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�= Cnmmunit Legal Aid SoCal Advocates for Justice in Orange and Los Angeles Counties ;sidents. (See Santa Ana Mun. Code & Charter §2-404.) During a time of mergency, that power is heightened under Government Code section 8634. ction provides local governments may "promulgate orders and regulations ecessary to provide for the protection of life and property." 1 Wring the current crisis, having a home where individuals and families can ractice social distancing is essential to the health, safety, and lives of Santa Ana .esidents. Rent increases often result in tenant displacement as many tenants traggle to pay their rent at their current rates. This often results in residents ecoming homeless or moving in with family or friends. The rent freeze helps nsure that residents will be able to maintain their homes and avoid displacement. The Rent Freeze does not Constitute a Taking nor is it Unconstitutional under the Contracts Clause. In Penn Central Transportation Co. v. New York City, (1978) 438 U.S. 104, the Court considered whether a Landmarks Act constituted a taking. Ultimately, the court held there was no taking because the law did not interfere with the present uses of the property or prevent Penn Central obtaining "reasonable return" on its investment. The same holds true here. The majority of tenants living in Santa Ana lived in their rental units before the COVID19 crisis occurred. This landlord tenant relationship will continue unaffected by the rent freeze. The present use of the property may continue. Additionally, a rent freeze will not prevent a landlord from receiving the same return on their investment before the crisis occurred. Rents will be maintained; they simply cannot be increased for a short period of time. Additionally, the Contracts Clause of the Constitution does not prohibit all interferences with contracts by the government. The Clause prohibits only a substantial impairment with contractual relationship. (See Energy Reserves Group, Inc. v. Kansas Power and Light Company, (1983) 459 U.S. 400, 411.) Once again, here, the current contracts landlords have in place with their tenants will remain in effect. The City's Order simply prevents landlords from charging tenants more than their current contracts for a short period of time. Landlords have come to expect these regulations as anti -price gauging restrictions are commonplace in the declaration of a State of Emergency. (See Penal Code §396.) www.communitylegalsocal.org • 2101 North Tustin Avenue, Santa Ana, CA 92705 800.834.5001 •714.571.5200