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Continuation of PREP <br />August 20, 2007 <br />Page 3 <br />neighborhoods and from the rental housing industry for abiding by the <br />approved guidelines and not generating complaints to their respective <br />associations. As both apartment associations will attest, there have <br />been very few complaints regarding PREP since inspections began in 1993. <br />Almost all the complaints received were from property owners who were <br />denied Gold Seal benefits. The owners had an opportunity to appeal their <br />denial to the Rental Housing Task Force, which could either uphold or <br />overturn the denial. <br />With proven success in reducing complaints received for rental <br />properties, noticeably improving the appearance of many rental properties <br />and maintaining continued support of the rental housing industry, the <br />Planning and Building Agency is requesting the extension of the PREP <br />program for another four year term to allow continued inspection of all <br />rental housing in the City. It is also requesting the authorization of <br />the required funding for the Gold Seal Incentive Program. <br />The Rental Housing Task Force has unanimously endorsed extending the PREP <br />program for another four years contingent upon no changes to program <br />guidelines, policies, or funding, and continuation of the Gold Seal <br />Incentive Program (Exhibit 1). <br />Environmental Impact <br />The PREP program is exempt from CEQA pursuant to Section 15061(b)(3) of <br />CEQA Guidelines in that it can be seen with certainty that extension of <br />the existing rental inspection program will have no possible significant <br />effect on the environment. Additionally, extension of the PREP program <br />is further exempted pursuant to the Class 21 Categorical Exemption, <br />Section 15321 of the CEQA Guidelines, which exempts enforcement actions <br />of regulatory agencies. Categorical Exemption No. ER 2007-123 has been.. <br />adopted for this program. <br />FISCAL IMPACT <br />Funding for the Proactive Rental Enforcement Program is derived from a <br />$17.50 per unit per year fee for all rental units in Santa Ana. Annual <br />revenue is expected to be $454,160 with program costs anticipated to be <br />$641,923.92. The costs not funded by the PREP fee will be accounted for <br />in the Planning and Building Agency's operating budget. <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />M. Trevino ~~'rancisco Gutierrez <br />Executive Director Executive Director <br />Planning & Building Agency Finance & Management Services Agency~+' <br />DH:rb <br />rb/reports/PREP Cont Aug 2000 <br />75A-3 <br />