HomeMy WebLinkAbout75B - PH - PREPREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
APRIL 19, 2016
TITLE:
PUBLIC HEARING - ADOPTION OF THE
PROACTIVE RENTAL ENFORCEMENT
PROGRAM (PREP) ORDINANCE IN
CHAPTER 8
(STRATEGIC PLAN NO. 5,4E)
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
....• b
❑ As Recommended
❑ As Amended
❑ Ordinance on 1" Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Adopt an ordinance for the Proactive Rental Enforcement Program (PREP) and the Gold Seal
Incentive Program with provision for adjustment of the annual rental housing inspection per unit
fee based on the Consumers Price Index.
DISCUSSION
The Proactive Rental Enforcement Program (PREP) was initially approved by the City Council in
1992 in response to a study prepared by community leaders. The study, entitled the "Mayor's
Task Force on Neighborhood Standards and Preservation ", proposed establishing a systematic
proactive rental inspection program to address poorly maintained rental properties that were
negatively impacting the quality of life of tenants and surrounding residents.
When the PREP program was initially approved, the rental housing industry requested a
provision be included that would reward rental owners who have displayed exemplary
maintenance and management practices, and who have not created service demands from
Community Preservation or the Police Department. This provision was labeled the "Gold Seal
Incentive Program ". An updated Gold Seal Incentive Program outline is attached hereto as
Exhibit 1.
The primary benefit for rental owners who can successfully complete a three stage qualification
process and receive Gold Seal recognition is an exemption from the annual fee which initially
was $17.50 per unit fee for a period of four years. The annual PREP per unit fee of $17.50 was
increased in 2013 to $21 due to increasing costs to administer the program. The increase in
revenue also reduced the amount of expenditures not funded by the PREP fee and were
accounted for in the Planning and Building Agency's operating budget. It is recommended that
the annual PREP per unit regulatory inspection fee be set at $25 which includes a $4
administrative processing and information technology fee.
7513-1
Adoption of Proactive Rental Enforcement Program (PREP)
April 19, 2016
Page 2
The present funding allocation for the Gold Seal program is $110,000 which will provide for 4,400
units to receive exemptions from the $25 per unit annual fee.
The primary concentration of the PREP inspections is on the exterior maintenance of rental
properties, such as poor landscaping, unsightly paint, damaged fencing, illegal storage or
inoperable vehicles. Should a condition be observed that leads to suspicion of a more serious
issue being present on the property, or within the structure, a thorough inspection is conducted.
Code enforcement staff also responds to complaints received pertaining to rental properties.
Due to the proactive nature of the program, code enforcement staff addresses conditions of the
rental properties before adjacent impacted neighbors are compelled to file a complaint. The on-
going challenge for code enforcement staff is to maintain improvements made in the completed
areas, while moving on to conduct inspections in the next quadrant. Properties that rapidly
deteriorate generate most of the complaints received by code enforcement staff.
The PREP program has proven beneficial to Santa Ana by maintaining the City's rental housing
at an acceptable standard. The program receives positive reviews from residents for the
improved appearance of their neighborhoods and from the rental housing industry for abiding by
the approved guidelines and not generating complaints to their respective associations.
In calendar year 2015, based on PREP enforcement efforts, staff generated 210 permits with a
total valuation of $1,541,084.02 in improvements to rental properties.
With proven success in reducing complaints received for rental properties, noticeably improving
the appearance of many rental properties and maintaining support of the rental housing industry,
the Planning and Building Agency is requesting the approval of the PREP program to allow
inspection of all rental housing in the City. In addition it is requesting the authorization of the
required funding for the Gold Seal Incentive Program. For the purposes of cost administration it
is also requesting approval to annually adjust the per unit fee based on a percentage reflected by
the change in the Consumers Price Index - Urban, All Services Component for the Los Angeles -
Riverside- Orange County area.
ENVIRONMENTAL IMPACT
The PREP program is exempt from CEQA pursuant to Section 15061(b)(3) of CEQA Guidelines
in that it can be seen with certainty that the rental inspection program will have no possible
significant effect on the environment. Additionally, the PREP program is further exempted
pursuant to the Class 21 Categorical Exemption, Section 15321 of the CEQA Guidelines, which
exempts enforcement actions of regulatory agencies. Categorical Exemption No. ER- 2015 -96
has been adopted for this program.
75B -2
Adoption of Proactive Rental Enforcement Program (PREP)
April 19, 2016
Page 3
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability,
Engagement & Sustainability, Objective #4 (Support Neighborhood Vitality and Livability),
Strategy E (Implement innovative code enforcement practices and strategies including the use of
volunteers, enhanced technologies and increased collaboration with other City departments and
outside agencies to address critical livability issues citywide [e.g., overcrowding, absentee
landlords, landlord /tenant rights and responsibilities, etc.]).
FISCAL IMPACT
Annual revenue approximating $583,065 is expected to be received in FY 2016 -17 in the
Proactive Rental Enforcement Program (Residential Inspection Surcharge Account 01116550-
53615)
Hassan Hag 0 ni, 9ZP
Executive D rector
Planning & Building Agency
ER:rb
ftreports \PREP Cont 04.19.16 RFCA
Exhibits: 1. Gold Seal Incentive Program
2. FY PREP Budget
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
75B -3
75B -4
EXHIBIT 1
GOLD SEAL INCENTIVE PROGRAM
BACKGROUND
The incentive program is a mechanism that positively affects the quality of rental housing in the City of
Santa Ana. The program provides a monetary and marketing incentive for rental property owners to
abide by a set of minimum criteria - criteria that is, in some cases, over and above that which is
required by law.
Monetary Incentive - Owners of rental property who apply and qualify for the program are exempt from
the regulation inspection fee.
Marketing Incentive - Owners of rental property who apply and qualify for the program are presented
with materials to utilize when marketing their units.
ELIGIBILITY
All rental properties in the City of Santa Ana that pay a current regulation inspection fee are eligible for
the incentive program. A property with any one of the following conditions is ineligible for the incentive
program:
1. Unpaid regulation inspection fee
2. Outstanding code violations
Application Fees — Application fees will not be charged for the first 100 applications. After the first 100
applications are processed, staff will evaluate whether or not an application fee should be charged as
a disincentive for frivolous filings.
QUALIFYING FOR THE INCENTIVE PROGRAM
In order to qualify for the incentive program, a rental property owner must pass all parts of a three -
stage process.
Stage One - The rental property owner will notify the City that he /she wishes to apply for the incentive
program and fill out the appropriate application. This will initiate a review and evaluation of the
property's management practices. Owners will be asked to provide the necessary information and
documentation to verify that they currently adhere to the following five good management practices:
Good Management Practices:
a) Owner abides by all fair housing laws
b) Owner uses a formal method to screen all potential residents
c) Owner utilizes a written rental agreement that contains specific criteria
d) Owner utilizes written "House Rules"
e) Owner performs "walk - throughs" at the b ginninin and end of each tenancy
Specific criteria necessary for verification of the "good management practices" shall be outlined in the
program implementation policy.
Each management practice must be passed in order to advance to Stage Two and is subject to on -site
verification during the Stage Two inspection.
Stage Two - Only owners who have passed Stage One of this program will be eligible to initiate Stage
Two. This stage consists of an exterior inspection of the property and verification of the current use of
the good management practice materials submitted by the owner during Stage One. The criteria for
this exterior inspection is listed under "Violation Checklist' and the inspector evaluating the exterior
conditions will do so with the goal that such conditions should be in an "above average" to "superior"
condition and collectively the property should be in exceptional condition. The criteria and /or specific
materials necessary for the on -site verification of the good management practices shall be outlined in
the program implementation policy and the property owner shall be made aware of the materials
necessary prior to the Stage Two inspection.
