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EXHIBIT 1 <br />Ordinance No. NS-XXXX <br />Page 2 of 7 <br /> <br />renters in units that were not managed with algorithms. The average monthly <br />cost for Santa Ana is unavailable. <br /> <br />G. In response to the use of algorithmic devices to set rental rates and occupancy <br />levels, in August 2024, the United States Department of Justice (DOJ) filed a <br />lawsuit against RealPage, Inc. Eight Attorneys General, including California <br />Attorney General Rob Bonta, joined the DOJ’s lawsuit. The DOJ amended its <br />lawsuit in January 2025 to add two Attorneys General and name landlords and <br />defendants.This lawsuit was settled in November 2025 and per the DOJ, “the <br />proposed settlement would help restore free market competition in rental <br />markets for millions of American renters.” Per the settlement, RealPage did not <br />admit any wrongdoing or liability, RealPage must not use their competitors’ <br />non-public information, and an independent monitor will ensure compliance for <br />seven (7) years. City renters cannot hope that RealPage does not violate the <br />settlement nor that RealPage will be caught by the independent monitor. <br /> <br />H. RealPage filed a federal lawsuit against the City of Berkeley in April 2025 <br />challenging their ordinance that bans landlords from using algorithmic revenue <br />management software for setting rental rates. While the litigation is pending, <br />and as RealPage will be monitored City renters cannot wait for this lawsuit to <br />run its course. The Council wishes to provide immediate relief to City renters <br />by prohibiting the sale, licensing, and use of algorithmic devices that use or <br />incorporate nonpublic competitor data to advise a landlord on, or recommend <br />to a landlord, rental rates or occupancy levels that may be achieved for <br />residential real property in the City. <br /> <br />Section 2. The recitals and statements of fact set forth in the preamble to this <br />ordinance are true and correct, constitute a substantive part of the ordinance, and are <br />incorporated herein by reference. <br /> <br />Section 3. Article XXIV (Prohibition of Anti-Competitive Automated Rent Price- <br />Fixing) is added to Chapter 8 (Buildings and Structures) of the Santa Ana Municipal Code <br />to read as follows: <br /> <br />Section 8-3700 – Purpose and Intent <br /> <br />The purpose and intent of this Article is to protect the residents of Santa Ana from <br />artificially inflated rental rates and unfair rent increases by prohibiting the sale, licensing, <br />and use of Algorithmic Devices. This Article also provides Tenants with remedies for <br />violations of this Article. <br /> <br />Section 8-3701 – Definitions <br /> <br />(a) For purposes of this Article, the words and phrases shall be defined as set forth <br />herein, unless the context clearly indicates a different meaning is intended.