be passed along to future tenants,” Jordan said.

Councilmembers Meagan Harmon, Kristen Sneddon, Wendy Santamaria, and Oscar Gutierrez all supported the rent cap, and all four voted in favor of a rent increase moratorium, which will be considered in January.

One of the larger remaining questions will be deciding which types of units, if any, should be excluded from a localized rent cap. The majority of council spoke against exempting whole categories of units, instead expressing support for an individual appeals process to allow exemptions on a case-by-case basis.

“The best practice is not to provide those blanket exemptions,” Councilmember Santamaria said. “We need to provide a meaningful, accessible, and efficient adjustment process that ensures a fair return for property owners.”

Councilmember Harmon said she would consider making a broad exemption specifically for landlords who offer units under a certain affordability level. “It is directed at the mom-and-pop landlords, many of whom were in this room tonight, that say they keep the rent affordable, and for whom this ordinance feels quite scary,” Harmon said.

Councilmember Sneddon wanted to make it clear that the rent stabilization ordinance was not being used as a way to target landlords and said she had an open-door policy to any property owners who wanted to help craft this ordinance to local needs. She assured property owners that a rent cap “is not going to ruin profitability but will strengthen it and smooth it out for those who rent.”

City staff will now work toward crafting the ordinance, which will likely include a citywide rental registry and a rental board to administer exemptions to landlords who petition for rent adjustments. The council has not officially weighed in on the level of the rent cap, which was originally proposed at 60 percent of the Consumer Price Index. The city will host public hearings and create a website to update community members throughout the planning process.

“Don’t just pass any policy to cross it off your list. You need to get it right,” said Stanley Tzankov, cofounder of the Santa Barbara Tenants Union. “Pass a strong rent cap, rooted in reality; create a serious rent board; create a listing of our housing; and protect our people ’til it all gets done.”