A property must have a 100% pass rating of the criteria listed under "Violation Checklist,
Exterior /Common Area, Must Pass Items" and have an overall 85% pass rating of rest of the criteria in
order to clear approval of Stage Two and advance to Stage Three of the incentive program.
Stage Three - Only owners who have passed Stage Two of this program will be eligible to initiate
Stage Three. This stage consists of an interior inspection of rental units. The criteria for this inspection
is listed under "Violation Checklist, Interior Areas" and the inspector evaluating the interior conditions
will do so with the goal that such conditions should be in an "above average" to "superior" condition
and collectively the property should be in exceptional condition.
A maximum of 10% of the dwelling units in a complex (rounded up on any fraction) will be inspected
(but no less than one unit). The units to be inspected will be selected by the inspector from a list of at
least 20% of the units on the property (vacant and /or occupied) selected by the owner.
A property must achieve a score of 85% or higher to achieve passage of this stage of the incentive
program.
Prioritization of Applications - Applications will be reviewed in the order they are received. Incentive
benefits will be awarded on a first come basis by qualification date. Twenty percent of the properties
qualifying for the benefits must contain 15 units or less and 20% must contain 16 units or more. The
remaining sixty percent may be from either category.
Applicants whose properties qualify for the Gold Seal benefit but who cannot receive exemption due to
a lack of available funding will be placed on a priority list by certification date. Should funding become
available, these priority applicants will only be required to pass a Stage 1 inspection to qualify for the
available funds. The certification period will begin on the date they pass all the required program
incentive criteria.
75B -6
2
AWARDING THE "GOLD SEAL"
Only owners who have achieved passage of all three stages will qualify for the monetary and
marketing incentives granted to exceptional properties under the Gold Seal incentive program.
Once granted, the Gold Seal will be valid for four (4) years and will run with the property, not with the
ownership, during that time. However, it is the responsibility of the new owner to notify the City of the
transfer of ownership and to continue to meet the obligations of the program. After 4 years, in order
for a property to continue to receive the benefits of the Gold Seal incentive program, the owner must
reapply for the program and completely requalify through the process outlined in this document.
DELAYED EXEMPTIONS
Applicants who fail to meet the established qualification deadline to be certified for the Gold Seal
benefit may be qualified for the award when the applicant can provide proof that a processing delay on
the part of the City was the cause for them missing the deadline.
QUALIFICATION EXEMPTION
On occasion a property may be documented to have exemplary management practices, but such
efforts are negated by special circumstances beyond the owner's /manager's control (such as property
location, gang activity or external vandalism) which prevent the property from qualifying. In some rare
cases and only at the discretion of the Code Enforcement Manager, certain properties may be
qualified for the benefits of the incentive program because of special circumstances.
LOSS OF INCENTIVE PROGRAM PRIVILEGES
If a qualified property has deteriorated to the point that it is no longer exceptional, the Code
Enforcement Manager may choose to re- evaluate the property and, if necessary, revoke the property's
incentive program privileges. Program privileges would cease on the date the revocation occurs. Such
properties would not be eligible for the incentive program benefits for a period of twelve (12) months
beginning with the date of revocation. Property owners whose property privileges have been revoked
may not reapply during the twelve (12) months they are on suspension. The privileges of requalifying
properties will not be effective until the beginning of the next fiscal year following the twelve (12) month
suspension.
APPEALS
Those owners who have applied for the incentive program but do not qualify or have failed may appeal
such decisions to the Executive Director or his /her designee. The decision of the Executive Director, or
his /her designee, shall be final.
75B -7
GOLD SEAL INCENTIVE PROGRAM
VIOLATIONS CHECKLIST
EXTERIOR / COMMON AREAS
Must Pass Items (100% on applicable items):
1. Poor landscaping - no ground cover, dirt areas, unsightly, dead trees, overgrown yard.
2. Excessive chipped /peeling paint.
3. Graffiti.
4. Damaged /unsightly fences.
5. Unauthorized enclosed balconies /patios.
6. Unpermitted /illegal lock(s) on required exit(s).
EXTERIOR / COMMON AREAS
Must Pass Items (85% or higher on applicable items):
7. Deteriorated /substandard roofing.
8. Unsafe pools — pools with algae, unsafe pool fences and pool gates.
9. Loose or unsafe stairs, handrails or guardrails.
10. Unsafe or severely damaged decking /subfloor on balconies above ground level
11. Unapproved building, electrical, plumbing or mechanical alterations.
12. Excessive broken sprinklers.
13. Torn window /door screens.
14. Uneven sidewalks and /or walkways.
15. Dirty hallways, sidewalks or walkways.
16. Illegal fences.
17. Unsightly window coverings.
18. Deteriorated driveways, blocked driveways, excessive oil on driveways.
19. Excessive or unsightly storage on balconies or patios.
20. Drying clothes on fences or bushes.
21. Loitering on property.
22. House furniture in common /public areas.
23. Remaining evidence of sewage spill.
24. Dirty building exterior.
25. Illegal storage under carports.
26. Inoperable vehicles.
27. Vehicles for sale.
28. Street or unit numbers missing.
29. Banners without permits.
75B -8
4
GOLD SEAL INCENTIVE PROGRAM
VIOLATIONS CHECKLIST
EXTERIOR / COMMON AREAS
Must Pass Items (85% or higher on applicable items):
30. Storage on roof
31. Broken /missing mailboxes.
32. Cracks or holes in siding.
33. No manager office sign.
34. Inoperative exit signs.
35. Business on property without proper permits.
36. Dirty common areas /play areas.
37. Dirty awnings.
38. Excessive trash /debris throughout common areas.
39. Dirty trash bins, excessive trash lying outside trash enclosure.
40. Trash containers in unapproved locations.
41. Unapproved security screen doors.
42. Broken or missing fire extinguishers.
43. Leaking plumbing.
44. Hazardous electrical condition(s).
45. Damaged exterior doors.
46. Damaged shutters.
47. Stairs, handrails, guardrails in need of paint.
INTERIOR AREAS
Must Pass Items (100% on applicable items):
1. Missing smoke detector in bedroom(s).
2. Missing smoke detector in hallway(s) adjacent to bedroom(s)
3. Missing carbon monoxide detector.
4. Uncapped gas line(s).
5. Lack of hot/cold running water.
6. Sleeping in closet or kitchen.
7. Unapproved /unsafe light fixture(s).
8. Unlicensed commercial activity in unit.
9. Unapproved security bars on windows.
10. Loose or unsafe stairs, handrails or guardrails.
11. Unpermitted water heater change -out.
12. Interior hoarding conditions.
13. Unapproved building, electrical, plumbing or mechanical alterations.
75B -9
5
GOLD SEAL INCENTIVE PROGRAM
VIOLATIONS CHECKLIST
INTERIOR AREAS
Must Pass Items (85% or higher on applicable items):
