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<br /> <br /> <br /> <br /> <br /> Continuation of PREP <br /> November 15, 2010 <br /> Page 2 <br /> <br /> <br /> The exemptions for rental owners currently participating in the Gold Seal program are scheduled <br /> to sunset along with the PREP program on December 31, 2011. The present funding for the Gold <br /> Seal program is $110,000, which provides for 6,285 units to receive exemptions from the existing <br /> $17.50 per unit annual fee. <br /> <br /> The PREP program has proven beneficial to Santa Ana by maintaining the City's rental housing at <br /> an acceptable standard. The program receives positive reviews from residents for the improved <br /> appearance of their neighborhoods and from the rental housing industry for abiding by the <br /> approved guidelines and not generating complaints to their respective associations. As both <br /> apartment associations will attest, there have been very few complaints regarding PREP since <br /> inspections began in 1993. Due to the proactive nature of the program, inspectors address <br /> conditions of the rental properties before adjacent impacted neighbors are compelled to file a <br /> complaint. Properties that rapidly deteriorate generate most of the complaints received by the <br /> PREP inspectors. <br /> <br /> One notable achievement of the PREP program since inception is the substantial financial <br /> reinvestment to upgrade Santa Ana's rental housing. In terms of reinvestment, from the inception <br /> of the program through 2009 PREP inspections have been responsible for in excess of $4.3 <br /> million dollars being reinvested back into the improvement and maintenance of the City's rental <br /> housing stock. <br /> <br /> With proven success in improving the appearance of rental properties and maintaining continued <br /> support of the rental housing industry, the Planning and Building Agency is requesting to increase <br /> the existing $17.50 per unit annual rental inspection fee to $19.50 effective January 1, 2011 to <br /> continue the successful operation of the PREP program. <br /> The Rental Housing Task Force has unanimously endorsed to the proposal to increase the <br /> existing annual rental inspection fee to $19.50 contingent upon no changes to program guidelines, <br /> policies, or funding, and continuation of the Gold Seal Incentive Program (Exhibit 1). <br /> <br /> Environmental Impact <br /> <br /> The PREP program is exempt from CEQA pursuant to Section 15061(b)(3) of CEQA Guidelines in <br /> that it can be seen with certainty that an increase in fees to support the existing rental inspection <br /> program will have no possible significant effect on the environment. Categorical Exemption No. <br /> ER 2010-08 has been adopted for this program. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> 75A-2 <br />