Santa Barbara City Council Gives Final Approval to Rent Control, 4–3

The Santa Barbara City Council gave final approval to the city’s rent control ordinance on a 4–3 vote at its Tuesday, October 6 meeting. After a year of reports, meetings and consultants, the council passed one of the most restrictive rent control ordinances in California.

Starting January 1, 2027, rent increases on most apartments built before 1995 are capped at 60% of inflation and never more than 3% a year (about 2.1% for 2027), with no banking of unused increases. California’s statewide cap allows up to 8.6% this year. The ordinance also requires nearly every rental unit in the city to register and pay an annual fee.

Santa Barbara’s real estate community has stood together against it. The Santa Barbara Association of REALTORS® opposes the ordinance, calling it “one of the most restrictive rent control ordinances in California.” The Santa Barbara Rental Property Association contends the program is an unconstitutional taking and has gone to court over the temporary rent freeze. And the Help Save Santa Barbara Housing Committee, a coalition of housing providers, small-business owners, renters and residents, has said it will seek a referendum to put the ordinance before voters.

The ordinance adds Chapter 26.90 (Residential Rent Stabilization) and Chapter 26.100 (Residential Rental Registry) to the Santa Barbara Municipal Code. It is scheduled to take effect November 5, 2026, unless a referendum petition qualifies first. Below: where things stand, what the ordinance requires, and what it means for property owners.

For live updates, the full ordinance text and a fair-return calculator, see sbrso.com, the Santa Barbara Rent Stabilization Observatory.

At a glance

• Adopted October 6, 2026, by a 4–3 vote. Yes: Mayor Pro Tem Kristen Sneddon and Councilmembers Meagan Harmon, Wendy Santamaria and Oscar Gutierrez. No: Mayor Randy Rowse and Councilmembers Eric Friedman and Mike Jordan.
• Effective November 5, 2026, unless a referendum petition qualifies first.
• The current rent freeze continues. Rents for covered units stay at their December 16, 2025 levels through December 31, 2026.
• From January 1, 2027, annual increases are capped at 60% of the change in the California Consumer Price Index or 3%, whichever is lower: about 1% for 2027.
• Coverage: most rental units with a certificate of occupancy issued before February 1, 1995. Single-family homes and condominiums are generally exempt.
• Registration: nearly every rental unit in the city must register, beginning with covered units by April 1, 2027.
• Turnover: owners can still set a new tenant’s starting rent at market when a unit is lawfully vacated.

Where things stand

• December 16, 2025: The council gives policy direction. This date later becomes the “base rent” date.
• January 27, 2026: A temporary rent freeze (Ordinance No. 2026-6206) is adopted. It took effect February 26.
• April 7, 2026: The council selects the 60%-of-CPI, 3%-maximum formula.
• September 29, 2026: The ordinance is introduced, 4–3.
• October 6, 2026: The ordinance is adopted, 4–3, with no changes.
• November 5, 2026: Expected effective date, unless a referendum petition qualifies.
• December 15, 2026: Target date for the fee study and registry fee schedule.
• December 31, 2026: The temporary freeze ends.
• January 1, 2027: Rent limits apply. The first annual adjustment (about 2.1%) becomes available.
• 2027 registration deadlines:
  • covered units by April 1;
  • all other rental units by October 1 (or 30 days after the registration form is available, if later);
  • enforcement begins January 1, 2028.

Four of the council’s seven seats, including mayor, are on the November 3, 2026 ballot. A future council can amend the ordinance.

What happened at the October 6 council meeting

Adoption was on the consent calendar. Mayor Pro Tem Sneddon pulled the item and proposed a flat 3% cap for the first year instead of the formula’s roughly 2.1%. The City Attorney advised that any change would require reintroducing the ordinance, which would delay adoption to October 27 at the earliest. The City Attorney also noted that legal risk tied to the temporary freeze grows the longer it lasts. After public comment, Sneddon amended the motion to adopt the ordinance as written, and it passed 4–3 (meeting video; agenda item). The adopted text is identical to the version introduced September 29.

What the ordinance says

The bullets below summarize the adopted text (full ordinance, PDF; City’s copy).