14. Illegal lock or latch on exterior doors(s).
15. Lock and /or hasps on bedroom door(s).
16. Clogged /leaking plumbing.
17. Inoperative electrical outlet(s) /improper wiring.
18. Severely deteriorated floor covering /sub - flooring.
19. Lack of /inoperable heating.
20. Smoke detector(s) inoperative /not provided.
21. Unapproved structural alterations.
22. Cockroach /rodent infestation.
23. Missing /severely damaged switch /plug cover(s).
24. Broken tub /shower glass.
25. Electrical appliances(s) used in unapproved exterior location.
26. Unsightly balcony storage.
27. Laundry drying on patio or balcony.
28. Trash chute and /or surrounding are not in sanitary condition.
29. Deteriorated /water damaged interior walls(s).
30. Deteriorated /water damaged ceiling(s).
31. Dire need of paint on interior walls.
32. Severely deteriorated cabinets or drawers
33. Blocked bedroom emergency exits(s).
34. Cover plates missing on wall heater.
35. Unvented fuel burning heater.
36. Damaged interior door(s).
37. Peeling paint on walls or ceilings.
38. Grossly deteriorated /insanitary countertops.
39. Inoperative bathroom ventilation.
40. Interior of unit filthy /insanitary.
41. Occupants in unit exceed number on rental agreement.
42. Items hanging from sprinkler head and /or lines.
43. Deteriorated window covering(s).
44. Inoperable kitchen exhaust vent.
Gold Seal Program
2016 Ordinance Exhibit 2 / ER
75B -10
Proactive Rental Enforcement Program
Fiscal Year Budget Commencing July 1, 2016
Projected Expenditures and Revenue
Program Account 01116550
March 15, 2016
EXPEDITURES
PREP Inspector Salaries & Wages - Regular
$
659,000.00
PREP Operating Overhead Expenditures
$
259,622.00
Total PREP Operating Expenditures
$
918,622.00
Total Rental Units Licensed For Inspection
27,765
Average Cost Per Unit
$
33.08
REVENUE
Total Rental Units Licensed For Inspection
32,165
Gold Seal Exempt Units
4,400
Gold Seal Exemption Funding
$
110,000.00
Total Rental Units Licensed For Inspection
27,765
Annual Fee Per Unit:
Planning & Building Agency:
$ 21 $ 583,065.00
Finance and Management Services:
$ 4 $ 111,060.00
$
25.00
Total Revenue
$
694,125.00
PROJECTION TOTALS
Expenditures
$
918,622.00
Revenue
Planning & Building Agency:
$ 21 $ 583,065.00
Finance and Management Services:
$ 4 $ 111,060.00
$
694,125.00
Variance
$
(335,557.00
EXHIBIT 2
75B -11
75B -12
LS 3.31.16
ORDINANCE NO. NS -XXXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA ADOPTING THE PROACTIVE RENTAL
ENFORCEMENT PROGRAM (PREP) IN CHAPTER EIGHT
OF THE SANTA ANA MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. The City Council of the City of Santa Ana previously adopted the Proactive
Rental Enforcement Program (PREP), to provide periodic and systematic
inspections of all residential rental properties in the City of Santa Ana.
B. The PREP Is intended to uncover unsanitary conditions and life safety
hazards for occupants of residential rental properties, to ensure that rental
properties have operable and safe water, sewage disposal, heating and
electric systems, and to encourage owners or managers of residential
rental properties to make repairs and conduct preventative building
maintenance before deteriorated conditions upon rental property become
life safety issues.
C. The previous PREP program terminated by its own sunset clause on
December 31, 2015, and the City Council hereby finds that the
establishment of a periodic housing inspection program is necessary to
protect the public health, safety and welfare of its residents.
D. All fees assessed for the PREP bear a direct correlation between the
amount of the fee and the actual cost of the services provided, including
administration, enforcement and implementation services specifically
related to the PREP.
E. In order to correlate the amount of the fee with the actual cost of the
services provided, the fee shall be adjusted annually in accordance with
the consumer price index as published by the United States Department of
Labor for the Los Angeles- Riverside - Orange County (formerly Los
Angeles -Long Beach - Anaheim) metropolitan area.
F. Total projected expenditures for the PREP would amount to an estimated
$918,622.00, which includes an estimated $659,000.00 for required staff
and an estimated $259,622.00 in operational costs.
Exhibit 3
Ordinance No. NS -XXXX
Page 1 of 16
75B -13
LS 3.31.16
G. On June 20, 1994, the City Council adopted Resolution No. 94 -026
(Resolution) which approved and adopted the "Gold Seal Incentive
Program" whereby particular residential properties or residential
apartments may be certified as having met standards of excellence in
property maintenance and as certified, would be exempted from payment
of the residential rental surcharge fee for a three -year period.
H. Such Resolution is hereby rescinded and the Gold Seal Incentive Program
is included in the terms of this ordinance.
The funding for the Gold Seal Incentive Program is $110,000.00, which
currently provides for 4,400 units to receive exemptions from the existing
annual fee. The number of units that can be approved to participate in the
Gold Seal Incentive Program will fluctuate with the adjustment of the
annual fee in line with the consumer price index.
J. According to 2015 records an inventory of 32,165 rental units are licensed
for inspection. Subtracting out the 4,400 units qualified for the Gold Seal
Incentive Program, 27,765 units are accountable for the $25.00 per unit
annual fee, thus generating a combined annual revenue of $694,125.00.
K. It is anticipated that the deficit for the PREP will be $335,557.00 for the
PREP based on the estimated $918,622.00 in expenditures and
$583,065.00 in revenues.
L. City Council finds that continuation of the Proactive Rental Enforcement
Program is essential to the neighborhoods in Santa Ana to provide
assurance that the rental housing will riot be allowed to revert to the
condition which led to the initial concerns for the original implementation of
the inspection program.
Section 2. In accordance with the California Environmental Quality Act, the
recommended action is categorically exempt from further review per section 15321,
Class 21, as the project involves an enforcement action by a regulatory agency for an
inspection program. A Categorical Exemption for Environmental Review No. ER -2015-
96 will be filed for this project.
Section 3. Santa Ana Municipal Code Section 8 -47 is hereby amended to read
as follows:
Sec. 8 -47. Proactive rental enforcement program fee.
All funds received pursuant to the provisions of section " 'OnF.11, "rpte
of Article X. Division 2 of Chapter 8 of this Code shall be deposited in a separate
account and identified with a separate unique expenditure activity number. All such
Ordinance No. NS -XXXX
Page 2 of 16
75B -14
LS 3.31.16
funds shall be expended solely for the proactive rental enforcement program and shall
not be used for any other purpose.
All interest income earned by the moneys in the proactive rental enforcement
program account shall also be expended only for the proactive rental enforcement
program. Should such monies be invested in combination with other funds and
accounts, then the pro rata share of the interest earned by all such monies that is
attributable to the program account shall be expended for the proactive rental
enforcement program.
Section 4. In Chapter 8 of the Santa Ana Municipal Code, the words "Division 1"
shall be inserted after the title "Article X." as follows:
"ARTICLE X. PROPERTY MAINTENANCE"
„DIVISION 1. GENERALLY.,'
Section 5. Division 2. Is hereby added to Article X of Chapter 8 ( "Property
Maintenance ") of the Santa Ana Municipal Code to read as follows:
This Division of Chapter 8 is known as the "Proactive Rental Enforcement Program"
may be cited as such, and will be referred to herein as "this Division ".
Sec. 8 -1961. Purpose and Intent.
ar:usi:r�
The purpose of the Proactive Rental Enforcement Program (PREP) is to promote public
health, safety, and welfare through a system of proactive code enforcement involving
residential rental property within the City of Santa Ana. This code enforcement effort is
designed to ensure continued compliance with Section 17920.3 of the California Health
and Safety Code, Chapter 8 and 41 of the Santa Ana Municipal Code (SAMC or Code),
the Housing Code, the California Building, Electrical, Plumbing and Mechanical Codes
which, as adopted by the City of Santa Ana, govern substandard building conditions.
The implementation of this program also promotes environments in which unhealthy
conditions and life safety hazards are reduced for occupants of residential rental
property by identifying and correcting code violations which result in: a threat to
occupants' safety, a threat to a building's structural integrity including plumbing, heating
and electrical systems, and a negative impact on the surrounding neighborhood.
