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<br />rentals have an impact on affordability. As stated in the article, “\[i\]ts a complex <br />problem, and one characterized by high prices for both rentals and sales, elevated <br />mortgage rates and a historic undersupply of homes,” (Delouya, S. As the housing <br />affordability crisis deepens, Airbnb and Vrbo face backlash, CNN.com, Retrieved <br />Dec 1, 2024, from https://www.cnn.com/2024/10/28/economy/housing- <br />affordability-airbnb-vrbo-backlash/index.html). <br /> <br />Further research conducted by Harvard Business Review Government Policy and <br />Regulation, dated February 15, 2024, showed banning short-term rentals, “is not an <br />effective tool for solving the housing-affordability problems in many U.S. cities,” <br />(Calder-Wang, S., Farronato, C., and Fradkin, A. What Does Banning Short Term <br />Rentals Really Accomplish? Harvard Business Review Government Policy and <br />Regulations, Retrieved Dec 1, 2024, from https://hbr.org/2024/02/what-does- <br />banning-short-term-rentals-really-accomplish). <br /> <br />It is well known that the city is facing a 30 million short fall in their budget due to <br />Measure X (sales tax increase of 9.25%) due to expire in 2029. This shortfall will no <br />doubt impact a lot of city programs that have benefitted from Measure X. The city <br />also faces another shortfall if HR 8753 bill passes. HR 8753 will assign a unique zip <br />code to North Tustin, an area that currently has a 92705-zip code. The area which <br />covers Cowan Heights, Lemon Heights, North Tustin and Panoramic Heights, with <br />a population of over 25,000 residents, and a median income of $174,000.00 into an <br />unincorporated area of Orange County. Santa Ana would lose sales tax income from <br />this area and a portion of property taxes (10-12%). The bill has passed the first phase <br />in the House of Representatives. Does the city of Santa Ana know what the impact <br />would be if this bill passes? <br /> <br />Finding sources of revenue to help offset the losses of both of these items is not <br />something that should be “kick the can down the road”. Don’t leave money on the <br />table by placing a complete ban on short term rentals. <br /> <br /> <br />2 <br /> <br /> <br />