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HomeMy WebLinkAbout85B - ORD JUST CAUSE EVICTIONORDINANCE NO. NS 2018 -XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA REQUIRING JUST CAUSE FOR TENANT EVICTIONS WITHIN THE CITY OF SANTA ANA THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS: SECTION 1 FINDINGS The City Council of the City of Santa Ana hereby finds, determines, and declares as follows: (a) Pursuant to Article XI, Section 7 of the California Constitution, the City of Santa Ana may make and enforce all regulations and ordinances using its police powers. (b) According to findings by the National Law Center on Homelessness and Poverty, "[flaws that ...prevent unjust evictions ...directly address the underlying causes of housing instability and homelessness."' While the People of the City of Santa Ana seek to promote the development of affordable housing, and to provide robust and effective services to residents experiencing chronic homelessness, the People of the City of Santa Ana recognize that policies designed to prevent individuals and families from losing their housing by prohibiting unjust evictions are critical tools for addressing homelessness in the City of Santa Ana. (c) There is a shortage of decent, safe, affordable, and sanitary housing in the City of Santa Ana resulting in a quickly gentrifying city that is pushing out valuable, long-term residents. As a result of this shortage of moderately priced rental space, freedom of contract and the ability of tenants to bargain in the setting of rents have become illusory. (d) The City of Santa Ana currently does not regulate evictions, rental amounts, or rent increases in residential housing. As a result of this lack of regulation, it has led to housing insecurity and excessive rent increases for the most vulnerable residents in the City of Santa Ana, and increases the likelihood of an increase in displacement and homelessness of low-income families in the City of Santa Ana. (e) The City of Santa Ana's housing vision affirms and supports a vibrant housing Santa Ana that comprises a socially and economically diverse community of renters and homeowners. (f) Notwithstanding this vision, however, high rental costs also make it increasingly difficult, if not impossible, for rental households in the City of Santa Ana to become first time homeowners. According to national studies, Orange County has the second lowest homeownership rate in the country. According to a recent report by the Southern California Association of Governments, the City of Santa Ana has a homeownership rate of just over forty - 'National Law Center on Homelessness and Poverty, Protect Tenants, Prevent Homelessness (Mar. 2018), available at https://www.nlchy.orgARroteetTenants20l8 (last accessed November 27, 2018). .o m seven percent (47%), compared to a homeownership rate of over fifty-nine percent (59%) in Orange County generally in 2016. (g) Tenants who play by the rules should not have to worry constantly about being evicted from their homes for no reason. Common-sense protections against unfair evictions are needed in the City of Santa Ana to protect long-time and low-income residents from landlords who try to game the system to take advantage of all-time high rents. (h) The City of Santa Ana is the second (2nd) largest of the 34 cities in Orange County. In 2010, the City of Santa Ana's estimated population of 324,528 represented approximately 11 percent of Orange County's total population, ranking the City of Santa Ana as the second most populated city in Orange County behind Anaheim. As of the 2010 Census, the City of Santa Ana has 76,896 housing units. Multi -family housing comprises 41 percent of all housing, of which 10 percent are duplexes, triplexes, and fourplexes. (i) The People of the City of Santa Ana recognize the value of homeownership, and specifically the value of local ownership of rental housing. As such, the Ordinance seeks to balance tenant protections with the rights and interests of residents in the City of Santa Ana who own their homes. 0) Since the mid -2000s, residents in the City of Santa Ana have proactively expressed their concerns to the City Council regarding displacement, gentrification, and rising rents in the City of Santa Ana. During this same time period, residents in the City of Santa Ana began hosting educational forums for residents on the issues of rent control and just cause eviction protections. (k) According to the U.S. Census Bureau 2016 American Community Survey, residents in the City of Santa Ana have a median household income of just over $54,062, compared to a median income of more than $78,145 for Orange County. The average rent for two bedroom apartment in Santa Ana is $1,876, a four percent (4%) increase compared to the previous year of 2017, when the average rent was $1,813. At the same time, according to city and census reports, the median household income fell by 1.5 percent during that time period in the City of Santa Ana. (1) Renter households are more likely to be low-income than families who own their homes. The City of Santa Ana's 2014-2021 Housing Element states that more than fifty percent of households (54%) in the City of Santa Ana have incomes that are less than 80 percent (80%) of the Area Median Income (AMI), the low-income threshold as defined by the U.S. Housing and Urban Development Department. (in) A household is considered rent burdened if it spends more than 30 