A 30-unit market-rate and affordable housing project is proposed for the Lower Riviera, in the hills above Santa Barbara.

Industrial Partners Group wants to build the apartment building at 1609 Grand Ave., on what’s now a vacant double lot. The project is proposed under a state law known as the Housing Accountability Act, or “Builder’s Remedy,” approved by the state legislature in 1990.

Builder’s Remedy allows developers to bypass some local zoning laws to expedite housing approval if at least 20% of the project is affordable, and the project was submitted at a time when the agency’s Housing Element was not certified.

“Infilling these vacant lots is one step towards alleviating our community’s crisis-level housing needs,” Craig Martin Smith, founding principal of Los Angeles-based Industrial Partners Group, said in a 2023 news release. “With the Builder’s Remedy, we are supporting California’s mandate to build affordable housing.”

The project calls for underground vehicle parking, electric vehicle charging, bicycle parking and resident storage.

The developer submitted a preliminary application in May of 2023. It was the first in the city proposed under Builder’s Remedy. The developer has since submitted a formal application and the project will need to go before the city’s Planning Commission.

Not everyone is pleased with the project.

Santa Barbara City Councilwoman Kristen Sneddon said the project has sparked “significant neighborhood impact and safety concerns.”

If the developer did not use the Builder’s Remedy loophole, the zoning for the area allows for only up to two units.

“Anything more than that should at the very least trigger CEQA analysis for significant concerns,” Sneddon said.

Sneddon said the current application has been deemed incomplete by the city.

Rob Fredericks, executive director of the Housing Authority of the City of Santa Barbara, said the city needs affordable housing but that neighborhood compatibility also matters.

“Personally, I don’t think it is good for Santa Barbara having projects like these snub their nose at the zoning that was carefully deliberated by past planning commissions and city councils,” he said.

Fredericks noted that the project was proposed outside of the city’s average unit-sized density incentive program boundaries, the area of the city where density is encouraged. The site of the proposal is in an area of mostly single-family homes with ocean views.

“We certainly need more housing, specifically affordable, but projects should adhere to where they fit,” Fredericks said.

Santa Barbara and most coastal communities are suffering from a housing crisis. Many local jurisdictions missed the deadline set by the state a year ago to certify their housing elements. A developer who submitted an application when the city’s Housing Element was out of compliance could use Builder’s Remedy.

The loss of some local zoning control has irked local officials and residents who reject the state’s mandate to create more housing. Developers, however, have attempted to cash-in on Builder’s Remedy, proposing massive housing projects, as long as 20% of the units are affordable.

Cass Ensberg, a member of the city’s Historic Landmarks Commission, described the project as “shockingly insensitive to the direct neighborhood and also to the broader community.”

“It is the wrong place for a project of that scale,” she said. “This proposal is not a good example of the kind of development we need.”

She said Santa Barbara needs sensitive design approaches and balance to achieve greater density.

“The larger buildings belong and are appropriate in the downtown area,” she said.

Martin Smith expressed confidence in the project.

“Without Builder’s Remedy, this development would be limited to four units,” he said in the news release. “Now, we can provide six affordable units along with additional housing for 24 other families. Santa Barbara needs housing, and the neighborhood needs vibrancy, energy and families.”