75A - PH - PREP ORDINANCE - Laserfiche WebLink

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Continuation of PREP September 6, 2011 Page 3 The most notable achievement of the PREP program since inception is the substantial financial reinvestment to upgrade Santa Ana's rental housing. In terms of reinvestment, from the inception of the program through June 2011, PREP inspections have been responsible for in excess of $5 million dollars directly being reinvested back into the improvement and maintenance of the City's rental housing stock. The PREP program has proven beneficial to Santa Ana by maintaining the City's rental housing at an acceptable standard. The program receives positive reviews from residents for the improved appearance of their neighborhoods and from the rental housing industry for abiding by the approved guidelines and not generating complaints to their respective associations. As both apartment associations will attest, there have been very few complaints regarding PREP since inspections began in 1993. Almost all the complaints received were from property owners who were denied Gold Seal benefits. The owners had an opportunity to appeal their denial to the Rental Housing Task Force, which could either uphold or overturn the denial. With proven success in reducing complaints received for rental properties, noticeably improving the appearance of many rental properties and maintaining continued support of the rental housing industry, the Planning and Building Agency is requesting the extension of the PREP program for another four year term to allow continued inspection of all rental housing in the City. In addition it is requesting the authorization of the required funding for the Gold Seal Incentive Program. For the purposes of cost administration it is also requesting approval to annually adjust the per unit fee based on a percentage reflected by the change in the Consumers Price Index- Urban, All Services Component for the Los Angeles-Riverside-Orange County area. The Rental Housing Task Force has unanimously endorsed extending the PREP program for another four years contingent upon no changes to program guidelines, policies, or funding, and continuation of the Gold Seal Incentive Program (Exhibit 1). Environmental Impact The PREP program is exempt from CEQA pursuant to Section 15061(b)(3) of CEQA Guidelines in that it can be seen with certainty that extension of the existing rental inspection program will have no possible significant effect on the environment. Additionally, extension of the PREP program is further exempted pursuant to the Class 21 Categorical Exemption, Section 15321 of the CEQA Guidelines, which exempts enforcement actions of regulatory agencies. Categorical Exemption No. ER-2011-54 has been adopted for this program. 75A-3