percent (30%) of its gross income on housing costs. According to the City of Santa Ana's 2014-2021 Housing Element, approximately fifty-seven percent (57%) of all renter households in the City of Santa Ana are low-income and rent burdened, which is approximately 21,496 households in the City of Santa Ana. (n) The increasing housing rent burden and poverty faced by many residents in the City of Santa Ana threatens the health, safety, and welfare of its residents by forcing them to choose between paying rent and providing food, clothing, and medical care for themselves and their families. (o) The State of California's Housing Element Law (Gov. Code §§65580-65589.8, and §§65751-65761 (including the State of California's Housing Accountability Act, Gov. Code §65589.5, §65598.6), requires that the City of Santa Ana encourage the production of a variety of housing types; and identify adequate sites for affordable housing for persons at extremely low - very -low, low-, and moderate -income levels. (p) The City of Santa Ana has a Regional Housing Needs Allocation (RHNA) for 2014-2021 of 204 units with a carryover from the previous planning period of 201 lower income units, for a combined RHNA total of 405 units divided into four income groups (very-low,(which includes extremely -low), low-, moderate-, and above -moderate income). This number includes 156 units for very -low, 122 units for low-, 37 units for moderate-, and 90 units for above - moderate income households. Given the challenges in meeting the existing and projected housing needs lower-income residents in the City of Santa Ana, the regulation of rents is a vital tool to maintain the affordability of a significant portion of the housing supply within a reasonable time frame. (q) The City of Santa Ana's 2014-2021 Housing Element, citing to recent American Community Survey Reports, states many low-income residents in the City of Santa Ana experience overcrowding, overpayment, or both. Approximately thirty-three (33%) percent of residents in the City of Santa Ana live in overcrowded living conditions. Approximately twenty- one percent (21 %) of homeowners in Santa Ana live in overcrowded conditions, as compared to forty-three (43%) percent of renters in the City of Santa Ana. Approximately forty-three (43%) percent of residents in the City of Santa Ana overpay for their housing. The prevalence of housing overpayment in the City of Santa Ana is far greater among renters, as fifty-seven (57%) percent of residents overpay in housing costs, compared to thirty-nine (39%) percent of homeowners in the City of Santa Ana. (r) The City of Santa Ana is the 7th largest school district in California, and the largest in Orange County. Approximately ninety-one (91 %) percent of the student population enrolled in the Santa Ana Unified School District is eligible for free or reduced -price meals. In 2016-2017, there were 55,144 children enrolled in the Santa Ana Unified School District. Of this number, 7,306, or 13.2% identified as homeless. Evictions and displacement impose an especially high burden on school -aged children and their families, including increased absences from school and other educational disruption that can have long-lasting effects such as impacts on mental and physical health, as well as school and social hardships for the children and their families? Eviction's Fallout., Housing, Hardship, and Health, (Feb. 2015), Social Forces, available at htti)://nlihc.ore/sites/default/files/DesmondKimbro Evictions Fallout SF2015.ndf (last accessed November 27, 2018). .O W (s) Additionally, homelessness in Orange County rose at a faster pace since 2015, ticking up eight (8%) since the last one-night count. The most recent Point -In -Time Count & Survey, a federally mandated snapshot, conducted on January 28, 2017, showed that there are approximately 4,792 homeless persons in the county, more than half living in a shelter. (t) Furthermore, tenants who are displaced by landlord actions are subject to serious adverse impacts. Such actions can include evictions, which impose unfair burdens on tenants when they are evicted through no fault of their own. The financial impacts of displacement, include, but are not limited to: packing, moving, and storage costs, as well as lost wages and time due to taking time off of work or missing school to search for alternative housing, which includes finding a comparable school, if the tenants have school-age children. It also includes the cost of applying to alternative housing, change of address expenses, and temporary housing expenses required until the displaced tenants locate and obtain suitable long-term alternative housing. Additionally, landlords often require that prospective tenants pay the equivalent of three months' rent up front to secure a lease—generally representing the first and last month's rent, and a security deposit. The total accumulated cost imposed on a displaced household generally exceeds $10,000 and can frequently reach $20,000 or greater. Tenants who are seniors, persons with disabilities, or have children incur even higher costs due to their particular circumstances. Low- and moderate -income tenants cannot afford such sudden and costly expenses, and they often experience homelessness as a direct consequence of eviction, which itself imposes further financial, social, health, and emotional costs. The severe financial impacts of displacement on tenants pose a threat to the public