CORRESPONDENCE - #9 - Laserfiche WebLink

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Araiza, Fatima From: jermarcil@aol.com Sent: Friday, October 01, 2021 10:12 AM To: eComment Subject: Re: Agenda item #9 - - City Council Meeting October 5th, 2021 My name is Jerry Marcil and I own 348 apt. units in Santa Ana. • I was never notified of the hearing to vote on this issue. • My expenses are going up faster than 3% and faster than CPI... and I can prove that... those expenses include water, trash, electricity, gas, fire and liability insurance, maintenance, plumbing, roofing, painting, appliances, pool maintenance, carport replacement, HVAC replacements, landscaping, Manager's salary, health insurance, payroll taxes, telephones/internet, legal, accounting, marketing, etc. • The only expense not going up faster than 3% or CPI is property tax which goes up 2% every year and accounts for about 20% of the rent collected. • Rent control significantly lowers the value of a property and of a neighborhood (lack of maintenance). This means the City and State collect - Lower property taxes - Lower capital gains tax upon a sale - Lower transfer tax upon a sale - Lower income tax every year from the investors (rental income is taxed at ordinary income rates). • Why should tax payers subsidize tenants who make 3 to 1 (or better) on income to rent ratio? All of my tenants do? Why should the housing investor pay for this? • Approximately 20% of tenants are under 3 to 1 citywide. If you want to subsidize someone... you should subsidize them. (At 3 to 1, a increase 3% is just 1% of a person's income... and that's assuming their income does not go up. • 3% might fly in court, but 80% of CPI won't - - and I guarantee that will be challenged. • If you want to see what this does to a neighborhood over time... I suggest you visit the buildings built in Los Angeles before 1978 (the cutoff date for Rent Control) and see how well maintained they are - - especially the exteriors. I may be contacted at 310-791-2000 or 310-569-8996. Thank You For Your Consideration, Sincerely, Jerry Marcil P.S. Santa Ana would be the only City in Orange County to go rent control. I invested in Santa Ana because I thought it was run by common sense people - - and it would be the last place to go rent control. Now I have to go out of state to invest in housing - - like several of my friends have already done. You are about to kill further investment into the housing market. P.P.S.S. Rents on vacancies will increase because you would be limiting the supply of vacancies... young people trying to get their first place will suffer and will be subsidizing people who have a lot more money than they. Simply not fair.