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Item # 25
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 4, 2022
TOPIC: Rent Stabilization and Just Cause Eviction Ordinances
AGENDA TITLE:
Adoption of Ordinance amending the Rent Stabilization and Just Cause Eviction
Ordinances
RECOMMENDED ACTION
Approve first reading of the Ordinance amending the Rent Stabilization and Just Cause
Eviction Ordinances.
DISCUSSION
On September 6, 2022, City Council adopted the Long-Term Implementation Plan for the
Rent Stabilization and Just Cause Eviction Ordinances (Exhibit 1). City Council also
authorized the City Manager and City Attorney to begin drafting amendments to the Rent
Stabilization and Just Cause Eviction Ordinances based upon the Long-Term
Implementation Plan. Following this direction, the redline version of the amended
Ordinance is attached to this Staff Report as Exhibit 2. [The Rent Stabilization Ordinance
and Just Cause Eviction Ordinance were previously two separate Ordinances in the
Santa Ana Municipal Code. For the sake of convenience, the Ordinances have been
combined into one as the “Rent Stabilization and Just Cause Eviction Ordinance”.]
The amendments to the Ordinance adheres to the Long-Term Implementation Plan and
the direction by City Council at the September 6, 2022 meeting. At the September 6, 2022
meeting, City Council directed staff to:
1. Revise the Rental Housing Board composition.
2. Rental Registry Fee:
a. Keep the rental registry fee as low and lean as possible; present all options in
the Fee Study; supportive of 50% pass through to tenants.
3. Add voluntary mediation:
a. Incorporate some form of voluntary mediation into the ordinance only at the
request of tenants or landlords.
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4. Compliance:
a. Add a penalty for landlords who do not register units in the rental registry and
prohibit rent increases if the rental unit registration is not complete.
5. Remove the following exemptions from the ordinance:
a. “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 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.”
b. “The provisions of this ordinance regulating the amount of rent that a residential
real property Owner may charge shall not apply to residential real property in
which each of the units have been substantially rehabilitated within the previous
15 years. For purposes of this section,” substantially rehabilitated" shall mean
that the cost to rehabilitate the residential real property was at least $40,000
per unit.”
Where the Long-Term Implementation Plan or City Council was silent on specific areas
of the Ordinance, staff incorporated language that seeks to fulfill the spirit and intent of
City Council.
The Rental Housing Board was the only item where staff did not have clear direction.
Rental Housing Board
On September 6, 2022, City Council agreed that a Rental Housing Board (“Board”) should
be appointed to conduct hearings on petitions and appeals, implement policies and
procedures for the administration and enforcement of the Ordinance, and perform other
duties as necessary. Staff originally recommended the Board to be made up of two (2)
tenants, two (2) landlords, and three (3) at-large members with no financial interest.
During the discussion and deliberation of the Long-Term Implementation Plan at the
September 6, 2022 City Council meeting, staff understood that the majority of the City
Council wanted to change the makeup of the Board from what was recommended by
staff. A few Councilmembers discussed making the representation of tenants greater than
landlords, but staff did not hear a majority consensus. Staff also understood that there
was a majority consensus to include representation of a mobilehome tenant in the
composition of the Board. The amendments to the Ordinance include a Board with three
(3) tenants (including one (1) mobilehome tenant), three (3) landlords, and one (1) at-
large member with no financial interest. This recommendation aligns most closely with
the research and findings identified in the Long-Term Implementation Plan. However,
since this policy direction was not clear at the September 6, 2022 City Council meeting,
staff recommends City Council to deliberate and discuss the desired composition of the
Board.
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RSG’s Long-Term Implementation Plan provides detailed information on the membership
of Rental Housing Boards in other jurisdictions. These options are provided as Exhibit 3.