Ordinance No. NS -XXXX
Page 3 of 16
75B -15
LS 3.31.16
l URTI l
The intent of this Division is to proactively identify substandard conditions on residential
housing property and in residential housing units located thereon; to ensure the
preservation, rehabilitation or abatement of rental housing that does not comply with
State and local building and housing laws and with maintenance standards established
by this Division or is unsafe to occupy; to ensure the health and safety of residents of
the City of Santa Ana living in rental housing units. It is the intent of this program to
address conditions that are immediate hazards or clearly present a threat to human life,
health or safety. Such conditions will receive full and rapid enforcement. Significant
code violations that are not immediate hazards to human life, health or safety will be
subject to full enforcement proceedings however, reasonable time periods shall be
established for compliance.
In accordance with the provision of Section 17920.3 of the Health and Safety Code,
Chapter 41 of the Santa Ana Municipal Code, the Housing Code, the California Building,
Electrical, Plumbing and Mechanical Codes, it is not the intent of this program to require
mandatory retrofits of exiting conditions which were built or installed according to code
requirements in effect at the time of building or installation and have been maintained in
a good and safe manner, unless the retrofitting is required by ordinance as adopted by
the City of Santa Ana.
e
For the purpose of this Division, the following terms, phrases and words shall have the
meanings set forth below.
"City" means the City of Santa Ana, a charter city and municipal corporation.
"Executive Director' means the Executive Director of the Planning and Building Agency
of the City, who is hereby authorized to carry out responsibilities Linder this Division,
including making rules and regulations and adopting guidelines as may be necessary to
aid in the clarification and enforcement of the provisions of this Division, or his /her
designee.
"Leasehold" or "leasehold interest" as applied to any real property shall mean any
person who possesses or shares an estate in realty held under lease. As applied to any
dwelling, building, structure, premises or portion thereof located on such real property,
the term "leaseholder" and /or "leasehold interest" shall mean any person who
possesses or shares in a contract for exclusive possession or control of any such
dwelling, building, structure, premises or portion thereof for a limited time.
"Leaseholder - lessor" shall mean any person, including the duly authorized agent of
such person, who, while in possession of a leasehold or leasehold interest in any
residential real estate, acts as a lessor by engaging in the subleasing, subletting,
Ordinance No, NS -XXXX
Page 4 of 16
75B -16
LS 3.31.16
providing, exchanging or trading of any such real property, dwelling, building, structure,
premises or portion thereof without loss of leasehold.
"Person" shall mean, without limitation, corporations of every kind, all firms and
companies, partnerships of every kind, private trusts, real estate investment trusts,
estates, associations, joint ventures, limited liability companies of every kind,
cooperatives, all other types of business entities defined or authorized under federal
and state laws, receivers, trustees, guardians or other representatives appointed by
order of any court, and any natural individuals transacting and carrying on any business
in the city as the duly authorized agent of any of the foregoing.
"Property Owner" means that person or entity, including such person's duly authorized
agent, holding a vested ownership interest in a given property, whether recorded or
unrecorded, including any person appearing as the owner of record of the real property
on the most current deed recorded in the Orange County Recorder's Office on the day
of inspection and acting as an Owner - lessor. Property Owner shall include any person
holding a leasehold interest acting as a Leaseholder- lessor on the day of inspection,
including such person's duly authorized agent. In addition, Property Owner shall also
mean any person holding equitable title in a given property pursuant to a land sale
contract, including such person's duly authorized agent.
"Owner- lessor" shall mean any person, including the duly authorized agent of such
person, who, while an owner or while having an ownership interest in any residential
real estate, acts as a lessor by engaging in the leasing, renting, providing, exchanging
or trading of any such real property, dwelling, building, structure, premises or portion
thereof without loss of ownership.
"Owner's representative" means the property owner's duly authorized agent, including
but not limited to, property manager or other person who has charge or control over a
rental housing property or a rental housing unit on behalf of the property owner.
"Occupant" means any person who occupies a unit, whether as an owner, tenant, co-
tenant, lessee, or permittee of the owner, regardless of any lease agreement.
"Premises" shall include all lands, buildings, accessory buildings or structures erected or
modified, equipment and appurtenances connected or used therewith, and any personal
property affixed to or otherwise used for the purpose of transacting and carrying on any
business on such premises.
"Rental housing property" means a parcel of real property, as shown on the latest
equalized tax assessment roll as maintained by the assessor of the County of Orange,
upon which at least one rental housing unit is maintained. "Rental housing property"
includes the premises upon which a rental housing unit is located, including parking
areas, driveways, landscaping, accessory structures, fences, walls, swimming pools,
hot tubs, and spas.
Ordinance No, NS -XXXX
Page 5 of 16
75B -17
LS 3.31.18
"Rental housing unit" means a dwelling unit, building, structure, premises or portion
thereof that is being, or is intended to be, rented, leased, subleased, sublet, provided,
exchanged or traded, without loss of ownership for the immediate or planned purpose of
dwelling, sleeping, lodging, boarding or other such occupancy, accommodation or
general residency. Examples of rental housing units covered by this Division include
dwelling units in apartment complex buildings and apartment houses, dwelling units in
duplexes, triplexes, fourplexes, and fiveplexes, dwelling units in condominiums, dwelling
units in townhomes, dwelling units in planned unit developments, and dwelling units
comprised of single family residences. "Rental housing unit' does not include units
used for transient lodging such as dormitories, group homes, rooming or boarding
houses, hotels, motels, and bed and breakfast facilities.
"Reportable Violations" means those housing code violations which under this program
shall give the City cause to issue an Administrative Citation, a Notice of Violation or
Notice and Order.
"Substandard condition" means the presence of any one or more of the following
conditions on rental housing property: (i) any condition that constitutes a public
nuisance as defined in California Civil Code Sections 3479 -3480; (ii) any condition of
deterioration or disrepair that creates a substantial adverse impact on neighboring
properties; (iii) any violation of the City of Santa Ana Municipal Code that creates a
substantial adverse impact on neighboring properties, such as graffiti or abandoned,
wrecked, dismantled or inoperative vehicles (or parts thereof); or (iv) any condition not
in compliance with the Building Standards Codes, as adopted in Chapter 8 of this Code,
including the building, electrical, plumbing, and mechanical codes, the California Fire
Code, or the State Housing Law (Health and Safety Code Sections 17910 et seq.). A
substandard condition includes, but is not limited to, the following enumerated
conditions:
A. Property, whether improved or not, which is not kept substantially clean and
free from accumulations including, but not limited to, overgrown, dead trees,
weeds or other vegetation, rank growth, rubbish, junk, garbage, litter, debris,
flyers or circulars.
B. Buildings or structures which are unpainted or the exterior paint is
substantially worn off; provided, however, that nothing in this section shall be
construed to require an owner to paint a building where the architectural style
indicates it was intended to be unpainted, such as a brown shingle building.
C. Buildings or structures or significant sections thereof including, but not limited
to, awnings, canopies, exterior stairs, roof, foundation, walls, fences, signs,
retaining walls, driveways, or walkways which are substantially deteriorated or
defaced, or windows which are missing or broken. For the purposes of this
section, "defaced" includes, but is not limited to, writings, inscriptions, figures,
scratches, or other markings commonly referred to as "graffiti."
Ordinance No. NS -XXXX
Page 6 of 16
75B -18
LS 3.31.16
D. Property which contains, in the outdoor area, any refrigerator, washing
machine, sink, stove, heater, boiler, tank or any other household equipment,
machinery, furniture, or item, appliance or appliances, boxes, lumber, dirt or
debris, trash, garbage or refuse cans, or any items other than those commonly
stored outdoors, or any parts of such items. This subsection does not prohibit
machinery installed in the rear setback areas for household or recreational use,
furniture designed and used for outdoor activities, trash cans in the front yard
during the twenty -four hour period allowed for garbage pick -up, and garbage bins
or debris boxes.
