60A - EXECUTIVE ORDERS FOR COVID-19

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Discuss Executive Orders Issued Pursuant to Declaration of Local COVID-19 Emergency May 5, 2020 Page 3 Shortly after the issuance of Order No. 2, Victor Cao of the California Apartment Association contacted City officials asking for clarification in some cases and seeking a repeal of the prohibition in other cases. The Manufactured Housing Education Trust also contacted City staff with concerns about the prohibition would impact its members. On April 17, 2020, Mr. Cao indicated that he would work with his coalition group and ask everyone to be patient while staff provided clarification and tried to understand how Santa Ana businesses would be impacted. On April 20, 2020, the City Manager responded to the coalition with additional information and on April 22, 2020, shared the FAQS with the group. On April 23, 2020, the City received a letter calling the City's temporary prohibition on rent increases a rent control measure and asking the City to revise it. The California Apartment Association's website on the other hand suggests CAA is taking a more aggressive legal approach: "The California Apartment Association has challenged the city of Santa Ana and Contra Costa County for violating the Costa Hawkins Rental Housing Act" (April 23, 2020 CAA Website: https://caanet.org/caa-challenges-local-governments-over-violating-costa-hawkins/). The City Council, in responding to the letter, may consider one of the following two options: Option No. 1: The City may maintain that its prohibition is a temporary measure only, valid until May 31, 2020, and that the extraordinary circumstances of COVID-19, together with the impacts in Santa Ana, require the measure. The intent was to impose the prohibition through May 31, 2020 and to extend it only if the State of California adopted a similar measure. The City Council might also ask the CAA and its coalition members to allow staff to speak to those property owners who intended to increase rents prior to May 31, 2020, so the City might better understand the consequences to specific property owners and how regulations might be balanced to protect renters and landlords alike. Option No. 2: The City Council may rescind that portion of Order No. 2 pertaining to the temporary prohibition on rent increases. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #3 - Community Health, Livability, Engagement & Sustainability, Objective #4 (support neighborhood vitality and livability). FISCAL IMPACT There is no fiscal impact associated with this action. Exhibits: 1. Letter from California Apartment Association Coalition 2. Summary of Effective Periods of Executive Orders 3. Summary of Cities with Rent Freeze Provisions 60A-3