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Home My WebLink AboutCorrespondence- #25TO". Mayor Vince Sarrniento Co u nci I m e rn be r Je ssie Lopez CC- Santa Ana City Councill Katritta Foley, Orange County Supervisor, District 3 Kristine Ridge, City Managor Mayor Sarmiento Last melefing,the City Council heard directly from niurnerous senior citizens, regyardirtg the extrerttne. finaincial difficulties plaiced upon then through the 110%, rental increase from the Developers of 2222 cast first St (a ,a Metro East Senior Apartments), The 10% increase in both extraordinary in its size bait also the negative iimpart it wiH place an the senior citizen residents, many who are disabled, as wel] as the long-term sustainability of the Metro East Project. The 1.0% increase is also remarkable for a project designated by the Developers as a, so,inior affordable housing, The developers have justified the increases based on market conditions brought forth by the post, pandernic demand for housing. Yet, as a project that was activated just: under two years ago, there are no ism-neidiate capital needs and maintenance requirements seemi very oirdinary, Accordingly,, there is little possibility that the proceeds of trhie,, 10% rent increase wKI be allocated to, cornmiunity, and instead drop straight down'to Devetopler profit, which, is expected to be around, $1400,000 per year. Given the aibove conditions, the 2222 residents request the l'oflowing: 1. 'Roll'ing" financial assistance, up to, a $750 maximurn, over a six-month period to impacted apartment units, The total estirtrated expenseshould be less than $300,000. The assistance can be funded oiut of direct Revive Program Funds or through, a transfer of the loss allocationn within these fundis to the City General Fund. 2. Incorporation of a senior affordable housing, element to the City's current rent control ordinance. We look, forward to future discussions, ICTOR D MENDEZ I L FTIN I BEEDELL Y ATTORNEYS AT L A NY Via Overnight Delivery and Hand Delivery to the Clerk for Council; Electronic Transmission September 30, 2022 Honorable Mayor Vincente Sarmiento and Council Persons: Thai Viet Phan; David Penaloza; Jessie Lopez; Phil Bacerra; Johnathan Ryan Hernandez; Nelida Mendoza City Clerk, Daisy Gomez City of Santa Ana 22 Civil Center Plaza Santa Ana, California 92701 RE: Hearing Date: October 4, 2022 Agenda Item: ITEM 25 — OPPOSITION Description of Item: Rent Stabilization and Just Cause Eviction Ordinances, "Rent Stabilization and Just Cause Eviction Ordinance" ("RS/JCE Ordinance") As Applicable to Mobilehome Parks Request Action 1. Vote NO on the Revised Ordinances, and 2. Remand to Staff with Direction for Further Amendment of Proposed Ordinances. Dear Honorable Mayor Sarmiento and Council Persons: This Firm represents Kingsley Management Corporation, and its affiliated companies which manage, own, and operate with care and concern for the residents within multiple mobilehome parks, representing 478 resident occupied spaces, in the City of Santa Ana. The care and concern for residents is exemplified by the careful protection of their housing through strict adherence to the numerous governmental orders issued and statutes as amended frequently by various levels of governmental entities prior to and during the challenges presented due to the pandemic. This correspondence ("Opposition") is offered in opposition to the proposed amendments to both Rent Stabilization Ordinance, NS-3009 (RSO) and Just Cause Eviction Ordinance, NS 3010 ("Ordinances") and to preserve and reserve all rights of my clients and the mobilehome parks so represented. For the record and to facilitate time and consideration of the issues, the following matters of public record, including without limitation, Staff Reports and all documents, exhibits, correspondence (electronically transmitted and hard copies), testimony (in -person or electronic), whether by City elected officials or City personnel, consultants, including RSG, experts; members of the public submitted to the City; the Staff Reports and all public records in the City records are hereby incorporated as though fully 2540 Gateway Road • Carlsbad • California • 92009 T: 760.431.2111 • Direct: 760.444-4040 • www.loftinbedell.com • Sue@loftinbedell.com Honorable Mayor and City Council Persons City of Santa Ana Hearing: October 4, 2022; Item: 25 September 30, 2022 Page 2 of 11 set forth: (i) for the City Council Hearings on September 21, 2021, October 5, 2021, October 19, 2021, adopting Rent Stabilization Ordinance, NS-3009 (RSO) and Just Cause Eviction Ordinance, NS 3010; (ii) September 6, 2022, Resolution No. 2021-054, Adoption of the Long -Term Implementation Plan and direction of direction from City Council; (iii) for preparation and completion of the Staff Report and all documents, exhibits, correspondence (electronically transmitted and hard copies), in the City records related to in connection with this matter in consideration of the matter before you, "Item 25" comments, documents, communications submitted for consideration or preparation of the Staff Report whether by City elected officials or City personnel, consultants, including RSG, experts; members of the public submitted to the City; the Staff Reports and all public records. This Opposition is an objection and challenge to the inaccurate findings that are the basis behind the proposed amendments and facts that lead to the proposed amendments leading to the RS/JCE Ordinance. Additionally, this Opposition objects to the legal basis for the proposed RS/JCE Ordinance, and the provisions therein, to the extent they violate, directly conflict with, or are preempted by as they violate and/or directly conflict with numerous state and federal statutes, and the case law related thereto, including without limitation, a local jurisdiction's authority to enact ordinances attempting to supersede and/or amend such laws. i The following "bullet points" relate to the application of the RS/JCE Ordinance to Mobilehome Parks. They are intended to be illustrative, but not inclusive, of all objections to the respective RS/JCE Ordinance. Our clients reserve all objections and rights under state and federal law, and the case law interpreting the same. For clarity, the discussion below is divided into three sections: the Implementation Plan, common comments to the Definitions, the Just Cause Eviction components, and the Rent Stabilization components. As background, mobilehome parks within the state of California are governed by an extensive and exclusive body of law and regulations, including, without limitation, the Mobilehome Residency Law, Civil Code Section 798 et seq., the Mobilehome Parks Act, Health and Safety Code Sec. 18200 et seq., the Manufactured Housing Act, Health and Safety Code Sec. 18000 et seq., and the implementing regulations at Title 25, 25 Cal. Code of Regs. Sec. 1000 et seq. Except where local law is allowed to regulate, the laws relating to the mobilehome park landlord -tenant relationship, including notices, lease terms, and termination provisions; the condition and maintenance of the mobilehomes; and the amount, manner and method of utility charges against tenants, are set forth in an extensive body of law. This body of law is preemptive of local regulation with limited exceptions. The gravamen of the litigation by and between our clients and the City relate to the original adoption of the RS/JCE Ordinance, the manner in which they conflicted with and were preempted by the state and federal body of law, and the impact thereon. The proposed amended RS/JCE Ordinance reflects the validity of the arguments presented in the litigation and the proposed amendments take necessary steps to bring the laws into compliance with state and federal laws and regulations, as specifically detailed in that litigation.2 1 See, Correspondence dated October 1, 2021 from LofkinlBedell P.C. to the Honorable Mayor and Council Persons incorporated hereat as though fully set forth; 2 Kingsley et al v. City of Santa Ana, U.S. District Court for the Central District of California, Case No. 8:22-CV-0076- CJC-JDEx (the "litigation" or "pending litigation"). Kingsley — 426 Santa Ana Ordinances Honorable Mayor and City Council Persons City of Santa Ana Hearing: October 4, 2022; Item: 25 September 30, 2022 Page 3 of 11 IMPLEMENTATION PLAN Equal Protection In the most recent City presentation, the City refers owners and landlords to their own legal counsel, saying "we are not attorneys, we cannot give legal advice." This effectively deprives owners and landlords with the City's interpretation of the Rent Stabilization Ordinance and Just Cause Eviction Ordinance —effectively refusing to respond to owners and landlords, while responding to residents' questions.3 However, they include and provide counsel to residents —including both with City staff and guest speaker attorneys, and even solicit resident complaints about enforcement. Procedural Due Process Further, the owners of mobilehome parks are not being provided equal protection under the law in the composition of the Rental Housing Board. The Staff Report outlines the RSG's Long -Term Implementation Plan and includes four options for the composition of the Board. Of note, of the proposed compositions, only Options I and 4 allow for parity between the composition of tenant representation and owner representation. Each option expressly calls out that one of the tenant representatives to be from a mobilehomes parks; but none of the options call out that one of the owner representatives should be from the ownership/management of a mobilehome park. The end result is that of the 30 mobilehome parks within the City, the residents will have a representative on the RSG board, but the park owners who represent over 3900 mobilehome spaces will have no representation. Given the uniqueness of mobilehome park laws, operations and issues, both sides, tenants and park owners/operators should have equal representation on the Board, and other jurisdictions typically provide a separate rent board specifically for mobilehome rent review.4 DEFINITIONS In review of the Definition section leading into the newly proposed and combined RS/JCE Ordinance, the following comments and recommendations are made to eliminate the conflicts with California existing law as they relate to mobilehome parks, reduce the potential for taking of private property, and eliminate vagueness and confusion: A. Section 8-3102 — Definitions: "Rent" — the definition of rent is vague and ambiguous and conflicts with and is preempted by the Mobilehome Residency Law, Civil Code § 798 et seq in that (i) utilities are expressly governed and billed by mobilehome park owners under the Mobilehome Residency Law, (ii) incidental service charges, including charges for items such as rental of extra parking space, or for the park owner to perform services to the tenant, are governed by the Mobilehome Residency Law and are not and should not be considered "rent", (iii) many utilities in mobilehome parks are separately billed (either through metering services or through proportionate share of the cost) by the mobilehome park owner to the tenant and such should not be considered rent that is capped in its increases; and (iv) laws applicable to mobilehome parks expressly provide for the pass through of certain charges and expenditures such as 'See Screenshot Attached as Attachment A; 4 See, e.g. Chula Vista Municipal Code Chapter 2.31: "Mobilehome Rent Review Commission." Kingsley — 426 Santa Ana Ordinances Honorable Mayor and City Council Persons City of Santa Ana Hearing: October 4, 2022; Item: 25 September 30, 2022 Page 4 of 11 governmentally imposed fees, fees for guests or additional services, which charges should not be included in the definition of rent. The costs of utilities are already governed by the California Public Utilities Commission, pursuant to its tariffs and ratemaking under the Public Utilities Act, Cal. Pub. Util. Code § 201 et seq. In particular, Cal. Pub. Util. Code § 739.5 already requires that landlords submeter tenants at the same rate that the regulated public utilities would charge for residential service if it were providing the services directly. By mixing these rates into the calculation of acceptable rates, the City will either (a) deprive landlords of the regulated rates they are entitled under the authority of the California Public Utilities Commission per Cal. Pub. Util. Code § 739.5, or (b) violate the rights of tenants concerning ratemaking of utilities, by approving rent increases that pertain to regulated utility rates. Accordingly sub -billed utilities should be excluded from the definition based on the exclusive jurisdiction of the California Public Utilities Commission to set utility rates for master -meter sub -meter tenants. Accordingly: a. Sub -billed (sub -metered) utilities should be excluded from the definition of rent based on the exclusive jurisdiction of the California Public Utilities Commission to set utility rates for master -meter sub -meter tenants; and b. Mobilehome Residency Law is preemptive of the City's ordinance and as such the sentence should be rephrased to remove the concept of the Mobilehome Residency Law being incorporated into the definition of rent, but rather the Mobilehome Residency Law shall govern the charges of incidental service charges in a mobilehome park. Propose mods the final sentence to read as follows (in pertinent part): "... any regulations of rent, fees, and costs included within the Mobilehome Residency Law, Civil Code section 798 et seq., shall be control such charges as relating to Mobilehomes and Mobilehome Spaces, as applicable, including without limitation the exclusion of the costs of utility services, including utility service fees, originally charged to the owner from a third party utility provider that is passed through to the tenants; any voter approved bonds charged and billed through the real property tax bills including those for Elementary School, High School, and Community College; health care district, metro water district; fixed charge assessments for emergency ambulance, fire district, paramedic fees, fire and EMS specific taxes, mosquito and vector disease control and water standby and availability charges; any fees or charge imposed by the State in connection with the operation ofthe a mobilehome parksuch as, without limitations, fees charged by the State in connection with the annual permits to operate the Community or for the Mobilehome Residency Law Protection Program; all governmentally -mandated fees and charges required or permitted to be passed through to a tenant; fees and expenses relating to governmentally -mandated projects; and incidental service charges that may be placed upon a mobilehome space pursuant to Civil Code section 798 et seq.; and fees for additional storage, guest fees, late fees. " Kingsley — 426 Santa Ana Ordinances Honorable Mayor and City Council Persons City of Santa Ana Hearing: October 4, 2022; Item: 25 September 30, 2022 Page 5of11 B. Section 8-3102 — Definitions: "Capital Improvement". Remove "... and/or deterioration resulting from an unreasonable delay in the undertaking of completion or after a Notice of Violation by a government agency ordering repairs. " While it could be reasonable to exclude civil fines from a Notice of Violation, which itself has an appeal process related to those fines, the exclusion of capital improvements based on deterioration or agency notice essentially causes a forfeiture without regard for fault —and such a forfeiture has no quarter in fair return jurisprudence concerning rent adjustment boards. The City has powerful authority already as a local police power to levy fines, and would be best apt to present evidence to preserve the legitimacy of its fines as part of the code enforcement process. It need not inject confusion, cost, and burden into the Board's consideration of fair return, with risk of litigation. Add "... or major repair relating to a Rental Unit or mobilehome park... " There is ambiguity within the Rental Unit definition which could give rise to the allegation that common area is not included —which then would cause the rental adjustment procedure to fail to meet the requirements of rent adjustment jurisprudence. Accordingly, we suggest inserting the clarification that the mobilehome park improvement costs generally are included. They will already be subject to the pro rata limitations elsewhere in the ordinance. C. Section 8-3102 — Definitions: "Mobilehome Space" Add the following as a new definition to clam the meaning of Mobilehome Space used throughout the Ordinance: "Mobilehome Space" shall mean the rental of a mobilehome space within a mobilehome park by a "homeowner" or a "resident" as such terms are defined in California Civil Code Section 798.9 and 798.11. JUST CAUSE EVICTION In review of the proposed amendments to the Just Cause Eviction Ordinance, as those amendments relate specifically to mobilehome parks, the proposed corrections through the amendment, are based on objections and legal issues raised in the pending litigation between our clients and the City. The City, through the proposed amendments, acknowledge and admit that the October 19, 2021 Just Cause Eviction Ordinance, NS 3010 violated numerous laws and regulations related to Mobilehome Parks.s Despite the attempts to correct such violations, the following bullet points are provided for ease of further amendments to bring the Just Cause Eviction sections of the proposed amended ordinance in line with the applicable laws for mobilehome parks: A. Section 8-3120(i) should be deleted in its entirety. This provision was amended to remove the provision that the sale of a mobilehome park is included in the term of a change of use under Government Code section 65863.7, ostensibly in response to the conflict of law and preemption detailed in the pending litigation. However, the failure to remove the provision in its entirety s Rather than reiterate in this correspondence the facial challenges to the newly combined RS/JCE Ordinance, the specific issues, including the constitutional challenges are set forth in the case Kingsley et al v. City of Santa Ana, U.S. District Court for the Central District of California, Case No. 8:22-cv-00076-CJC-JDEx, all allegations, assertions, and pleadings are hereby incorporated as though fully set forth Kingsley — 426 Santa Ana Ordinances Honorable Mayor and City Council Persons City of Santa Ana Hearing: October 4, 2022; Item: 25 September 30, 2022 Page 6 of 11 merely works an abandonment of one improper basis (the expansion of state legislation in contrary to its express terms), to another improper basisa local police power adoption that causes a conflict with the Mobilehome Residency Law, and a regulatory taking (on multiple grounds), among other violations of the constitutional rights of mobilehome park owners. The Mobilehome Residency Law contains provisions governing notice to residents of the intent to sell and protections upon a change of use.6 The requirement that a Park Owner, the Seller, to prepare a "Tenant Impact Report" on the sale of the Park to a third party at least 60 days prior to a sale requires the Park to determine either prior to offering the Park for sale or prior to the close of an escrow to determine the plans a third parry has for the Park, which may change over time, among other practical application issues. In summary, the selling Park owner must now guarantee the "intent" of the purchasing Park owner and financially, or otherwise, mitigate that "intent" prior to selling. The adoption of the "tenant impact report" requirement, for any sale, also works as a regulatory taking. The City has granted mobilehome parks the vested right to operate, as part of their land use regulations and application process, and conditions set out at the time of approval and construction. Now, however, the City proposes to abridge or revoke those rights —effectively injecting a new condition of approval —that the mobilehome park owner may be required to return to the City in the event of sale, and without any allegation of a traditional land use basis like a change in use. This proposal amounts to a regulatory taking, insofar as it effectively causes the forfeiture of the vested right to continue operating a lawfully permitted property —from a mere transfer and without a proposed change in use. However, this forfeiture of vested right also constitutes a regulatory taking in that it forces a mobilehome park owner to endure the burden and cost of preparation of a tenant impact report, the cost and delay of a noticed, discretionary public hearing, and the related impacts effectively clouding the ability to sell their property without public approval —premised solely on a regulatory nexus of preventing displacement of tenants, which displacement cannot occur solely as the result of a transaction. Moreover, any condition imposed at such a hearing would also constitute a regulatory taking, as it would lack rough proportionality with the nexus of a mere transfer of property.7 As a threshold matter, it seems doubtful that this proposed readoption would even support the finding of a rational basis, in requiring a public hearing and impact report, from the sale of a property, for any legitimate government interest surrounding tenant displacement. A sale, in and of itself, cannot cause tenant displacement such that the City could reasonably condition the sale. B. Section 8-3121 Notice of Termination of Tenancy: as applied to mobilehome park tenancies, this section creates an internal conflict and a conflict with the Mobilehome Residency Law. Section should be amended to clam that termination notices sent subject to the Mobilehome Residency Law shall comply with such requirements and not the provisions of this Section. 