Buying a 5+ Unit Building in Santa Barbara City? There's a One-Year Hold on Remodel Evictions

As of April 2025, Santa Barbara Municipal Code §26.50.090 prohibits new owners of properties with five or more rental units from initiating any no-fault just cause eviction to demolish or substantially remodel a unit for one full year following acquisition. The restriction applies only within the City of Santa Barbara, and it was added by Ordinance 6179 — so it's recent enough that it hasn't made its way into most investor due diligence checklists yet.

What the Rule Says

The language is direct: an owner who acquires a property with five or more rental units cannot commence a no-fault eviction of any qualified tenant to demolish or substantially remodel a unit during the first year of ownership. "Qualified tenant" under Chapter 26.50 means someone who has continuously and lawfully occupied the unit for 12 months. The one-year clock starts at the date of acquisition — not when permits are pulled or when work begins.

The restriction applies to no-fault evictions for demolition and substantial remodel only. At-fault evictions (nonpayment, lease violations, nuisance) are unaffected, as are other no-fault grounds like owner move-in.

What Counts as a Substantial Remodel

Santa Barbara City defines substantial remodel as the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system requiring a permit, or the abatement of hazardous materials including lead-based paint, mold, or asbestos — where the work cannot reasonably be completed with the tenant in place and requires vacancy for at least 30 consecutive days. Cosmetic work, painting, minor repairs, and routine maintenance don't qualify.

If the renovation plan involves permitted structural, electrical, plumbing, or mechanical work requiring the unit to be vacated, it almost certainly falls under this definition.

The Additional Requirements That Apply After Year One

Once the one-year hold expires, SB City's substantial remodel process still imposes requirements that go beyond California state law. These apply to any remodel-based no-fault eviction in the city, whenever it occurs:

Independent contractor declaration. Before serving notice, the owner must obtain a written opinion — signed under penalty of perjury — from an independent construction expert holding a current Class A, B, or B-2 California Contractors State License Board license. The report must state that the work cannot be safely completed with the tenant in place and requires at least 30 consecutive days of vacancy. The expert cannot be the contractor hired to do the work or otherwise financially interested in the project. This report must be filed concurrently with the building permit application.

Building official sign-off before re-renting. After the work is done and possession has been recovered, the owner cannot re-rent the unit until the Chief Building Official has inspected and confirmed in writing that all permitted work is complete.

State law (Civil Code §1946.2) requires permits and notice but has neither of these requirements.

How Other Jurisdictions Compare

The one-year acquisition freeze exists only in the City of Santa Barbara. Goleta, Carpinteria, and unincorporated Santa Barbara County have no equivalent. Goleta has its own substantial remodel rules — including a proof-of-service filing with the Planning and Environmental Review Department within five days of serving notice — but nothing tied to when the property was purchased. The County's standard requires that any substantial remodel be primarily for health and safety code compliance, which is a narrower trigger than SB City's definition, but again, no acquisition waiting period.

What This Means in Practice

For a value-add acquisition in the City of Santa Barbara, the one-year restriction is a genuine timeline constraint. A renovation strategy that depends on beginning no-fault remodel evictions shortly after closing needs to be pushed out by at least twelve months. That affects carrying costs, projected rent timelines, and return projections in ways that should be modeled before the deal closes.

It also covers all qualified tenants across all units — there's no carve-out by unit type or lease structure. If you're planning a phased renovation on a five-unit property, the hold applies to every unit with a qualifying tenant.

The practical answer is to build the one-year hold into your underwriting, review the existing lease schedule before close, and know which units will have tenants approaching 12 months of occupancy during year one.

A quick note: This is a general overview of local ordinances, not legal advice. Property-specific circumstances matter, and the City's rules continue to develop. Talk to a California attorney familiar with Santa Barbara City law before structuring a transaction around these timelines.

If you're working through the compliance side of a recent or upcoming acquisition, we're happy to help think through what applies to your specific property. See more about our services here: Services