Notwithstanding the above definition, public nuisances pertaining to unsafe buildings,
structures, or property conditions, as defined by the Building Standards Codes, the
California Fire Code, and /or the State Housing Law, shall not constitute a substandard
condition for purposes of this Division and shall remain within the exclusive enforcement
authority of the Building Official to the extent required by state and local law.
Sec. 8-1963. Application /Scope.
A. The provisions of this Division shall apply to all owners of one (1) or more
residential rental dwelling units or rental housing property located within the city of
Santa Ana, unless exempt as provided in this Division.
B. The provisions of this Division are supplementary and complementary to other
provisions of this Code and applicable statutes. Nothing in this Division may be
construed to limit any existing right of the City to abate nuisances or to enforce any
provisions of applicable law, statute, or this Code, including provisions of uniform codes
adopted by reference in this Code. These provisions include, but are not limited to, the
California Building Standards Codes, as adopted in Chapter 8 of this Code, including
the building, electrical, plumbing, and mechanical codes, the California Fire Code, and
the State Housing Law (Health and Safety Code Sections 17910 et seq.); and zoning
requirements listed in Chapter 41 of this Code.
C. The provisions of this Division shall not apply to legal accessory dwelling units,
rooms rented to single individuals in an owner- occupied single - family residence, hotel or
motel units subject to the hotel visitors' tax and mobile home parks.
Sec. 8- 1984. Regulations Non - Exclusive.
The provisions of this Division regulating residential rental dwelling units are not
intended to be exclusive, and compliance with this Division shall not excuse non-
compliance with any other applicable provision, requirement, or regulation of this Code
or any applicable state and federal law. Nothing in this Division shall limit or preclude
inspection conducted by the fire department inspectors for compliance with fire codes.
4. w.. k♦ f# F'
75B -19
Ordinance No. NS -XXXX
Page 7 of 16
LS 8.31.16
Every owner of a rental housing unit or rental housing property in the City shall:
A. Maintain the rental housing unit and the rental housing property so that no
substandard condition exists at the rental housing unit or on the rental housing property;
B. Correct all substandard conditions before a re- inspection occurs; and
C. Be liable for violations of this Division regardless of any contract or agreement
with any third party concerning the rental housing unit and /or its rental housing property.
Sec, 8 -1966. Exemptions.
A. The following rental housing units shall be exempt from the requirements of this
Division:
1. Legal accessory dwelling units and /or rooms rented to single individuals in an
owner - occupied single family residence.
2. Rental housing units comprised of a single - family residence or other undivided
single residential rental premises as between an owner or leaseholder and any
individual immediately related by blood, adoption or marriage to said owner or
leaseholder, as approved by law, where the remuneration rendered to said owner or
leaseholder does not exceed the cost of maintaining said premises, as set forth in
this Code.
3. Eligibility for the fee exemptions herein provided is restricted to property owners
who are natural persons and whose ownership of or leasehold interest in said
residential rental property is undivided.
4. A property owner or leaseholder claiming a fee exemption under this section shall
have the burden of furnishing to the Executive Director such information as the
Executive Director may require to support the claim of eligibility for exemption.
B. Gold Seal Incentive Program. If a Property Owner's rental housing property or rental
housing unit qualifies for the Gold Seal Incentive Program (as further described in
Exhibit A (the "Gold Seal Incentive Program Outline ") incorporated herein by this
reference as though fully set forth, the Property can be exempt from the periodic
regulatory inspection fee for four (4) years. In order to qualify for the incentive program,
a rental property owner must pass all parts of a three -stage process, as described more
fully in Exhibit A.
Sec. 8-1967. Fees.
A. The following fees are established and shall be imposed upon the owners of
rental housing properties:
Ordinance No. NS -XXXX
Page 8 of 16
75B -20
LS 3.31.16
1. Rental Housing Inspection Fee. A non- proratable regulatory inspection
fee in the amount established by resolution of the City Council shall be assessed
annually on a July V to June 30 "' fiscal year basis to each owner of residential
rental property within the City of Santa Ana to cover the cost of administering and
enforcing the provisions of the Proactive Rental Enforcement Program. Except
where otherwise provided under the terms of this Division, the Rental Housing
Inspection Fee shall be payable 30 days in advance of each fiscal year period.
The Property Owner shall have the responsibility for payment of this fee.
2. Re- inspection Fee. The City may, at the discretion of the Executive
Director, charge a property owner a re- inspection fee only on the third and
subsequent visit to a property for a specific violation. In the event a Rental
Housing Property Re- inspection Fee is assessed during the aforementioned
fiscal year period it shall be billed and the fee shall be due and payable within
thirty (30) days.
3. Permit Fees. Regular permit fees shall be charged upon issuance of
permits required for any alteration or repairs to a structure or its utilities as
required by the Santa Ana Municipal Code, the Housing Code, Health and Safety
Codes and the California Code of Regulations. The Executive Director is
authorized to establish procedures for the collection of Permit Fees and any
delinquent fees plus interest.
B. The City Council shall establish the amounts of the foregoing fees by resolution.
C. The Rental Housing Inspection Fee shall first be billed and become due and
payable July 1, 2016 for all known "Rental Housing Units" which exist within the
City of Santa Ana upon the effective date of this ordinance and such fees shall
be deemed past due and delinquent after July 31, 2016. For each subsequent
year such fees shall be billed before the last business day in the month of May
and shall be due by the last day in the month of June following and deemed
delinquent thereafter. Where a newly established, or previously unknown, or
previously exempt rental housing property or rental property unit is made known
to, or is discovered by the City, or otherwise becomes eligible for payment of the
Rental Housing Inspection Fee during the aforementioned fiscal year period it
shall be billed and the fee shall be due and payable within thirty (30) days.
D. When the last day of the month in which any fee penalty or late interest charge
required to be paid pursuant to this Division is due falls on a Saturday, Sunday,
or state or national holiday, or City Hall closure day, the payment of such fee may
be made without penalty on the first working day of the succeeding month. For
the purpose of this Division, postmarks shall be accepted as the date of payment
made, provided the transmitting envelope contains a post office cancellation
indicating not later than the date due, or in the case of a weekend or holiday, or
City Hall closure day, not later than the first following working day.
Ordinance No. NS-XXXX
Page 9 of 16
75B -21
LS 3.31.16
E. Whenever any other payment of any fee required to be paid is received after the
time prescribed and such payment was deposited in the United States mail prior
to the time prescribed for the receipt thereof, the Executive Director shall regard
such payment as having been timely received. Where said due date falls on a
weekend, holiday, or City Hall closure day then payment of said fee may be
deemed timely if received on the next City business day following in accordance
with the criteria established in subsection (D) above.
To effectively and equitably implement the purpose and intent of the general
provisions of this Division the Executive Director, in his or her discretion, may
vary the strict procedural, enforcement, collection, or other administrative
requirements of this Division. In addition to all other authority conferred upon him
or her, the Executive Director shall have the power, for good cause shown, to
waive or reduce any penalty or late interest imposed, or fee demanded.
Sec. 8 -1968. Fees - Adjustment for Annual Change in Consumer Price Index.