Other options for the composition of the Board includes:
Option # 1: Three (3) tenants (including one (1) mobilehome tenant), three (3)
landlords, and one (1) at-large member with no financial interest;
Option # 2: Four (4) tenants (including one (1) mobilehome tenant), two (2) landlords,
and one (1) at-large member with no financial interest;
Option # 3: Three (3) tenants (including one (1) mobilehome tenant), two (2)
landlords, and (2) at-large members with no financial interest; or
Option # 4: Two (2) tenants (including one (1) mobilehome tenant), two (2) landlords,
and three (3) at-large members with no financial interest (original staff
recommendation).
The draft amendment pertaining to the Rental Housing Board can be found in Division 5,
Section 8-3180 of the amended Ordinance.
Additional Administrative Considerations
In addition to the foregoing, at the September 6, 2022 meeting the City Council discussed
the following items that will be implemented in the Work Plan, Fee Study, and subsequent
Policies and Procedures:
•Staff will ensure that the Fee Study accounts for the most efficient way to
implement the Long-Term Implementation Plan. Specifically, the rental registry fee
will be as low and lean as possible to not create an unnecessary burden on tenants
and landlords; staff will seek to blend a hybrid of services between consultants and
city staff; and staff will identify ways to build upon other existing services across
the City to administer the ordinance. The Fee Study and rental registry fee will be
guided by these principles.
•Staff will present the following options as it relates to the fees associated with a
Fair Return Petition, Capital Improvement Petition, and Tenant Petition:
o Financial impact of having petition fees separate from the rental registry fee;
o Financial impact of having petition fees included in the rental registry fee; or
o Financial impact of having no petition fees.
•Staff will work in collaboration with the City’s Code Enforcement Division and City
Attorney’s Office to enforce the ordinance.
Next Steps
Following City Council approval of the first reading of the Ordinance amending the Rent
Stabilization and Just Cause Eviction Ordinances, staff will incorporate City Council
feedback and return for a second reading of the Ordinance.
FISCAL IMPACT
There is no fiscal impact associated with this action.
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EXHIBITS
1.September 6, 2022 Staff Report with the Long-Term Implementation Plan for the
Rent Stabilization and Just Cause Eviction Ordinances
2. Redline version of the Ordinance amending the Rent Stabilization and Just Cause
Eviction Ordinances
3. Options for the Composition of the Rental Housing Board
Submitted By: Steven A. Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
Ordinance No. NS - ____
Page 1 of 46
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.
EXHIBIT 2
Ordinance No. NS - ____
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F. On September 6, 2022, the City Council adopted the Long -Term Implementation
Plan 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
EXHIBIT 2
Ordinance No. NS - ____
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DIVISION 1. – GENERALLY
Section 8-3100 – Title
This Article shall be known in its entirety as the “City of Santa Ana Rent
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 Or dinance),
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, carpeting, draperies, stuccoing the outside of
a building, air conditioning, security gates, swimming pool, sauna or hot
tub, fencing, children’s play equipment permanently installed, the
complete exterior painting of a building, 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
EXHIBIT 2
Ordinance No. NS - ____
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completion or after a Notice of Violation by a government agency ordering
repairs.
“City” means the City of Santa Ana.
"Hearing Officer” means a person who has been appointed by the
Program Administrator to perform 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, the right to have a
specified number of Tenants or occupants, 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 twenty-four (24) hours of formal training in
mediation; and,
2) Has mediated Rent disputes and/or has had other experience or
training showing a capability to mediate the issues which arise in
landlord/tenant disputes.
“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
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commercial coach as defined in Section 18001.8 of the Health and Safety
Code.
“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 recurring costs.
“Program Administrator” is a person designated by the City Manager to
administer the provisions of this Article.
“Rental Registry Fee” or “Fee” means the fee the City imposes on each
Rental Unit to cover the costs to administer the provisions of this Article.
“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
EXHIBIT 2
Ordinance No. NS - ____
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occupancy of a Rental Unit and for Housing Services. With respect to
Mobilehomes and Mobilehome Spaces in Mobilehome Parks, any
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 with Landlord’s consent, 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.
