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Update on Santa Barbara Housing Projects

Santa Barbara Projects

The Changing Skyline/ December 8, 2025: As we wrap up 2025, the conversation around housing in Santa Barbara has never been louder. From the historic Upper East to the heart of downtown, a wave of “Builder’s Remedy” proposals and large-scale redevelopment plans is challenging our traditional notions of city planning.

Whether you are a concerned neighbor, a local advocate, or just keeping an eye on the market, here is a comprehensive roundup of the major projects defining our city this year.

1. The “Riviera Tower”: 1609-1615 Grand Avenue

Location: Lower Riviera

This project has arguably become the flashpoint for neighborhood preservation efforts this year. Proposed for the steep, winding streets of the Lower Riviera, the plan calls for a 72-foot-high building containing 53 units.

Status Update: As of late 2025, the project is facing significant headwinds. The City of Santa Barbara deemed the project application “complete” back in February, but subsequent reviews have been rocky. In August, the City informed the applicant that the project does not qualify for certain CEQA (environmental) exemptions because it conflicts with the General Plan and zoning standards.

Community Concerns:

Safety: Residents have voiced strong concerns about evacuation routes in this high-fire zones, specifically regarding how emergency vehicles would navigate the narrow Grand Avenue and California Street with added density.
Scale: At over 70 feet, opponents argue the structure would loom over the hillside, blocking public scenic views and disrupting the neighborhood’s character.
Opposition: The non-profit SAGE-SB (Smart Action for Growth & Equity) has been leading the pushback, hosting workshops and fundraising for legal counsel to ensure thorough environmental review.

2. The Mission Project: 505 East Los Olivos Street

Location: Behind Old Mission Santa Barbara

Perhaps the most controversial proposal of the year is the massive development slated for the historic grounds behind the Santa Barbara Mission (the “Hazard property”).

The Proposal: A 127-foot-high building (some reports vary between 80-127 feet depending on the measurement point) featuring 270 residential units. The structure would sit atop a three-story parking garage with 445 spaces.

Status Update: This project is currently tracking behind the Grand Avenue proposal in the review process. A major development occurred recently when State Senator Monique Limón introduced a bill (signed by the Governor) that mandates a full environmental review for this specific site. This has effectively slowed the “fast-track” status the developers initially sought.

Key Issues:

Heritage: The proximity to the “Queen of the Missions” has made this a cultural battleground.
Environment: An Environmental Impact Report (EIR) is now expected to address critical issues including archeological resources, endangered species in Mission Creek, and flooding risks.

3. Downtown Transformation: Paseo Nuevo Redevelopment

Location: State Street (Downtown)

While the hillside projects fight for approval, downtown Santa Barbara is looking at a different kind of transformation. The long-struggling Paseo Nuevo mall is the site of a major mixed-use proposal.

The Proposal: Developers are planning to replace the former Macy’s building with a market-rate apartment complex (approx. 233 units) rising up to 75 feet.

Recent Friction: Negotiations hit a snag in late 2025 regarding affordable housing. While initial discussions hinted at 80 affordable units, recent drafts of the agreement allegedly reduced this commitment to just 24 units, causing tension with the City Council and housing advocates. The city is currently weighing the trade-offs of revitalizing the dead mall space versus securing adequate public benefits.

4. La Cumbre Plaza

Location: Upper State Street

Further uptown, the reimagining of La Cumbre Plaza continues to move forward. This is arguably the largest single housing proposal in the pipeline.

The Proposal: A massive 680-unit mixed-use project is planned for the Macy’s site at La Cumbre. Unlike the hillside projects, this development is generally seen as more appropriate for its location (transit-oriented, commercial corridor), though its sheer size will drastically change the traffic patterns of Upper State Street.

Community Response & SAGE-SB

A recurring theme in 2025 has been organized community action. The newly formed non-profit SAGE-SB has emerged as a central player, advocating for “smart growth” rather than what they term “unchecked development.”

They have been active in:

Demanding rigorous Environmental Impact Reports (EIRs).
Hiring expert consultants to challenge “Builder’s Remedy” claims.
Hosting community workshops (like the one held in September) to keep residents informed.

What’s Next?

As we head into 2026, keep an eye on the Environmental Impact Reports for the Los Olivos and Grand Avenue projects. These documents will likely be the deciding factor in whether these projects are scaled back, denied, or approved in their current forms.

Have thoughts on these projects? Leave a comment below.

Note: This post is for informational purposes and summarizes public records and community updates as of December 2025.