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Market a bust for nonprofits

There are several nonprofit agencies in Santa Barbara County trying to resolve the issues outlined in the above editorial by attempting to provide housing and services for the county's low-income seniors, farm workers and even some of what used to be middle-class workers, such as school teachers and public safety workers.

But these groups are running smack-dab up against the real estate bubble.

Six years ago, an official with the Lompoc Housing and Community Development Corp., a nonprofit, was offered two acres of Lompoc property for $200,000, as a place to build affordable housing. The official turned down the deal because she thought the price ridiculously high.

The group bought the two acres in 2001 - at a cost of $800,000, four times the original asking price. Work will begin on 35 affordable units there sometime this year. In April, the land appraised at $1.6 million.

The same thing happened to Habitat for Humanity, which builds affordable units. Its officials found a perfect spot on West Street in Santa Maria last year for $125,000, which was within the organization's budget. The purchase wasn't made, and today the parcel is on the market for $750,000, which is most decidedly not in the group's budget.

This escalation of land values only worsens the situation with regard to providing affordable housing, but strengthens the argument for in-fill development, including mixed-use zoning in a city's core.

It looks like everyone is going to have to get more creative to accommodate the area's work force in the future.

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Jan. 19, 2005






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