6 CA Civ.Code §§ 798.798.80798.56(g). In fact, this provision —once adopted —would work a veritable resolution of necessity against all mobilehome park owners, and cause them to suffer damages in the nature of Klopping v. City of Whittier; 8 Cal. 3d 39, 54 (1972). Kingsley — 426 Santa Ana Ordinances Honorable Mayor and City Council Persons City of Santa Ana Hearing: October 4, 2022; Item: 25 September 30, 2022 Page 7 of 11 (1) Subparagraph (a)1) requires a notice of termination to be served in accordance with Civil Code §§ 1946 — 1946.5; however, the Mobilehome Residency Law is preemptive of such ordinances and expressly sets out the content, manner and service of all termination notices within a mobilehome park. (2) Subparagraph (a)2) prohibits the Owner from accepting rent after the notice of a termination has expired "in compliance with Civil Code section 1945 through 1946.5" however, mobilehome park tenancies are exclusively governed by the Mobilehome Residency Law. (3) There is internal conflicting language in that subparagraphs (a)1) and (a)3) require notice that a tenant's occupancy is being terminated in accordance with 8-3120(b); however, mobilehome park tenancies are expressly excluded from the termination requirements in 8- 3120(b). Since a mobilehome park tenants' occupancy is not governed by 8-3120, the park owner cannot and should not be required to give notice relating to such compliance. (4) Submittal of the termination notice within five days of service upon the resident to the City (i) makes the notice now subject to disclosure through the public records act process, and (ii) does not take into consideration that tenants may comply with a notice to pay or cure prior to a termination being triggered. Such provisions create a disclosure risk of confidential information about tenancies which are otherwise protected under California law. C. Section 8-3122 Retaliatory Eviction and Anti -Harassment. Section (b)(9)(A)(iii), and (b)(12). This proposed language appears to conflict with California law that provides state regulation of the formation of contracts and notices in foreign languages. In particular, Cal. Civ. Code § 1632 was intended to only regulate "[a]ny person engaged in a trade or business who negotiates primarily [in one of the named foreign languages]." Cal. Civ. Code § 1632(h)(1). It also specifically exempted contracts negotiated "through the party's own interpreter." Id. The proposed subparagraph have the effect of making requiring a landlord to prepare leases in a tenant's primary language or else having such failure be deemed harassment of the tenant — this conflicts with state law and imposes substantial additional costs and burdens on landlords beyond the state intended laws. As noted above, although the amendment proposes and attempts to satisfy the issues, claims and causes of actions raised in the pending litigation, and demonstrates the City's acknowledgement of the accuracy of claims raised, the proposed amended ordinance continues to require corrective work to avoid preemption by the various laws specifically impacting mobilehome parks; being vague and ambiguous and constituting an unlawful taking in violation of the constitution. RENT STABILIZATION ORDINANCE First, we appreciate the numerous changes ostensibly made in response to the pending litigation. We respectfully submit the following comments for consideration to the new proposed language. The prior rent adjustment procedure clearly "[withheld] powers by which the [City Manager] could adjust maximum rents without unreasonable delays and instead [required] the [City Manager] to follow an Kingsley — 426 Santa Ana Ordinances Honorable Mayor and City Council Persons City of Santa Ana Hearing: October 4, 2022; Item: 25 September 30, 2022 Page 8of11 adjustment procedure which would make such delays inevitable." Birkenfeld v. City of Berkeley, 17 Cal.3d 129, 170 (1976). What follows, are comments to the new proposals reworking the rent stabilization ordinance. For clarity purposes, our Clients are not contesting the City's ability to enact rent control generally. Rather, they contest those portions of the ordinance which are contrary to settled law particularly as it relates to mobilehome parks, or which are so burdensome as to constitute a taking, or which comprise a violation of substantive due process. The proposed amendments appear to still require some form of completeness, and are unclear as to whether they relate to an individual property, or permit adjustment to a class of rental units as discussed in Birkenfeld. Section 8-3145 delegates a gatekeeper, the "Program Administrator" with the authority to reject applications "that [do] not include required information or documentation or comply with the requirements of this Division." Proposed City of Santa Ana Ordinance Section 8-3145 (a). A complete application for an individual property effectively prevents adjustments that a) deal with factors that are common to all properties like property taxes, or b) that are initiated based on information received by the rent adjustment official or board without a complete application or on their own motion, or c) allowing/encouraging applications between multiple properties or classes of properties. Accordingly, we suggest adding clarity that the Board can act on its own motion, and has flexibility to consider adjustments based on generally applicable factors, across properties and classes of Rental Units. Additionally, the new proposals regarding the rent review board pose some due process traps for the legislators. We discuss below that it would be most prudent to assure that there are balanced boards between pecuniary interests, and that mobilehome park rental review boards have precedent in other jurisdictions given that their rent adjustment considerations differ from other types of properties. A. Section 8-3142 — Fair Return Petition for Rent Increase: The provisions within the Standard of Review do not take into consideration the realities of owning and operating a mobilehome park. The following are changes to bring the proposed section into better parity with the ownership and operation of a mobilehome park, and applicable law: a. Subparagraph (a): Add additional sentence for Petition on motion of Board, to subparagraph (a): "The Board may also initiate a Fair Return Petition, upon a majority vote of the Board, where such motion identifies generally applicable factors, and instructs the Program Administrator to prepare such Petition, relating to a single property, or all or any class of Rental Units. Such Petition will proceed to be considered as provided in this Division. " b. Subparagraph (b)(7): Delete in its entirety. Increases in utility charges are wholly beyond the landlord's control and are often passed through to tenants directly. As further discussed above, the costs of utilities are already governed by the California Public Utilities Commission, pursuant to its tariffs and ratemaking under the Public Utilities Act, Cal. Pub. Util. Code § 201 et seq. In particular, Cal. Pub. Util. Code § 739.5 already requires that landlords submeter tenants at the same rate that the regulated public utilities would charge for residential service if it were providing the services directly. By mixing these rates into Kingsley — 426 Santa Ana Ordinances Honorable Mayor and City Council Persons City of Santa Ana Hearing: October 4, 2022; Item: 25 September 30, 2022 Page 9 of 11 the calculation of acceptable rates, the City will either (a) deprive landlords of the regulated rates they are entitled under the authority of the California Public Utilities Commission per Cal. Pub. Util. Code § 739.5, or (b) violate the rights of tenants concerning ratemaking of utilities, by approving rent increases thatpertain to regulated utility rates. Accordingly sub - billed utilities should be excluded from the definition based on the exclusive jurisdiction of the California Public Utilities Commission to set utility rates for master -meter sub -meter tenants. B. Section 8-3145 — Petition Process, subparagraph (a): Amend to read in relevant part: "Upon the filing of a Petition, the Program Administrator shall forward the Petition to the Board together with all relevant information submitted by the petitioner, to avoid unreasonable delay; the Board may encourage additional information if it finds the submittal, on its face, lacks adequate evidence, but shall not refuse to consider an application based on completeness, or whether it relates to multiple properties or classes ofproperties, or relates to generally available information such as property taxes or the consumer price index. " Our client appreciates that the City has removed the inflexible "Fair Return Petition" submittal requirements and up -front fee deposit that ostensibly violated the principle in cases like Birkenfeld v. City of Berkeley, 17 Cal. 3d 129, 171 (1976) as detailed in the pending litigation. However, we suggest that providing an agent of the Board with the ability to refuse "incomplete" application may work unreasonable delay, if a basic application shows generally applicable factors that apply to multiple properties or classes of units. The application should proceed, with the Board corresponding back to a prospective petitioner and encouraging additional information where necessary. C. Section 8-3145 — Introductory Paragraph. Add additional sentence after first sentence. "Notwithstanding anything to the contrary in this section, the Board may adjust rent upward, in a Petition on the motion of the Board, or with an incomplete Petition, or with a Petition that relates to multiple properties, so long as it is based on substantial evidence; and further, may approve general rental adjustments for all or any class of rental units based on generally applicable factors such as property taxes. Such an adjustment would proceed as a Petition on the motion of the Board, moved by a majority vote of the Board, and proceed through the notice and hearing provisions set forth herein. " D. Section 8-3145 — Petition Process, subparagraph (d)2): Amend to read: "Has failed to bring the Rental Unit, excluding a Mobilehome or Mobilehome Space, into compliance with the implied warranty of habitability. " Under the Mobilehome Residency Law and applicable laws relating to mobilehome parks, the maintenance, repair, and upkeep of a mobilehome is the exclusive responsibility of the mobilehome owner (and in fact, a Park owner cannot modify or access the mobilehome). The mobilehome space, with limited exceptions, is also the responsibility of the mobilehome owner. E. Section 8-3145 — Petition Process, subparagraph (1): Amend to read in relevant part: "The hearing officer may request the City to conduct a current building inspection, or as to mobilehome parks, to contact the California Department of Housing and Community Kingsley — 426 Santa Ana Ordinances Honorable Mayor and City Council Persons City of Santa Ana Hearing: October 4, 2022; Item: 25 September 30, 2022 Page 10 of 11 Development for the results of the most recent inspection of the space, if the hearing officerfinds good cause to believe the current information does not reflect the current condition of the Rental Unit. " Under the Mobilehome Parks Act, and its implementing regulations, the enforcement agency for building codes and health and safety regulations within mobilehome parks is the California Department of Housing and Community Development. F. Section 8-3147 — Exemptions. Add the following new subparagraph (d): "(d) The provisions of this Ordinance regulating the amount of rent that a residential real property or mobilehome space Owner may charge only applies while the original occupant is/are residing in the residential dwelling unit or on the mobilehome space, and shall not regulate the rental rate for a residential dwelling unit or mobilehome space whenever a lawful vacancy occurs, including through the voluntary termination by the tenant, the sale ofthe mobilehome by a Homeowner, the abandonment of the tenancy, or through a lawful eviction process. " This revision is consistent with current City guidance provided to residents seeking information and inquiry and assists with providing equal protection under the laws by providing landlords such similar clarity. G. Section 8-3148 — Rent Increase Ineffective, subparagraph (b): to eliminate the inconsistency of the language, the first portion of the sentence should be modified to read: "Fails to maintain the residential real propel (excluding a Mobilehome or Mobilehome Space) in compliance with.... .. H. Section 8-3180 — Rental Housing Board: As discussed in the "Implementation Plan" section above, while all of the options assure mobilehome park tenants of representation, none of the options assure representation for mobilehome park landlords. Moreover, two of the options (so called "Option 2" and "Option 3") propose an imbalanced board with pecuniary bias in favor of tenants —which is a clear violation of the procedural due process rights of mobilehome park owners.' See City Council Staff Report, Item 25 "Rent Stabilization and Just Cause Eviction Ordinances", dated October 4, 2022, Pg. 3. Given the uniqueness of mobilehome park laws, operations and issues, both sides, tenants and park owners/operators should have equal representation on the Board, and other jurisdictions typically provide a separate rent board specifically for mobilehome rent review.9 8 "It is sufficiently clear from our cases that those with substantial pecuniary interest in legal proceedings should not adjudicate these disputes. [Citation] And [Ward v. Village of Monroeville] indicates that the financial stake need not be as direct or positive as it appeared to be in Tumey. It has also come to be the prevailing view that '[most] of the law concerning disqualification because of interest applies with equal force to ... administrative adjudicators.' K. Davis, Administrative Law Text § 12.04, p. 250 (1972), and cases cited." (Italics added.)[Citations] In Withrow v. Larkin, the United States Supreme Court additionally notes: " Not only is a biased decisionmaker constitutionally unacceptable but'our system of law has always endeavored to prevent even the probability of unfairness."' Am. Motors Sales Corp. v. New Motor Vehicle Bd., 69 Cal. App. 3d 983, 990 (1977) (citing Tumey v. Ohio, 273 U.S. 510 (1927), Ward v. Village of Monroeville, 409 U.S. 57 (1972), and Withrow v. Larkin, 421 U.S. 35, 47 (1975), in overturning an imbalanced board of administrative hearing officers with pecuniary interests). 9 See, e.g. Chula Vista Municipal Code Chapter 2.31: "Mobilehome Rent Review Commission." Kingsley — 426 Santa Ana Ordinances Honorable Mayor and City Council Persons City of Santa Ana Hearing: October 4, 2022; Item: 25 September 30, 2022 Page 11 of 11 CONCLUSION 1. We respectfully object and disagree with the proposed findings in the resolution, and allege they are unsupported by substantial evidence, particularly as to Section 1(c), and particularly as they relate to mobilehome parks. There is no evidence of significant rent increases and housing instability at mobilehome parks in the City. If there were actual issues, then a referral to code enforcement and/or nonprofit legal assistance are available to residents, Council and staff. This issue is stated only to emphasize the practice of gross generalization of some Findings and Statements. (Section 1. Q 2. We respectfully object and disagree with the proposed findings in the resolution, as alleged above specifically, and extended here generally, the alleged regulatory nexus of ameliorating housing instability at mobilehome parks does not bear a reasonable relationship and rough proportionality to the proposed RS/JCE Ordinance, which amounts not to an iterative amendment, but rather a wholesale repeal and readoption of new regulation. 3. We respectfully object and disagree with the legal citations previously relied upon by the City as to Ordinance NS-3009, NS-3010, and Resolution 2021-054, and they do not reasonably relate to the extension of the Ordinances and proposed amendments in this Item 25 to mobilehome parks. Again, we appreciate the City's work and apparent corrections and refinements in response to the pending litigation. We must reserve the right to further supplement this letter and administrative record concerning this Item 25, and its future readings, as our review of the proposed adoption and public proceedings continues. For avoidance of doubt, this correspondence and the correspondence and pleadings incorporated by reference are not intended to list all of the deficiencies, and errors or omissions of facts and law contained in both the Rent Stabilization Ordinance, the Just Cause Eviction Ordinance, in the amended RS/JCE Ordinance, and all related findings and resolutions. All legal rights and remedies based upon the impacts of these Ordinances are reserved on behalf of our clients. Sincerely, LOFTIN I BEDELL P.C. 7 By. L. Sue,oftin, Esq. cc: Clients Kingsley — 426 Santa Ana Ordinances Attachment A Middleton, Samuel From: Maria Ceja <ceja.maria95@gmail.com> Sent: Tuesday, October 4, 2022 10:20 AM To: eComment Subject: Item 25 Dear Mayor and City Council, I am in support of the adoption of the first reading of the now Rent Stabilization and Just Cause Eviction Ordinance, under the following conditions: I. The rental registry fee is as low as possible; so as to not financially burden tenants; 2. requires ALL rental units to be registered so the city can account for them; 3. creates an equitable rent board that reflects the City; the rent board should have a tenant majority; the composition should be:3 tenants, 2 at large members, and a maximum of 2 landlords; 4. removes voluntary mediation; it is an unnecessary cost and has not been effective (the City has offered this in the past); 5. enforces that landlords pay the registry fee and cannot increase the rent until they do so; 6. enforcement that the landlord is abiding by the law and informing tenants of their rights and not keeping this information from them; 7. and supporting removing the exemptions proposed by the city; especially the substantial remodel exemption since the City does not even provide proof from the landlord for this (which is extremely unacceptable) Santa Ana needs rent stabilization and just cause eviction protections. The City must honor the years of hard work and dedication directly from the Community. The City Council should not lose sight of this, and should, at the minimum, respect the Community's recommendations and demands. Best, Maria Ceja Middleton, Samuel From: Emma W-T <ewei101010@gmail.com> Sent: Tuesday, October 4, 2022 12:18 PM To: eComment Subject: Public Comment for Item #25: In Support of Establishing a Rental Registry and Rent Board Dear City Councilmembers, My name is Emma Wei -Ten and I'm a resident of Orange County. I am expressing my support and requested changes for item #25. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: • A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee • A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of the following composition with 7 members: 3 members who are Tenants 1 member who is a Mobile Home Resident 2 members who are either Landlords or manage a Rental Unit or Property 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Is someone who does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language. Please continue to be a champion for all Santa Ana residents by implementing a Rental Registry and Rent Board that is representative of the needs of vulnerable renters and mobile home owners. Sincerely, Emma Wei -Ten Middleton, Samuel From: Jocelyn Rubio <jocelyn.rubio@ymail.com> Sent: Tuesday, October 4, 2022 12:40 PM To: eComment Subject: Public Comment for Item #25: In Support of Establishing a Rental Registry and Rent Board Dear City Councilmembers, My name is Jocelyn Rubio, a resident of ward 6 and an advocate for seniors. I am expressing my support and requested changes for item #25. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and JCEO Exempt tenants living in subsidized housing from paying the rental registry fee, a fee rebate program for low-income seniors living on fixed incomes. Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of the following composition with 7 members: 3 members who are Tenants 1 member who is a Mobile Home Resident 2 members who are either Landlords or manage a Rental Unit or Property 1 at -large member with no financial interest and no ownership of income -generating rental housing. I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: Received 40-80 hours of formal training in mediation Received training in anti -racism, elimination of bias, and cultural competency Have mediated rent disputes or has other experience to competently mediate Is someone who does not have a financial or personal stake in the matter that is being mediated before them. Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language. Please continue to be a champion for all Santa Ana residents by implementing a Rental Registry and Rent Board that is representative of the needs of vulnerable renters and mobile home owners. Sincerely, Jocelyn Rubio Ward 6 resident Middleton, Samuel From: Yoselinda Mendoza <ogyosi@gmail.com> Sent: Tuesday, October 4, 2022 12:41 PM To: eComment Subject: Public Comment for Item #25: In Support of Establishing a Rental Registry and Rent Board Dear City Councilmembers, My name is Yosi. I am expressing my support and requested changes for item #25. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: • A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee • A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of the following composition with 7 members: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Is someone who does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language. Please continue to be a champion for all Santa Ana residents by implementing a Rental Registry and Rent Board that is representative of the needs of vulnerable renters and mobile home owners. Sincerely, Yosi Middleton, Samuel From: Aaron Peluso <cchcorp@gmail.com> Sent: Tuesday, October 4, 2022 12:45 PM To: eComment Subject: 10/04 Council Agenda Item 25 - Adoption of Ordinance Amending Rent Control Ordinance Hello, I am writing as a representative of the ownership of Bali Hi Mobile Home Park located at 432 S Harbor Blvd. I am writing in support of Sue Loftins 9/30/22 letter to the city. I would specifically like to voice my opposition to the Tenant Impact Report provision prior to sale. I remain unclear on the Capital Improvement/NOI rent application process and function. Parks established in the mid 50+ years ago require significant maintenance and upkeep. As Loftin details, there does not seem to be any city assistance helping property owners navigate this needless rapidly evolving bureaucracy Meanwhile the city has actively whipped Tenant's into a frenzy over this issue and even offers legal advice to Tenants...? This rent issue seemed to come to the city's attention following a Tenant activist organization mobilizing our Tenant's after we raised rents to $799 for all Tenants. In a handful of cases this resulted in a large single year adjustment, to bring all long term Tenants to the same rental rate. This large adjustment was not repeated and it is worth noting that the $799 rate was below the Section 8 standard of affordability that year. How can it be abusive if its under the Section 8 guideline? The city performed a rental survey and found that we were among, if not the cheapest mobile home park in the city, after the rent adjustment. As Loftin details, there never was a need for a rent stabilization program in the first place. There was no evidence of abusive rent increases then, nor since. Sincerely, Aaron Peluso CCH Management LLC 949-295-3247 (mobile) 949-831-1040 (office) cchcorp@gmail.com Manager 949-495-3321 (fax) Middleton, Samuel From: Jarod Egan <jarodegan@me.com> Sent: Tuesday, October 4, 2022 12:52 PM To: eComment Subject: Public Comment for Item #25: In Support of Establishing a Rental Registry and Rent Board As a long time Santa Ana resident I support the establishment of a rental registry and rent board. Sent from my iPhone Middleton, Samuel From: Erik Williams <motoguy@gmail.com> Sent: Tuesday, October 4, 2022 1:54 PM To: eComment Subject: Public Comment for Item #25: In Support of Establishing a Rental Registry and Rent Board Dear City Councilmembers, My name is Erik Williams and I'm a resident of ward 4. I am expressing my support and requested changes for item 425. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and JCEO Exempt tenants living in subsidized housing from paying the rental registry fee A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of the following composition with 7 members: 3 members who are Tenants 1 member who is a Mobile Home Resident 2 members who are either Landlords or manage a Rental Unit or Property 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: Received 40-80 hours of formal training in mediation Received training in anti -racism, elimination of bias, and cultural competency Have mediated rent disputes or has other experience to competently mediate Is someone who does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language. Please continue to be a champion for all Santa Ana residents by implementing a Rental Registry and Rent Board that is representative of the needs of vulnerable renters and mobile home owners. Sincerely, Erik Williams Middleton, Samuel From: Indigo Vu <indigo@vietrise.org> Sent: Tuesday, October 4, 2022 2:01 PM To: eComment Subject: Public Comment for Item #25: In Support of Establishing a Rental Registry and Rent Board Dear City Councilmembers, My name is Indigo Vu and I'm a resident of ward 1. I am also a staff member at VietRISE. I am expressing my support and requested changes for item #25. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee • A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of the following composition with 7 members: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income -generating rental housing. I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Is someone who does not have a financial or personal stake in the matter that is being mediated before them. Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language. Please continue to be a champion for all Santa Ana residents by implementing a Rental Registry and Rent Board that is representative of the needs of vulnerable renters and mobile home owners. Sincerely, Indigo Indigo Vu Pronouns: they/them Deputy Director indigogvietrise.org I www.vietrise.or �Y AIlu114. YIII t',li �ilil1 r119' di;dll'„➢N71ifll.d 44 October 4, 2022 11amm w, Dmi"crol?'s Sent by email to eComment(ea�,santa-ana.or E..A'd'ruhr e Board 2PFb'r CW ,(, 1 (111110 V (o h'Pb' l *W 1r w, a rcr rlol °IuIIr1,=1 Mayor Sarmiento and Members of the City Council so( rNwg City of Santa Ana h.vn It Ilriyh 20 Civic Center Plaza f'as't f'res'fdrrlt rrilk'I Santa Ana, California 92701 N.odnrl tndrrson P�eilh (Irnhi.�,er `'m RE: Council Agenda Item #25: Adoption of Ordinance amending the Rent J 'A),o1,11° r�1�11 r«,u„1,�1 •1Nnr`1 rr I„i", r1= Stabilization and Just Cause Eviction Ordinances r�,r�11 y1171f7J,1 t d'.r"dACNrd Md'k"9"nr.bn'r"rW' 1'h11111 1nJi111! ��1111�1111,11I Honorable Mayor and Council Members: nrelll �,1111£,hel�e M "`d ilII PII �'I r11 Pf The Manufactured Housing Educational Trust (MHET) represents mobile home park and Jn ii111'`' manufactured housing community owners in Santa Ana and the Southern California tri- r 1,1,, roffi, county region of Orange, Riverside and San Bernardino Counties. Over the past forty 1 �g ili years, we have had an excellent working relationship with the city in resolving mobile Mill 1rP1 Iwo home park issues and in providing rental assistance for residents of our Parks. A" "`° y ConinWfe Unfortunately, rent control was adopted over our strong objections and the submittal of °1"HU11 � �.1r,,111r, substantial evidence that rent control or rent stabilization was not an appropriate action. �e, , Gib"°l1 We are now submitting comments and recommendations on the current proposed u�« 111o111t,, 11 19t, <Z111111111 amendments to the original ordinance adopted by the City Council in November 2021. ht,W Pr•d'.wNCCd'Ws o11n11� Request Prior Comments to be made part of the Record \Si111 un \tiller �r11d�11 rrl 11�11BL •iL (;eu, Uo uyhcc 'I When the discussion of adopting rent control/rent stabilization and eviction regulations °lll r< ti I (,ilbc1I came before the city council, our organization and our members submitted numerous m r 111dr111oer written comments and participated in public comments objecting to the adoption of rent i,o1,�1r r1,11r, ;I" Woo control control and just cause evictions. Our comments were all on the record and provided Pteilli r 1�11h1ser detailed factual support for our opposition. Those comments remain relevant today. We respectfully request that all of our previous comments placed on the record remain on the ail 11(11`(111I`I'0`1' ` record as relevant to the discussion of proposed amendments to the ordinance on the V\1nn IlolnbluF II 1111 r II l I„ 110 agenda tonight. i{.0 (r1�PA SII (1CrfrOR nnI�I tlll � rr 111Br D,Phnie I rMereniew To address the new revisions and amendments that have been added to the ordinance, we Award d dine "N�',ANd'Wx yIII111 rr,,do11 ('m Goldr11 are in full agreement and support of the comments submitted for the record by the o1,n `I�`'1` l� III, I" 2411 "1�" ir..r i 111�11�r�rr Western Manufactured Housing Communities Association (WMA) dated today and the r 1�� vv,",1 I,'�N September 30, 2022 letter from the Loftin Bedell Law Firm representing Kingsley 111r I1I , � I,,;�, Management. lbore and Beyond Award Rd'tl°glANd'r• x V,i,li� rr111CL Requested Modifications Recommendations °r�nlrl Arl„,ill r�111 r< ,ll,l �' "1'1 '` "°;°" ir1,�11 r1,11r, 1. Clarification of Section 8-3147 — Exemptions (page °' rr IIr111 rin�l rl,l�� This section should simply be clarified by correcting "Section 798.17" to specifically �11111 I;��;1<<�:III�Ir1 7amr,�Go[ick include "(b)" after 798.17 to read as follows (addition noted in bold iu lli d): E..A'd'r?Mr e ddgP"d'tllor lir.'hir Ill(, %,j%li Pasco €,lC.dl•£f f(( sun (S LAJ * r,fryuwr MUS, COfi)IO(r 9,M,7 r - der' om, (90) 80J0J * d"( A' (90) J803NO Inland eIti'NNldre dn'd'presenheNre L'm(W £ )r1' Nfff('( cwn - bf'ebn"ih, ffY("w lldw(colna, UolwlI i'ui1 Soul1 ern California 111thI"Yerd inp Orddddpe, Riro' ide ddddre! San Bernardino 11,aunl es since 198 Page Two of Two MHET October 4, 2022 (b) Pursuant to the Mobilehome Residency Law, the provisions of this ordinance regulating the amount of rent that a mobilehome park park owner may charge for a mobile home space shall not apply to the following: any mobilehome space subject to a long term (more than one year) rental agreement (California Civil Code section 798.17 (b,)); any newly constructed.... 2. Rent Board Make Up vs Hearing Officer At the September 6, 2022 council meeting there was discussion among the members of the council regarding an addition to the ordinance(s) that involves creating a rent board and the appropriate make up of such a board. One suggestion was to have a mobile home owner (park tenant) as a member of the board. Likewise, there should also be a representative from mobile home park ownership as a landlord member. Perhaps, better yet, a separate board that deals with mobile home park issues, which are significantly different than other rental housing. But, most important of all is that any board should be balanced with equal representation from renters and landlords. It is unfortunate that other options or alternatives to a rent board were not discussed. Often it is difficult to find applicants to serve on rent boards. Having an experienced hearing officer or perhaps a retired judge would be a much more desirable and fair approach and should be considered. Our comments should not be construed in any way as being supportive of the ordinances, and are offered as clarifications. Your consideration is appreciated. Sincerely, I — � & Llaw '. Vickie Talley Executive Director Middleton, Samuel From: Jesus Santana <santanajesus18@gmail.com> Sent: Tuesday, October 4, 2022 2:28 PM To: eComment Subject: RE: Support for item #25, establishing a Rental Registry and Rent Board in the city of Santa Ana. Good evening City Councilmembers, My name is Jesus Santana and I'm a resident of ward 2 with Sullivan En Accion(SEA). I would like to express my support for item #25, establishing a Rental Registry and Rent Board in the city of Santa Ana. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: • A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee • A fee rebate program for low-income seniors living on fixed incomes. Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Is someone who does not have a financial or personal stake in the matter that is being mediated before them 1 Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language. I urge you to adopt all of these changes. Thank you. Sincerely, Jesus Santana Middleton, Samuel From: David Carbajal <davidcarbajall 1 @gmail.com> Sent: Tuesday, October 4, 2022 2:32 PM To: eComment Subject: Public Comment for Item #25: In Support of Establishing a Rental Registry and Rent Board Dear City Councilmembers, My name is David Carbajal and I'm a resident of ward 6 with Tenants United Santa Ana. I am expressing my support and requested changes for item #25. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: • A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee • A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of the following composition with 7 members: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Is someone who does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language. Please continue to be a champion for all Santa Ana residents by implementing a Rental Registry and Rent Board that is representative of the needs of vulnerable renters and mobile home owners. Sincerely, David Carbajal Middleton, Samuel From: Kayleigh Levitt <kayleighlevitt@gmail.com> Sent: Tuesday, October 4, 2022 2:34 PM To: eComment Subject: Public Comment for Item #25: In Support of Establishing a Rental Registry and Rent Board Dear City Councilmembers, As a renter of Santa Ana for many years, and as a volunteer for Tenants United Santa Ana, I am expressing my support and requested changes for item #25. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: • A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee • A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of the following composition with 7 members: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Is someone who does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language. Please continue to be a champion for all Santa Ana residents by implementing a Rental Registry and Rent Board that is representative of the needs of vulnerable renters and mobile home owners. Sincerely, Kayleigh Levitt Middleton, Samuel From: Maria Ceja <ceja.maria95@gmail.com> Sent: Tuesday, October 4, 2022 2:35 PM To: eComment Subject: Re: Item 25 I would like to add to my comment and revise my preferred composition of the rent board: 3 renters; 2 mobile home residents; 1 at large community member; and 1 landlord (max) Thank you, Maria Ceja On Tue, Oct 4, 2022 at 10:19 AM Maria Ceja <ceja.maria95ggmail.com> wrote: Dear Mayor and City Council, I am in support of the adoption of the first reading of the now Rent Stabilization and Just Cause Eviction Ordinance, under the following conditions: 1. The rental registry fee is as low as possible; so as to not financially burden tenants; 2. requires ALL rental units to be registered so the city can account for them; 3. creates an equitable rent board that reflects the City; the rent board should have a tenant majority; the composition should be:3 tenants, 2 at large members, and a maximum of 2 landlords; 4. removes voluntary mediation; it is an unnecessary cost and has not been effective (the City has offered this in the past); 5. enforces that landlords pay the registry fee and cannot increase the rent until they do so; 6. enforcement that the landlord is abiding by the law and informing tenants of their rights and not keeping this information from them; 7. and supporting removing the exemptions proposed by the city; especially the substantial remodel exemption since the City does not even provide proof from the landlord for this (which is extremely unacceptable) Santa Ana needs rent stabilization and just cause eviction protections. The City must honor the years of hard work and dedication directly from the Community. The City Council should not lose sight of this, and should, at the minimum, respect the Community's recommendations and demands. Best, Maria Ceja Middleton, Samuel From: Sullivan En Accion <sullivanenaccion@gmail.com> Sent: Tuesday, October 4, 2022 2:38 PM To: eComment Subject: RE: Support for Item #25, establishing a Rental Registry & Rent Board in the city of Santa Ana Good evening City Councilmembers, A Sullivan En Accion(SEA), we would like to express my support for item #25, establishing a Rental Registry and Rent Board in the city of Santa Ana. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: • A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee • A fee rebate program for low-income seniors living on fixed incomes. Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Is someone who does not have a financial or personal stake in the matter that is being mediated before them 1 Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language.) urge you to adopt all of these changes. Thank you. Sincerely, Sullivan En Accion (SEA) Middleton, Samuel From: Kelli <ksjule09@gmail.com> Sent: Tuesday, October 4, 2022 2:51 PM To: eComment Cc: Rafael Corona (rafaelcoronal987@gmail.com) Subject: Public Comment for Item #25: In Support of Establishing a Rental Registry and Rent Board Dear City Councilmembers, My name is Kelli Sjule, and I and my fiance, Rafael Corona, are residents of ward 5. 1 have copied him on this email as he concurs with this message. We both would like to express support and request changes for agenda item #25. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: • A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee • A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of the following composition with 7 members: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Is someone who does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language. Please continue to be a champion for all Santa Ana residents by implementing a Rental Registry and Rent Board that is representative of the needs of vulnerable renters and mobile home owners. Thank you for your continued support of rent control and tenant protections in Santa Ana. Sincerely, Kelli Sjule & Rafael Corona WIestern Manufactured Housing Communities October 4, 2022 Mayor Vince Sarmiento Mayor Pro Tern Phil Bacerra Council Member Thai Viet Phan Council Member David Penaloza Council Member Jessie Lopez Council Member Johnathan Ryan Hernandez Council Member Nelida Medoza City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Re: Item #25, Adoption of Ordinance amending the Rent Stabilization and Just Cause Eviction Ordinances. Honorable Mayor and City Council: Western Manufactured Housing Communities Association (WMA) is a statewide trade association representing mobilehome community owners throughout California and many here in the City of Santa Ana. We renew our opposition to the amended rent control ordinance. Over a year ago property owners objected to this flawed ordinance stemming from a broken, and arguably illegal, process to craft an ordinance to needlessly regulate your rental housing stock. At the time property owners asserted that the Rent Control and Just Cause ordinance was unneeded, rent control is harmful to tenants and property owners, the process was broken, lacked transparency with no outreach to rental housing providers, and that the rental assistance funds had gone unused indicating that enacting the ordinance wasn't necessary. i Unfortunately, none of our concerns were addressed and council passed the harmful ordinance nearly a year ago. At that time, the characterization of the original ordinance was that it is a "place holder" while the city conducted the needed research and hire consultants to enact and implement the permanent ordinance. By design, the permanent ordinance is before the council the same week ballots are mailed to Santa Ana voters for final council action. This alone unveils the political motivation of the council majority and their unwillingness to 1 Western Manufactured Housing Communities Association September 20, 2021 letter to the Mayor and City Council of Santa Ana Western Manufactured Housing Communities Association Sacramento Office: 455 Capitol Mall Suite 800, Sacramento, CA 95814 1 (916) 448-7002 Regional Office: 40335 Winchester Rd. #E165, Temecula, CA 92596 1 (951) 704-2427 1 julie@pauleconsulting.com work with property owners, specifically mobilehome park owners, to address the numerous deficiencies with the amended ordinance. In the past year, my organization, WMA, was never contacted to seek input into the final product under consideration. Some members of our industry have had to litigate to get concerns resolved. I refer to the September 30, 2022 letter from the Loftin Bedell Law Firm representing Kingsley Management in their lawsuit with the City of Santa Ana. In their very technical letter, the Loftin Bedell Firm outlines the numerous conflicts with state law applicable to mobilehome parks and Santa Ana's ordinance. WMA and mobilehome park owners join Kinsley Management's