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• Legislative Action: <br /> o Senator Ron Wyden introduced the Preventing the Algorithmic Facilitation <br /> of Rental Housing Cartels Act in 2024 to ban algorithmic rent-setting <br /> nationwide. <br /> o San Francisco: In July 2024, San Francisco enacted a first-in-the-nation <br /> ban on the sale or use of algorithmic devices to set rents or manage <br /> occupancy levels for residential properties. <br /> o San Diego: The San Diego City Council President has proposed a similar <br /> ban. <br /> o Santa Monica: In March 2025 the Santa Monica City Council will consider <br /> a proposal to ban the use of algorithmic rental price-fixing software in <br /> Santa Monica and which includes enforceable penalties for <br /> noncompliance. <br /> o Other cities have adopted bans. <br /> RECOMMENDATION <br /> I recommend that the City Council direct the City Manager and City Attorney to direct <br /> staff to draft an ordinance that: <br /> 1. Prohibits the Use of Algorithmic Pricing Tools: Makes it unlawful for landlords <br /> within Santa Ana to utilize algorithmic devices or software that recommend rental <br /> rates or occupancy levels for residential properties. <br /> 2. Bans the Provision of Such Tools: Prohibits any entity from selling, licensing, <br /> or providing algorithmic pricing software to landlords operating residential <br /> properties within Santa Ana. <br /> 3. Defines Key Terms: Clearly defines "algorithmic device" as any software or tool <br /> that uses algorithms to process data, including nonpublic competitor data, to <br /> advise on rental pricing or occupancy strategies. <br /> 4. Establishes Enforcement Mechanisms: Empowers the City to enforce these <br /> provisions through appropriate penalties and remedies for violations. <br /> Implementing this ordinance aims to promote fair rental practices, prevent potential anti- <br /> competitive behaviors, and ensure housing affordability for Santa Ana residents. By <br /> addressing the use of algorithmic pricing tools, the City seeks to maintain a competitive <br /> and transparent rental market. <br /> By considering such an ordinance, Santa Ana would join other forward-thinking <br /> California cities in safeguarding renters from potential exploitative practices associated <br /> with algorithmic pricing tools. This action aligns with the City's commitment to ensuring <br /> fair and affordable housing for all residents, alongside a competitive and transparent <br /> rental market. <br /> SUBMITTED BY <br /> Councilmember Jessie Lopez <br /> EXHIBIT(S) <br /> 1. City of San Francisco Ordinance <br /> 2. Sample Ordinance (for discussion only) <br /> CITY ATTORNEY CITY MANAGER CITY CLERK <br /> Sonia R.Carvalho Alvaro Nunez Jennifer L. Hall <br /> 20 CIVIC CENTER PLAZA-P.O. BOX 1988, M31 -SANTA ANA,CALIFORNIA 92702 <br /> TELEPHONE(714)647-6900-FAX(714)647-6954-www.santa-ana.org <br />