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Y Calif orniaApartment Association Orange County 3349 Michelson, Suite 200 Irvine, CA 92612 e'X (949)474-1411 ■ caanet.org May 4, 2020 The Honorable Miguel Pulido Mayor City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Re: Item #60A — Clarifications on Rent Freeze Guidance Dear Mayor Pulido and Members of the Santa Ana City Council, On behalf of the California Apartment Association, I would like to make several clarifications regarding what has evolved out of our discussions with City Staff about Santa Ana's rent freeze order. The topics in question are (1) interpretation of CAA's Safe at Home Guidelines, (2) our legal counsel's advice to the City, and (3) a comparison of Santa Ana's unlawful rent freeze in contrast with rent freezes that other cities have legally approved. 1. CAA's SAFE AT HOME GUIDELINES ARE NOT MANDATES BECAUSE NOT ALL LANDLORDS CAN PROVIDE THE SAME RELIEF MEASURES CAA's Safe at Home is a set guidelines and not mandates. The staff report glosses over the first sentence which begins by stating, "CAA continues to uree property owners..." (emphasis added). Our members have made every effort to implement guidelines to the best of their ability, but we recognize not every apartment owner -operator has the financial wherewithal to implement these recommendations. Codifying Safe at Home as government mandates creates a "one -size fits all" standard that many rental housing providers may find impossible to achieve. The staff report selectively leaves out this fact and seeks to misrepresent CAA's guidelines. CAA acknowledges the economic impacts that public health lockdowns are having on residents and we would add those impacts especially felt by smaller landlords. Residents and landlords do not carry the same burden. The City's approach toward rash decisions exacerbates impacts on some groups more than others. Nearly 60 percent of CAA's membership are independent rental owners, or better known as "mom and pop" owner -operators. Mom and pop owners may not have the ability to fully participate in Safe atl-lome. Please recall in previous a previous letter that landlords have not been relieved of several financial obligations such as payments mortgage, property taxes, insurance, maintenance, and other expenses. To better enlist mom and pop owners in Safe at Home, CAA sponsored a rent relief bill authored by State Senator Lena Gonzalez (33'd District) and Assembly Member Cottie Petrie -Norris (74'h District)' Landlords who participate in the program would be required halt rent increases for a specified period, waive late fees for past due rent, and essentially cut rent to 80% by not pursuing any remaining rent owed for months paid by the program. In contrast to mandates, CAA's positive collaborations with public officials has resulted balanced relief proposals for renters and landlords. We applaud the City's efforts to administer rent relief because it supports both tenants and landlords, but we must all recognize that funding is limited and flexibility is needed. (remarding page intentionally left blank) I Senate Bill 1410 - https://Ieginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200SB1410 /7