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DOWDALL LAW OFFICES A PROFESSIONAL CORPORATION ATTO R N EYS AT LAW City Council of the City of Santa Ana City of Santa Ana September 16, 2021 Page 5 1. EXPLORATION OF LEGAL AND CONSTITUTIONAL INFIRMITIES — COMMENTS RE RECITALS AND ACKNOWLEDGMENTS The proposed ordinance is rife with legal infirmities. Despite prolix and elaborate attention to its terms and provisions, legal challenges may well be expected based on completely unnecessary, easily rectifiable provisions which cannot withstand even rudimentary judicial scrutiny. Length does not indicate reliability. The proposed ordinance purports to aim to resolve socially undesirable circumstances, including "exploitation" of a shortage of vacant mobilehome park spaces "should it occur"; excessive and unreasonable Mobilehome park space rent increases while still assuring mobilehome park owners' right to a fair return; a process for ensuring mobilehome park owners a fair, just and reasonable rate of return on their parks in cases where the guaranteed annual space rent increase provided by this chapter proves insufficient; protecting affordable housing to help provide a variety of housing types within a range of costs affordable to the low- and very low-income households; and [rectifying] the disparity of so-called (but illusory) "bargaining power" that exists between tenants and park owners. The first recital frankly confesses that it is disingenume: "should it occur" admits that it has "not occurred yet." Worse yet, there is no indication of why anyone should believe it "exploitation" will occur. Without substantial evidence to back and support the insinuation that mobilehome park owners are of a character to insidiously exploit its customers, impugning their business acumen constitutes an aimless and grossly unfair, untrue, and scandalous assertion against those individuals who have invested in the city of Santa Ana to provide affordable housing opportunity. Not a way to treat your most valued citizens. The ordinance proclaims that a process will exist for ensuring owners can petition for rent increases where the "guaranteed" rent increase provided by this chapter (80% of CPI up to 3%) proves insufficient. It will always be insufficient. Even 100% of CPI fails to accurately measure the effect of inflation in California. A closer approximation to real inflation will be the empirical measure reflected by the index published by the Federal Reserve, the M2 formula, reflecting the actual devaluation of the dollar caused by printing new money for social programs (which reduces the actual value of the dollar in the pocket of the consumer). Even 100% of inflation, were measured by the CPI, falls short. Moreover, the ordinance does not accurately reflect current inflation. Empby Spaces in a MHP. Tenants can dictate leasing terms, conditions, protection.