Question 1

Does the City of Santa Barbara publish a permit or plan-check timeline I can build a draw schedule around?

Accepted Answer

We could not source one, so do not build a draw schedule around a number you cannot verify. No plan-check turnaround, median entitlement duration, or streamlining commitment was located for the city in our research, and Santa Barbara's reputation for slow entitlements is widely asserted but unverified. Get a current estimate directly from the Community Development Department before you lock a construction schedule, and structure your draws against your own build sequence.

Question 2

Are development impact fees or school impact fees published for a Santa Barbara build?

Accepted Answer

We have not sourced a fee schedule for any city or district in this county. Development impact fees, school impact fees, and any fee deferral program were not located for Santa Barbara or for any other city or district here, so we publish no fee number. Price your pad cost as a variable to confirm with the city, the county, and the local school district before you underwrite, not as a number you can look up.

Question 3

My lot is near the coast. Does that mean a second permit track?

Accepted Answer

Yes, if it sits inside the city's Coastal Overlay Zone. A parcel inside the Coastal Overlay Zone (S-D-3) needs a Coastal Development Permit, and the governing code there is Title 28, not the inland Title 30. The Coastal Commission has already shown in this county that certifying a coastal program change is a discretionary outcome, not a formality, so confirm which title and which permit track your parcel sits under before you price an entitlement timeline.

Question 4

I'm planning a mixed-use build in the city. How much nonresidential space can I add?

Accepted Answer

Most lots cap new nonresidential floor area at 1,000 square feet, 3,000 downtown. The city's Growth Management Program (chapter 30.170 inland, 28.85 coastal) sets that ceiling on any residential-to-commercial conversion or addition. Adding more than 1,000 square feet requires a Development Plan and design review, and more than 3,000 square feet requires Planning Commission approval. Size your project to that ceiling before you draw plans, not after.

Question 5

If I add an ADU to a Santa Barbara build-to-rent project, can I still run it as a short-term rental?

Accepted Answer

No, not on any part of that parcel. In the City of Santa Barbara, a property with an accessory dwelling unit or junior accessory dwelling unit may not be rented for less than 31 consecutive days, and that rule reaches the primary unit as well as the ADU. Adding an ADU to a build-to-rent project forecloses short-term rental on the whole parcel, so decide which strategy you are building for before you finalize the unit mix, not after the certificate of occupancy.

Question 6

Will a unit I build cost more to run on utilities if I lease it short-term?

Accepted Answer

It can. The city's own guidance for short-term rental conversions flags that a separate water meter may be required, after which commercial water and sewer rates apply instead of residential rates. Build that utility line into your pro forma if any part of a new project is headed toward short-term rental use rather than a standard long-term lease.

Question 7

How much of my construction project will you finance?

Accepted Answer

We fund new construction up to 70% of value and up to 85% of total cost (land plus build), in most states, on loans up to $5M. Experienced builders reach the higher end of leverage. We finance both the lot and the vertical construction within those caps.

Question 8

Will you finance the land or lot purchase?

Accepted Answer

Yes. Lot acquisition is funded as part of your loan-to-cost. If you already own the lot, that equity can serve as your down payment, which often lets us fund most or all of the build cost.

Question 9

How does the draw schedule work?

Accepted Answer

Construction funds are released in draws as milestones are completed and verified, not handed over at closing. You submit your budget and scope of work up front, complete a phase, request a draw, and we release that portion after inspection. You pay interest on funds as they are drawn.

Question 10

What are the rates and terms on a ground-up loan?

Accepted Answer

Our construction pricing starts around 10%, interest-only, on terms of 12 to 24 months. Market ground-up rates generally run 9% to 12% with 1 to 3 points. Your pricing and leverage depend on your build experience and the strength of the project.

Question 11

Do you lend to first-time builders?

Accepted Answer

We consider builders at all levels, though a track record helps your leverage and rate. A first-time builder should expect to bring a strong general contractor, a detailed budget, and typically a larger equity contribution. A well-documented project goes a long way.

Question 12

What do you need to quote a construction loan?

Accepted Answer

The lot cost or current value, your construction budget and scope of work, the projected after-built value, and your build experience. With those we can size the loan against both cost and completed value and send you terms.

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