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G. Such Resolution is hereby rescinded and the Gold Seal Incentive Program <br />is included in the terms of this ordinance. <br />H. The funding for the Gold Seal Incentive Program is $110,000.00, which <br />will provide for 4,782 units to receive exemptions from the annual fee. <br />The number of units that can be approved to participate in the Gold Seal <br />Incentive Program will fluctuate with the adjustment of the annual fee <br />based on the rental program fee study. <br />According to 2015 records an inventory of 32,165 rental units are licensed <br />for inspection. Subtracting out the 4,782 units qualified for the Gold Seal <br />Incentive Program, 27,383 units are accountable for the $23.00 per unit <br />annual fee, thus generating an annual revenue of $629,809.00. <br />J. It is anticipated that the deficit for the PREP will be $288,813.00 for the <br />PREP based on the estimated $918,622.00 in expenditures and <br />$629,809.00 in revenues. <br />K. City Council finds that continuation of the Proactive Rental Enforcement <br />Program is essential to the neighborhoods in Santa Ana to provide <br />assurance that the rental housing will not be allowed to revert to the <br />condition which led to the initial concerns for the original implementation of <br />the inspection program. <br />Section 2. In accordance with the California Environmental Quality Act, the <br />recommended action is categorically exempt from further review per section 15321, <br />Class 21, as the project involves an enforcement action by a regulatory agency for an <br />inspection program. A Categorical Exemption for Environmental Review No. ER -2015- <br />96 will be filed for this project. <br />Section 3. Santa Ana Municipal Code Section 8 -47 is hereby amended to read <br />as follows: <br />Sec. 8 -47. Proactive rental enforcement program fee. <br />All funds received pursuant to the provisions of section of Article X. Division 2 of <br />Chapter 8 of this Code shall be deposited in a separate account and identified with a <br />separate unique expenditure activity number. All such funds shall be expended solely <br />for the proactive rental enforcement program and shall not be used for any other <br />purpose. <br />All interest income earned by the moneys in the proactive rental enforcement <br />program account shall also be expended only for the proactive rental enforcement <br />program. Should such monies be invested in combination with other funds and <br />accounts, then the pro rata share of the interest earned by all such monies that is <br />Ordinance No. NS -2898 <br />Page 2 of 22 <br />