There are many great hotel and airbnb options in the area, you'll just have to search for them. We didn't reserve any hotel blocks.
If you want to stay close to the venue, see map below. The red X shows you approximately where the wedding will be.
Those dollar amounts are roughly nightly rates.
Inn At East Beach looks fine and is the best value.
Palmoro House has a funky check-in experience, from what I read, so I wouldn't recommend.
Mar Monte Hotel and Pacific Crest Hotel both seem nice, but are in the middle of the price range
Blue Sands Inn and Santa Barbara Inn are definitely the nicest, but also the priciest
ALL are easily within walking distance of the venue.
Additional options are below. Those are not walking distance, but they are popular places to stay while visiting Santa Barbara.