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DIVISION 42. – JUST CAUSE EVICTIONS
Section 8-1993 – Citation.
This Division shall be known as the “Just Cause Eviction Ordinance.”
Section 8-19943120 – Restrictions on Termination of Tenancy W without Just Cause
(a) Notwithstanding any other law, aAfter 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 tenant with the notice upon serving
any notice of change in terms of Tenancy.
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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:
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.
ii. 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
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written consent to a change in the terms of the T enancy 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.
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 la w.
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 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, rep orted 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 only if the same
residential real property is available.
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
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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;
II. 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
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
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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.
i. Intent to occupy the residential real property by the
Owner or their spouse, domestic partner, children,
grandchildren, parents, or grandparents.
ii. 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.
i. The Owner complying with any of the following:
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),
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the tenant shall not be entitled to relocation assistance as
outlined in paragraph (3) of subdivision (d).
D.
i. Intent to demolish or to substantially remodel the
residential real property.
ii.
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
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 for just 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
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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 the Eviction Defense
Fund or the Program AdministratorCity if no such fund exists;
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-fault just
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 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.
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3)
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 ins titution 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.
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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.
B.
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-
19943120(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).
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9) 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
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.
(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 defense to an action for p ossession 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
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member from domestic violence, elder or dependent
adult abuse, sexual assault, human trafficking, or
stalking; or
ii. The tenant or a member of their household has filed a
police report within the previous 180 days alleging that
they are a victim of 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 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 subject rental unit, and who is registered and actively
attending any level of school during a specified school term.
(i) Any sale of a mobilehome park shall be considered a change of use
pursuant to Government Code section 65863.7. Accordingly, aAt least
sixty (60) days prior to the sale of a mobilehome park, the Owner shall
provide notice of such proposed sale to the mobilehome park residents
and prepare a report on the impact of the sale of the mobilehome park,
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including a replacement and relocation plan that adequately mitigates the
impact upon the ability of any displaced residents of the mobilehome park
to be sold to find adequate housing in a mobilehome park, as applicable,
pursuant to the requirements of Government Code section 65863.7.
(j) Any waiver of the rights under this section shall be void as contrary to
public policy.
(k) For the purposes of this Division, the following definitions shall apply:
1) “Owner” and “residential real property” have the same meaning as
those terms are defined in Civil Code Section 1954.51.
2) “Tenancy” means the lawful occupation of residential real property or
mobilehome space and includes a lease or sublease, as such may be
subject to local ordinance pursuant to the terms of the Costa -Hawkins
Rental Housing Act, California Civil Code section 1954.50. et seq., and
the Mobilehome Residency Law, Civil Code section 798, et seq.
Section 8-19953121 – 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.
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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.
Section 8-19963122 – 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 t enant'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.
(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.
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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
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 tenant in 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
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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.
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.
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:
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i. rental agreement negotiations were conducted in the
tenant's primary language;
ii. 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 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.
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 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 tenant's primary
language for the purpose of intimidating, confusing, deceiving or
annoying tenant.
12) Interfere 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.
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15) Interfere 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 immigr ation or
citizenship status or otherwise disclosing a tenant’s immigration or
citizenship status in violation of California Civil Code section
1940.35(a) and California Code of Civil Procedure section 1161.4, as
may be amended.
Section 8-1997 – Violations.
It shall be unlawful for any person to violate or fail to comply with any provision of
the ordinance. The violation of any provision of this ordinance shall first be punished
through the use of an administrative citation, as provided in Santa Ana Mun icipal Code
section 1-21, et seq., prior to prosecution as a misdemeanor or infraction, as provided in
Santa Ana Municipal Code section 1-8.
DIVISION 53. – RENT STABILIZATION
Section 8-1998.13140 – 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.
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(b) No later than June 30th each year, beginning with the year 2022, the City
shall announce the amount of allowable re nt increase based on
subsection (a) herein, which shall be effective as of September 1 st of that
year.