The fees adopted in accordance with this Division shall be adjusted annually in
accordance with the consumer price index as published by the United States
Department of Labor for the Los Angeles - Riverside- Orange County (formerly Los
Angeles -Long Beach - Anaheim) metropolitan area. For purposes of calculating the
annual adjustment factor under this section the base year shall be the calendar year
ending December 31, 2015. Fees shall first be adjusted on April 1, 2017, to reflect the
change between the 2015 base year and the 2016 calendar year ending December 31,
2016, and shall be adjusted on April 1st of each successive year thereafter, based on
the annually adjusted change from the base year. Said adjustment shall be rounded off
to the nearest whole percent per hundred as follows: If the remaining fraction of a
percent is forty -nine one- hundredths of a percent or less such fraction shall be omitted.
If the remaining fraction of a percent is fifty one - hundredths of a percent or more, the
next highest percent shall be applied to each fee specified pursuant to this Division as
adopted, or as from time -to -time amended.
Sec. 8.1969. Penalties for Delinquent Payment of Fees.
For failure to fully pay any required fee(s) when due, the Executive Director shall add
the following penalties:
A. Ten dollars ($10.00) or ten (10) percent of the unpaid balance of said fee(s),
whichever is greater, on the past due date thereof;
B. Fifteen dollars ($15.00) or fifteen (15) percent of the unpaid balance of said
fee(s), whichever is greater, on the first day of the second month after the due
date thereof;
Ordinance No. NS -XXXX
Page 10 of 16
75B -22
LS 3.31.16
C. Twenty -five dollars ($25.00) or twenty -five (25) percent of the unpaid balance of
said fee(s), whichever is greater, on the first day of the third month after the due
date thereof; and
D. Fifty dollars ($50.00) or fifty (50) percent of the unpaid balance of said fee(s),
whichever is greater, on the first day of the fourth month after the due date
thereof.
The maximum amount of delinquent penalty, exclusive of late interest, shall not exceed
an amount equal to one hundred (100) percent of the amount of the fee(s) past due.
Notification of delinquent past due fee(s) will be given by first class mail no later than
the fifteenth day of each month after the month in which said fee(s) first became
delinquent, until the maximum penalty is imposed.
Sec. 8.1970. Penalties - Added to Fee.
Any penalties hereinabove assessed for delinquent past due fees, exclusive of interest,
upon attaining a combined amount equal to one hundred (100) percent of the amount of
such fee shall become merged with the fee payable hereunder and shall be considered
as a part thereof for all collection purposes.
Sec. 8. 1971. — Late Interest.
In addition to the past due delinquency penalties imposed in Section 8 -1969, any Rental
Property Owner that fails to pay the Rental Housing Unit Fee due shall pay interest at
the rate of one (1) percent per month, or portion thereof, exclusive of penalties, on the
amount of the unpaid fee, from the date on which payment first became past due and
delinquent until paid -in -full or otherwise satisfied. Provided however, that pursuant to
Section 8 -1970 penalties upon attaining a combined amount equal to one hundred (100)
percent of the fee due are merged with the fee payable hereunder and any additional
interest charged from such date on shall be charged on the combined amount past due
and delinquent until paid in full or otherwise satisfied.
Sec. 8 -1972. Notice of Inspection.
A. The City shall serve written notice of pending inspection on the property owner at
least fifteen (15) days prior to the inspection. Such notice will be mailed via first -
class mail to the owner and to the owner's representative (if any) at the owner's
and owner's representative's addresses, as they appear on the owner's current
business license. Such notice will request that the owner call and schedule an
inspection within fifteen (15) days. If an owner fails to call to schedule an
inspection appointment, the City will send the owner a fifteen (15) day notice of
the scheduled date and time of the inspection. This notification requirement is
waived however, if the property owner and the City mutually agree upon the date
and time of an inspection or re- inspection.
Ordinance No. NS-XXXX
Page 11 of 16
75B -23
LS 3.31.16
B. The owner or the owner's representative must notify the occupants or lessees of
the date and time of the interior inspection or otherwise obtain legal access to the
unit /s pursuant to the terms of the applicable lease or rental agreement.
C. If the occupant or lessee of a rental housing unit does not consent to entry for
inspection, the Executive Director is authorized to seek approval of an inspection
warrant from a court of competent jurisdiction to cause the inspection to take
place. The owner shall not be penalized or fined for the failure of a lessee to
afford access to a rental housing unit which is the subject of such an inspection,
provided that the owner and /or the owner's representative cooperates with the
Executive Director.
Sec. 8 -1973. Inspections. The frequency with which a property is inspected over a
four -year period shall be determined by the Executive Director, however inspections
shall be performed at least once every four years (unless exempt as set forth in this
Division).
A. Level One Inspection
Under the Level One Inspection, only the exterior and /or common areas of the property
will be inspected with all violations being cited. This inspection will be done in
accordance with a uniform procedure and will involve a standardized checklist of those
items which will be evaluated on each property. The checklist will include violations
involving any visible substandard and health and safety conditions; general property
maintenance violations; and any other violations of the Santa Ana Municipal Code.
These violations may include:
a. Poorly maintained landscaping
b. Lack of address on structure
G. Trash and debris
d. Inoperative vehicles
e. Trash containers in public view
f. Lack of paint on wood surfaces
g. Balcony storage
h. Deteriorated driveways, porches, landings and balconies
I. Deteriorated stairs, guardrails, railings and handrails
j. Illegal storage
k. Unapproved structural /plumbing /electrical /mechanical exterior alterations
I. Other unsightly conditions
B. Level Two Inspection
The Level Two Inspection may be used on multi - family properties and will consist of an
exterior inspection of all structures and common areas, and an interior inspection of
twenty percent (20 %) of selected units. This exterior and interior inspection will be done
in accordance with a uniform procedure of those items which will be evaluated in each
Ordinance No. NS -XXXX
Page 12 of 16
75B -24
LS 3.31.16
unit. The exterior inspection will include the checklist of violations listed under the Level
One Inspection and the interior inspection will include a checklist of:
a. Unapproved structural /plumbing /electrical /mechanical interior alterations
b. Deteriorated plumbing, electrical, mechanical or structural systems
c. Deteriorated walls and floors
d. Other substandard conditions as noted in Health and Safety Code Section
17920,3.
C. Level Three Inspection
The Level Three Inspection will consist of an interior inspection of all units on multi-
family properties or an interior inspection of the home on single family properties. This
is the most complete level of inspection and will be done in accordance with a uniform
procedure and will involve a standardized checklist of those items which will be
evaluated in each unit. This checklist will be consistent with the Level One Inspection
and the Level Two Inspection.
Sec. 8 -1974. Notification of Inspection Results.
Within thirty (30) days following an inspection performed under this Division in which
any violations are found, the City will send to the Property Owner, by first class mail, a
formal notice listing all violations found.
Sec. 8-1975. Compliance,
A Property Owner who has been issued a Notice of Violation, Administrative Citation or
Notice and Order must correct all reportable violations within the specified timeframes
listed on the Administrative Citation, Notice of Violation or Notice and Order. Before
initiating any correction of the substandard condition or conditions identified in the
formal notice /s by the City to comply, the Owner or the Owner's representative of the
rental housing unit shall obtain all necessary permits and pay all required fees for the
permits, including, without limitation, any penalty imposed by this Code by reason of any
repair, improvement or maintenance which had been done in the past without a required
permit, inspection or final City approval.
Sec. 8 -1978. Failure to Comply.
When a Property Owner receives an Administrative Citation, a Notice of Violation or a
Notice and Order, s /he is required to make all necessary repairs outlined in such notice
in the prescribed compliance period. If a Property Owner fails to comply within the
specified timeframe, s /he may be subject to civil citation fines or any other legal remedy
established by law which may be pursued to address violations of the Municipal Code,
The use of the administrative citation fines in place of other remedies shall be at the
sole discretion of the City (SAMC section 1 -21). Issuance of administrative citation fines
shall not be deemed a waiver of any other enforcement remedies found within this Code
Ordinance No. NS -XXXX
Page 13 of 16
75B -25
LS 3.31.16
including the referral of a Notice of Violation and /or Notice and Order being referred to
the City Attorney's Office for legal action.
