Santa Barbara Approved Loan for School Site Housing
The city will loan $1 million to convert the former Lawrence M. Parma School site into 30 affordable apartments.
Updated on Oct. 3, 2026 in Financial Aid
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Santa Barbara's Finance Committee has approved a $1 million loan to redevelop the former Lawrence M. Parma School property at 915 E. Montecito St. The project will transform the vacant school site into 30 affordable housing units reserved for school district employees.
Why it matters
High local housing costs have created significant barriers for school employees attempting to live near the campuses where they work. This development aims to stabilize housing access for those staff members by providing dedicated long-term affordable units.
The apartment complex will feature 30 units, including 10 one-bedroom, 12 two-bedroom, and eight three-bedroom apartments. These units are secured by deed restrictions lasting 90 years through 2116 with a 30-year loan term at a 3% interest rate.
The players
Lawrence M. Parma School
This former school facility located at 915 E. Montecito St. has remained closed since 1989.
Santa Barbara Finance Committee
This municipal body is responsible for reviewing and authorizing city expenditures and loan approvals for public projects.
The details
The project is funded through federal HOME Entitlement and Program Income money, with the city reserving $353,543 in 2024, $507,453 in 2025, and $139,003 in 2026. The redevelopment will proceed to construction once the necessary city permitting requirements are satisfied.
Timeline
The Lawrence M. Parma School closed its doors in 1989.
The city reserved $353,543 for the project in 2024.
The city reserved $507,453 for the project in 2025.
The city reserved $139,003 for the project in 2026.
The deed restrictions for the units are set to end in 2116.
Culture Shift
This project reflects a broader trend of local governments repurposing shuttered public infrastructure to address housing shortages. By utilizing federal HOME Entitlement funds, Santa Barbara is aligning with national efforts to convert underused community assets into workforce housing solutions.
School district employees may gain access to 30 new affordable housing units upon the completion of the city permitting and construction process. Residents can anticipate standard local construction timelines as the site at 915 E. Montecito St. is brought into the rental market.
The takeaway
This project demonstrates how municipalities can leverage long-term federal funding to provide housing relief for public sector workers. Prospective tenants should monitor the city permitting process to determine when the application period for these units will open.
Further reading
Learn more about local support programs on the Financial Aid page.
Source note: This article includes information reported by The Cool Down.
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