health, and safety, and welfare of the residents in the City of Santa Ana. (u) Based upon the above-described facts and circumstances, and for these same reasons, the City Council for the City of Santa Ana finds that this Ordinance is necessary as a measure to preserve public peace, health and safety, and therefore that it may be introduced and adopted at one and the same meeting, and shall take effect immediately upon its adoption. SECTION 2 DEFINITIONS Unless further defined elsewhere in this Ordinance, the following words or phrases as used in this Ordinance shall have the following meanings: (a) City Council. The term City Council refers to the City Council of the City of Santa Ana. (b) City Attorney. The term City Attorney refers to the City Attorney for the City of Santa Ana. (c) Covered Rental Unit. All Rental Units not specifically exempted under Section 3 (Exemptions - Fully Exempt) or Section 4 (Additional Homeowner Protections) herein. (d) Disabled. A person with a disability. The term "disability" is defined in California Government Code Section 12955.3. 4 (e) Housing Services. Housing Services include, but are not limited to, repairs, maintenance, painting, providing light, hot and cold water, elevator service, window shades and screens, storage, kitchen, bath and laundry facilities and privileges, janitor services, Utility Charges that are paid by the Landlord, refuse removal, furnishings, telephone, parking, the right to have a specified number of occupants, and any other benefit, privilege, arrangement or facility provided or contracted for in connection with the use or occupancy of any Rental Unit. Housing Services to a Rental Unit shall include a proportionate part of services provided to common facilities of the building in which the Rental Unit is contained. (f) Landlord. An owner, lessor, sublessor or any other person entitled to receive Rent for the use and occupancy of any Rental Unit, or an agent, representative, predecessor, or successor of any of the foregoing. (g) Owner. A person who holds a 50 percent or greater recorded ownership interest in real property. (h) Notice to Terminate a Tenancy. Any notice required under state law or this Ordinance for a Landlord to lawfully cause a Tenant to vacate a Rental Unit. (i) Notice to Quit. A notice specifically required by California Code of Civil Procedure sections 1946, 1161, et seq., for a Landlord to lawfully cause a Tenant to vacate a Rental Unit. 0) Primary Residence. The occupant's usual place of return. Factors that indicate Primary Residence, include, but are not limited to: (1) The occupant carries on basic living activities at the subject premises for extended periods; (2) The subject premises are listed with public agencies, including but not limited to federal, state, and local taxing authorities, as the occupant's primary residence; (3) Utility Charges and other charges and fees associated with usage of the structure are billed to and paid by the occupant at the subject premises; (4) The occupant does not file for a homeowner's tax exemption for any different property; (5) The occupant is not registered to vote at any other location; and (6) Ownership is held in the name of the occupant claiming Primary Residence and not held by a Limited Liability Corporation or other corporate or business entity structure. (k) Proper . All Rental Units on a parcel or lot or contiguous parcels or contiguous lots under common ownership. (1) Qualified Tenant. Any tenant who satisfies any of the following criteria on the date of service of the written notice of termination described in California Civil Code Section 1946: has attained age 62; is handicapped as defined in Section 50072 of the California Health & Safety Code; is disabled as defined in Title 42 United States Code § 423; or is a person residing with and on whom is legally dependent (as determined for federal income tax purposes) one or more minor children. (in) Relocation Assistance. Financial assistance in the amounts, as set forth in Section 5, infra. (n) Rent. All periodic payments and all nonmonetary consideration including, but not limited to, the fair market value of goods, labor performed or services rendered to or for the benefit of the Landlord under a Rental Housing Agreement concerning the use or occupancy of a Rental Unit and premises and attendant Housing Services, including all payment and consideration demanded or paid for parking, Utility Charges, pets, furniture, and/or subletting. (o) Rental Housing Agreement. An agreement, oral, written, or implied, between a Landlord and Tenant, or a Landlord and a Tenant for use or occupancy of a Rental Unit and for Housing Services. For the purpose of this Ordinance, the terms "Rental Housing Agreement' and "Lease" are interchangeable. (p) Rental Unit. Any building, structure, or part thereof, or land appurtenant thereto, or any other rental property rented or offered for rent for residential purposes, whether or not such units possess a valid Certificate of Occupancy for use as rental housing, together with all Housing Services connected with use or occupancy of such Property, such as common areas and recreational facilities held out for use by the Tenant, which is offered or available for rent. (q) Single -Family Home. A detached building containing a single residential dwelling unit separately alienable from any other dwelling unit. (r) Tenant. A Tenant, subtenant, lessee, sublessee or any other