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Ordinance No. NS - ____ Page 4 of 12 any amendments or supplements, and oral testimony, shall constitute the necessary findings for this ordinance. T. The City Council finds, determines and declares that the threat to the public health, safety and welfare of the City and its residents necessitates the enactment of the ordinance. Section 2. The recitals and statements of fact set forth in the preamble to this ordinance are true and correct, constitute a substantive part of this ordinance, and are incorporated herein by this reference. Section 3. Section 8-1998 of the Santa Ana Municipal Code is deleted in its entirety. Section 4. Division 5 is hereby added to Article X (Property Maintenance) of Chapter 8 (Buildings and Structures) of the Santa Ana Municipal Code to read as follows: Division 5. – RENT STABILIZATION Section 8-1998.1 – Prohibited Increases. (a) Increases in rent on residential real property or mobilehome spaces in the City of Santa Ana in excess of three percent (3%), or eighty (80%) of the change in the Consumer Price Index, whichever is less, and more than one rent increase in any twelve (12) month period, are prohibited, unless expressly exempt under the Costa-Hawkins Rental Housing Act codified in California Civil Code section 1954.50, et seq., or the Mobilehome Residency Law codified in California Civil Code sections 798, et seq. If the change in the Consumer Price Index is negative, no rent increase is permitted. The term Consumer Price Index means, at the time of the adjustment calculation completed by the City pursuant to subsection (b), the percentage increase in the United State Consumer Price Index for all Urban Consumers in the Los Angeles-Long Beach-Anaheim Metropolitan Area published by the Bureau of Labor Statistics, not seasonally adjusted, for the most recent twelve (12) month period ending prior to the City’s calculation pursuant to subsection (b). A violation of this section occurs upon the service of notice or demand for a prohibited increase in rent. (b) No later than June 30th each year, beginning with the year 2022, the City shall announce the amount of allowable re nt increase based on subsection (a) herein, which shall be effective as of September 1st of that year. City Council 7 –4 10/19/2021