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Costa -Hawkins Rental Housing Act (1995) <br />— Prevents rent control on properties occupied after February 1st, 1995. <br />— Single-family residences including condominiums are ineligible for rent <br />control. <br />— Allows rents to be reset at market rate when tenants move out. <br />— CA Civil Code: CHAPTER 2.7. Residential Rent Control [1954.50 - <br />1954.535] <br />Santa Ana Housing Stock <br />Occupied N,Occupied <br />• Santa Ana has 41,891 Renter -Occupied Units <br />— 94.961A built before 1995 <br />— 70.9% am Multifamily <br />• Aooro)dmately 67% of Santa Ana's rental units (28.066) <br />would be eligible for rent control under Costa Hawkins <br />Swrte:AmariuoCanununtty3urvert0l6 <br />Academic Perspective: Overview of Rent Stabilization Measures <br />Dr. Richard Green, Lusk Chair in Real Estate, USC Price School of Public <br />Policy and Marshall School of Business <br />/ The academic literature generally does not care for rent control <br />/ Implicit subsidy is poorly targeted <br />/ Pollakowski s work on New York City <br />/ Many vulnerable people are made worse off <br />/ Diamond on San Francisco. Costs and benefits even out, but some <br />of the costs fall on low income people <br />/ Malpezzi. High income people stay in lower quality, inexpensive <br />buildings longer than they otherwise would, meaning low income <br />people compete for higher cost housing <br />/ Discourages mobility <br />I, Particularly important issue in California <br />/ Discourages renovation <br />But... <br />I, Richard Amott notes that because of land use regulation, many <br />landlords earn windfalls that have nothing to do with risk <br />taking/investment. These are Ricardian rents. <br />/ We know that stability is very important for children. There is a policy <br />interest in allowing families with children to stay in place. Sharp rent <br />hikes can undermine this. (Haurin, Parcel and Haurin). <br />I, Still, zoning reform and direct subsidies would almost surely produce <br />better outcomes. <br />But zoning reform in a region with > 100 municipalities is extremely <br />CITY COUNCIL MINUTES 7 FEBRUARY U, LU16 <br />10 B-7 <br />