concerns about the requirement of a "tenant impact report" prior to a property sale and defining a sale as a "change of use" and the needed clarifications as to how Fair Rate of Return/MNOI and Capital Improvements applications will be determined with the application of the amended ordinance. Rent Board Make U One of the final outstanding items for the Council to consider is the make-up of the rent board. The only obvious solution would be same number of tenants to landlords, which uphold both party's due process. In fact, any quorum of the board should include a balance of tenants to landlords. The discussion at the September 6th City Council meeting to have more tenants than landlords will place a finger on the scale of balance. This biased approach permits a future council to stack the board with all landlords since impartiality and equity aren't principles at the center of Santa Ana's ordinance. Mobilehome park owners are not a required party to serve on the rent board, yet every other stakeholder is represented. Council gave direction that one of the tenant representatives should be from a mobilehome park. Yet, mobilehome owners are not to be included on the board? Owning and operating mobilehome communities is a unique and specialized form of rental property ownership and the City of Santa Ana and the future rent board would be well served with this expertise reviewing applications. Options like use of administrative law judges and hearing officers have never been discussed or considered. Also, perhaps mobilehome applications have a separate board to hear mobilehome matters? There are other options than a myopic solution currently offered. We respectfully request delaying this action to receive further input from various stakeholders —especially mobilehome community owners —to be considered by the city. Sincerely, Julie Paule, Regional Representative Western Manufactured Housing Communities Association Sacramento Office: 455 Capitol Mall Suite 800, Sacramento, CA 95814 1 (916) 448-7002 Regional Office: 40335 Winchester Rd. #E165, Temecula, CA 92596 1 (951) 704-2427 1 julie@pauleconsulting.com Advancing social justice and building power with working-class Vietnamese and immigrant communities in Orange County. V Garden Grove, CA 92843 W W W.nY.1� 1. I.Q.4 m, m ill{ s> p„ rmn �pm;g @vietriseoc Tuesday, October 4, 2022 Dear City Councilmembers, My name is Tracy La, and I am the Executive Director of VietRISE, a community non-profit organization based in Orange County. VietRISE advances social justice and builds power with working-class Vietnamese and immigrant communities in Orange County. On behalf of VietRISE, we are writing to address item #25 on the agenda. While we are in support of a majority of the language in the amended ordinance on today's council agenda, we are requesting your support in implementing several key changes to the policy language. Firstly, we believe it is imperative that the city council hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. With that, we appreciate the City's proactive approach to establishing a Rent Registry and Rent Board by amending the Rent Stabilization Ordinance (RSO) and Just Cause Evictions Ordinance (JCEO). Below are the following changes we are asking to be adopted to the language of the amended ordinance: We urge the city of Santa Ana to implement a rental registry that includes the following: • A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and Just Cause Evictions Ordinance JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee and those that have section 8 vouchers • A fee rebate program for low-income seniors living on fixed incomes Furthermore, we urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. We believe to be most representative of the city's residents, the board should consist of the following composition with 7 members: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income -generating rental housing We support including Voluntary Mediation as a service by the city, but we urge the city council to require the following from any participating mediator: • Received forty (40) - eighty (80) hours of formal training in mediation, as opposed to just twenty-four (24) hours Advancing social justice and building power with working-class Vietnamese and immigrant communities in Orange County. V Garden Grove, CA 92843 W W W.nY.1� 1. I.Q.4 m, m ill{ s> p„ rmn �pm;g @vietriseoc • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language, or at the very least the following three (3) languages: English, Spanish, and Vietnamese. Additionally, to guarantee the protection of mobile home tenants and owners through the RSO, we urge you to consider and adopt the "change of use" language and definition in the red -lined version of the ordinance submitted to city staff by Tenants United Santa Ana on Monday, October 3, 2022. In summary, VietRISE is in support of the amended RSO and JCEO with no less than these compositions. Thank you. Please continue to be a champion for all Santa Ana residents by implementing a Rental Registry and Rent Board that is representative of the needs of vulnerable renters and mobile home owners. Sincerely, C-b- Tracy La Executive Director of VietRISE Middleton, Samuel From: Vincent Tran <vncent@vietrise.org> Sent: Tuesday, October 4, 2022 3:35 PM To: eComment Subject: Public Comment for Item #25: In Support of Establishing a Rental Registry and Rent Board Dear City Councilmembers, My name is Vincent Tran and I'm a staff member of VietRISE. I am expressing my support and requesting changes for item #25. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: • A Rental Registry fee that is as low as possible so as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt -out if they are not covered by the RSO and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee • A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of the following composition with 7 members: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience in competently mediating • Is someone who does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretations in their preferred language. Please continue to be a champion for all Santa Ana residents by implementing a Rental Registry and Rent Board that is representative of the needs of vulnerable renters and mobile homeowners. Sincerely, Vincent P. Tran Pronouns: He/him/his Community Engagement Coordinator VietRISE vincent(a,vietrise.org I www.vietrise.org Middleton, Samuel From: Thalia Pizano <thaliapizano.sea@gmail.com> Sent: Tuesday, October 4, 2022 4:23 PM To: eComment Subject: Thalia Pizano- Rental Registry and Rent Board Good evening City Councilmembers, My name is Thalia Pizano and I am a resident of ward 5 / with Sullivan En Accion. I would like to express my support for item #25, establishing a Rental Registry and Rent Board in the city of Santa Ana. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. With this ordinance my family and I are able to feel less anxiety and maintain a secure home living status. I urge the city of Santa Ana to implement a rental registry that includes the following: •A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee •A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Is someone who does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language. I urge you to adopt all of these changes. Thank you. Sincerely, 1 Thalia Pizano Middleton, Samuel From: sally pizano <spizano927@yahoo.com> Sent: Tuesday, October 4, 2022 4:31 PM To: eComment Subject: Sally Pizano- Rental Registry and Rent Board Good evening City Councilmembers, My name is Sally Pizano and I'm a resident of ward five with Sullivan En Accion. I would like to express my support for item #25, establishing a Rental Registry and Rent Board in the city of Santa Ana. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: • A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral �SO Requires ALL units to register or pay a fee, or opt out if they are not covered by the and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee • A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income - generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Is someone who does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language. I urge you to adopt all of these changes. Thank you. Sincerely, Sally Pizano Middleton, Samuel From: Alondra Salazar <alondra.salazarmed@gmail.com> Sent: Tuesday, October 4, 2022 4:40 PM To: eComment Cc: Sarmiento, Vicente; Bacerra, Phil; Phan, Thai; Penaloza, David; Lopez, Jessie; Hernandez, Johnathan; Mendoza, Nelida Subject: E-comment on Agenda Item #25 Good evening City Councilmembers, My name is Alondra Salazar and I'm a resident of Santa Ana, specifically ward 4. 1 would like to express my support for Agenda item #25, establishing a Rental Registry and Rent Board in the city of Santa Ana. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral Requires ALL units to register or pay a fee, or opt out if they are not covered by the RSO and JCEO Exempt tenants living in subsidized housing from paying the rental registry fee A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of: 3 members who are Tenants 1 member who is a Mobile Home Resident 2 members who are either Landlords or manage a Rental Unit or Property 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: Received 40-80 hours of formal training in mediation Received training in anti -racism, elimination of bias, and cultural competency Have mediated rent disputes or has other experience to competently mediate Is someone who does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretation in their preferred language. I urge you to adopt all of these changes. Thank you. Sincerely, Alondra Salazar Middleton, Samuel From: Christina Ruiz <ruizcm118@gmail.com> Sent: Tuesday, October 4, 2022 7:41 PM To: eComment Subject: Public Comment for Item #25: In Support of Establishing a Rental Registry and Rent Board Dear City Councilmembers, My name is Christina Ruiz and I'm a resident of ward 4. I am expressing my support and requesting changes for item 425. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following: A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt -out if they are not covered by the RSO and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee • A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of the following composition with 7 members: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Is someone who does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretations in their preferred language. Please continue to be a champion for all Santa Ana residents by implementing a Rental Registry and Rent Board that is representative of the needs of vulnerable renters and mobile homeowners. Sincerely, Christina Ruiz pronouns: she/her/hers 714-742-5118 cell Middleton, Samuel From: Kenny Howell <kenny.r.howell@gmail.com> Sent: Tuesday, October 4, 2022 7:47 PM To: eComment Subject: Public Comment for Item #25: In Support of Establishing a Rental Registry and Rent Board Dear City Councilmembers, My name is Kenny Howell and I'm a resident of ward 4. 1 am expressing my support and requesting changes for item #25. As we approach the 1 year anniversary of the passage of the landmark RSO and JCE, it is imperative that the city council, once again, hold its commitment to Santa Ana residents by implementing a Rental Registry and Rent Board that can oversee their implementation and increase transparency, renter protections, and accountability within the city's rental properties. I urge the city of Santa Ana to implement a rental registry that includes the following- -A Rental Registry fee that is as low as possible as to not financially burden tenants while also making our ordinances cost neutral • Requires ALL units to register or pay a fee, or opt -out if they are not covered by the RSO and JCEO • Exempt tenants living in subsidized housing from paying the rental registry fee •A fee rebate program for low-income seniors living on fixed incomes Furthermore, I urge the city council to adopt a Rent Board that is representative of the city's residents along the lines of gender, race, immigration status, income, and spoken language. The board should consist of the following composition with 7 members: • 3 members who are Tenants • 1 member who is a Mobile Home Resident • 2 members who are either Landlords or manage a Rental Unit or Property • 1 at -large member with no financial interest and no ownership of income -generating rental housing I support including Voluntary Mediation as a service by the city, but I urge the city council to require the following from any participating mediator: • Received 40-80 hours of formal training in mediation • Received training in anti -racism, elimination of bias, and cultural competency • Have mediated rent disputes or has other experience to competently mediate • Is someone who does not have a financial or personal stake in the matter that is being mediated before them Additionally, Tenants and Landlords involved in a Petition for Review of Rent should receive all materials and interpretations in their preferred language. Please continue to be a champion for all Santa Ana residents by implementing a Rental Registry and Rent Board that is representative of the needs of vulnerable renters and mobile homeowners. Sincerely, Kenny Howell pronouns: he/him/his 525CabdflwPark Ddv(�,Suite 125,Santa Ana, CA 92701 Flhone:(714.) 245-9500 F.m (714)245-9505 Mayor Vicente 88rmieDtD&Members Ofthe Santa Ana City Council City of Santa Ana 20 Civic Center Plaza Santa Ana, CA827U1 RE: Agenda Item #25—Adoption nfOrdinance amending the Rent Stabilization and Just Cause Eviction Ordinances Dear Mayor Sarmiento & Members of the Santa Ana City Council, The Apartment Association OfOrange County (AAOC)iSthe professional trade association that represents more than 2,000 rental -housing professionals who collectively 0vvn, operate, and service more than 100.000 [BDt8| units in Orange and Riverside Counties, including members with properties in Santa Ana. AAOC has previously submitted public testimony and written correspondence regarding the city's rent Stobi|bc8tiOD ordinance in its OhgiD@Uy proposed and adopted form last year, as well BS its process for amending the ordinance which the city council will be considering. Those cnnnnnUniC8tiOOS COntiDUB to represent the positions held by AAOC and its members and apply to the proposed rent stabilization and just cause eviction ordinance amendments. Additionally, AAOC urges the city to move forward with a fair and balanced approach to any oversight mechanism, board, Or decision -making process related to the enforcement of the OrdiO8OceS, which does not implement a system that gives advantages or weight to a particular side between residents and rental p[OpedvVvvnerS/0p8[BtOrS. The only way to ensure a fair administration of any ordinance is by seeking balance and equal participation. Any other composition of rent control bO@nd. citizens oversight COmmitt8e. or appeals process would likely result in legal challenges that would negatively impact all parties involved — including the City. We urge the city to create @ system that a||OvvS for all voices to have equal participation and standing in the prOC8SS. and not structure any deliberative or decision -making body such that the DUtCOrne is predetermined inany direction. Thank you for your time and consideration, Sincerely, EXHIBIT 2 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING ARTICLE X OF CHAPTER 8 OF THE SANTA ANA MUNICIPAL CODE AND CREATING A NEW ARTICLE XIX IN CHAPTER 8 OF THE SANTA ANA MUNICIPAL CODE PERTAINING TO THE RENT STABILIZATION AND JUST CAUSE EVICTION ORDINANCES THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of Santa Ana hereby finds, determines, and declares as follows: A. At the City Council meetings on September 21, 2021, and October 5, 2021, the City Council discussed the City of Santa Ana's ("Santa Ana" or "City") ability to address rent increases on residential real property and in mobilehome parks. B. On October 19, 2021, the City Council adopted Ordinance No. NS- 3009, known as the Rent Stabilization Ordinance ("RSO") and Ordinance No. NS-3010, known as the Just Cause Eviction Ordinance ("JCEO") appearing as Article X, Division 4 and Division 5 in the Santa Ana Municipal Code ("SAMC"). The RSO and JCEO were adopted to regulate rent increases and evictions in certain rental properties and mobilehome spaces in the City of Santa Ana. C. The findings in Ordinance No. NS- 3009 and Ordinance No. NS-3010 articulate that significant rent increases and housing instability pose a threat to public health, safety and welfare, and a particular hardship for senior citizens, persons living on fixed incomes, and other vulnerable persons living in Santa Ana. These findings are still true and incorporated herein. D. Additionally, the City Council adopted Resolution No. 2021- 054, directing staff to: (1) Conduct further study of the additional regulatory framework and infrastructure necessary to implement residential rent stabilization, just cause eviction, and other protections for Santa Ana residents facing housing instability; and, (2) Include the creation and operation of a Rent Board or similar body, a rent registry, and the related costs thereof. E. On September 6, 2022, staff presented the Long -Term Implementation Plan for the RSO and JCEO to the City Council detailing various best practices based on findings from local sample jurisdictions with similar ordinances in the State of California. F. On September 6, 2022, the City Council adopted the Long -Term Implementation Plan Page 1 of 46 EXHIBIT 2 for the RSO and JCEO and provided direction to staff to prepare amendments to the RSO and JCEO to implement efficient and effective program services to rental property owners and tenants and promote long-term sustainability of the programs. G. The amendments proposed by this Ordinance are consistent with the adopted Long - Term Implementation Plan of the RSO and JCEO and the direction by City Council at the September 6, 2022 City Council meeting. These include: 1. Create a Rental Housing Board; 2. Create a Rental Registry; 3. Adopt a Rental Registry Fee; 4. Develop a Work Plan; 5. Conduct a Fee Study Based on the Work Plan and Staffing Needs; 6. Expand Compliance Activities; 7. Create a Capital Improvement Petition and Tenant Petition; 8. Establish Petition Fees and a Petition Review Process; 9. Create a Voluntary Mediation Process; and, 10. Join the Rent Stabilization Consortium. H. Pursuant to the City's police power, as granted broadly under Article XI, section 7 of the California Constitution, and Santa Ana Charter section 200, the Santa Ana City Council has the authority to enact and enforce ordinances and regulations for the public peace, health, and welfare of the City and its residents. I. The City Council finds, determines and declares that the threat to the public health, safety and welfare of the City and its residents necessitates the enactment of the Ordinance. J. The Request for City Council Action for amendments to these Ordinances dated October 4, 2022, shall, by this reference, be incorporated herein, and together with this Ordinance, any amendments or supplements, and oral testimony, constitute the necessary findings for this Ordinance. Section 2. The recitals and statements of fact set forth in the preamble to this Ordinance are true and correct, constitute a substantive part of this Ordinance, and are incorporated herein by this reference. Section 3. Divisions 4 and 5 of Article X (Property Maintenance) of Chapter 8 (Buildings and Structures) of the Santa Ana Municipal Code are hereby amended and moved to a new Article XIX (Rent and Evictions) of Chapter 8 of the Santa Ana Municipal Code to read as follows: ARTICLE XIX. — RENT STABILIZATION AND JUST CAUSE EVICTION ORDINANCE DIVISION 1. —GENERALLY Section 8-3100 — Title This Article shall be known in its entirety as the "City of Santa Ana Rent Page 2 of 46 EXHIBIT 2 Stabilization and Just Cause Eviction Ordinance" and, for the sake of convenience, as the "Rent Stabilization and Just Cause Eviction Ordinance." Section 8-3101 — Background The Rent Stabilization Ordinance, previously adopted by the City Council on October 19, 2021, and the Just Cause Eviction Ordinance, also previously adopted by the City Council on October 19, 2021, are hereby amended pursuant to this newly adopted Rent Stabilization and Just Cause Eviction Ordinance. Section 8-3102 — Definitions a) For purposes of this Article, the words and phrases shall be defined as set forth herein, unless the context clearly indicates a different meaning is intended. b) Words and phrases used in this Article, which are not specifically defined, shall be construed according to their context and the customary usage of the language. c) Words and phrases defined: "Annual Allowable Rent Adjustment" means the limit on the Maximum Allowable Rent increase, which a Landlord may charge on any Rental Unit each year. "Capital Improvement" means an improvement, addition or major repair to a Rental Unit that were paid for and completed after November 19, 2021 (the effective date of the first adopted Rent Stabilization