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Santa Ana City Council November 18, 2024 Page 10 on their property for longer, and that longer term use amounts to a physical incursion on hosts' right to exclude. Importantly, the Federal District Court of Hawaii recently considered an ordinance similar to that proposed by Santa Ana that barred certain STRs. (Hawai'i Legal Short-Term Rental All. v. City & Cn(y. of Honolulu,2022 WL 7471692,at*2-3 (D. Haw. Oct. 13,2022).)In resolving the plaintiff's motion for a preliminary injunction, the court held that the plaintiff would likely succeed on the merits of a takings claim under the Federal and Hawaii Constitutions. (Id. at*5.) Because the Ordinance impacts both the right to include and the right to exclude from one's property, all existing STR hosts would be entitled to compensation if the City Council were to adopt the Amended Ordinance. 4. The adoption of the Amended Ordinance would constitute arbitrary and capricious decision-making. There is no evidence in the record that STRs in the City cause a nuisance, and the City's extreme approach of banning STRs and infringing on homeowners' legal rights is unsupported by the record. STRs play an important and environmentally sustainable role in the City, and provide significant benefits to the City, its residents, and its visitors, and these benefits are being completely ignored. The Staff Report provides no evidence that any STRs in the City contribute to nuisance-type conditions such as "excessive noise, parking problems, and trash," nor does it acknowledge that the SAMC already has several existing enforcement mechanisms to mitigate public nuisances. (SAMC, Chapter 17.) In reality, many STRs in the City are either owner-occupied, meaning that the host is on site while guests are present because they live there full-time and have an extra room/rooms, or are entire home STRs which are rented on a short-term basis because the owner travels or is in the City only on a seasonal basis and so cannot rent the property on a long-term basis (e.g., six-month or one- year lease). Further, as discussed in a recent study conducted by the Milken Institute on STRs in California, "the notion that decreasing SIR supply will mitigate California's extreme housing shortage is not supported by the evidence. The only solution to California's housing crisis is to provide more housing: specifically denser, more affordable multifamily housing units." 1 A review of the Housing Element reveals that the City does not appear to mention STRs anywhere in that document. (See City of Santa Ana General Plan Housing Element). In the section of the Housing Element discussing"Housing Constraints,"the City notes that various factors influencing the City's ability to meet its housing goals include market factors (land costs, construction and rehabilitation costs, availability of financing, and recent trends in foreclosures), governmental factors (land use regulations, development standards,building codes,permit procedures, and other local policies), and environmental factors (adequacy of infrastructure, public services, and water i Alissa Dubetz, Matt Horton, and Charlotte Kesteven, Staying Power: The Effects of Short-Term Rentals on California's Tourism Economy and Housing Affordability, MILKEN TNSTTTUTE (May 2022), https://milkeninstitute.or�z/sites/default/files/2022-05/Short Term_Rentals_California.pdf. 10