Laserfiche WebLink
Honorable Mayor and City Council Persons <br />City of Santa Ana <br />Hearing: October 4, 2022; Item: 25 <br />September 30, 2022 <br />Page 8 of 11 <br />adjustment procedure which would make such delays <br />Cal.3d 129, 170 (1976). What follows, are comme <br />stabilization ordinance. <br />inevitable." Birkenafeld v. City of Berkeley, 17 <br />its to the new proposals reworking the rent <br />For clarity purposes, our Clients are not contesting the City's ability to enact rent control <br />generally. Rather, they contest those portions of the ordinance which are contrary to settled law <br />particularly as it relates to mobilehome parks, or which are so burdensome as to constitute a taking, or <br />which comprise a violation of substantive due process. <br />The proposed amendments appear to still require some form of completeness, and are unclear as <br />to whether they relate to an individual property, or pen -nit adjustment to a class of rental units as <br />discussed in BirkenfHd. Section 8-3145 delegates a gatekeeper, the "Program Administrator" with the <br />authority to reject applications "that [do] not include required information or documentation or comply <br />with the requirements of this Division.." Proposed City of Santa Ana Ordinance Section 8-3145 (a). A <br />complete application for an individual property effectively prevents adjustments that a) deal with factors <br />that are common to all properties like property taxes, or b) that are initiated based on information <br />received by the rent adjustment official or board without a complete application or on their own motion, <br />or c) allowing/encouraging applications between multiple properties or classes of properties. <br />Accordingly, we suggest adding clarity that the Board can act on its own motion, and has flexibility to <br />consider adjustments based on generally applicable factors, across properties and classes of Rental Units. <br />Additionally, the new proposals regarding the rent review board pose some due process traps for <br />the legislators. We discuss below that it would be most prudent to assure that there are balanced boards <br />between pecuniary interests, and that mobilehome park rental review boards have precedent in other <br />jurisdictions given that their rent adjustment considerations differ from other types of properties. <br />A. Section 8-3142 — Fair Return Petition for Rent Increase: The provisions within the Standard <br />of Review do not take into consideration the realities of owning and operating a mobilehome <br />park. The following are changes to bring the proposed section into better parity with the <br />ownership and operation of a mobilehome park, and applicable law: <br />a. Subparagraph (a): Add additional sentence for Petition on rrrotion of Board, to <br />subparagraph (a): "Tire Board rimy also initiate a Fair Return Petition, upon a majority vote <br />of the Board, where such motion identifies generally applicable factors, and instructs the <br />Program Administrator to prepare such Petition, relating to a single property, or all or any <br />class of Rental Units. Such Petition will proceed to be considered as provided in this <br />Division. <br />b. Subparagraph (b)(7): Delete in its entireiy. Increases in utility charges are wholly beyond <br />the landlord's control and are often passed through to tenants directly. As further discussed <br />above, the costs of utilities are already governed by the California Public Utilities <br />Commission, pursuant to its tariffs and ratemaking under the Public Utilities Act, Cal. Pub. <br />Util. Code § 201 et seq. In particular, Cal. Pub. Util. Code § 739.5 already requires that <br />landlords submeter tenants at the same rate that the regulated public utilities would charge <br />for residential service if it were providing the services directly. By mixing these rates into <br />Kingsley — 426 Santa Ana Ordinances <br />