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Santa Ana City Council November 18, 2024 Page 2 to increase by over 400%. These impacts risk harming sensitive receptors and environmental justice communities contrary to state, regional, and local policies. The City's cursory addendum is woefully inadequate in analyzing and disclosing these impacts to the community. We respectfully request that you repeal the existing Article XXI to Chapter 8 of the SMC (which was adopted illegally in April 2024) and direct Staff to work with stakeholders to develop a new ordinance that underscores that STRs may continue operating, subject to reasonable regulations, including an enforcement and transient occupancy tax ("TOT") regime for STRs. Background on the Santa Ana Short-Term Rental Alliance and Challenge to the April 2024 STR Ordinance The Santa Ana Short-Teim Rental Alliance ("Rental Alliance") is an unincorporated community association made up of hardworking residents of both the City of Santa Ana and Southern California that own and/or manage homes located within City limits rented on a short-term basis. They come from diverse backgrounds and call California home. In April 2024,the City unlawfully enacted an ordinance banning STRs in the City with almost no public notice and without undertaking the environmental review required by the California Environmental Quality Act ("CEQA"). That action threatened to destroy Rental Alliance members' livelihoods and housing security, closed the door to Santa Ana for countless would-be visitors, and disproportionately affected the individuals and families most in need of flexible housing options and who are often shut out of the long-term residential housing market. In response to that illegal action, this office filed a challenge on behalf of the Rental Alliance in Orange County Superior Court (Santa Ana Short-Term Rental Alliance v. City of Santa Ana, No. TC24-5449 (Orange County Superior Court). While we are pleased that Staff has brought forward a proposal to rescind the illegally adopted ordinance, the Amended Ordinance proposes to adopt the exact same ban on STRs as adopted in April. As summarized herein, the Amended Ordinance is legally flawed, and should the City move forward with readopting the ban, the Rental Alliance intends to challenge the Amended Ordinance. History and Importance of STRs in Santa Ana STRs have always been lawful, residential uses in Santa Ana. Hosts have opened and shared their homes to transient renters for decades, providing important visitor-serving accommodations and offering guests authentic cultural experiences in all corners of the City. These rentals provide an opportunity for visitors to Orange County to meet and interact with locals who graciously share their homes. And with the exception of a brief 2015 moratorium that expired on its own terms, STRs have long been a recognized activity in Santa Ana. Indeed, many of the Rental Alliance members have acquired a business license from the City for each rental unit that they own or manage. 2