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(9) <br />EXHIBIT VIII <br />CITY OF SANTA ANA PROACTIVE RENTAL ENFORCEMENT PROGRAM (PREP) <br />Below is a brief overview of the City of Santa Ana's PREP Program — Chapter 8 Article X Division 2 of <br />the Santa Ana Municipal Code. (Note: the PREP is a program administered by the Planning and Building <br />Agency, Code Enforcement Division but utilizes the Business Tax System (BTS) for billing and customer <br />service information (CSI) purposes.] The current Business Tax System carries a one to one account ratio <br />between PREP accounts and its corresponding "residential rental" type Business Tax account. <br />Purpose <br />• Currently, the City has 7,225 PREP accounts accounting for 34,638 residential units and 35 Gold <br />Seal accounts for 4,437 units. <br />• PREP involves an inspection of residential rental units to ensure acceptable standards of zoning, <br />building, and fire code compliance. <br />• The purpose of the PREP inspection is to promote public health and safety for occupants living <br />in residential rentals within the City of Santa Ana through effective code enforcement of the Santa <br />Ana municipal code. <br />• Practice of this program reduces safety hazards for occupants by identifying and correcting code <br />violations within the building structure, including, plumbing, heating, and electrical systems. <br />• The PREP and Gold Seal Incentive Program new ordinance became effective July 1, 2016 <br />(Ordinance No. 2898). <br />Fees <br />• PREP is currently assessed at $29.00 per unit, annually. <br />• All Residential Rentals are required to have a PREP account along with their Residential Rental <br />Business License; PREP accounts are created jointly with Residential Business licenses. <br />• The fee billing period for PREP is from July 1st — June 30th, with a due date of June 30tn <br />• Fees are not prorated. <br />• Any payment received after the due date without a postmark will be assessed past due penalties <br />from the following penalty and interest fee structure: <br />0 1st Month's Delinquency: = $ 10.00 or 10% of the unpaid tax (whichever is greater), and <br />1 % interest on unpaid tax, plus <br />0 2nd Month's Delinquency: = $ 15.00 or 15% of the unpaid tax (whichever is greater), and <br />0 1 % interest on unpaid tax, plus <br />0 3rd Month's Delinquency: = $ 25.00 or 25% of the unpaid tax (whichever is greater), and <br />1 % interest on unpaid tax, plus <br />0 4th Month's Delinquency: = $ 50.00 or 50% of the unpaid tax (whichever is greater), and <br />1 % interest on the merged balance, plus <br />o An additional 1 % interest on the merged balance continuing for each month thereafter <br />Inspection <br />• The property is inspected once every four years, unless, exempt from inspection by the division. <br />• Inspections consist of 3 different inspection levels with a standardized checklist applicable to all <br />inspection levels: <br />o Level One Inspection: only the exterior of the property will be inspected; violations may <br />include: trash, poor landscaping, lack of paint, unapproved exterior alterations. <br />o Level Two Inspection: may be used to inspect multi -family homes exterior, common areas, <br />and 20% of selected units. <br />City of Santa Ana RFP No. 23-165 Page 62 of 196 <br />