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Orozco, Norma From: Richard Tucker <rmtucker@jamboreemanagement.com> Sent: Tuesday, October 05, 2021 5:35 PM To: eComment Subject: Your rent control is too stringent to encourage apartment owners to commit to improving City housing supply These comments are directed to the Mayor and City Council: My name Richard Tucker and I am an owner of apartments for many years in the City of Santa Ana. 1 am one of several owners of the 64 unit Portofino Apartments, 1313 Memory Lane. Our ownership goes back to 1999. We are an ownership group that takes pride in our property and taking care of our residents. For many years now we have received an award from the City of Santa Ana for our exemplary community. We proudly hang this framed award in the office of the community. This last June I joined two other investors in acquiring another 24 units in the City of Santa Ana. We noted that the neighboring twin property which is next door to the one we bought had all the residents renting their apartments at $1495 per unit and we thought that our property with $1350 rents could be raised to that level if we earned the increase with improvements that would cost about $200,000. That neighboring property has new roof, all the windows newly replaced, repainted outside, nice landscaping and many of the apartments have upgraded kitchens with new cabinetry. So, this was our plan too. And under California rent control we could achieve those rents in about 2 or 3 years. So far we have completed the replacement of the asphalt shingle roof with anew 30 year life roof. Apparently there had been a large number of leaks because most of the underlying wood was rotted and we replaced all the wood with new material. The cost of the new roof was over $75,000. We have our window replacement contract in hand for $45,000 and we have started considerable work to rod iron railings throughout the property. However due to the new proposal to put stringent rent controls in place it does not make any sense to upgrade the building and make it a pride of ownership building. We have put a hold on new windows, hold on the installation of boxed trees for the courtyard, hold on installing new steel and concrete stairs, hold on new fencing, and a hold on doing an asphalt overlay on the drives and parking lot. As the leaders on the City you have to realize the future investment in the City housing will not happen. Owners will fix what is broken but there is no benefit to future investment into the City of Santa Ana. No upgrading of deteriorating housing assets. No modernizing of deteriorating housing assets. You are encouraging property owner to allow decay and decline. Is this what you really want? Please note that my email address has changed TO: RMTucker@JamboreeManagement.com Richard M. Tucker, CPM® Jamboree Management, President 949.380.0300 — Phone 949.900.4960 — Direct 949.900.4950 - Fax Jamboree M A N A G E M E N T