SACRAMENTO — A late-session budget trailer bill has introduced a narrow carveout to California’s landmark housing law, one that housing advocates argue is tailored to stymie a single development project in Santa Barbara.
Earlier this year, lawmakers celebrated a historic victory for pro-housing advocates by exempting most urban apartment projects from the California Environmental Quality Act (CEQA). The exemption was seen as a major breakthrough in addressing California’s chronic housing shortage by streamlining approvals.
But Senate Bill 158, quietly introduced just before the end of the legislative session, would reimpose CEQA review for projects that meet a very narrow set of conditions: located in a city with a population between 85,000 and 95,000, within a county of 440,000 to 455,000 people, adjacent to wetlands, a creek, and a state historic landmark, while exceeding four acres or invoking the “builder’s remedy.” According to 2020 Census data, that description only applies to Santa Barbara.
The bill comes at a politically sensitive moment. Earlier this year, Senate Democrats chose Sen. Monique Limón, who represents Santa Barbara, as the next Senate leader. She is set to replace President Pro Tem Mike McGuire in early 2026.
Critics say the carveout was designed to block a controversial 270-unit, eight-story apartment complex proposed behind Santa Barbara’s historic Mission. The project, known as The Mission Apartments, has been the subject of fierce local opposition, with concerns ranging from wildfire and flooding risks to the building’s scale and location in a wealthy enclave.
In May, Santa Barbara Mayor Randy Rowse described the project as a “horrendous nightmare.” The developers, operating under the name The Mission LLC, have already sued the city multiple times, alleging unlawful delays and improper denials of a property tax exemption.
An unattributed statement from Mission LLC condemned the bill, promising to sue again:
“This bill is an example of the control of public policy by a few wealthy NIMBYs in an attempt to obstruct desperately needed low-income housing. The project, located in a wealthy area of Santa Barbara, would provide 54 low-income units and this attempt to block it demonstrates the kowtowing of some legislators to wealthy NIMBY constituents.”
Responding to questions from CalMatters, Limón’s office rejected the idea that the measure was tailored to kill a specific development.
“This bill clarifies narrow instances when environmental review, public input, and mitigation efforts are required on a development that poses a risk to safety,” her office said in a statement.
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Still, the senator’s office confirmed she was responsible for drafting the language and declined to say whether the Mission Apartments project falls under those “narrow instances.”
Housing advocates and environmental policy watchers note the move highlights a growing rift in Sacramento’s housing politics. Speaker Robert Rivas and Assembly Democrats have embraced aggressive pro-housing measures aligned with the Yes In My Backyard (YIMBY) movement, while the Senate has often been more cautious, balancing local opposition and environmental concerns.
The City of Santa Barbara, meanwhile, has long argued that the statewide CEQA exemption did not apply to the Mission project. If SB 158 is enacted, it would codify that position in law, reinforcing the city’s interpretation.
Because SB 158 was folded into a budget trailer bill, it faces fewer procedural hurdles than standalone legislation. Such bills are traditionally meant to guide agencies on budget implementation but have increasingly become vehicles for policy maneuvers in the final days of session.
For now, the future of the Mission Apartments remains uncertain — caught between the state’s push to accelerate housing production and the entrenched resistance of affluent communities wary of large-scale development.
Originally reported by Ben Christopher in Cal Matters.
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