Board approves county loan for Eastern Goleta Valley affordable housing after equity concerns

The Santa Barbara County Board on June 9 voted 4–1 to approve a county loan to FLT Simon Oak LP to support an affordable multifamily housing project in the unincorporated Eastern Goleta Valley, approving staff recommendations while directing a review of how housing-inclusion fees are allocated across the county.

Supervisor Lavanino objected to the loan on equity grounds, saying the majority of the fee revenue that subsidizes projects comes from north-county payers while benefits often flow to south-county projects. “I was disappointed because most of these funds come from the north of the county to pay for projects in the south,” Lavanino said.

County staff responded that the inclusionary-housing ordinance and fee structure have produced geographic imbalances and offered to return with ordinance revisions. Staff described options to adjust where funds may be used and to consider changes to ensure more equitable allocation of developer fees.

After discussion, the board approved the staff recommendations and directed staff to revisit the county’s inclusionary-housing ordinance and funding-use rules. The motion passed with four supervisors voting yes and Supervisor Lavanino voting no.

The loan is listed on the administrative agenda as Item A23; staff emphasized the loan is part of a package of financing that includes developer-provided financial commitments and does not make the county ultimately liable beyond its loan approval process.