Sec. 8.1977. Appeals.
A. Any recipient of an administrative citation may contest that there was a violation
of the Santa Ana Municipal Code or that he or she is the responsible person by
completing a "request for hearing" form and returning it to the City within fifteen
(15) days from the date the administrative citation is served or deemed to have
been served as indicated in Section 1 -21 of this Code. Such "request for hearing"
forms shall be made available at no charge by the planning and building agency.
A failure to file a timely "request for hearing" shall be deemed a waiver of the
right to appeal the citation and to seek judicial review (SAMC section 1- 21.8).
B. A Property Owner may initiate an administrative appeal to the Executive Director
regarding the notices, violations, citations and /or fees that the Property Owner
has received in conjunction with a property inspection as performed under the
provisions of this program at set forth in Chapter 3 (Uniform Hearing and Appeal
Procedure).
Sec. 8 -1978. Penalty for violation.
Every violation of the provisions of this Division shall be deemed to be a misdemeanor
and, upon conviction thereof, shall be punishable as provided for in section 1 -8 of this
Code. Each day any violation of any said provision of this article shall continue shall
constitute a separate offense. In addition, the City may seek injunctive relief and civil
penalties in court for violations of this Division. The remedies provided for in this
Division shall be cumulative and not exclusive of any other remedies available under
any other federal, state or local laws.
Sec. 8 -1979. Relocation Costs.
If any lessee is displaced from a rental housing unit after an order to vacate issued by
the Executive Director because a violation is of such a nature that the immediate health
and safety of the lessee is endangered, the costs and expenses of relocating the lessee
from the unit are and shall be the responsibility of the owner to the extent required by
State law (Health & Safety 17975 - 17975.10) and in accordance with the terms of the
lessee's rental agreement, if any.
Sec. 8 -1980. Removal of Tax Benefit.
If, after a notice and order to repair has been issued, and the property owner fails to
correct the violation, the City may utilize any administrative or legal remedy available.
Further, the City intends to utilize the provisions of Section 24436.5 of the Revenue and
Taxation Code to encourage the elimination of substandard conditions in rental housing.
Said section provides for the disallowance for State income tax purposes of interest,
Ordinance No. NS -XXXX
Page 14 of 16
75B -26
LS 3.31.16
depreciation, taxes, or amortization deductions, which are derived from the ownership of
rental housing which is not in compliance. The City is also authorized to use the
remedies set forth in State Housing law.
Sec. 8 -1981. Nonpayment of Fee; Assessment of Fee Debt by Public Lien;
Recording and Enforcement of Liens; Recording Service Fee.
A. Recording of a Certificate of Lien. If any fee amount, including penalties, late
interest, and any administrative fees or fines required to be paid under this
Division is not paid when due, the Executive Director, or any duly authorized
employee of the City acting as his or her designated agent, may record or cause
to be recorded, in the office of the Orange County Recorder, a certificate which
specifies the amount due, the name and address of the person liable for the
same, a statement that the Executive Director has complied with all provisions of
this Division in the determination of the amount required to be paid, and a legal
description of the real property owned by such person. From the time of the
recording of the certificate, the amount required to be paid together with
penalties, interest, and administrative fees owing constitutes a lien upon all real
property in the county owned by such person or thereafter acquired before the
lien expires. The lien shall have the force, effect and priority of a public lien and
shall continue for ten (10) years from the filing of a certificate unless sooner
released or otherwise discharged.
B. Recording service fee. Whenever the Executive Director in his or her discretion
determines that the recording of a certificate of lien is desirable to secure and
effectuate the collection of any amount required to be paid under the terms of this
Division, then a recording service fee shall be applicable in the amount as
specified by resolution of the city council.
Section 6. If any section, subsection, sentence, clause or 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 or phrase or portion thereof irrespective of the fact that any one or
more section, subsection, sentence, clause or phrase or portions be declared invalid or
unconstitutional.
Ordinance No. NS -XXXX
Page 15 of 16
75B -27
LS 3 -31.16
ADOPTED this day of April 2016,
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Sonia Carvalho, City Attorney
gy
C. L f_
Lisa torck
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the
attached Ordinance No. NS -XXX to be the original ordinance adopted by the City
Council of the City of Santa Ana on 2016, and that said ordinance was
published in accordance with the Charter of the City of Santa Ana.
Date:
Clerk of the Council
City of Santa Ana
75B -28
Ordinance No NS -XXXX
Page 16 of 16
GOLD SEAL INCENTIVE PROGRAM
1. BACKGROUND
The incentive program is a mechanism that positively affects the quality of rental housing in the City of
Santa Ana. The program provides a monetary and marketing incentive for rental property owners to
abide by a set of minimum criteria - criteria that is, in some cases, over and above that which is
required by law.
Monetary Incentive - Owners of rental property who apply and qualify for the program are exempt from
the regulation inspection fee.
Marketing Incentive - Owners of rental property who apply and qualify for the program are presented
with materials to utilize when marketing their units.
2. ELIGIBILITY
All rental properties in the City of Santa Ana that pay a current regulation inspection fee are eligible for
the incentive program. A property with any one of the following conditions is ineligible for the incentive
program:
A. Unpaid regulatory inspection fee
B. Outstanding code violations
Application Fees — Application fees will not be charged for the first 100 applications. After the first 100
applications are processed, staff will evaluate whether or not an application fee should be charged as
a disincentive for frivolous filings.
3. QUALIFYING FOR THE INCENTIVE PROGRAM
In order to qualify for the incentive program, a rental property owner must pass all parts of a three..
stage process.
Level One - The rental property owner will notify the City that he /she wishes to apply for the incentive
program and fill out the appropriate application. This will initiate a review and evaluation of the
property's management practices. Owners will be asked to provide the necessary information and
documentation to verify that they currently adhere to the following five good management practices:
Good Management Practices:
a) Owner abides by all fair housing laws
b) Owner uses a formal method to screen all potential residents
c) Owner utilizes a written rental agreement that contains specific criteria
d) Owner utilizes written "House Rules"
a) Owner performs "walk - throughs" at the beginning and end of each tenancy
75B -29
Specific criteria necessary for verification of the "good management practices" shall be outlined in the
program implementation policy.
Each management practice must be passed in order to advance to Level Two and is subject to on -site
verification during the Level Two inspection.
Level Two - Only owners who have passed Level One of this program will be eligible to initiate Level
Two. This stage consists of an exterior inspection of the property and verification of the current use of
the good management practice materials submitted by the owner during Level One. The criteria for
this exterior inspection is listed under "Violation Checklist' and the inspector evaluating the exterior
conditions will do so with the goal that such conditions should be in an "above average" to "superior"
condition and collectively the property should be in exceptional condition. The criteria and /or specific
materials necessary for the on -site verification of the good management practices shall be outlined in
the program implementation policy and the property owner shall be made aware of the materials
necessary prior to the Level Two inspection.
A property must have a 100% pass rating of the criteria listed under "Violation Checklist,
Exterior /Common Area, Must Pass Items" and have an overall 85% pass rating of rest of the criteria in
order to clear approval of Level Two and advance to Level Three of the incentive program.
Level Three - Only owners who have passed Level Two of this program will be eligible to initiate Level
Three. This stage consists of an interior inspection of rental units. The criteria for this inspection is
listed under "Violation Checklist, Interior Areas" and the inspector evaluating the interior conditions will
do so with the goal that such conditions should be in an "above average" to "superior" condition and
collectively the property should be in exceptional condition.
