Part of Kristen Sneddon is running for mayor in Santa Barbara for the next election cycle.

How could the Rent Stabilization Ordinance affect Santa Barbara County?

Possible What happens if… A possibility worth considering, not a forecast.

New rent stabilization and housing funds may shift Santa Barbara County's housing market The Rent Stabilization Ordinance (RSO), co-authored by Kristen Sneddon, introduces an inflation-linked cap on rent increases for older units in Santa Barbara, taking effect on January 1. Simultaneously, Sneddon secured $5 million annually for at least two years through the Local Housing Trust Fund, funded by a half cent sales tax increase. These measures aim to address the acute housing crisis in the city, where a two-bedroom apartment currently costs around $4,000 a month. While the RSO does not affect new construction built after 1995, the combination of rent caps and dedicated affordable housing funding could alter housing supply and demand dynamics across Santa Barbara County.

Reported by 1 independent outlet Written Sunday

Effect: Mixed
How direct: Stated in the reporting
When: Within weeks
The story: No new developments lately

How it reaches Santa Barbara County

Reported by news outlets

Kristen Sneddon, as a City Council member, co-authored the Rent Stabilization Ordinance (RSO) for Santa Barbara. This ordinance places an inflation-linked cap on rent increases for older units, while new construction built after 1995 is exempt. Additionally, Sneddon ensured $5 million a year was allocated to the Local Housing Trust Fund for at least two years, funded by a half cent sales tax increase, to prioritize affordable housing construction. Since the City of Santa Barbara is located within Santa Barbara County, these policies directly influence the housing market conditions of the county.

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- independent.com Saturday

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The facts so far

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A two-bedroom apartment in Santa Barbara currently goes for around $4,000 a month, an increase of more than a third over the past five years.independent.com
The Rent Stabilization Ordinance only subjects older units to an inflation-linked cap, while anything built after 1995 cannot be regulated.independent.com
A half cent sales tax increase raised about $15 million for the City, allowing for $5 million a year to be allocated to the Local Housing Trust Fund for at least two years.independent.com

Why it matters

The housing crisis in Santa Barbara is severe, with the required annual income for a household to afford a two-bedroom apartment being $160,000. The implementation of the RSO and the dedicated funding for affordable housing represent a significant local attempt to stabilize the market and protect tenants from rapid rent increases. This policy shift could influence the overall housing landscape and economic pressures within Santa Barbara County.

These initiatives are part of a broader political effort to address housing shortages, which is a major focus of Kristen Sneddon's agenda. The policies are designed to be a 'bandage to slow the bleeding' while the city prioritizes construction, suggesting that the county's housing challenges are complex and require multiple regulatory and financial interventions.

What we don't know yet

How will the RSO's cap on older units affect the overall availability of rental units in Santa Barbara County?
What is the projected impact of the $5 million annual allocation on reducing the acute housing crisis in the county?

What would change this answer

The City Council modifies the RSO or the Local Housing Trust Fund allocationThe scope and direction of the policy change affecting Santa Barbara County would change, potentially altering the market stabilization effect.

The real estate industry successfully lobbies for changes to the RSO or funding mechanismsThe intended impact of rent stabilization and affordable housing construction on the county's housing supply could be significantly reduced.

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Santa Barbara County Housing Crisis Affordable Housing Sales Tax Supply and Demand

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Reporting

independent.comSaturday

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The full eventSanta Barbara Approves Rent Stabilization Ordinance for Older Housing Units Everything aboutSanta Barbara County

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