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Courts also assess whether the adjustment of the parties' rights is reasonable and "appropriate to the public purpose" of the regulation but generally defer to state legislatures in malting those determinations." Since the end of the Lochner era, the Contract Clause has not been "read as a serious impediment to state social and economic legislation affecting private contracts."" In determining whether a regulation constitutes a substantial impairment, "whether the industry the complaining party has entered has been regulated in the past," is an important consideration in determining Whether a law operates as a substantial impairment of a contractual relationship. Because "the landlord -tenant relationship, if nothing else, [is] heavily regulated," new laws regulating that relationship are subject to less scrutiny.18 Landlords have come to expect that the state legislature and local governments will enact laws that will affect their contractual relationship with tenants. Here, in response to the COVID-19 pandemic, many policies have been adopted — between the City of Santa Ana's orders regarding tenant protections for tenants faced with nonpayment of rent due to COVID-19, and foreclosure protections, the multiple executive orders from the Governor, and the Judicial Council Order (California Rule of Court, Emergency Rules I and 2)—that have significantly changed the terms of the contractual relationship landlords have with their tenants. Additionally, emergency conditions giving rise to state regulation and the temporary nature of Executive Order No. 2-2020 cautions against a finding of substantial impairment. In Home Building & Loan Association v. Blaisdell, the Supreme Court held that a two-year state moratorium on foreclosure of mortgages during the Great Depression did not violate the Contract Clause.19 Finally, it is important to emphasize, that the City of Santa Ana already affected existing lease agreements when it enacted its emergency eviction protections as it relates to the nonpayment of rent, but those actions did not rise to the level of a Contracts Clause violation because of the extraordinary governmental interest involved. Executive Order No. 2-2020 is no different and would not raise Contracts Clause concerns because the restriction protects the health and safety of the community.21 Executive Order No. 2-2020 is not preempted by state law because it does not indefmitel restrict a landlord's right to set the rent As explained previously, the City of Santa Ana may use its police power to "make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws.21 A local ordinance is preempted from passing laws or regulations that s Id. at p. 412 Troy Ltd, v. Renna, 727F.2d 287, 295 (3d Cir. 1984) (citing Home Bldg. & Loan Ass'n. v. Blaisdell, 290 U.S. 398 (1934) (holding two-year state moratorium on foreclosure of mort a es did not violate Contract Clause).) 18 Id. at pp. 297-98 (holding law that "simply enlarge[d] the terms of a statutory tenancy" as not substantial impairment of contractual relationship). 19 290 U.S. 398, 44748 (1934). "See West Coast Hotel Co, v. Parrish, 300 U.S. 379 (1937) (finding that the Constitution permits restriction of "liberty le contract" by governmental action where such restriction protects the community, health, and safety, or vulnerable groups). 21 Cal. Const. art. XI, Section 7. 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 1E