Which rental units are covered (§§26.90.010–.015)

• Covered: rental units whose certificate of occupancy was issued (or final inspection completed) before February 1, 1995.
• Exempt:
  • units first certified on or after February 1, 1995;
  • single-family homes and condominiums that can be sold separately, including corporate-owned ones, as state law requires;
  • mobilehome and RV parks;
  • stays of 30 days or fewer in hotels and permitted vacation rentals;
  • hospitals, care facilities and treatment housing;
  • deed-restricted affordable units run by a public agency or nonprofit;
  • Section 8 units at or below the Housing Authority’s payment standard;
  • government units that state or federal law exempts.
• Still covered: owner-occupied duplexes and student housing.
• Exempt units must still register, and owners must give tenants written notice of the exemption.

How much rent can increase (§§26.90.030–.040)

• Base rent is the rent in effect on December 16, 2025, or the initial rent for tenancies that began later.
• Annual general adjustment: 60% of the April-to-April change in California CPI (DIR), rounded to the nearest 0.25%. It is never more than 3%, and zero if CPI falls.
• 2027 figure: about 1%, or 2.25% under an alternate reading of the rounding rule. The City posts each year’s figure by October 1.
• One increase per 12 months, with at least 30 days’ written notice that references the ordinance. An adjustment not taken within its calendar year is lost (no banking).
• Repairs and habitability: no increase may be applied to a unit out of compliance with habitability codes or with outstanding ordered repairs.
• Interim increases and service cuts: increases taken between December 16, 2025 and January 1, 2027 count against future allowed increases. Cutting housing services without a matching rent reduction counts as a rent increase.
• Vacancy decontrol: when a unit is lawfully vacated, state law lets the owner set the next tenancy’s starting rent, including at market. The cap then applies to that new rent.

Increases above the cap: fair-return petitions (§26.90.050)

• An owner may petition for more than the annual adjustment when needed to provide a constitutionally required fair return.
• Standard: “maintenance of net operating income.” There is a rebuttable presumption that 2025 net operating income, adjusted by the full change in CPI, is a fair return.
• Process: an impartial hearing officer decides after a hearing, with appeal to the Rent Stabilization Board. The owner must declare habitability compliance.
• Expenses: operating expenses include maintenance, management, landlord-paid utilities, property taxes and up to 50% of the registry fee. Debt service, depreciation, penalties and capital improvements are excluded (fair-return calculator).

Capital improvement pass-throughs (§§26.90.060, 26.90.100)

• Approval first: a City-approved capital improvement plan is required before filing. Owners get one plan per property every 24 months, with limited exceptions.
• Eligible work: roofs, foundation and seismic work, major building systems, exterior paint or siding, energy and water efficiency (including solar and gas-to-electric), accessibility, fire safety, EV charging and lead-paint abatement.
• Amortization and cap: costs are spread over the improvement’s useful life, with interest at the Freddie Mac 30-year rate plus 2%. The monthly pass-through is capped at the lesser of 10% of rent or $100.
• Timing: petitions must be filed within two years of completion. Work ordered to correct violations, or completed before the end of 2025, does not qualify.
• Temporary relocation (under 30 days): $150 per household per day for lodging, plus $30 per person per day for meals.

The rental registry (Chapter 26.100)

• Who: nearly every rental unit in the city, covered or exempt. Rooms in an owner-occupied home with a shared kitchen or bath are excluded.
• When: covered units by April 1, 2027; all others by October 1, 2027 (or 30 days after the form is available, if later).
• What: unit details, owner and manager contacts, current rent, the last increase, the tenant’s move-in date and exempt status. It does not ask for tenant names.
• Fee: a two-tier annual fee set after the fee study. The City’s May 2026 cost estimate was about $154 per covered unit and is expected to rise. Owners may pass through up to 50% over 12 months, except to deed-restricted affordable units.
• Enforcement (from January 1, 2028): unregistered owners may not raise rent, file petitions or pursue no-fault just-cause evictions.

Tenant protections, the board and enforcement

• Tenants may petition for rent reductions for habitability failures, reduced services or overcharges.
• New tenants of covered units must receive written notice of coverage, with copies of the rules, in English and Spanish.
• A seven-member Rent Stabilization Board adopts petition regulations and hears appeals. At least four members are tenants, including one 65 or older.
• Enforcement:
  • City civil or criminal action;
  • a tenant right to sue for damages;
  • a complete defense in eviction or rent cases when the owner has not complied.

Units outside the ordinance: the state rent cap (AB 1482)

• Units the local ordinance does not cover may still fall under California’s statewide cap: 5% plus CPI, never more than 10%. That is 8.6% for increases between August 1, 2026 and July 31, 2027.
• AB 1482 has its own coverage rules, including exemptions for newer buildings and, with proper notice, many single-family homes and condominiums.

