NS-3090 - Prohibiting Anti-Competitive Automated Rent Price-Fixing

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ORDINANCE NO. NS-3090 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA PROHIBITING ANTI-COMPETITIVE AUTOMATED RENT PRICE-FIXING THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The City Council of Santa Ana hereby finds, determines, and declares as follows: A. The housing rent burden and poverty faced by many residents in the City of Santa Ana (City) threatens the health, safety, and welfare to the City. B. The City Council has provided relief to residents by enacting a Rent Stabilization and Just Cause Eviction Ordinance, directing City staff to apply for housing grants to lower the cost of living for residents and placing a priority on assisting residents by providing information about issues that can negatively affect their lives. C. The high cost of living and housing shortage in the City have contributed to the City's unaffordability. According to an October 2025 Zillow report, a family must earn $220,000 a year to afford a home mortgage in Santa Ana. According to an October 22, 2025 Orange County Register article, the average rental rate for a residential dwelling unit in the City is $2,293, approximately 40.6% higher than the national median of$1,631. D. According to the U.S. Census Bureau's 2023 American Community Survey(ACS), Santa Ana has approximately 79,691 occupied housing units, of which 44,151 are renter-occupied households, accounting for over 55% of the total occupied housing units in Santa Ana. Approximately 53% of renter households are considered cost- burdened,with housing expenses exceeding 30% of household income. The City's median household income has not kept pace with the growth in rental housing costs, placing disproportionate pressure on low-income and working-class families. E. Landlords' use of algorithmic devices, which perform calculations of nonpublic competitor data concerning rental rates, occupancy levels, and other information, to set rental rates and occupancy levels has resulted in inflated rental rates an unfair rent increases and contributed to the City's unaffordability for families. F. A 2024 study by the White House reported that renters nationally spent an extra $3.8 billion in rent in 2023 because of pricing algorithms, and that Los Angeles renters in units managed with algorithms paid an average of $408 more than renters in units that were not managed with algorithms. The average monthly cost for Santa Ana is unavailable. Ordinance No. NS-3090 Page 1 of 5