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O. The City has not previously regulated the setting and increasing of rents for residential real property or mobilehome spaces. However, given the concerns discussed herein, the City Council desires to evaluate rent stabilization policies protecting residents from unreasonable rent increases, while ensuring that the owners of residential real property and mobilehome parks may earn a fair and reasonable return on their property. P. Pursuant to the City's police power, as granted broadly under Article XI, section 7 of the California Constitution, and Santa Ana Charter section 200, the Santa Ana City Council has the authority to enact and enforce ordinances and regulations for the public peace, health, and welfare of the City and its residents. Q. Based on the foregoing facts, and the facts presented to the City Council at the meetings at which this ordinance was introduced and adopted, the City Council finds that allowing owners of residential real_ property and mobilehome parks to have unfettered discretion to increase rents, would pose a threat to the public health, safety or welfare, and that a prohibition of rent increases, except as allowed herein, is therefore necessary. R. The City Council hereby adopts these regulations in order to address the threats set forth below. 1. Absent the adoption of this ordinance, as a result of the economic conditions and recognized housing shortage in Southern California, significant,rent increases will impact a substantial number of residents in Santa Ana and constitute a threat to public health, safety and welfare, and a particular hardship for senior citizens, persons living on fixed incomes, and other vulnerable persons living in Santa Ana; 2. Housing costs continue to escalate in Orange County, and mobilehome parks serve as an important affordable housing option for Santa Ana residents; 3. Because a mobilehome is affixed to the property on which it resides, it is generally not cost effective to move it, resulting in the owner losing the mobilehome if they cannot pay the rent imposed by the landlord; 4. Certain aspects of public health, safety, and welfare are not adequately protected due to the lack of rent stabilization mechanics or controls in Santa Ana, and it is the interest of the City, the owners, residents, and the community as a whole that the City consider regulations to protect affordable housing within the City, including, but not limited to, rent stabilization regulations applicable to residential real property and mobilehomes. Ordinance No. NS-3009 Page 3 of 11