Santa Barbara Unified Approves 106 Affordable Apartments for Teachers and Staff Near San Marcos High School

Santa Barbara Unified School District’s Board of Education has approved an agreement to build 106 affordable apartments near San Marcos High School, aimed at addressing the housing crisis facing local educators.

The Tatum project will be constructed on a 3.65-acre site off Hollister Avenue and is designed to help teachers and school staff afford to live in the community where they work.

“Great schools are built by people and people need stable, affordable places to call home,” said Dr. Hilda Maldonado, Superintendent of Santa Barbara Unified School District. “We are committed to making that possible. This project reflects a simple conviction: the educators who dedicate their careers to the children of Santa Barbara deserve to live here, too.”

No Cost to Taxpayers

The project is notable because it will not require any district taxpayer funds. While public agencies typically must pass local tax bonds or spend general fund money to build housing, the developer is bringing approximately $60 million in private and federal financing to fund construction.

The district is not committing any general fund or bond money and will not build or operate the project.

How the Deal Came Together

The land’s path to affordable housing began in 2021 when the school board agreed to sell the property to private developer Red Tail, with the condition that a portion be returned for affordable staff housing.

Under the newly approved agreement, the district bought back the site for $7.4 million. The developer financed the entire purchase price, meaning no money left the district at closing.

The district then signed a 99-year lease with affordable housing developer FLT San Simeon Oaks. The district retains ownership of the land, and the buildings will belong to the district at the end of the lease. The Housing Authority of the County of Santa Barbara will manage the property.

Who Can Live There

Of the 106 affordable units, 97 are reserved first for Santa Barbara Unified employees. Any remaining units will be offered to other area school employees and local nonprofit workers. Eight units are set aside for veterans, and one is designated for an on-site manager.

All units are income-restricted, with rent geared toward households earning around 60% of the area median income.

On the rest of the land, the developer will build 385 market-rate and 26 moderate-rate units totaling 517 units.

Construction will move forward under the guidance of the private developer and the local housing authority.