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Santa Ana City Council <br />November 18, 2024 <br />Page 12 <br />6.The adoption of the Amended Ordinance would illegally infringetheright to contract. <br />The Ordinance also violates right to contract under the California constitution, which <br />prohibits laws impairing the obligation of contracts. (Cal. Const., Art I, § 9.) <br />, 9 <br />and the court required to evaluate whether <br />Id. (citations omitted); see also Calfarm Ins. Co. v. <br />Deukmejian, 48 Cal. 3d 805, 831 (1989).) <br />Rental Alliance hosts have already agreed to rent their property on a short-term basis to guests in <br />upcoming months. An immediate ban on STRs would invalidate those contractual obligations of <br />STR owners in violation of this constitutional right. <br />7.The adoption of the Amended Ordinance would deprive hosts of their substantive due <br />process rights. <br />Termination of a lawful nonconforming use effects a deprivation of property without due process <br />of law, and banning the ability of homeowners to rent their home to visitors more broadly violates <br />their substantive due process rights under the California andU.S. constitutions by infringing on <br />(United States v. Craft, 535 U.S. 274, 278 (2002).) <br />8.The proposed fines violate the United States Constitution. <br />The administrative fines proposed by the Resolution are also so excessive as to raise federal <br />constitutional concerns. The Eighth Amendment to the United States Constitution forbids the City <br />from imposing excessive fines. The United States Supreme Court ha <br />of the constitutional inquiry under the Excessive Fines Clause is the principle of proportionality: <br />the amount of the forfeiture must bear some relationship to the gravity of the offense that it is <br />United States v. Bajakajian, 524 U.S. 321, 334 (1998).)Here the Amended <br />$5,000 for a third violation fail to meet the principle of proportionality. (See, e.g.,Kalthoff v. <br />Douglas Cnty., <br />of these fines \[for violations of short-term rental ordinance\] \[we\]re for several thousands of dollars <br />enforcement of fines on constitutional grounds).) <br />12 <br /> <br />