A maximum of 10% of the dwelling units in a complex (rounded up on any fraction) will be inspected
(but no less than one unit). The units to be inspected will be selected by the inspector from a list of at
least 20% of the units on the property (vacant and /or occupied) selected by the owner.
A property must achieve a score of 85% or higher to achieve passage of this stage of the incentive
program.
Prioritization of Applications - Applications will be reviewed in the order they are received. Incentive
benefits will be awarded on a first come basis by qualification date. Twenty percent of the properties
qualifying for the benefits must contain 15 units or less and 20% must contain 16 units or more. The
remaining sixty percent may be from either category.
Applicants whose properties qualify for the Gold Seal benefit but who cannot receive exemption due to
a lack of available funding will be placed on a priority list by certification date. Should funding become
available, these priority applicants will only be required to pass a Level 1 inspection to qualify for the
available funds. The certification period will begin on the date they pass all the required program
Incentive criteria.
75B -30
4. AWARDING THE "GOLD SEAL"
Only owners who have achieved passage of all three levels will qualify for the monetary and marketing
incentives granted to exceptional properties under the Gold Seal incentive program.
Once granted, the Gold Seal will be valid for four (4) years and will run with the property, not with the
ownership, during that time. However, it is the responsibility of the new owner to notify the City of the
transfer of ownership and to continue to meet the obligations of the program. After 4 years, in order
for a property to continue to receive the benefits of the Gold Seal incentive program, the owner must
reapply for the program and completely requalify through the process outlined in this document.
5. DELAYED EXEMPTIONS
Applicants who fail to meet the established qualification deadline to be certified for the Gold Seal
benefit may be qualified for the award when the applicant can provide proof that a processing delay on
the part of the City was the cause for them missing the deadline.
6. QUALIFICATION EXEMPTION
On occasion a property may be documented to have exemplary management practices, but such
efforts are negated by special circumstances beyond the owner's /manager's control (such as property
location, gang activity or external vandalism) which prevent the property from qualifying. In some rare
cases and only at the discretion of the Code Enforcement Manager, certain properties may be
qualified for the benefits of the incentive program because of special circumstances.
7. LOSS OF INCENTIVE PROGRAM PRIVILEGES
If a qualified property has deteriorated to the point that it is no longer exceptional, the Code
Enforcement Manager may choose to re- evaluate the property and, if necessary, revoke the property's
incentive program privileges. Program privileges would cease on the date the revocation occurs. Such
properties would not be eligible for the incentive program benefits for a period of twelve (12) months
beginning with the date of revocation. Property owners whose property privileges have been revoked
may not reapply during the twelve (12) months they are on suspension. The privileges of requalifying
properties will not be effective until the beginning of the next fiscal year following the twelve (12) month
suspension,
8. APPEALS
Those owners who have applied for the incentive program but do not qualify or have failed may appeal
such decisions to the Executive Director or his /her designee. The decision of the Executive Director, of
his /her designee, shall be final.
75B -31
GOLD SEAL INCENTIVE PROGRAM
VIOLATIONS CHECKLIST
Must Pass Items (100% on applicable items):
1. Poor landscaping - no ground cover, dirt areas, unsightly, dead trees, overgrown yard.
2. Excessive chipped /peeling paint.
3. Graffiti.
4. Damagedlunsightly fences.
5. Unauthorized enclosed balconies /patios.
6. Unpermitted /illegal lock(s) on required exit(s).
. � f IIVIME W,
Must Pass Items (85% or higher on applicable items):
7, Deteriorated /substandard roofing.
8. Unsafe pools W -pools with algae, unsafe pool fences and pool gates.
9. Loose or unsafe stairs, handrails or guardrails.
10. Unsafe or severely damaged decking /subfloor on balconies above ground level
11. Unapproved building, electrical, plumbing or mechanical alterations.
12. Excessive broken sprinklers.
13. Torn window /door screens.
14. Uneven sidewalks and /or walkways.
15. Dirty hallways, sidewalks or walkways.
16. Illegal fences.
17. Unsightly window coverings.
18. Deteriorated driveways, blocked driveways, excessive oil on driveways.
19. Excessive or unsightly storage on balconies or patios.
20. Drying clothes on fences or bushes.
21. Loitering on property.
22. House furniture in common /public areas.
23. Remaining evidence of sewage spill.
24. Dirty building exterior,
25. Illegal storage under carports.
26. Inoperable vehicles.
27. Vehicles for sale.
28. Street or unit numbers missing.
29. Banners without permits.
75B -32
GOLD SEAL INCENTIVE PROGRAM
VIOLATIONS CHECKLIST
Must Pass Items (85 %fl or higher on applicable items):
30. Storage on roof
31. Broken /missing mailboxes.
32. Cracks or holes in siding.
33. No manager office sign.
34. Inoperative exit signs.
35. Business on property without proper permits.
36. Dirty common areas /play areas.
37. Dirty awnings.
38. Excessive trash /debris throughout common areas.
39. Dirty trash bins, excessive trash lying outside trash enclosure.
40. Trash containers in unapproved locations.
41. Unapproved security screen doors.
42. Broken or missing fire extinguishers.
43. Leaking plumbing.
44. Hazardous electrical condition(s).
45. Damaged exterior doors.
46, Damaged shutters.
47. Stairs, handrails, guardrails in need of paint.
INTERIOR AREAS
Must Pass Items (100% on applicable items):
1. Missing smoke detector in bedroom(s).
2. Missing smoke detector in hallway(s) adjacent to bedroom(s)
1 Missing carbon monoxide detector.
4. Uncapped gas line(s).
5. Lack of hot /cold running water.
6. Sleeping in closet or kitchen.
7. Unapproved /unsafe light fixture(s).
8. Unlicensed commercial activity in unit.
9. Unapproved security bars on windows,
10. Loose or unsafe stairs, handrails or guardrails.
11. Unpermitted water heater change -out.
12. Interior hoarding conditions.
13. Unapproved building, electrical, plumbing or mechanical alterations.
758 -33
VIOLATIONS CHECKLIST
INTERIOR AREAS
Must Pass Items (85% or higher on applicable items):
14. Illegal lock or latch on exterior doors(s).
15. Lock and/or hasps on bedroom door(s),
16. Clogged /leaking plumbing.
17. Inoperative electrical outlet(s)limproper wiring.
18. Severely deteriorated floor covering /sub - flooring.
19. Lark of /inoperable heating.
20. Smoke detector(s) inoperative /not provided.
21. Unapproved structural alterations.
22. Cockroach /rodent infestation.
23. Missing /severely damaged switch /plug cover(s).
24. Broken tub /shower glass.
25. Electrical appliances(s) used in unapproved exterior location,
26. Unsightly balcony storage.
27. Laundry drying on patio or balcony.
28. Trash chute and /or surrounding are not in sanitary condition.
29. Deteriorated /water damaged interior walls(s),
30. Deteriorated /water damaged ceiling(s).
31. Dire need of paint on interior walls.
32. Severely deteriorated cabinets or drawers
33, Blocked bedroom emergency exits(s).
34, Cover plates missing on wall heater.
35, Unvented fuel burning heater.
36. Damaged interior door(s).
37. Peeling paint on walls or ceilings.
38. Grossly deteriorated /insanitary countertops.
39. Inoperative bathroom ventilation.
40. Interior of unit filthy /insanitary.
41. Occupants in unit exceed number on rental agreement.
42. Items hanging from sprinkler head and /or lines.
43. Deteriorated window covering(s).
44. Inoperable kitchen exhaust vent.
Gold Seal Program
2016 Ordinance Exhibit A
75B -34