What it means for property owners

1. Confirm coverage. Check each unit’s certificate of occupancy date, and give the required notice for exempt units.
2. Plan 2027 increases. The first adjustment (about 2.1%) cannot take effect before January 1, 2027. Give at least 30 days’ notice that references the ordinance, and take each year’s increase within that year.
3. Prepare to register. Covered units are due April 1, 2027. Organize current rents, last-increase dates and move-in dates now.
4. Budget for the registry fee. The amount is still pending; up to half can be passed through to tenants.
5. Keep 2025 financial records. They are the baseline for any future fair-return petition.
6. Plan capital projects around the rules: the approval step, the $100 monthly cap, the two-year filing window and relocation obligations.
7. Revisit value and financing assumptions. Buyers and lenders will underwrite covered buildings at capped rent growth (about 2.1% for 2027, never more than 3%), with resets to market only at turnover.
8. Watch what’s pending:
   • the referendum effort;
   • the fee study;
   • Rent Stabilization Board appointments and regulations;
   • the 2027 adjustment figure;
   • litigation over the temporary freeze;
   • the November 3 election.

The referendum question

A coalition, the Help Save Santa Barbara Housing Committee, has said it will seek a referendum. Under California law (Elections Code §9237), a petition must be filed within 30 days after the City Clerk attests the adopted ordinance and be signed by at least 10% of the city’s registered voters. A qualifying petition suspends the ordinance until the council repeals it or voters approve it. City staff estimated a special election would likely be held in March 2027. The temporary freeze ends December 31, 2026 either way. While the ordinance is suspended, rents would generally be governed by state law, including AB 1482 where it applies.

Frequently asked questions

Is rent control in effect in Santa Barbara?

The City adopted its rent stabilization ordinance on October 6, 2026. It is scheduled to take effect November 5, 2026, and its rent limits start January 1, 2027. Until then, a temporary freeze holds rents for covered units at December 16, 2025 levels.

How much can I raise rent in Santa Barbara in 2027?

For covered units, the annual general adjustment is 60% of the change in California CPI, capped at 3%. That is about 2.1% for 2027. You can raise rent once in 12 months with at least 30 days’ written notice, effective no earlier than January 1, 2027.

Does the ordinance apply to my building?

Generally yes, if the units received a certificate of occupancy before February 1, 1995 and no exemption applies. Single-family homes and condominiums that can be sold separately are generally exempt. Owner-occupied duplexes are covered.

Can I raise the rent to market when a tenant moves out?

Yes. Under state law, an owner may set the starting rent for a new tenancy after a lawful vacancy. Annual increases are then limited from that rent.

Do I have to register my rental property?

Almost certainly. Nearly every rental unit in the city must register, including exempt units. Covered units are due by April 1, 2027 and all others by October 1, 2027. The fee will be set after the City’s fee study.

What happens if the referendum qualifies?

The ordinance would be suspended until the council repeals it or voters approve it. The temporary freeze still ends December 31, 2026.

Sources

• City of Santa Barbara, ordinance adding SBMC Chapters 26.90 and 26.100, as adopted October 6, 2026 (City’s copy; PDF)
• Santa Barbara City Council, Regular Meeting of October 6, 2026, Item 5 (agenda item; video)
• City of Santa Barbara, Rent Stabilization Program page
• com/ordinance: live status, timeline and section-by-section summaries

About the author

Jack Gilbert is a Senior Associate with the Golis Team at Radius Commercial Real Estate (Firm DRE #01334755), which has represented multifamily owners on the Central Coast for more than 47 years. Jack also leads SBRSO, the team’s research site tracking Santa Barbara’s rent ordinance, with live status, the full text and a fair-return calculator.

https://www.centralcoastmultifamily.com/research/santa-barbara-rent-ordinance-adopted

For a confidential look at how the ordinance affects your property’s income and value, contact Steve Golis (DRE #00772218), Jack Gilbert (DRE #02197493) or Aneta Jensen (DRE #01994822) at GolisTeam@radiusgroup.com or (805) 728-5561. To request a free property valuation, visit centralcoastmultifamily.com.

This article is for general information only and is not legal, tax or investment advice. It summarizes SBMC Chapters 26.90 and 26.100 as adopted