How soon before all malls will be turned into “affordable housing”?
“A 2023 survey by the city showed that the median rent for a one-bedroom apartment was $2,598 a month. The 78-unit apartment complex that will be opening at the former downtown Staples next month is currently being advertised with studio prices up to $3,500 a month, one-bedroom apartments going up to $4,100 a month, and two-bedroom units offered at monthly prices ranging from $5,500 to $6,900.
Since the project at La Cumbre (dubbed “The Neighborhood at State and Hope”) was announced, the topic of affordability has dominated public discussion surrounding the originally proposed plan, in which the Taylors intended to provide only about 8 percent total units at below-market rate. When the Taylors held an open house at La Cumbre Plaza earlier this year, hundreds of people crowded to get a peek at the plans and voice their concerns over the prospect of hundreds of new units of housing in the area: Would these be affordable? And affordable to whom? What about traffic, water, wastewater, and public spaces? How would the Hope School district fare with a few hundred more families suddenly in the area?
Define affordable. In fact, almost none of the proposed affordable housing is affordable—not without government subsidies—and worse. Those homes built and sold at market prices INCLUDE the cost of the affordable homes. In other words the more affordable housing we build the LESS affordable housing becomes. That is the real goal.
How Much of La Cumbre Plaza Development Should Be Affordable?
City Councilmembers Make the Case for 25 Percent Below-Market Units, Public Spaces
By Ryan P. Cruz, Santa Barbara Independent, 8/1/24 https://www.independent.com/2024/08/01/how-much-of-la-cumbre-plaza-development-should-be-affordable/?utm_source=ActiveCampaign&utm_medium=email&utm_content=Indy+Today%3A+Fiesta+Begins+with+Lively+Performances+and+Odes+to+the+Past&utm_campaign=Indy+Today%2C+Friday+8%2F2&vgo_ee=plGwzswQUOHhUzKvPXmn%2Bq2qqJNOseQEKEQBD%2B7H8Kla5C0l7RVyVb6A%3AkW5cCvYiH2CuHF2kzGX0iMEyFtfZt4d%2B
The proposed redevelopment of La Cumbre Plaza by father-son developers Jim and Matt Taylor is one of the most ambitious residential ventures in the City of Santa Barbara, promising to bring at least 642 units of housing and commodities that could transform the upper State Street area. But as the project starts to take shape, affordability is a growing concern for city leaders and residents who have watched helplessly as rent prices have continued to skyrocket citywide.
A 2023 survey by the city showed that the median rent for a one-bedroom apartment was $2,598 a month. The 78-unit apartment complex that will be opening at the former downtown Staples next month is currently being advertised with studio prices up to $3,500 a month, one-bedroom apartments going up to $4,100 a month, and two-bedroom units offered at monthly prices ranging from $5,500 to $6,900.
Since the project at La Cumbre (dubbed “The Neighborhood at State and Hope”) was announced, the topic of affordability has dominated public discussion surrounding the originally proposed plan, in which the Taylors intended to provide only about 8 percent total units at below-market rate. When the Taylors held an open house at La Cumbre Plaza earlier this year, hundreds of people crowded to get a peek at the plans and voice their concerns over the prospect of hundreds of new units of housing in the area: Would these be affordable? And affordable to whom? What about traffic, water, wastewater, and public spaces? How would the Hope School district fare with a few hundred more families suddenly in the area?
Sure, some of these concerns would be discussed during the usual environmental review period, but other considerations — such as affordable housing and open spaces — come with restrictions that depend on state housing regulations. And with the public clearly invested in the future of the project, city councilmembers began to look into ways to work with the Taylors to address these concerns in ways that would benefit all parties.
This week, councilmembers Eric Friedman and Mike Jordan issued a memo asking that the city formalize the process by directing City Administrator Kelly McAdoo and City Attorney Sarah Knecht to work with the Taylors to agree on a term sheet for the project, and eventually, work out a development agreement — a plan that would hopefully get the city closer to its needs regarding affordability and public benefits, while also giving the Taylors some concessions allowing for more density, height, or a quicker trip through the city review process.
The terms of this agreement are still up for negotiation, but in their joint memo Jordan and Friedman (the council representative of the district covering La Cumbre Plaza), compiled a list of priorities that would make the project work from the city’s perspective. These include affordability requirements for a minimum of 10 percent deed-restricted “Capital-A affordable units” for low-income residents making no more than 80 percent of the Area Median Income (AMI), and a minimum of 15 percent of units income restricted to middle-class earners making 80 to 200 percent of the AMI.
These terms, while only a starting place for the formal agreement, would give the project more than 100 more affordable units than originally proposed by the Taylors, also stipulating that the number of income-restricted units be based on “gross unit count.” The latest proposal by the Taylors had 642 units total with 54 set aside across low- to moderate-income tenants, making up about 8 percent of the gross unit count.
With the city’s new terms, if the project were to include 642 units total, then 64 would have to be set aside for tenants making under 80 percent AMI (under $85,840 for a family of four), and at least 96 units would have to be available for moderate-income renters earning 80 to 200 percent AMI ($85,840-$214,600) — for a total of 160 below market-rate units.
Some of these units, the councilmembers suggested, could be built in collaboration with the Housing Authority using properties that the organization owns nearby on South Hope Avenue and La Cumbre Lane. While not technically at the La Cumbre site, these affordable developments, if supported by the Taylors, could be counted toward their total unit count.
The councilmembers’ memo also asked that the Taylors participate in an employer-sponsored housing program, similar to the consortium being created by the South Coast Chamber of Commerce for large-scale development projects in the Eastern Goleta Valley. Also included were considerations for an on-site childcare center, a public park maintained by the city, and a building that the city could lease as a community meeting space or potential satellite library.
All of these terms, according Friedman and Jordan, are crucial to ensuring the La Cumbre project will benefit the community — especially those in the northern parts of the city that expect to see immediate impacts — in addition to the developers themselves. In return, the Taylors stand to gain the certainty of approval and the promise of a streamlined review.
“The redevelopment of La Cumbre Plaza will impact the City of Santa Barbara beyond the end of the century,” Friedman said. “With the affordable housing crisis and a lack of public amenities in the north section of the city it is critical that public benefits are included to the maximum extent possible.”
The full council will have a chance to weigh in on the proposed terms during a public discussion on August 20, after which the city will pursue a more formal development agreement with the Taylors that should, Friedman hopes, lock in an increased number of affordable units for low- and middle-income families, create a housing preference for local workers, and introduce public uses that “will provide immeasurable benefits for decades to come.”