Section 8-1998.23141 – 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 a just and reasonable return on a n owner’s property,
and has been adopted to encourage good management, reward effi ciency, 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 8-1998.13140 pursuant to the procedures set forth in section 8-
1998.3this Division.
Section 8-1998.33142 – Fair Return Petition for Rent Increase.
(a) An owner of residential real property or a mobilehome park owner may
petition for a rent increase in excess of that provided in section 8 -1998.1 in order to
obtain a fair and reasonable return on their property (“Fair Return Petition”). Such Fair
Return Petition shall be on an application form prescribed by the City Manage r and shall
be decided by the City Manager, or their designee (“City Manager”). Owner shall
provide a copy of any Fair Return Petition submitted to the City to the applicable
tenant(s), and provide City with proof of completing such service to the applica ble
tenant(s). The tenant(s) will then have thirty (30) days from the date of receiving the
Fair Return Petition to reply or provide additional materials to the City in response to the
Fair Return Petition. The applicant shall bear the burden of establis hing that a rate
increase in excess of that provided in section 8-1998.1 is necessary to provide the
applicant with a fair and reasonable return on their property, including by providing an
independent financial report and verified financial data demonstra ting that without such
an increase, they will not realize a fair and reasonable return on their property.
(b) Applicant shall be responsible for all costs associated with the City’s
review of the Fair Return Petition. Upon receipt of a Fair Return Petition, the City
Manager shall determine the anticipated costs of review and if the employment of
expert(s) will be necessary or appropriate for a proper analysis of the applicant’s
request. If the City Manager so determines, the City Manager shall also deter mine the
anticipated costs of employing such expert(s). The resulting figure shall be
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communicated to the applicant, and the Fair Return Petition shall not be processed until
the applicant has paid to the City the estimated cost of the complete analysis. City will
provide applicant with an invoice of all costs incurred after the review of the Fair Return
Petition. Any unused portion of the advance payment for analysis shall be refunded to
the applicant. If additional funds are required, payment will be required before applicant
receives the determination on the Fair Return Petition from the City.
(c) The factors the City Manager may consider in deciding a Fair Return
Petition may include, but not be limited to:
(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.
(2) The rent lawfully charged for comparable residential real property
or mobilehome spaces in the City.
(3) The length of time since the last determination by the City Manager
on a rent increase application, or the last rent increase if no
previous rent increase application has been made.
(4) The completion of any capital improvements or rehabilitation work
related to the residential real property or mobilehome space or
spaces specified in the Fair Return Petition, and the cost thereof,
including materials, labor, construction interest, permit fees, and
other items the City Manager deems appropriate.
(5) Changes in property taxes or other taxes related to the subject
residential real property or mobilehome park.
(6) Changes in the rent paid by the applicant for the lease of the
residential real property or land on which the subject mobilehome
park is located.
(7) Changes in the utility charges for the subject residential real
property or mobilehome park paid by the applicant, and the extent,
if any, of reimbursement from the tenants.
(8) Changes in reasonable operating and maintenance expenses.
(9) The need for repairs caused by circumstances other than ordinary
wear and tear.
(10) The amount and quality of services provided by the applicant to the
affected tenant(s).
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(11) Any existing written lease lawfully entered into between the
applicant and the affected tenant(s).
(d) A Fair Return Petition shall be decided by the City Manager within sixty
(60) calendar days of the date that the application has been deemed complete,
including proof of service of the Fair Return Petition on the applicable tenant(s). The
decision shall be emailed and sent by mail, with proof of mailing to the subject property
owner, the owner's designated representative(s) for the Fair Return Petition, and a
designated representative of the tenant(s). Any appeal of the City Manager decision on
a Fair Return Petition shall proceed pursuant to the administrative appeal procedures
found in Chapter 3 of the Santa Ana Municipal Code.
