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EXHIBIT 1 <br />Ordinance No. NS-XXXX <br />Page 1 of 7 <br /> <br />ORDINANCE NO. NS-XXXX <br /> <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF <br />SANTA ANA PROHIBITING ANTI-COMPETITIVE <br />AUTOMATED RENT PRICE-FIXING <br /> <br />THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS <br />FOLLOWS: <br /> <br /> Section 1. The City Council of Santa Ana hereby finds, determines, and declares <br />as follows: <br /> <br />A. The housing rent burden and poverty faced by many residents in the City of <br />Santa Ana (City) threatens the health, safety, and welfare to the City. <br /> <br />B. The City Council has provided relief to residents by enacting a Rent <br />Stabilization and Just Cause Eviction Ordinance, directing City staff to apply <br />for housing grants to lower the cost of living for residents and placing a priority <br />on assisting residents by providing information about issues that can negatively <br />affect their lives. <br /> <br />C. The high cost of living and housing shortage in the City have contributed to the <br />City’s unaffordability. According to an October 2025 Zillow report, a family must <br />earn $220,000 a year to afford a home mortgage in Santa Ana. According to <br />an October 22, 2025 Orange County Register article, the average rental rate <br />for a residential dwelling unit in the City is $2,293, approximately 40.6% higher <br />than the national median of $1,631. <br /> <br />D. According to the U.S. Census Bureau’s 2023 American Community Survey <br />(ACS), Santa Ana has approximately 79,691 occupied housing units, of which <br />44,151 are renter-occupied households, accounting for over 55% of the total <br />occupied housing units in Santa Ana. Approximately 53% of renter households <br />are considered cost-burdened, with housing expenses exceeding 30% of <br />household income. The City’s median household income has not kept pace <br />with the growth in rental housing costs, placing disproportionate pressure on <br />low-income and working-class families. <br /> <br />E. Landlords’ use of algorithmic devices, which perform calculations of nonpublic <br />competitor data concerning rental rates, occupancy levels, and other <br />information, to set rental rates and occupancy levels has resulted in inflated <br />rental rates an unfair rent increases and contributed to the City’s unaffordability <br />for families. <br /> <br />F. A 2024 study by the White House reported that renters nationally spent an extra <br />$3.8 billion in rent in 2023 because of pricing algorithms, and that Los Angeles <br />renters in units managed with algorithms paid an average of $408 more than