HE-1: Adaptive Reuse Ordinance

The City of Santa Barbara is implementing the HE-1 Adaptive Reuse Ordinance to establish a regulatory framework that facilitates the conversion of nonresidential buildings into residential or mixed-use housing citywide. This initiative, managed by the Planning Division, focuses on utilizing existing building envelopes and building code standards to determine the number of new residential units rather than applying traditional density limitations. The project is classified as a forecast under NAICS code 925120 and is exempt from further environmental review under CEQA Section 15061(b)(3), as it is determined not to have significant environmental effects or induce growth beyond regional forecasts. Under this ordinance, projects that alter a building's facade or add floor area outside the existing envelope must undergo discretionary design review according to current zoning ordinances. Additionally, the framework includes critical public health safeguards requiring agency determination of site suitability for residential occupancy if projects involve soil disturbance or foundation work in areas with potential contaminated fill. While the ordinance provides the legal mechanism for these conversions, it does not directly approve specific construction projects or change the allowed uses within designated zones.