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ORDINANCE NO. NS-XXXX <br />AN URGENCY ORDINANCE OF THE CITY COUNCIL OF <br />THE CITY OF SANTA ANA PROHIBITING RESIDENTIAL <br />REAL PROPERTY AND MOBILEHOME SPACE RENTAL <br />RATE INCREASES THAT EXCEED THREE PERCENT <br />(3%) ANNUALLY, OR EIGHTY PERCENT (80%) OF THE <br />CHANGE IN CONSUMER PRICE INDEX, WHICHEVER IS <br />LESS, WITHIN THE CITY <br />THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS <br />FOLLOWS: <br />Section 1. The City Council of Santa Ana hereby finds, determines and <br />declares as follows: <br />A.At the City Council meeting on September 21, 2021, the City Council discussed <br />the City of Santa Ana’s (“Santa Ana” or “City”) ability to address rent increases <br />on residential real property and in mobilehome parks. <br />B.The increasing housing rent burden and poverty faced by many residents in the <br />City of Santa Ana threatens the health, safety, and welfare of its residents by <br />forcing them to choose between paying rent and providing food, clothing, and <br />medical care for themselves and their families. <br />C.According to the May 2017 report by the California Housing Partnership <br />Corporation, median rent in Orange County, which includes Santa Ana, has <br />increased twenty-eight percent (28%) since 2000, while median renter household <br />income has declined by 9%, when adjusted for inflation. Additionally, the May <br />2020 report by the California Housing Partnership Corporation demonstrated that <br />renters need to earn $42.23/hr, or, 3.2 times the state minimum wage to afford <br />an average monthly asking rent of $2,196 for a two-bedroom apartment in <br />Orange County. <br />D.Orange County’s lowest income renters spend eighty-one percent (81%) of their <br />income on rent, leaving very little to meet other basic human needs such as food <br />and health. <br />E.If Santa Ana renter-occupied households paid thirty percent (30%) of their <br />income on housing, renters would have an extra $176 million dollars of <br />disposable income (income minus housing costs) to spend in the community <br />each year, or $7,000 per household. Additionally, racial inequities would <br />decrease, as the yearly disposable income would increase by 14% for Latinos, <br />13% for Asian or Pacific Islanders, and 7% for Whites. <br />EXHIBIT 1