Settlement agreement follows legal action by Attorney General Bonta, clears the way to bring badly needed homes to area 

OAKLAND — California Attorney General Rob Bonta today released a statement in response to the settlement agreement reached between the City of Goleta (Goleta) and the Shelby Family Partnership concerning a proposed affordable housing project. Located in Santa Barbara County, Goleta is experiencing an acute housing shortage. Approximately 75% of lower-income renter households and 64% of lower-income owner households in Goleta spend more than 30% of their income on housing. Attorney General Bonta filed an amicus brief in support of the project on December 20, 2024, following Goleta’s unlawful refusal to accept and process a preliminary application submitted by the Shelby Family Partnership that sought to add affordable homes to the project. On February 26, 2025, the Santa Barbara County Superior Court sided with Attorney General Bonta’s position and agreed that Goleta was required to allow the application to move forward. As a result of the settlement agreement reached between Goleta and the Shelby Family Partnership, Goleta has agreed to process the project application and related environmental documents expeditiously, with possible approval of 56 single-family homes — 19.6% of which would be affordable to lower-income households — by August 30, 2026.

“The settlement agreement is good news for Goleta, its surrounding communities, and all of California. There is simply no denying that we need more affordable housing up and down our state — every new unit that we can bring online matters,” said Attorney General Bonta. “The settlement agreement is also good news for the rule of law. My office argued that Goleta acted unlawfully by refusing to process the application for this Builder's Remedy project, the Santa Barbara County Superior Court agreed with us, and now, the application is finally moving forward. We will continue to monitor the situation closely.”

Details regarding the settlement agreement can be found here, and a copy of the court’s order can be found here. In addition, Attorney General Bonta recently issued a legal alert to help local officials understand the importance of the consistent statewide interpretation and application of California’s Housing Accountability Act — including local governments’ responsibility to timely process Builder’s Remedy applications.