California Attorney General Rob Bonta has issued a statement regarding a settlement agreement between the City of Goleta and the Shelby Family Partnership over an affordable housing project in Santa Barbara County. The area faces a significant housing shortage, with about three-quarters of lower-income renters and nearly two-thirds of lower-income homeowners spending more than 30% of their income on housing.
Attorney General Bonta became involved after Goleta declined to process a preliminary application from the Shelby Family Partnership for new affordable homes. On December 20, 2024, Bonta filed an amicus brief supporting the project. Subsequently, on February 26, 2025, the Santa Barbara County Superior Court ruled in favor of Bonta’s position, determining that Goleta was required to move forward with the application.
As part of the settlement agreement, Goleta will now process the project application and related environmental documents without delay. The agreement could result in approval for up to 56 single-family homes by August 30, 2026; about one-fifth of these units would be designated as affordable for lower-income households.
“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.”
Bonta recently issued a legal alert aimed at helping local officials interpret and apply California’s Housing Accountability Act consistently across jurisdictions. This includes reminding local governments about their responsibility to process Builder’s Remedy applications promptly.
Details about the settlement agreement and court order are available online.