(a) A Landlord may submit a Fair Return Petition to the Program
Administrator in accordance with the procedures set forth in this Division requesting a
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;
2) The Rent lawfully charged for comparable Rental Units in the City;
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;
6) Changes in the Rent paid by the Landlord for 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 ordinary
wear and tear;
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
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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
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:
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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 among 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 any one (1) or more of the following grounds:
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 premises, including health, safety, fire, or
building code violations;
4) To contest a Capital Improvement cost as an unauthorized or
excessive pass through; or,
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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 thirty (30)
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 eighty (180) days of the
alleged violation(s).
(c) Standard of Review. All relevant factors shall be considered when
evaluating a Tenant Petition, including the following:
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.
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
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Petitions filed under this Article. Petitions shall be governed by such regulations and by
the provisions of this Section.
(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.
(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. Any response submitted by the responding party will be made available to
the petitioning party.
(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:
1) To make a determination on a Petition; and
2) Any other powers delegated to the Hearing Officer by the Board.
(g) 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.
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(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.
(j) 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 evide nce 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.
(l) 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 un der 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.
(o) Notice of Decision. The Hearing Officer shall make a determination on the
merits of the Petition and shall provide a written statement of decision, including findings
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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 me diation 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.
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(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 any subsequent administrative or judicial proceeding.
(g) 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 8-1998.43147 – 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);
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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 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) 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
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.
(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:
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.
B.
i. 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 8-1998.13140
and the owner is not any of the following: (1) a real
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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 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.
(d) The provisions of this ordinance regulating the amount of rent that a
residential real property Owner may charge shall not apply to residential real property in
which each of the units have been substantially rehabilitated within the previous 15
years. For purposes of this section, “substantially rehabilitated” shall mean that the cost
to rehabilitate the residential real property was at least $40,000 per unit.
Section 8-1998.53148 – 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 Spaces in Mobilehome Parks that are subject to the Mobilehome Parks
Act, Health and Saf ety 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.
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(d) No rent increases shall take effect for any Rental Unit unless the Landlord
has accurately completed the Rental Unit Registration.
Section 8-1998.63149 – 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 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
section 8-1998.3this 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
section 8-1998.3this 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 no tice of eviction, shall be provided to the City through
the Rental Registry portal.
Section 8-1998.7 – Definition of Rent.
For the purposes of this Division, “Rent” means all periodic payments and all
nonmonetary consideration, including, but not limited to, the fair market value of goods
or services rendered to or for the benefit of the owner under an agreement concerning
the use or occupancy of residential real property or mobilehome space, including all
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payment and consideration demanded or paid for parking, pets, furniture, subletting and
security deposits for damages and cleaning.
Section 8-1998.8 – Violations.
It shall be unlawful for any person to violate or fail to comply with any provision of
the ordinance. The violation of any provision of t his ordinance 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.
DIVISION 4. – RENTAL REGISTRY AND RENTAL REGISTRY FEE
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 S anta
Ana shall complete and submit Registration Forms for each Rental Unit pursuant to the
following:
(a) Initial Registration. A Landlord must file an initial Registration 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 copy 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.
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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 provi de 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
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.
(g) 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.
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(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.
(j) 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.
(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 the Rental Unit Registration.
Section 8-3161 – Rental Registry Fee
Effective July 1, 2023, or as modified by resolution of the City Council, an annua l
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 c ost 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.
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(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 additio nal 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
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
EXHIBIT 2
Ordinance No. NS - ____
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There is hereby created and established a Rental Housing Board to perform 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 Rental Housing Board shall consist of seven
(7) Board Members who shall be appointed by the Mayor and approved by the City
Council, including:
1) Three (3) Tenants, including at least one (1) Mobilehome Tenant;
2) Three (3) Landlords; and
3) One (1) at-large Member with no financial interest and no
ownership of income-generating rental housing.
(b) Chairperson. The Board shall elect annually one of its Members to serve
in the capacity as Chairperson.
(c) Eligibility. Residents of the City are eligible to serve as members of the
Board.
(d) Full Disclosure of Holdings. Nominees for the position of Board Member
shall 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. The Board may promulgate 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 residing at the subject property, or has any other form of conflict of
interest.