Ordinance), provided such new improvement, addition or major repair has a useful life of five (5) years or more and that is required to be amortized over the useful life of the improvement, such as: structural, electrical, plumbing, or mechanism system, roofing, flooring, including carpeting,air conditioning, security pates, swimming pool, sauna or hot tub„ children's play equipment permanently installed„ and other similar improvements as defined under the straight line depreciation provisions of the Internal Revenue Code and the regulations issued pursuant thereto and determined by the Rental Housing Board. Capital Improvement does not include normal or routine maintenance, repair, replacements, and/or deterioration resulting from an unreasonable delay in the undertaking of completion or after a Notice of Violation by a government agency ordering repairs. "Change of Use" means a use of a Mobilehome Park for a purpose other than the rental, or the holding out for rent, of two or more Mobilehome sites to accommodate Mobilehomes used for human habitation, and does not mean the adoption, amendment, or repeal of a Mobilehome Park rule or regulation. A Change of Use may affect an entire Mobilehome Park or any portion thereof and includes conversion to any form of ownership wherein spaces within the park are to be sold. "City" means the City of Santa Ana. Page 3 of 46 EXHIBIT 2 "Fair Return" means maintenance of Net Operating Income equal to the year in which a Fair Return Petition is submitted adjusted by eighty percent (80%) of the Consumer Price Index (CPI). "Hearing Officer" means a person who has been appointed by the Proaram Administrator to aerform the duties set forth in this Article. "Housing Services" means those services provided and associated with the use or occupancy of a Rental Unit including, but not limited to, insurance, repairs, replacement, maintenance, effective waterproofing and weather protection, painting, providing light, heat, hot and cold water, elevator service, window shades and screens, laundry facilities and privileges, janitorial services, utilities that are paid by the Landlord, refuse removal, allowing pets, telephone, parking, storage„ computer technologies, entertainment technologies, including cable or satellite television services, and any other benefits, privileges or facilities connected with the use or occupancy of such Rental Unit including a proportionate share of the services provided to common facilities of the building in which such Rental Unit is located and/or of the property on which such Rental Unit is located. "Landlord" or "Owner" means an owner of record, lessor, sublessor or any person, partnership, corporation, family trust, or any other business entity, or any successor in interest thereto, offering for rent or lease any Rental Unit or Mobilehome or Mobilehome Space in a Mobilehome Park in the City and shall include the employee, agent or representative of the Landlord if the agent or representative has the full authority to answer for the Landlord and enter into binding agreements on behalf of the Landlord. "Mediator" means a person whom the Program Administrator determines meets all of the following criteria: 1) Has received at least forty to eighty (40-80) hours of formal training in mediation. 2) Has received training in anti -racist, elimination of bias, and cultural competency; 3) Has mediated Rent disputes and/or has had other experience or training showing a capability to competently mediate the issues which arise in landlord/tenant disputes and 4) Does not have a financial or personal stake in the matter that is being mediated before them. "Mobilehome" means a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the Vehicle Code. Mobilehome includes a manufactured home, as defined in Section 18007 of the Health and Safety Code, and a Mobilehome, as defined in Section 18008 of the Health and Safety Code, but does not include a recreational vehicle, as defined in Section 799.29 of this code and Section 18010 of the Health and Safety Code or a commercial coach as defined in Section 18001.8 of the Health and Safety Code. Page 4 of 46 EXHIBIT 2 "Mobilehome Space" means the rental of a spot for a Mobilehome within a Mobilehome Park by a homeowner, as defined in Civil Code section 798.9, or a resident, as defined in Civil Code section 798.11. "Mobilehome Park" means an area of land where two or more Mobilehome Spaces are rented, or held out for rent, to accommodate Mobilehomes used for human habitation. "Net Operating Income" means the net revenue received by the Landlord after paying the normal Operating Expenses (gross revenue less normal operating expenses). "Operating Expenses" means the costs of normal operations, including, but not limited to, management, taxes, insurance, maintenance, repairs and other recurrina costs. "Program Administrator" is a person designated by the City Manager to administer the provisions of this Article. "Qualified Third Party" means a health practitioner, domestic violence counselor, as defined in Section 1037.1 of the Evidence Code, a sexual assault counselor, as defined in Section 1035.2 of the Evidence Code, a human trafficking caseworker or a victim of violent crime advocate, as that term is defined under Civil Code section 1946.7. "Rental Registry Fee" or "Registration Fee" means the fee the City imposes on each Rental Unit to cover the costs to administer the provisions of this Article. The Registration Fee shall not be considered as a "tax" as a determining factor in any petition submitted by an Owner. "Rent" means all periodic compensation, including all non -monetary consideration, that a Tenant provides to a Landlord concerning the use or occupancy of a Rental Unit, including any amount included in the Rent for utilities (unless separately billed to the Tenant by the utility company), parking, storage, pets or for any other fee or charge associated with the tenancy for the use or occupancy of a Rental Unit and related Housing Services. Rent includes, without limitation, the fair market value of goods accepted, labor performed, or services rendered. With respect to Mobilehomes and Mobilehome Spaces in Mobilehome Parks, any regulations of rent, fees, and costs included within the Mobilehome Residency Law, Civil Code section 798, et seq., shall be incorporated into the definition of Rent. as applicable. "Rent Increase" means any additional Rent demanded of or paid by a Tenant for a Rental Unit, including any reduction in Housing Services without a corresponding reduction in the amount demanded or paid for Rent; or a pro rata increase in costs of Housing Services apportioned to a Rental Unit. "Rental Agreement" means a lease, sublease, or other agreement, written, oral or implied, between a Landlord and a Tenant for the use and/or occupancy of a Rental Unit and for Housing Services. With respect to Page 5 of 46 EXHIBIT 2 Mobilehomes and Mobilehome Spaces in Mobilehome Parks. a regulations of rental agreements or leases within the Mobilehome Residency Law, Civil Code section 798, et seq., shall be incorporated into the definition of Rental Agreement, as applicable. "Rental Housing Board" or "Board" means the Rental Housing Board established by Division 5 of this Article XIX of Chapter 8 of the Santa Ana Municipal Code. "Rental Registry" means the database or portal where Landlords register Rental Units, update Rental Unit information, update Tenancy information submit notices, and pay the Rental Registry Fee. "Rental Unit" means any building, structure, or part thereof, or any Mobilehome and Mobilehome Spaces in a Mobilehome Park, offered or available for rent for residential use or occupancy in the City, including the land appurtenant thereto, together with all Housing Services in connection with the use or occupancy thereof, including common areas and recreational facilities held out for use by the Tenant, which is not exempt pursuant to the exemptions set forth in this Article. "Residential Real Property" or "Residential Property" means any housing unit, including a room or group of rooms designed and intended for occupancy by one or more persons, including a Rental Unit and a Mobilehome or Mobilehome Space in a Mobilehome Park, offered for rent or lease in the City. "Tenancy" means the right or entitlement of a Tenant to use or occupy a Rental Unit, including a Mobilehome or Mobilehome Space in a Mobilehome Park. "Tenant" means any renter, tenant, subtenant, lessee, sub -lessee, roommate, or any other person or entity entitled under the terms of a Rental Agreement, or by sufferance, or by state or federal law, to the use or occupancy of any Rental Unit and (i) has the legal responsibility for the payment of Rent for a Rental Unit or (ii) has agreed to pay the Rent for a Rental Unit. Section 8-3103 — Implementing Regulations, Policies and Procedures The City Manager or Program Administrator shall have the authority to promulgate regulations, policies and procedures to implement the requirements and fulfill the purposes of this Article. No person shall fail to comply with such regulations, policies and procedures. DIVISION 42. — JUST CAUSE EVICTIONS Page 6 of 46 EXHIBIT 2 Section 8-49943120 — Restrictions on Termination of Tenancy Wwithout Just Cause (a) ",:A_bA.XithGt ding ,n„ ^ther'�QAfter a tenant has continuously and lawfully occupied a residential real property for thirty (30) days, the Owner of the residential real property shall not terminate the Tenancy without just cause, which shall be stated in the written notice to terminate Tenancy. The provisions of this section related to the termination of Tenants shall not apply to Mobilehomes or Mobilehome Spaces in Mobilehome Parks subject to the termination provisions of the Mobilehome Residency Law, Civil Code section 798.56, as applicable. 1) The Owner shall post a notice on a form prescribed by the City, providing information about the existence of this Division 42 of Article XIX of Chapter 8 of the Santa Ana Municipal Code, including protections related to immigration or citizenship status of tenant found under Civil Code section 1940.35 and Code of Civil Procedure section 1161.4, as may be amended. Notice must be posted in a conspicuous location on the property. The notice shall be written in the language that the Owner and tenant used to negotiate the terms of the Tenancy (e.g., Spanish, Chinese, Tagalog, Vietnamese and Korean), as well as English. 2) In addition to all other notice requirements specified elsewhere in this Division, the Owner of any residential real property or mobilehome space, is required to provide written notice to Tenants of their rights under this Division as follows: A. The notice required by this Division must be on a form prescribed by the City and include the following information: i. The existence and scope of this Division 42 of Article XIX of Chapter 8 of the Santa Ana Municipal Code; and, ii. The right to relocation assistance in limited circumstances pursuant to subsection (d)(2) herein. B. The Owner must provide the Tenant with the notice upon serving any notice of change in terms of Tenancy. C. The Owner must provide the notice on or before the commencement of all Tenancies initiated after the effective date of this Division. (b) For purposes of this section, "just cause" includes either of the following: 1) At -fault just cause, which is any of the following: Page 7 of 46 EXHIBIT 2 A. Default in the payment of rent. B. A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation. A "breach of a material term" shall not include: i. The obligation to limit occupancy, provided that the additional occupant who joins the tenant of the residential real property thereby exceeding the limits on occupancy set forth in the lease is: I. A dependent under age 18, or II. A replacement tenant who moved in after an approved tenant vacated the residential real property, so long as the addition does not exceed the Uniform Housing Code. i. The Owner shall have the right to approve or deny the prospective additional or replacement tenant, who is not a minor dependent child, provided that the Owner does not unreasonably withhold approval. If the Owner fails to respond to the tenant in writing with a description of the reasons for the denial of the request within a reasonable amount of time of receipt of the tenant's written request, the tenant's request shall be deemed approved by the Owner if the lease is for a period of one (1) year or less. A change in the terms of the Tenancy that is not the result of an express written agreement signed by both of the parties. An Owner is not required to obtain a tenant's written consent to a change in the terms of the Tenancy if the change in the terms of the Tenancy is authorized by this section, or if the Owner is required to change the terms of the Tenancy pursuant to federal, State, or local law. Nothing in this subsection shall exempt an Owner from providing legally required notice of a change in the terms of the Tenancy. C. Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. D. Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. Page 8 of 46 EXHIBIT 2 E. The tenant had a written lease that terminated on or after the effective date of this Ordinance, and after a written request or demand from the Owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law. F. Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any Owner or agent of the Owner of the residential real property or members of the Tenant's household or other tenants of the residential real property. This at -fault, just cause provision shall apply if the Owner has, within a reasonable time, reported the criminal activity to law enforcement. Further, at -fault, just cause eviction of a tenant under this provision shall only apply to that tenant who committed the criminal activity described herein. If a tenant is acquitted or found not guilty of the charges giving rise to eviction, or if charges are not filed against the Tenant within the applicable statute of limitations period, the Tenant shall be offered the right to restore the Tenancy. G. Assigning or subletting the premises in violation of the tenant's lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. i. Notwithstanding any contrary provision in this section, an Owner shall not take any action to terminate a Tenancy based on a tenant's sublease of the residential real property if all the following requirements are met: I. The Tenant requests permission from the Owner in writing to sublease the residential real property; The Tenant continues to reside in the residential real property as their primary residence; III. The sublease replaces one or more departed tenants under the lease on a one -for -one basis; and IV. The Owner fails to respond to the Tenant in writing within a reasonable amount of time of the receipt of the tenant's written request. If the Owner fails to respond to the Tenant's written request, the request shall be deemed approved by the Owner if the lease is for a period of one (1) year or less. An Owner's reasonable refusal of the Tenant's written request may be based on, but is not limited to, the ground that the total number of occupants in a residential real property exceeds the maximum Page 9 of 46 EXHIBIT 2 number of occupants as determined under Section 503(b) of the Uniform Housing Code or successor provision. H. The Tenant's refusal to allow the Owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of the Civil Code, and Sections 13113.7 and 17926.1 of the Health and Safety Code. I. Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. J. The employee, agent, or licensee's failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the Code of Civil Procedure. K. When the Tenant fails to deliver possession of the residential real property after providing the Owner written notice as provided in Section 1946 of the Civil Code of the tenant's intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the Owner but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure. 2) No-fault just cause, which includes any of the following: a Intent to occupy the residential real property by the Owner or their spouse, domestic partner, children, grandchildren, parents, or grandparents. For leases entered into on or after the effective date of this Ordinance, this subsection shall apply only if the Tenant agrees, in writing, to the termination, or if a provision of the lease allows the Owner to terminate the lease if the Owner, or their spouse, domestic partner, children, grandchildren, parents, or grandparents unilaterally decides to occupy the residential real property for a period of at least 24 months, as affirmed by the Owner in a written affidavit submitted to the City. Addition of a provision allowing the Owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed -term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1). B. Withdrawal of the residential real property from the rental market for an anticipated period of at least 24 months, as affirmed by the Owner in a written affidavit submitted to the City. C. Page 10 of 46 EXHIBIT 2 i. The Owner complying with any of the following: Rl I. An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property. II. An order issued by a government agency or court to vacate the residential real property. III. A local ordinance that necessitates vacating the residential real property. ii. If it is determined by any government agency or court that the Tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d). i. Intent to demolish or to substantially remodel the residential real property. I. The Owner shall provide advance notice to the Tenant of the ability to reoccupy the unit upon completion of the repairs, or if requested by the tenant, the right of first refusal to any comparable vacant rental unit which has been offered at comparable rent owned by the Owner; and II. In the event the Owner seeks to rent the remodeled unit within six (6) months following the completion of the remodeling work, the evicted Tenant shall have the right of first refusal to reoccupy and rent the unit, unless the Owner provides a written waiver by the tenant of their right to reoccupy the premises pursuant to this subsection. iii. For purposes of this subparagraph, "substantially remodel" means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead -based paint, mold, or asbestos, in accordance with applicable federal, State, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that Page 11 of 46 EXHIBIT 2 can be performed safely without having the residential real property vacated, do not qualify as a substantial remodel. (c) Before an Owner of residential real property issues a notice to terminate a Tenancy forjust cause that is a curable lease violation, the Owner shall first give notice of the violation to the Tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the Tenancy. 1) Any written notice to cease or correct must: A. Be dated and served upon the Tenant, pursuant to at least one of the methods authorized under California Code of Civil Procedure Section 1162, as may be amended; B. Inform the Tenant that failure to cure may result in the initiation of eviction proceedings; C. Inform the Tenant of the right to request a reasonable accommodation; D. Inform the Tenant of the contact number for +ho nofon^o F,T Gnd-Vrthe Program Administrators,+., ;f n„ S U^h fi IRd o.,,^+^; and E. Include a specific statement of the reasons for the written notice to cease or correct with specific facts to help the Tenant determine the date(s), place(s), witness(es), and circumstance(s) that support the reason(s) for the eviction. (d) 1) For a Tenancy for which just cause is required to terminate the Tenancy under subdivision (a), if an Owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the Owner shall, regardless of the tenant's income, at the Owner's option, do one of the following: A. Assist the Tenant to relocate by providing a direct payment to the tenant as described in paragraph 3; or B. Waive in writing the payment of rent for the final three (3) months of the Tenancy, prior to the Rent becoming due. 2) If an Owner issues a notice to terminate a Tenancy for no-faultjust cause, the Owner shall notify the tenant of the Tenant's right to relocation assistance or rent waiver and all other rights pursuant to this section. If Page 12 of 46 3) EXHIBIT 2 the Owner elects to waive the Rent for the final three (3) month of the Tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final three (3) months of the Tenancy. A. The amount of relocation assistance or rent waiver shall be equal to three (3) months of the tenant's rent that was in effect when the Owner issued the notice to terminate the Tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice. B. If a Tenant fails to vacate after the expiration of the notice to terminate the Tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession. C. The relocation assistance or rent waiver required by this section shall be credited against any other relocation assistance required by any other law. 4) An Owner's failure to strictly comply with this section shall render the notice of termination void. (e) This section shall not apply to the following types of residential real properties or residential circumstances: 1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940 of the Civil Code. 2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services. 