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May 1, 2020 RE: May 5, 2020 City Council Agenda Item No. 60A Honorable Mayor Miguel Pulido and Members of the City Council: The Pacific West Association of REALTORS® is the local real estate association that represents the Santa Ana area, and PWR's 13,000 members promote homeownership, private property rights, free enterprise and responsible government. We write to you with extreme concern over the City's Executive Order No. 2-2020, issued on April 7, 2020, specifically with regard to Section 1J and Section 3 that "residential landlords in the City are hereby prohibited from increasing rent for all tenants while Executive Order N-28-20 adopted by the Governor of the State of California remains in effect or is extended by the Governor". Unless California law known as the Costa -Hawkins Rental Housing Act is suspended, the City of Santa Ana is legally preempted from trying to impose a sweeping and across-the-board ban on rent increases, a form of rent control that is prohibited at the local level, This unilateral move by the City Manager, acting as the Director of Emergency Services, alters and interferes with private contractual rights, especially as it does not exempt newer apartments or single-family homes that are rented out to tenants. We remain supportive of local, state, and federal government action around emergency relief Programs that are designed to promote housing security and stability. To this end, the California Association of REALTORS@ has created five (5) specific forms to facilitate landlords and tenants working together regarding the payment of rent and staying housed during the coronavirus pandemic. We've also established real estate best practices to enable REALTORS® to demonstrate care for the health and well of clients, colleagues and the greater public welfare. Unfortunately, the Executive Order No. 2-2020 goes well beyond its statutory authority and is not likely to withstand legal challenge. What remains most troubling is that an action of such magnitude was imposed without City Council deliberation and public input, setting a dangerous precedent that has lasting impacts on the ability of our elected officials to lead through responsible governance. Sincerely, Phil Hawkins, Chief Executive Officer Tim Shaw, Government Affairs Director Christine Schachter, Government Affairs Director ANAHEIM OFFICE - MAIN o LONG BEACH OFFICE 1601 East Orangewood Ave., Anaheim, CA 92805 5000 East Spring St Suite #110, Long Beach, CA 90815 (714) 245-5500 1 Fax (714) 245-5599 1 www.pwr.net nenuoa