(f) Training Required. All Board members shall attend training as designated
by the Program Administrator.
Section 8-3181 – Rental Housing Board Member Term and Compensation
(a) Term. Board Members shall serve terms of two (2) years and may serve
up 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.
(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
EXHIBIT 2
Ordinance No. NS - ____
Page 42 of 46
(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 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, including all motions, rules, regulations, and orders of the Board.
Section 8-3185 – Judicial Review
EXHIBIT 2
Ordinance No. NS - ____
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Any decision of the Rental Housing Board shall be final unless judicial review is
sought in a court of competent jurisdiction within thirty (30) 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.
(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
day such condition continues shall constitute a new and separate offense.
(f) Non-Exclusive. The remedies provided in this Article are not e xclusive,
and nothing in this Article shall preclude any person from seeking any other remedies,
EXHIBIT 2
Ordinance No. NS - ____
Page 44 of 46
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.
EXHIBIT 2
Ordinance No. NS - ____
Page 45 of 46
ADOPTED this ___ day of ___________________, 2022.
_______________________
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
_______________________________
Ryan O. Hodge
Assistant City Attorney
AYES: Councilmembers: ________________________________________
NOES: Councilmembers: ________________________________________
ABSTAIN: Councilmembers: ________________________________________
NOT PRESENT: Councilmembers: ________________________________________
EXHIBIT 2
Ordinance No. NS - ____
Page 46 of 46
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, , Clerk of the Council, do hereby attest to and c ertify the attached
Ordinance No. NS-XXXX to be the original Ordinance adopted by the City Council of the
City of Santa Ana on .
Date: ________________ ____________________________________
Clerk of the Council
City of Santa Ana
EXHIBIT 2
Options for the Composition of the Board from RSG’s Long-Term Implementation Plan
Jurisdiction Board Name Members Scope of Work
Alameda
Rent Review
Advisory
Committee
5 members appointed
by the Mayor and
approved by City
Council
2 Tenants
2 Housing
Providers
1 Residential
Property Owner
but not Housing
Provider
Review requests from
tenants concerning rent
increases
Hold hearings for
requests for a rent
increase review
Make recommendations
to the tenants and their
housing providers about
the increases
Berkeley
Rent Board (with
a number of
Committees)
9 Commissioners
elected by voters
Must submit a
verified statement
of their interests
and dealings in
real property
during the
previous three
years
Implement and oversee
program
Enact regulations
Hearing petition appeals
filed by tenants and
landlords
Beverly Hills
Rent
Stabilization
Commission
6 members and 3
alternates appointed
by City Council
2 Landlords
2 Tenants
2 members who
are not tenants or
managers or have
financial interest
in multi-family
residential rental
property
Make recommendations
to the City Council
concerning
amendments to
chapters of the Code
that have not been
resolved by the City
Council
Perform any other
functions that may be
designated by resolution
or motion of the City
Council
EXHIBIT 3
Inglewood Rental Housing
Board
5 members appointed
by the mayor and
approved by City
Council
2 Landlords
2 Tenants
1 City
employee
Review applications
submitted by landlords
or tenants
Establish policies and
procedures for
administration and
compliance of the
program
Conduct hearings on
petitions filed or appeals
of decisions of a
Hearing Officer filed
Richmond Rent Board
5 members,
appointed by the
Mayor subject to
three additional votes
by City Council
members
Shall be no more
than two members
that own or
manage any
rental property or
are realtors
Establish Base Rent
Make adjustments in
rent increases and
decreases
Establish rules and
regulations
Charge and collect
registration fees
Collect/receive copies of
landlord notices
Refer violations to
appropriate authorities
Santa Monica Rent Control
Board
5 elected
Commissioners
Controlling residential
rents
Limiting the grounds for
eviction
Preserving rental
housing
Encouraging
maintenance
Ensuring landlords
receive a fair return
EXHIBIT 3