3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school. 4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the Owner who maintains their principal residence at the residential real property. 5) Single-family Owner -occupied residences, including a residence in which the Owner -occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit. Page 13 of 46 EXHIBIT 2 6) A duplex in which the Owner occupied one of the units as the Owner's principal place of residence at the beginning of the Tenancy, so long as the Owner continues in occupancy. 7) Housing that has been issued a certificate of occupancy within the previous 15 years. 8) Residential real property that is alienable separate from the title to any other dwelling unit, provided that both of the following apply: A. The Owner is not any of the following: i. A real estate investment trust, as defined in Section 856 of the Internal Revenue Code. ii. A corporation. iii. A limited liability company in which at least one member is a corporation. i. The Tenants have been provided written notice that the residential property is exempt from this section using the following statement: "This property is not subject to the just cause requirements of Santa Ana Municipal Code Chapter 8, Article XIX, Division 42. This property meets the requirements of Santa Ana Municipal Code section 8- -1- 3120(e)(8) and the Owner is not any of the following- (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation." ii. For a Tenancy existing before the effective date of this Ordinance, the notice required under clause (i) may, but is not required to, be provided in the rental agreement. iii. For any Tenancy commenced or renewed on or after the effective date of this Ordinance, the notice required under clause (i) must be provided in the rental agreement. iv. Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed - term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b). Page 14 of 46 r 9-2., 2 - 1AA.F.MR-H (f) An Owner of residential real property subject to this section shall provide notice to the Tenant as follows: 1) For any Tenancy commenced or renewed on or after the effective date of this Ordinance, as an addendum to the lease or rental agreement, or as a written notice signed by the Tenant, with a copy provided to the tenant. 2) For a Tenancy existing prior to the effective date of this Ordinance, by written notice to the Tenant no later than thirty (30) days after the effective date of this Ordinance, or as an addendum to the lease or rental agreement. 3) The notification or lease provision shall be in no less than 12-point type, and shall include the following: "The Santa Ana Municipal Code provides that after all of the Tenants have continuously and lawfully occupied the property for at least thirty (30) days, an Owner must provide a statement of cause in any notice to terminate a Tenancy. See Division 42 of Article XIX of Chapter 8 of the Santa Ana Municipal Code for more information." (g) It shall be a complete affirmative defense to an action for possession of a Rental Unit under this Division if a trier of fact determines that: 1) Both of the following provisions apply: A. The Tenant or Tenant's household member is a victim of an act or acts that constitute domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking if the domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking has been documented by one of the following: i. A temporary restraining order, emergency protective order, or protective order issued within the last 180 days pursuant to law that protects the tenant or a household member from domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking; or The Tenant or a member of the Tenant's household has filed a police report within the previous 180 days alleging that Page 15 of 46 EXHIBIT 2 they are a victim of domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking; or iii. Documentation from a Qualified Third Party based on information received by that third party while acting in the third party's professional capacity to indicate that the Tenant or a member of the Tenant's household seeks assistance for physical or mental injuries or abuse resulting from domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking. B. The notice to vacate is substantially based upon the act or acts constituting domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking against the Tenant or their household member, including, but not limited to, an action for possession based on complaints of noise, disturbances, or repeated presence of police. 2) Notwithstanding this Section, an Owner may terminate the Tenancy if: A. The tenant or the person protected by a court order or who filed a police report allows the person against whom the protective order has been issued or who was named in the police report as committing an act of domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking, to visit the rental property; or B. The Owner reasonably believes the presence of the person against whom the protective order has been issued or who was named in the police report as having committed an act of domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking poses a physical threat to other tenants, guests, invitees, or to a tenant's right to quiet enjoyment and the Owner previously gave the tenant a three (3) day written notice to cease and correct this violation. (h) It shall be a complete affirmative defense to a no fault just cause action for possession of a Rental Unit under this Division if a person under the age of 21 is a resident of the subject Rental Unit, or has a custodial or family relationship with a tenant in the subjectRental Unit, and who is registered and actively attending any level of school during a specified school term. (i) ARY sale of a mnhilohnmo park shall he r-ensidered a nhaRge of 61 pursuaRt Prior to the Change of Use of a mobilehome park, the Owner shall provide notice of such proposed Change of Use to the mobilehome park residents and the Rental Registry and prepare a report on the impact of the Change of Use of the mobilehome park, including a replacement and relocation plan that adequately mitigates the impact upon the ability of any displaced residents of the mobilehome park to find adequate housing in a comparable mobilehome park in Orange Page 16 of 46 EXHIBIT 2 County, as applicable, pursz'uaRt-t8 the Feq61iranT n+G of (-`GVeFR eR . to also be submitted to the Registry. (j) Any waiver of the rights under this section shall be void as contrary to public policy. ■ Me -_ Section 8-4953121 — Notice of Termination of Tenancy. (a) When terminating a Tenancy either at -fault or no-fault, an Owner must comply with all of the following: 1) The Owner must serve a written notice in accordance with Civil Code sections 1946 through 1946.5, to the tenant that states that, in addition to any information required by federal or State law, the Owner will terminate the Tenancy, and that indicates at least one at -fault or no fault just cause reason as provided in section 8-19943120(b); and 2) The Owner has not accepted and will not accept rent or any other consideration in return for the continued use of the residential property beyond the term of the terminated Tenancy in compliance with Civil Code sections 1945 through 1946.5; and 3) The Owner qualifies the termination as at -fault or no-fault just cause, as specified in section 8-19943120(b); and 4) The Owner has submitted to the City, within five (5) days after service of the notice of termination on the tenant, a true and accurate copy of the Owner's written notice of termination, and proof of such service, signed under penalty of perjury, on the tenant, through the City's Rental Registry portal. The Owner shall maintain proof of service to the City as evidence that the Owner has complied with this section. Failure by the Owner, or person acting on behalf of or at the request of the Owner, to provide the notice of termination to the City within the time specified by this section shall serve as a complete affirmative defense to an action for possession of a Rental Unit. 5) The Owner must provide the notice in the language that the Owner and tenant used to negotiate the terms of the Tenancy, in addition to English. Page 17 of 46 EXHIBIT 2 Section 8-1963122 — Retaliatory Eviction and Anti -Harassment. (a) Retaliatory Eviction. 1) If the main intent of the Owner in terminating a Tenancy or refusing to renew a Tenancy is retaliatory in nature, and if the tenant is not in default as to the payment of rent, then the Owner may not terminate the Tenancy or refuse to renew the Tenancy or cause the tenant to quit involuntarily. 2) A tenant may assert retaliation affirmatively or as a defense to the Owner's action regardless of the period of time which has elapsed between the tenant's assertion or exercise of rights under this Article and the alleged act of retaliation. 3) Retaliation against a tenant because of the tenant's exercise of rights under this Article is prohibited. Retaliation claims may only be brought in court and may not be addressed administratively. A court may consider the protections afforded by this Article in evaluating a claim of retaliation. Claims of retaliation considered by a court shall not be exempt from consideration by the Board or the City in any Hearing or action brought forth by any party. (b) Anti -Harassment. No Owner, or any person, acting as a principal or agent, offering residential real property for rent, or any contractor, subcontractor or employee of the Owner shall, with respect to residential real property under any rental agreement or other Tenancy or estate at will, however created, do any of the following: 1) Interrupt, terminate, or fail to provide housing services required by rental agreement or by federal, State, County, or local housing, health, or safety laws, or threaten to do so, or violate or threaten to violate Civil Code section 789.3. A. 'Interrupt, terminate, or fail to provide housing services' in this provision does not include interruptions, terminations, or failure to provide housing services as a result of interruptions, outages, or terminations caused by events or actions outside of the Owner's control, such as utility outages caused by natural disaster. Further, this provision does not include stoppages, outages, terminations, and interruptions properly noticed to tenants as required by a signed rental agreement. 2) Take any of the following actions in bad faith: A. Fail to perform repairs and maintenance required by rental agreement or by federal, State, or local laws; B. Fail to exercise due diligence in completing repairs and Page 18 of 46 EXHIBIT 2 maintenance once undertaken; C. Fail to follow appropriate industry repair, containment, or remediation protocols designed to minimize exposure to noise, dust, lead, paint, mold, asbestos, or other building materials with potentially harmful health impacts; D. Conduct elective renovation or construction of unit for the purpose of harassing a tenant; E. Refuse to acknowledge or accept receipt of a tenant's lawful rent payment as set forth in a rental agreement, by usual practice of the parties, or in a notice to pay rent or quit; F. Refuse to cash or process a rent check or other form of acceptable rent payment for over thirty (30) days after it is tendered; G. Fail to maintain a current address for delivery of rent payments; H. Violate a tenant's right to privacy without limitation, by requesting information regarding residence or citizenship status, protected class status, or social security number, except as required by law or in the case of a social security number, for the purpose of obtaining information for the qualifications for a Tenancy; I. Release information protected by the tenant's right to privacy except as required or authorized by law; or J. Request or demand an unreasonable amount of information from a tenantin response to a request for reasonable accommodation. 3) Abuse the right of access into residential real property as established by Civil Code section 1954 or other applicable law. This includes entries for inspections that are not related to necessary repairs or services; entries excessive in number; entries that improperly target certain tenants or are used to collect evidence against the occupant or otherwise beyond the scope of an otherwise lawful entry; entries or demands for entry at times outside of normal business hours, unless for health and safety reasons or if the tenant agrees otherwise; entries contrary to a tenant's reasonable request to change the date or time of entry; photographing or otherwise recording portions of a rental unit that are beyond the scope of lawful entry or inspection; and misrepresenting the reasons for accessing residential real property. 4) Influence or attempt to influence a tenant to vacate residential real property through fraud, misrepresentation, intimidation or coercion, which shall include threatening to report a tenant to the United States Department of Homeland Security. Page 19 of 46 EXHIBIT 2 5) Threaten the Tenant, by word or gesture, with physical harm, or abuse tenant with words, either orally or in writing, which are offensive and inherently likely to provoke an immediate violent reaction. This includes words used during in -person conversations, through social media postings or messages, or other communications. 6) Violate any law which prohibits discrimination based on race, gender, sexual preference, sexual orientation, ethnic background, nationality, religion, age, parenthood, marriage, pregnancy, disability, human immunodeficiency virus (HIV)/ acquired immune deficiency syndrome (AIDS), occupancy by a minor child, or source of income, or any protected classification under Civil Code sections 51, et seq., 52.5, and 54, as amended, and Government Code sections 12940-12951, 12955- 12956.2, as amended. 7) Take action to terminate any Tenancy including service of any notice to quit or other eviction notice or bring any action to recover possession of a rental unit based upon facts which the Owner has no reasonable cause to believe to be true or upon a legal theory which is untenable under the facts known to the Owner. No Owner shall be liable under this subsection for bringing an action to recover possession unless and until the tenant has obtained a favorable termination of that action. 8) Remove from the rental unit personal property, furnishings, or any other items without the prior written consent of the tenant, except when done pursuant to enforcement of a legal termination of Tenancy. 9) Provide false written or verbal information regarding any federal, State, County, or local tenant protections, including mischaracterizing the nature or effect of a notice to quit or other eviction notice. False information includes, without limitation, requesting or demanding a tenant: A. Sign a new rental agreement not in the tenant's primary language if: i. rental agreement negotiations were conducted in the tenant's primary language; The existing rental agreement is in the tenant's primary language; or iii. Owner is otherwise aware that the new rental agreement is not in the Tenant's primary language. B. Enter into a rent repayment plan if the Owner states, misrepresents, suggests, or implies, that the Tenant should or must do so to take advantage of tenant protection laws that do not in fact require such plans. Page 20 of 46 EXHIBIT 2 10)Offer payments to: A. A Tenant to vacate more than once in six (6) months, after the tenant has notified the Owner in writing that the Tenant does not desire to receive further offers of payments to vacate; B. Attempt to coerce the Tenant to vacate accompanied with threats or intimidation. This shall not include settlement offers in pending eviction actions made in good faith and not accompanied with threats or intimidation. 11)Communicate with Tenant in a language other than the Tenant's primary language for the purpose of intimidating, confusing, deceiving or annoying the Tenant. 12)lnterfere with a Tenant's right to quiet use and enjoyment of a rental unit as that right is defined by law. 13)Commit repeated acts or omissions of such significance as to substantially interfere with or disturb the comfort, repose, peace, or quiet of any person lawfully entitled to occupancy of such rental unit and that cause, are likely to cause, or are intended to cause any person lawfully entitled to occupancy of a rental unit to vacate such rental unit or to surrender or waive any rights in relation to such occupancy. 14)Remove a housing service for the purpose of causing the Tenant to vacate the residential real property. For example, taking away a parking space knowing that a tenant cannot find alternative parking and must move. 15)lnterfere with the right of tenants to organize as tenants and engage in concerted activities with other tenants for the purpose of mutual aid and protection; provide property access to tenant organizers, advocates, or representatives working with or on behalf of tenants living at a property; convene tenant or tenant organization meetings in an appropriate space accessible to tenants under the terms of their rental agreement; or distribute and post literature informing other tenants of their rights and of opportunities to involve themselves in their project in common areas, including lobby areas and bulletin boards. 16)Threatening or intimidating a tenant based on their immigration or citizenship status or otherwise disclosing a tenant's immigration or citizenship status in violation of California Civil Code sections 1940.05, 1940.2, 1940.3, 1940.35(a), 1942.5, and California Code of Civil Procedure section 1161.4, as may be amended. Page 21 of 46 DIVISION 53. — RENT STABILIZATION Section 8-1QQF1 13140 —Prohibited Increases. (a) Increases in rent on residential real property or mobilehome spaces in the City of Santa Ana in excess of three percent (3%), or eighty (80%) of the change in the Consumer Price Index, whichever is less, and more than one rent increase in any twelve (12) month period, are prohibited, unless expressly exempt under the Costa -Hawkins Rental Housing Act codified in California Civil Code section 1954.50, et seq., or the Mobilehome Residency Law codified in California Civil Code sections 798, et seq. If the change in the Consumer Price Index is negative, no rent increase is permitted. The term Consumer Price Index means, at the time of the adjustment calculation completed by the City pursuant to subsection (b), the percentage increase in the United State Consumer Price Index for all Urban Consumers in the Los Angeles -Long Beach -Anaheim Metropolitan Area published by the Bureau of Labor Statistics, not seasonally adjusted, for the most recent twelve (12) month period ending prior to the City's calculation pursuant to subsection (b). A violation of this section occurs upon the service of notice or demand for a prohibited increase in rent. (b) No later than June 30t4-each year, beginning with the year 2022, the City shall announce the amount of allowable rent increase based on subsection (a) herein, which shall be effective as of September 1st of that year. Section 8- �?3141 — Reasonable Rate of Return. This ordinance allows for an annual adjustment of residential real property or mobilehome space rent of up to three percent (3%), or eighty (80%) of the change in the Consumer Price Index, whichever is less. A Consumer Price Index -based increase is found and determined to provide ajust and reasonable return on an owner's property, and has been adopted to encourage good management, reward efficiency, and discourage the flight of capital, as well as to be commensurate with returns on comparable investments, but not so high as to defeat the purpose of curtailing excessive rents and rental increases. Notwithstanding the foregoing, however, any owner of residential real property or a mobilehome park who contends that the limit on rental increases set forth in Section 8-1998 13140 above will prevent the owner from receiving a fair and reasonable return on their property may petition for relief from the cap set forth in section 8-1998 1.3140 pursuant to the procedures set forth in se^*�8-4998.3this Division. Section 8-4QQF1 33142 — Fair Return Petition for Rent Increase. Page 22 of 46 EXHIBIT 2 1 • � r ill lip 111,110 IN 1 I � 1 Iprev 11 • rMA M r rIMAM 1 r MINN. NO 11MIN mm. 11 11 r 11 __ i 1� Page 23 of 46 EXHIBIT 2 F&AWMMUMMUM P.M (a) A Landlord may submit a Fair Return Petition to the Program Administrator in accordance with the procedures set forth in this Division requesting Rent Increase in excess of that provided in this Division in order to obtain a fair and reasonable return on the Rental Unit. (b) Standard of Review. All relevant factors shall be considered when evaluating a Fair Return Petition, including, but not limited to, the following: 1) Changes in the Consumer Price Index for All Urban Consumers in the Los Angeles -Long Beach -Anaheim Metropolitan Area published by the Bureau of Labor Statistics; 3) The length of time since the last determination on a Fair Return Petition, or the last Rent increase if no previous Fair Return Petition has been made; 4) The completion of any rehabilitation work related to the Rental Unit, and the cost thereof, including materials, labor, construction interest, permit fees, and other items deemed appropriate; 5) Changes in property taxes or other taxes related to the Rental Unit; Page 24 of 46 EXHIBIT 2 6) Changes in the Rent paid by the Tenantfor the lease of the Rental Unit; 7) Changes in the utility charges for the Rental Unit paid by the Landlord, and the extent, if any, of reimbursement from the Tenants: 8) Changes in reasonable Operating Expenses: 9) Changes in Net Operating Income: 10) The need for repairs caused by circumstances other than ordinar wear and tear provided that the costs for such wear and tear have not already been settled or are the subject of a pending dispute between the Tenant -Landlord in a mediation or other action: 11) The amount and quality of Housing Services provided by the Landlord to the Tenants: 12) Compliance with any existing Rental Agreement lawfully entered into between the Landlord and Tenants: and 13) Landlord's substantial compliance with this Article and applicable housing, health and safety codes. Section 8-3143 — Capital Improvement Petition (a) Effective July 1, 2023, or as modified by resolution of the City Council, a Landlord may submit a Capital Improvement Petition to the Program Administrator in accordance with the procedures set forth in this Division requesting a pass -through cost to the Tenants to cover expenses incurred by the Landlord to complete Capital Improvements for the Rental Unit pursuant to the following provisions: 1) The Capital Improvement was paid for and completed after November 19. 