CORRESPONDENCE - #9 - Laserfiche WebLink

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WHAT ABOUT SMALL APARTMENT OWNERS, CONDO AND SINGLE-FAMILY OWNERS? Your proposed ordinance excludes these types of properties, but, historically, smaller property owners tend to be more reactionary to slight "hiccups" in their operating expense than more experienced professional management companies. If they have an unexpected expense, they might pass through a much larger increase than normal in order to catch up and pay for the unplanned costs. These owners also tend to pay less attention to rent applications and qualifications. As a result, they might have to deal more with rental abuse and begin evections at a higher rate than larger professional management companies. Perhaps these might be the troubled tenants referred to by TUSA? The larger, professionally managed apartment communities such as AMC's, should be the least concern of yours and excluded from any rent control ordinance. This is the exact opposite of what is called for in the proposed ordinance . WHO IS VOLUNTARILY IMPROVING THE AGING APARTMENT COMMUNITIES IN SANTA ANA? AMC has a long and proven record of improving old run-down apartments. These buildings typically were built prior to 1995. For example, we recently purchased River House Apartments where city code enforcement had issued 50+ code violations. We immediately corrected all these as well as completed a major renovation and improvement as well as implemented strong management thus dramatically improving the property and the overall community. Implementing rent control laws would make it impossible to justify investing in such problem properties in Santa Ana. With no financial incentive there is little hope that older apartment communities will be improved, and blight will occur. WILL RENT CONTROL RISK THE IMPROVED LONG-TERM HIGH STANDARD OF HOUSING IN vnl IR r1Tv7 YES. The business of running apartments is a complicated one. There are always surprises such as the current pandemic for which an owner needs reserves. This is in addition to the reserves for security, replacements and improvements needed to maintain quality housing. We project reserves out 30 years, not just for today. The proposed rent control will put apartment ownership on the brink and force owners to reduce their standards. WILL RENT CONTROL REALLY SAVE PEOPLE FROM LOSING THEIR HOMES? NO. Much emotional testimony took place in your meeting where TUSA indicated that people could not pay their rent and therefore will lose their homes. As you can see above, AMC and others have only been implementing rent increases in the 3%-5% for years. These rents are based on fair and reasonable formulas that fall close to your magical 3%. In times of inflation, your formula will not work. There is a better way to help those who can't pay. WHAT CAN THE CITY DO THAT WORKS? There are already several programs in place to help tenants who can't pay their rent. Many more are being formed. The problem is that many residents don't apply for the assistance. If the efforts of the Ad Hoc Committee and TUSA were redirected to helping needy tenants to 3