Item 33 - Rent Stabilization Ordinance and Just Cause Eviction Ordinance

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Rent Stabilization Ordinance and Just Cause Eviction Ordinance September 21, 2021 Page 5 2 1 2 6 and shall be decided by the City Manager, or her designee. The owner shall also provide a copy of any petition submitted to the City to the applicable tenant(s), and provide the City with proof of completing such service to the applicable tenant(s). The tenant(s) will then have thirty (30) days from the date of receiving the petition to reply or provide additional materials to the City in response to the petition. The applicant shall bear the burden of establishing that a rate increase in excess of the rent stabilization cap is necessary to provide the applicant with a fair and reasonable return on their property, including by providing an independent financial report and verified financial data demonstrating that without such an increase, they will not realize a fair and reasonable return on their property. The owner will be responsible for all costs associated with the City’s review of the petition. Upon receipt of a fair return petition/application, the City Manager shall determine if the employment of expert(s) will be necessary or appropriate for a proper analysis of the applicant’s request. If the City Manager so determines, she shall also determine the anticipated costs of employing such expert(s). The resulting figure shall be communicated to the applicant, and the application will not be processed until the applicant has paid to the City the estimated cost of the expert analysis (e.g. cost recovery). The entire list of factors the City Manager may consider in deciding a fair return petition/application are provided in the Ordinance. The most notable factors include consideration of the completion of any capital improvements or rehabilitation work related to the residential real property or mobilehome space; changes in property taxes; changes in reasonable operating and maintenance expenses; the need for repairs caused by circumstances other than ordinary wear and tear; or any existing written lease lawfully entered into between the applicant and the affected tenant(s). The petition will be decided by the City Manager within sixty (60) days of the date that the petition was deemed complete. Any appeal of the City Manager decision on an application for a fair return adjustment shall proceed pursuant to the administrative appeal procedures found in Chapter 3 of the Santa Ana Municipal Code. This procedure involves the Clerk of the Council contracting with an independent hearing officer to adjudicate the appeal. Exemptions Pursuant to the Costa-Hawkins Rental Housing Act, the provisions of the Ordinance regulating the amount of rent that a residential real property owner may charge shall not apply to any residential real property that has a certificate of occupancy issued after February 1, 1995; and, any other provisions of the Costa-Hawkins Rental Housing Act addressing exemptions, as applicable. Pursuant to the Mobilehome Residency Law (MRL), the provisions of the Ordinance regulating the amount of rent that a mobilehome park owner may charge for a mobilehome space shall not apply to the following: any mobilehome space subject to a long term (more than one year) rental agreement; any newly constructed mobilehome space first offered for rent on or after January 1, 1990; mobilehomes not being used as a person’s primary residence that are not being leased