2021 (the effective date of the first adopted Rent Stabilization Ordinance): 2) The Capital Improvement was paid for and completed prior to the filing of the Capital Improvement Petition: 3) A Capital Improvement Petition must be initiated by the Landlord within two (2) years of completion of the Capital Improvement: 4) A Capital Improvement Petition shall not apply to Rental Units or new Tenants whose initial Rent was established after the Landlord completed the Capital Improvement: 5) The Landlord may not require a Tenant to pay any amount of any cost that is attributable to any period of time that the Tenant was not entitled to use and occupy the Rental Unit; 6) The Landlord may not require a Tenant to pay more than the Tenant's share of the cost attributable to that Tenant's Rental Unit that is permitted to be passed through to the Tenant: 7) If the Capital Improvement inures solely to the benefit of one or more of the Rental Units, but to less than all, the surcharge shall be so annualized, but shall be applied and/or prorated only with respect to the one or more Rental Units actually so benefited: 8) Equipment otherwise eligible as a Capital Improvement will not be Page 25 of 46 EXHIBIT 2 considered if a "use fee" is charged (i.e. — coin operated washer and dryers); and, 9) Pass through costs for Capital Improvements shall not be considered Rent and shall not be increased when Rent Increases, nor shall they be considered Rent for purposes of calculating a Rent Increase. (b) Calculating Capital Improvements. Any Capital Improvement pass through cost must be calculated according to the following: 1) Capital Improvement costs must be amortized over the useful life of the Capital Improvement, not to exceed ten percent (10%) of the current Rent; for the purposes of such computation, the current Rent for any time period shall not include any Capital Improvement pass -through amounts; 2) For mixed -use structures and Landlord -occupied Rental Units, only the percent of residential square footage will be applied in the calculations; 3) If a unit is occupied by an agent of the Landlord, this unit must be included when determining the average costs per Rental Unit; and, 4) If the Landlord is reimbursed for Capital Improvements (i.e. — insurance, court -awarded damages, subsidies, etc.), such reimbursement must be deducted from the Capital Improvements before costs are amortized and allocated amona the Rental Units. (c) Standard of review. All relevant factors shall be considered when evaluating a Capital Improvement Petition, including the following: 1) Capital Improvement completed; 2) Landlord's Petition made within two (2) years of completion of Capital Improvement; 3) Distinguished from ordinary repair or maintenance; 4) For the primary benefit, use, and enjoyment of the Tenant; 5) Permanently fixed in place or relatively immobile and appropriated to the use of the Rental Unit; 6) No "use fee" or other charge imposed on Tenants for its use; and, 7) Cost -factored and amortized. Section 8-3144 — Tenant Petition (a) Effective July 1, 2023, or as modified by resolution of the City Council, a Tenant may submit a Petition to the Program Administrator in accordance with the procedures set forth in this Division on anv one (1) or more of the followina arounds: Page 26 of 46 EXHIBIT 2 1) To request review of a Rent Increase in excess of the maximum allowed Rent Increase; 2) To request a reduction in Rent based on decreased Housing Services; 3) To request a reduction in Rent based on failure of the Landlord to maintain a habitable aremises. includina health. safety. fire. or building code violations; 4) To contest a Capital Improvement cost as an unauthorized or excessive pass through; or, 5) For any other violation of this Article by the Landlord. (b) Tenant's time to file a Petition. Where applicable, a Tenant filing a Petition under this Division shall do so within the following time limits: 1) Tenant receiving a notice of Rent Increase shall have ninety (90) days after service of such notice to file a Petition for review of Rent; 2) In instances where notice is not provided as required, the Tenant shall file a Petition for review of Rent within thirty (30) days after Tenant knew of the alleged failure to comply with the requirements of this Article; and, 3) For any other violation(s) of this Article by the Landlord, the Tenant shall file a Petition within one hundred and eiahty (180) days of the alleged violation(s). (c) Standard of Review. All relevant factors shall be considered when evaluatina a Tenant Petition. includina the followina: 1) Landlord allows violations of this Article or other applicable state and local statutes to persist; 2) Any reduction of Housing Services, living space, or amenities; 3) Substantial deterioration of the Rental Unit other than as a result of ordinary wear and tear; 4) Landlord's failure to provide adequate Housing Services; 5) Tenant provided Landlord with reasonable notice and opportunity to correct the conditions that provide the basis for the petition; and, 6) Landlord's failure to comply substantially with this Article or applicable housing, health and safety codes. (d) Restoration of Rent Decrease. Where a Rent decrease has been ordered pursuant to this Division due to a decrease in Housing Services or failure to maintain habitability, the amount of Rent decreased (return of excess Rent) may be restored in accordance with procedures set out in the regulations when the former Housing Services or maintenance levels are reinstated. Page 27 of 46 EXHIBIT 2 Section 8-3145 — Petition Process A Landlord or a Tenant may file Petitions with the Program Administrator, as provided in this Division. For purposes of this Petition process, the Landlord and each Tenant of a Rental Unit that is the subject of a Petition shall be a "party" to the Petition. The Program Administrator shall promulgate regulations regarding procedures for Petitions filed under this Article. Petitions shall be governed by such regulations and by the provisions of this Section. Where a Tenant or Landlord does not communicate in English or has a disability that limits their ability to fully participate in the Petition process, the Program Administrator shall ensure that the information provided about the Petition process and the Petition process is accessible and occurs in the preferred language of the Tenant and Landlord. The Program Administrator shall further ensure that competent interpreters are provided throughout the Petition process. (a) Filing Petition. Upon the filing of a Petition, the Program Administrator shall notify the petitioner of the acceptance or denial of the Petition based on the completeness of the submission. The Program Administrator shall not assess the merits of the Petition, and shall only refuse acceptance of a Petition that does not include required information or documentation or comply with the requirements of this Division. (b) Filing Fee. Fees for the filing of any Petition shall be established by City Council resolution in the City's Miscellaneous Fee Schedule. Filing Fee waivers shall be made available to any Tenant or Landlord pursuant to eligibility as outlined in California Government Code section 68632. Filing Fees paid by any petitioner shall be non-refundable after the Program Administrator determines any submitted petition to be complete and valid. (c) Prior Petition. Notwithstanding any other provision of this Division, no Petition shall proceed if a decision has been made with regard to a prior Petition based on the same or substantially the same grounds within the previous one hundred and eighty (180) days. (d) No Landlord Petition or upward adjustment of Rent shall be authorized under this Division if the Landlord: 1) Has continued to fail to comply, after order of the Board, with any provisions of this Article and/or orders or regulations issued thereunder by the Board; or, 2) Has failed to bring the Rental Unit into compliance with the implied warranty of habitability. (e) Notice of Petition. As soon as possible after acceptance of a Petition, the Program Administrator shall provide written notice to the Landlord, if the Petition was filed by the Tenant, or the Tenant, if the Petition was filed by the Landlord, of the receipt of such a Petition. The written notice shall inform the parties of the Petition process, the right to respond, and include a copy of the completed Petition and supportive documents. Anv response submitted by the resoondina warty will be made available to the petitioning part (f) Hearing Officer. An impartial hearing officer appointed by the Program Administrator shall conduct a hearing to act upon the Petition. The Hearing Officer has the following powers: Page 28 of 46 EXHIBIT 2 1) To make a determination on a Petition; and 2) Any other powers delegated to the Hearing Officer by the Board. (4) Board Action in Lieu of Reference to Hearing Officer. The Board, on its own motion, in the Board's sole discretion, may hold a hearing on a Petition without the Petition first being heard by a Hearing Officer. (h) Time of Hearing. Each accepted Petition shall be scheduled for a hearing by the Hearing Officer to be held on a date not more than sixty (60) days from the date the Program Administrator accepts the Petition. With agreement of the parties, the Hearing Officer may hold the hearing beyond the sixty (60) days. In no event later than ten 10 days prior to the hearing, the Hearing Officer shall notify all parties as to the time, date, and place of the hearing. (i) Consolidation. All Landlord Petitions pertaining to Tenants in the same building shall be consolidated for hearing, and all Petitions filed by Tenants occupying the same building shall be consolidated for hearing, unless the Program Administrator or Hearing Officer finds good cause not to consolidate such Petitions. (0) Right of Assistance. All parties to a hearing may have assistance in presenting evidence and developing their position from attorneys, legal workers, or any other persons designated by said parties. (k) Rules of Evidence. Formal rules of evidence shall not be applicable to hearings on Petitions. At such a hearing, the parties may offer any documents, testimony, written declarations, or other evidence that, in the opinion of the hearing officer, is credible and relevant to the Petition. The Hearing Officer may consider the results of inspections of the property in question and the results of any other investigations conducted by or at the request of the Hearing Officer or Program Administrator. Evidence unduly repetitious, lacking credibility, or irrelevant evidence shall be excluded upon order by the Hearing Officer. (1) Evidence. Any party may appear and offer such documents, testimony, written declarations, or other evidence as may be pertinent to the proceeding. The hearing officer may require either party to a Petition to provide any books, records, or papers deemed pertinent, in addition to that information contained in the Petition and Rental Registry. The hearing officer may request the City to conduct a current building inspection if the hearing officer finds good cause to believe the current information does not reflect the current condition of the Rental Unit. All documents required under this section shall be made available to the parties involved prior to the hearing. In cases where information filed in a Petition or in additional submissions filed at the request of the Hearing Officer is inadequate or false, no action shall be taken on said Petition until the deficiency is remedied. (m) Quantum of Proof. The party who files the Petition shall have the burden of proof. No Petition shall be granted unless supported by the preponderance of the evidence submitted at the hearing. (n) Time for Decision. The policies and procedures adopted by the Board shall provide for final action on any Petition within a reasonable time. Page 29 of 46 EXHIBIT 2 o) Notice of Decision. The Hearina Officer shall make a determination on the merits of the Petition and shall provide a written statement of decision, including findings upon which the determination is based. The Hearing Officer's decision on a Petition may be reasonably conditioned in any manner necessary to effectuate the purposes of this Article. Additionally, the parties to the hearing shall also be notified of their right to any appeal allowed by the Board and/or to judicial review of the decision pursuant to this Division. (p) Hearing Record. The record of the hearing shall include: the Petition; all exhibits, papers, and documents required to be filed or accepted into evidence during the proceedings; a list of participants present; a summary of all testimony accepted in the proceedings; a statement of all materials officially noticed; all recommended decisions, orders and/or rulings; all final decisions, orders and/or rulings; and the reasons for each final decision, order and/or ruling. All hearings shall be recorded. (q) Appeal. Any person aggrieved by the decisions of the Hearing Officer may appeal to the Board. An appeal to the Board shall be filed no later than thirty (30) days after receipt of the notice of the decision of the Hearing Officer. On appeal, the Board shall affirm, reverse, or modify the decision of the Hearing Officer. Unless the Board elects to conduct a de novo hearing, Board review of the Hearing Officer's decision shall be based on the hearing record without holding a new hearing. The Board may consider additional evidence for good cause, including evidence which did not exist at the time of the hearing or which could not be discovered using due diligence by a party. If no Board exists, any appeal of the Hearing Officer decision on a Petition shall proceed pursuant to the administrative appeal procedures found in Chapter 3 of the Santa Ana Municipal Code. (r) Finality of Decision. The decision of the Hearing Officer shall be the final decision of the Board in the event of no appeal to the Board. The decision of the Hearing Officer shall not be stayed pending appeal; however, in the event that the Board on appeal reverses or modifies the decision of the Hearing Officer, the Board shall order the appropriate party to make retroactive payments, as applicable, to restore the parties to the position they would have occupied had the Hearing Officer's decision been the same as that of the Board. Section 8-3146 — Voluntary Mediation (a) Voluntary mediation services shall be provided by the City. Upon request, the Program Administrator shall appoint a mediator and set a date for a mediation no later than thirty (30) days after the acceptance of the subject Petition, unless the Program Administrator determines that additional time is required under the circumstances. The Program Administrator shall notify the Landlord and Tenant(s) in writing of the date, time, and place of the mediation hearing at least ten (10) days prior to the mediation. This notice shall be served either in person or through ordinary mail or electronic correspondence. Page 30 of 46 EXHIBIT 2 (b) It is the intent and purpose of mediation to provide a process in which mediators may assist disputants in reaching a voluntary agreement. Accordingly, except as otherwise expressly provided herein, there shall be no penalty or disability, either civil or criminal, for failure to participate in the mediation process, and there shall be no Penalty, either civil or criminal, for failure to reach agreement with a disputant in the mediation process. (c) Mediation is a voluntary collaborative process wherein the Landlord and Tenant(s) who have a disagreement can develop options, consider alternatives, and develop a consensual agreement. The role of the mediator is to facilitate open communication to resolve a dispute in a non -adversarial and confidential manner. (d) If the Landlord and Tenant agree to a resolution, the mediator may assist the parties in preparing a written settlement agreement for the signature of the Landlord and the Tenant, provided that in doing so the mediator confines the assistance to stating the settlement as determined by the parties. Such agreement shall constitute a legally enforceable contract. (e) Should the parties fail to agree to a resolution, or the mediator determines that the parties have reached an impasse, the mediator may refer the Petition back to the Program Administrator to continue the Petition review process detailed in this Division. (f) All documents and results related to mediations and facilitations held pursuant to this Article shall be kept confidential and shall be inadmissible as evidence in anv subseauent administrative or iudicial aroceedina. (q) The mediator and/or program administrator shall provide documentation and translation services in the language that the Owner and tenant used to negotiate the terms of the Tenancy (e.g., Spanish, Chinese, Tagalog, Vietnamese and Korean), as well as English. Section 8-4998 43147 — Exemptions. (a) Pursuant to the Costa -Hawkins Rental Housing Act, the provisions of this ordinance regulating the amount of rent that a residential real property owner may charge shall not apply to the following: any residential real property that has a certificate of occupancy issued after February 1, 1995 (California Civil Code section 1954.52(a)(1)); and, any other provisions of the Costa -Hawkins Rental Housing Act addressing exemptions, as applicable. (b) Pursuant to the Mobilehome Residency Law, the provisions of this ordinance regulating the amount of rent that a mobilehome park owner may charge for a mobilehome space shall not apply to the following: any mobilehome space subject to a long term (more than one year) rental agreement (California Civil Code section 798.17); any newly constructed mobilehome space first offered for rent on or after January 1, 1990 (California Civil Code section 798.45); mobilehomes not being used as a person's primary residence that are not being leased to someone else (California Civil Code section Page 31 of 46 EXHIBIT 2 798.21); and, any other provisions of the Mobilehome Residency Law addressing exemptions, as applicable. (c) Pursuant to the Tenant Protection Act of 2019, Civil Code section 1947.12(d), the provisions of this ordinance regulating the amount of rent that a residential real property Owner may charge shall not apply to the following: (1) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school. (2) Housing that has been issued a certificate of occupancy within the previous 15 years. (3) Residential real property that is alienable separate from the title to any other dwelling unit, provided that both of the following apply: A. The owner is not any of the following: A real estate investment trust, as defined in section 856 of the Internal Revenue Code. ii. A corporation. iii. A limited liability company in which at least one member is a corporation. The tenants have been provided written notice that the residential real property is exempt from this section using the following statement: "This property is not subject to the rent limits imposed by Santa Ana Municipal Code section 8-1QQF1 13140 and the owner is not any of the following: (1) a real estate investment trust, as defined by section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation." Page 32 of 46 EXHIBIT 2 For a tenancy existing before the effective date of this ordinance, the notice required