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City of Santa Ana Rent Stabilization Program Fee – March 2023 <br />Ordinance (“Ordinance”), and the Rent Stabilization Program (“RSP”). [Ordinance and RSP may be <br />used interchangeably throughout this Fee Study.] <br /> <br />The Rent Stabilization Program’s annual cost is approximately $3.24 million and includes 14.4 full <br />time equivalent city employees, plus contractual support for hearings, appeals, education & <br />outreach, on-call translation services, equipment and technology. Based upon this Fee Study, RCS <br />recommends Option 1 below: <br /> <br />Option 1: Single Rental Registry Fee (Petition Fees Included in the Rental Registry Fee) <br />Fee Title Suggested Fee # of Units Revenue <br />Annual Registration $100 per unit 32,450 $3,245,000 <br /> <br />After timely payment of the Rental Registry Fee, the landlord may pass through up to fifty <br />percent (50%) of the Rental Registry Fee to tenants of the applicable rental unit, to be paid <br />by the tenant in twelve (12) equal monthly installments (Section 8‐3161(d)). This is equal to <br />$4.17 per month to be paid by the tenant. <br /> <br />Option 2: Petition Fees Separate from the Rental Registry Fee <br />Fee Title Suggested Fee # of Units/ <br />Petitions Revenues <br />Annual Registration $86.12 per unit 32,450 Units $2,794,654 <br />Fair Return Petition $21,357 per petition 4 Petitions $85,428 <br />Capital Improvement Petition $13,442 per petition 4 Petitions $53,768 <br />Tenant Petition $350 per petition 958 Petitions $311,150 <br /> Total: $3,245,000 <br /> <br />Option 3: No Petition Fees <br />Fee Title Suggested Fee # of Units/ <br />Petitions Revenues <br />Annual Registration $86.12 per unit 32,450 Units $2,794,654 <br />Fair Return Petition $0 per petition 4 Petitions $0 <br />Capital Improvement Petition $0 per petition 4 Petitions $0 <br />Tenant Petition $0 per petition 958 Petitions $0 <br /> Total: <br />$2,794,654 <br />-$3,245,000 <br />(-$450,346) <br /> <br />Under Option 3, the removal of petition fees results in an annual operating deficit of up to ($450,346) <br />to pay for all costs associated with the Rent Stabilization and Just Cause Eviction Ordinance. As a <br />result, the City’s General Fund would have to annually subsidize the petition fees with up to <br />$450,346 in order to ensure the Rent Stabilization Program can process Fair Return Petitions, <br />Capital Improvement Petitions and Tenant Petitions. Fair Return Petitions are a constitutional right