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O. The City has not previously regulated the setting and increasing of rents for <br />residential real property or mobilehome spaces. However, given the concerns <br />discussed herein, the City Council desires to evaluate rent stabilization policies <br />protecting residents from unreasonable rent increases, while ensuring that the <br />owners of residential real property and mobilehome parks may earn a fair and <br />reasonable return on their property. <br /> <br />P. Pursuant to the City’s police power, as granted broadly under Article XI, section 7 <br />of the California Constitution, and Santa Ana Charter section 200, the Santa Ana <br />City Council has the authority to enact and enforce ordinances and regulations <br />for the public peace, health, and welfare of the City and its residents. <br /> <br />Q. Based on the foregoing facts, and the facts presented to the City Council at the <br />meeting at which this ordinance was introduced and adopted, the City Council <br />finds that allowing owners of residential real property and mobilehome parks to <br />have unfettered discretion to increase rents prior to the City’s completion of a <br />study of the legality, feasibility, impacts, and regulation of rent increases in an <br />effort to avoid displacing large numbers of Santa Ana residents, would pose a <br />current and immediate threat to the public health, safety or welfare, and that a <br />prohibition of rent increases, except as allowed herein, is therefore necessary. <br /> <br />R. Pursuant to Santa Ana City Charter Sections 415 and 417, this Ordinance is <br />declared by the City Council to be necessary as an emergency measure to <br />protect and preserve the health, safety and welfare of the residents of the City of <br />Santa Ana and will become effective immediately if passed by the affirmative <br />votes of at least two-thirds (2/3) of the members of the City Council. The City <br />Council hereby finds that there is an urgent need to adopt these regulations in <br />order to address the current and immediate threats set forth below. <br /> <br />1. Absent the adoption of this ordinance, as a result of the economic conditions <br />and recognized housing shortage in Southern California, significant rent <br />increases will impact a substantial number of residents in Santa Ana and <br />constitute a threat to public health, safety and welfare, and a particular <br />hardship for senior citizens, persons living on fixed incomes, and other <br />vulnerable persons living in Santa Ana; <br /> <br />2. Housing costs continue to escalate in Orange County, and mobilehome parks <br />serve as an important affordable housing option for Santa Ana residents ; <br /> <br />3. Because a mobilehome is affixed to the property on which it resides, it is <br />generally not cost effective to move it, resulting in the owner losing the <br />mobilehome if they cannot pay the rent imposed by the landlord; <br /> <br />4. Certain aspects of public health, safety, and welfare are not adequately <br />protected due to the lack of rent stabilization mechanics or controls in Santa <br />Ana, and it is the interest of the City, the owners, residents, and the <br />EXHIBIT 1