under clause (i) may, but is not required to be provided in the rental agreement. iii. For a tenancy commenced or renewed on or after the effective date of this ordinance, the notice required under clause (i) must be provided in the rental agreement. (4) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner's principal place of residence at the beginning of the tenancy so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit. r 0 I 1111 Section 8-4QQF1 53148 - Rent Increase Ineffective. No rent increase shall be effective if the owner: (a) Fails to substantially comply with all provisions of this Division, including but not limited to the failure to provide notices as required; or (b) Fails to maintain the residential real property or mobilehome space in compliance with California Civil Code Sections 1941.1 et seq. and California Health and Safety Code sections 17920.3 and 17920.10, except as to Mobilehomes and Mobilehome Saaces in Mobilehome Parks that are subiect to the Mobilehome Parks Act. Health and Safety Code section 18200, et seq.; Manufactured Housing Act, Health and Safety Code section 18000, et seq.; or the National Manufactured Housing Construction and Safety Standards Act of 1974, 42 U.S.C. sections 5401, et seq., as applicable; or (c) Fails to make repairs ordered by the City or court of competent jurisdiction. (d) No rent increases shall take effect for any Rental Unit unless the Landlord has accurately and fully completed, as well as submitted the Rental Unit Registration. Section 8-1QQF1 63149 - Notice Requirements. (a) An owner of any residential real property or mobilehome space subject to this provision shall, on or before the date of commencement of a tenancy, give the tenant a written notice in a form prescribed by the City which must include the following information- (1) The existence and scope of this Division 53 of Article XIX of Chapter 8 Page 33 of 46 EXHIBIT 2 of the Santa Ana Municipal Code; and (2) The tenant's right to respond to any Fair Return or Capital Improvement Petition filed with the City by the owner pursuant to ^�^� 4QQF1 3this Division. (b) As part of any notice to increase rent, an owner must include- (1) Notice of the existence of this Division 53 of Article XIX of Chapter 8 of the Santa Ana Municipal Code; and (2) The tenant's right to respond to any Fair Return or Capital Improvement Petition filed with the City by the owner pursuant to ^e^*�8- 4998.3this Division, unless such rent increase is pursuant to an approved Fair Return Petition. (3) No rent increase shall take effect until the requirements of this Division have been met. (c) The owner must give notices to the tenant in the language that the owner and tenant used to negotiate the terms of the tenancy (e.g., English, Spanish, Chinese, Tagalog, Vietnamese, and Korean) as well as English. (d) Any notices or documents required to be provided from a Landlord to a Tenant by this Article or any other federal, state, or local law, including, but not limited to, notice of Rent Increase and notice of eviction, shall be provided to the City through the Rental Registry portal. (e) Failure to comply with the requirements of this section shall serve as a complete affirmative defense to an action seeking possession of the Rental Unit. 1 11 DIVISION 4. — RENTAL REGISTRY AND RENTAL REGISTRY FEE Page 34 of 46 EXHIBIT 2 Section 8-3160 — Rental Registry Effective July 1, 2023, or as modified by resolution of the City Council, the City shall create a Rental Registry and all Landlords with Rental Units in the City of Santa Ana shall complete and submit Registration Forms for each Rental Unit pursuant to the following: a) Initial Reaistration. A Landlord must file an initial Reaistration Form with the City for each Rental Unit that is subject to the provisions of this Article. Registration of a Rental Unit shall not be complete until an Owner has: 1) Completely and accurately provided a Registration Form; and, 2) Paid all fees owed to the City with respect to the Rental Unit including Registration Fees imposed pursuant to this Article. (b) Change of Ownership or Management. 1) Whenever a change in ownership of a Rental Unit occurs, the Landlord shall provide the City with written notice of the change in ownership, including the date of transfer, and the name, address and contact information of the new owner, within thirty (30) days of the close of escrow. 2) The new owner is required to file a Registration Form with the City within sixty (60) days of such change. The new owner's Registration Form will only be accepted by the City if it is accompanied by a coav of a written notification on a form Prescribed by the Program Administrator from the Landlord to all Tenants advising the Tenants of the change in ownership of the building and setting forth the name, address and contact information of the new owner and of the new owner's property manager or representative, and a declaration that the new owner served the written notification on all the Tenants. 3) Registration amendments also shall be required to be filed with the City within sixty (60) days of a change of the property management or authorized agent or if the address of the owner or authorized agent changes. (c) Re -Registration Following a Vacancy. A Landlord shall, in the manner described herein, re -register a Rental Unit with the City within thirty (30) days after a vacancy has occurred and the Rental Unit is re -rented. (d) Claim of Exemption. Any Landlord that is claiming any exemption from this Article must file a claim of exemption with the City. The Landlord shall provide the City, on a form approved by the Program Administrator and accompanied by supporting documentation, a written declaration stating the facts which support the claim of exemption from the provisions of this Article. If the written declaration and supporting documents are not submitted by July 1 of each year for any Rental Unit, that Rental Unit Page 35 of 46 EXHIBIT 2 shall be deemed to be subject to the provisions of this Article. If the Board determines that any Unit was incorrectly registered as exempt due to any affirmative misrepresentation by the Owner, the exemption for that Unit may be revoked retroactively, and the Unit will be subject to any applicable enforcement measures. (e) Termination of Exemption. Any time a Rental Unit that has been exempted under the provisions of this Article loses its exempt status due to termination of the conditions qualifying it for exemption, the Landlord of such Rental Unit is required to file a Registration Form for said Rental Unit within thirty (30) days of the change in status. (f) Annual Requirement. For the subsequent years after the initial Registration date, each Registration Form and claims of exemption(s) must be annually filed on or before July 1 of each year. The Rental Housing Board may modify the annual registration date. (q) Contents of Registration Form. The Rental Registration Form shall completely and accurately provide the following information from the Landlord for each Rental Unit as of the date of filing the Registration Form: 1) Address of each Rental Unit including identifying number or letter; 2) Number of bedrooms and bathrooms in the Rental Unit; 3) Name, current address, and contact information of current owners, authorized representatives and property managers; 4) Date of assumption of ownership by current owners; 5) Current Rent; 6) Date and amount of last Rent Increase; and 7) Move -in date of current Tenant(s). The Board and/or Program Administrator may adopt policies and procedures that require additional information to be collected and recorded in Registration Forms in furtherance of the objectives of this Article. (h) Affidavit. All Rental Registration Forms provided by Landlords in accordance with this Division shall include an affidavit signed by the Landlord declaring under penalty of perjury that the information provided in the Rental Registration Form is true and correct. (i) Notices. Any notices or documents required to be provided from a Landlord to a Tenant by this Article or any other federal, state, or local law, including, but not limited to, notice of Rent Increase and notice of eviction, shall be provided to the City through the Rental Registry portal. (0) Proper Registration. Registration of a Rental Unit shall not be complete until the Landlord has: 1) Paid all fees and penalties owed to the City with respect to the Rental Unit, including the Rental Registry Fee, imposed pursuant to this Article; and, 2) Filed a complete and accurate Registration Form for that Rental Unit including all information required by this Division and any policies and procedures adopted by the Board and/or Program Administrator. Page 36 of 46 EXHIBIT 2 (k) Commencing October 1, 2023, the City may commence enforcement against any Landlord who fails to register a Rental Unit, or provide current and accurate data regarding a Rental Unit, according to this Division. Furthermore, no Landlord shall advertise for rent, demand or accept rent for a Rental Unit, or evict any Tenant from a Rental Unit, if the Rental Unit Registration is not complete and accurate. In addition, no petition, application, claim or request, and no rent increases shall take effect for any Rental Unit unless the Landlord has accurately completed and submitted the Rental Unit Registration. Section 8-3161 — Rental Registry Fee Effective July 1, 2023, or as modified by resolution of the City Council, an annual Rental Registry Fee shall be imposed on each Rental Unit in the City. All Landlords with Rental Units that are subject to this Article shall pay the Rental Registry Fee as established by the City Council. The Rental Registry Fee is to fund the City's cost to implement, administer, monitor, support, and enforce the provisions of this Article. (a) Amount of Fee. A Landlord shall pay to the City a Rental Registry Fee for each of the Landlord's Rental Units in the City. The amount of the Fee shall be determined by resolution of the City Council adopted from time to time and set forth in the City's Miscellaneous Fee Schedule. The Fee shall not exceed the amount found by the City Council to be necessary to administer the provisions of this Article, and the City Council's findings in this regard shall be final. (b) Deadline for Landlord Payment of Rental Registry Fee. Annual Rental Registry Fees shall be due and owing on July 1 each year, or within thirty (30) calendar days of any subsequent changes to the Rental Unit. (c) Late Payment. Any Landlord responsible for paying the Rental Registry Fee who fails to pay the Fee by October 1, or within sixty (60) calendar days of any mid year due date, will be delinquent and shall, in addition to the Fee, pay additional late charges, penalties of assessments as determined by resolution of the City Council. The amount of Rental Registry Fee and any penalty imposed by the provisions of this Article shall be deemed a debt to the City. (d) Pass Through to Tenants. After timely payment of the Rental Registry Fee, the Landlord may pass through up to fifty percent (50%) of the Fee to Tenants of the applicable Rental Unit, to be paid by the Tenant in twelve (12) equal monthly installments. The Fee pass -through shall not be considered part of the Rent in calculating any Rent increase. If a Landlord fails to timely pay the Fee and becomes delinquent, neither the Fee nor any penalties can be passed through to the Tenant. In the event a Tenant paid registration fee pass -through costs in excess of that permitted by this Division, the Landlord shall reimburse the Tenant for the registration fee pass through cost overpayment. 1) No Pass -Through for Subsidized Tenants. No portion of the registration fee may be passed through to tenants who reside in housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing Page 37 of 46 EXHIBIT 2 subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes. Section 8-3162 — Education and Outreach. The Program Administrator shall have the authority to contract with community based organizations for them to assist in the education and outreach related to this Article. DIVISION 5. — RENTAL HOUSING BOARD Section 8-3180 — Rental Housing Board There is herebv created and established a Rental Housina Board to aerform the functions designated in this Article. The composition of the Board and selection of Board Members shall be based upon the following: (a) Membership of Board. The composition of the Rental Housing Board shall reflect the socioeconomic demographics of the residents of the City. The Rental Housing Board shall consist of seven (7) Board Members who shall be appointed by each member of the Citv Council and the Mavor. Each Board Member shall be approved by the City Council, includin 1) Four (4) Tenants, including at least one (1) Mobilehome Tenant; 2) Two (2) Landlords; and 3) One (1) at -large Member with no financial interest and no ownershia of income-aeneratina rental housina. (b) Chairperson. The Board shall elect annually one of its Members to serve in the capacity as Chairperson. Board. (c) Eligibility. Residents of the City are eligible to serve as members of the 01MI191 M rem, - • a.C•7r:IP eM101 • u[T'1R-- %remi Tj Prom R • 1 • aY•fTit:1AM,I am WImI submit a verified statement listing all of their interests and dealings in real property, including, but not limited to, ownership, sale or management of real property during the previous three (3) years, or employment, financial compensation, or volunteer positions held with anv entity associated with dealinas in real orooerty. The Board may romulgate additional regulations (e) Conflict of Interest. Board Members shall be subject to the requirements of the California Political Reform Act and other applicable state and local conflict of interest codes. Accordingly, a Board member shall be disqualified from participating in any hearing on an application, petition, or appeal where the Board Member is either the Landlord or a Tenant residina at the subiect orooerty. or has anv other form of conflict of interest (f) Training Required. All Board members shall attend training as designated b the Program Administrator. Page 38 of 46 EXHIBIT 2 Section 8-3181 — Rental Housing Board Member Term and Compensation (a) Term. Board Members shall serve terms of two (2) years and may serve qp to four (4) full terms for a total Term not to exceed eight (8) years. However, the City Council may remove a Board Member at any time for any reason. Notwithstanding any pending criminal investigations relating to the removal of a Board Member, the reasons for removal of any Board Member must be noted in the public record by any City Council Member exercising removal. The removed Board Member may note their consent and concession into the public record. (b) Compensation. Fifty dollars ($50.00) per meeting, plus fifty dollars ($50.00) per month automobile allowance. Section 8-3182 — Rental Housing Board Powers and Duties (a) The Rental Housing Board shall have the following powers and duties: 1) To hold regular meetings at least once each calendar month, or as needed, as fixed by the by-laws of the Board. 2) Conduct hearings on petitions, applications, and appeals of hearings determined by a Hearing Officer submitted by Landlords or Tenants under this Article. Any fees for such hearings shall be established by City Council resolution in the City's Miscellaneous Fee Schedule. 3) Promulgate and implement policies and procedures for the administration and enforcement of this Article. Make such studies, surveys, and investigations, conduct such hearings, and obtain such information as is necessary to carry out its powers and duties. 4) Review and assess yearly that sufficient number of staff are employed, including a Program Administrator, hearing officers, housing counselors and legal staff, as may be necessary to perform its function efficiently in order to fulfill the purpose of this Article. 5) Any other duties as necessary to administer and enforce this Article. 6) Such other duties as are designated by resolution of the City Council. Section 8-3183 — Rental Housing Board Policies and Procedures The Board shall issue and follow such policies and procedures, including those which are contained in this Article, as will further the purposes of the Article. Section 8-3184 — Rental Housing Board Meetings (a) The Board shall hold such regularly scheduled meetings as are necessary to Page 39 of 46 EXHIBIT 2 ensure the timely performance of its duties under this Article. All regular and special meetings shall be called and conducted in accordance with state law. (b) Quorum. Four (4) members of the Board shall constitute a quorum for the transaction of business. (c) Voting. The affirmative vote of four (4) members of the Board is required for a decision. includina all motions. rules. reaulations. and orders of the Board. Section 8-3185 — Judicial Review Any decision of the Rental Housing Board shall be final unless judicial review is sought in a court of competent jurisdiction within ninety (90) days of the date of the Board's decision. The Board decision shall take effect immediately unless provided otherwise in the decision, regardless of whether a party seeks judicial review. DIVISION 6. — ENFORCEMENT AND REMEDIES Section 8-3200 — Violations (a) It shall be unlawful for any person to violate or fail to comply with any provision of this Article. The violation of any provision of this Article shall first be punished through the use of an administrative citation, as provided in Santa Ana Municipal Code section 1-21, et seq., prior to prosecution as a misdemeanor or infraction, as provided in Santa Ana Municipal Code section 1-8. (b) Civil Action. Any aggrieved person, including the City and the People of the State of California, may bring a civil action for damages for any violation of this Article or the rules, regulations, orders and decisions of the Rental Housing Board. The burden of proof in such cases shall be by a preponderance of the evidence. No administrative remedy need be exhausted prior to filing a civil suit pursuant to this section. (c) Injunctive Relief. Any person who commits an act, proposes to commit an act, or engages in any pattern and practice that violates this Division, or the policies, procedures, regulations, rules, orders and decisions of the Rental Housing Board, may be enjoined therefrom by any court of competent jurisdiction. An action for injunction under this section may be brought by any aggrieved person, including the City and People of the State of California. No administrative remedy need be exhausted prior to filing an action for injunctive relief pursuant to this section. (d) Affirmative Defense. A Landlord's failure to comply with any requirement of this Article may be asserted as a complete affirmative defense in an unlawful detainer or any other action brought by the Landlord to recover possession of the Rental Unit. Additionally, any attempt to recover possession of a Rental Unit in violation of this Article shall render the Landlord liable to the Tenant for damages in a civil action for wrongful eviction. The prevailing party in an action for wrongful eviction shall recover costs and reasonable attorneys' fees. Page 40 of 46 EXHIBIT 2 (e) Public Nuisance. In addition to other penalties provided by law, any condition caused or permitted to exist in violation of any provision of this Article shall be deemed a public nuisance and may be summarily abated as such by the City, and each dray such condition continues shall constitute a new and separate offense. (f) Non -Exclusive. The remedies provided in this Article are not exclusive, and nothing in this Article shall preclude any person from seeking any other remedies, penalties or procedures provided by law, nor is exhaustion of remedies under this section a prerequisite to the assertion of any other such right. Section 4. The City Council finds and determines that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, as there is no possibility it will have a significant effect on the environment and it is not a "project," as defined in section 15378 of the State CEQA Guidelines. Furthermore, the proposed Ordinance falls within the "common sense" CEQA" exemption set forth in CEQA Guidelines section 15061(b)(3), excluding projects where "it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment." Section 5. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Section 6. This Ordinance shall become effective thirty (30) days after its adoption. Section 7. The Clerk of the Council shall certify to the adoption of this Ordinance and cause the same to be published in the manner prescribed by law. Page 41 of 46 ADOPTED this day of , 2022. EXHIBIT 2 APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Ryan O. Hodge Assistant City Attorney AYES: Councilmembers: Councilmembers: Councilmembers: Councilmembers: Vicente Sarmiento Mayor NOES: ABSTAIN: NOT PRESENT: Page 42 of 46 EXHIBIT 2 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, , Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS- XXXX to be the original Ordinance adopted by the City Council of the City of Santa Ana on . Date: Council City of Santa Ana Clerk of the Page 43 of 46