person entitled under the terms of a Rental Housing Agreement or this Ordinance to the use or occupancy of any Rental Unit. (s) Utility Charges. Any charges for gas, electricity, water, garbage, sewer, telephone, cable, internet, or other service relating to the use and occupancy of a Rental Unit. (t) Written Notice to Cease. A written notice provided by a Landlord that gives a Tenant an opportunity to cure an alleged violation or problem prior to initiating legal proceedings to terminate tenancy. Any Written Notice to Cease must: (1) Be in a language that the Tenant can interpret or understand; (2) Provide the Tenant a reasonable period to cure the alleged violation or problem; (3) Inform the Tenant that failure to cure may result in the initiation of eviction proceedings; (4) Inform the Tenant of the right to request a reasonable accommodation; and (5) Include a specific statement of the reasons for the Written Notice to Cease with sufficient detail to allow a reasonable person to cure the alleged violation or problem, or understand the circumstance(s) that form the basis for the Landlord's decision to evict the Tenant(s) from the Rental Unit. SECTION 3 EXEMPTIONS (a) Fully Exempt (Exempt from Just Cause for Eviction). The following Rental Units are exempt from all provisions of this Ordinance: (1) Units in hotels, motels, inns, tourist homes and rooming and boarding houses which are rented primarily to transient guests for a period of fewer than thirty (30) days, including all units subject to the transient occupancy tax, codified at Article V, Section 35-127 of the Santa Ana Municipal Code and Charter; (2) Rental Units in any hospital, convent, monastery, extended medical care facility, asylum, non-profit home for the aged, or dormitory owned and operated by an accredited institution of higher education; (3) Rental Units owned or operated or managed by a not-for-profit organization pursuant to a tax credit program; (4) Rental Units which a government unit, agency or authority owns, operates, or manages, or in which government -subsidized Tenants reside, if applicable federal or state law or administrative regulation specifically exempt such units from municipal rent control, provided that upon termination of the government subsidy, the provisions of this Ordinance shall apply and the Base Rent shall be the amount set before such termination; (5) Rental Units additionally exempted pursuant to Section 4 (Additional Homeowner Protections); (6) Rental Units in buildings of three or fewer units where the Owner is a natural person whose Primary Residence is at the same Property, and where the Owner has made their Primary Residence at the Property for at least 36 consecutive months. (b) Partially Exempt (Just Cause for Eviction Applies). The following Rental Units are not exempt from the provisions this Ordinance: (1) Any Rental Units exempt from regulation of rental rates pursuant to state law, including the Costa -Hawkins Rental Housing Act (California Civil Code Section 1954.50, et seq.), so long as it is in effect. (2) Condominiums. Condominiums specified in California Civil Code Section 1954.52(a)(3)(A). (3) Duplexes and Triplexes. Rental Units in a single structure with fewer than four dwelling units being used as residential housing. The term "dwelling unit" is used as defined in Santa Ana Municipal Code and Charter Section 41-192(b).) (4) Accessory Dwelling Units. Small second units located on the same lot as a Single -Family Home as may be defined in and permitted under the Santa Ana Municipal Code and Charter, Section 41-194, et seq., but not including Senior Citizen Accessory Units (Santa Ana Municipal Code and Charter, Section 41-1325); (5) Single-family Homes, condominiums, and any other Rental Units which are separately alienable from any other Rental Unit, where the Owner is a natural person whose Primary Residence is in the City of Santa Ana and owns no more than two separately alienable Properties. (6) To the extent required by state law, Rental Units in a single structure with four or more dwelling units used as residential housing with a certificate of occupancy issued after February 1, 1995 and before the effective date of this Ordinance. (c) Notwithstanding Section 3(b) above, if the Costa -Hawkins Rental Housing Act is repealed, amended, or invalidated by court or statute, this Ordinance shall fully apply to the following previously partially exempt units, and the City Council shall authorize the City Attorney for the City of Santa Ana to prepare a supplemental Ordinance for enactment by the City Council, to ensure such application to the extent allowable under state law as follows: (1) Rental Units with a certificate of occupancy issued after February 1, 1995. (2) Single-family homes, condominiums, and any other Rental Units which are separately alienable from any other Rental Unit, except for those that are Fully Exempt under Section 3(a)(6) and Partially Exempt, as referenced above in Section 3(b) of this Ordinance. SECTION 4 ADDITIONAL HOMEOWNER PROTECTIONS Homeownership is of great importance to the residents of the City of Santa Ana. In addition to the Rental Units exempted in Section 3(a) of this Ordinance, the following Rental Units are also exempt from all provisions of this Ordinance: (a) Single -Family Homes. Single -Family Homes as specified in California Civil Code Section 1954.52(a)(3)(A), except in the event that Section 3(b) herein applies. .• • (b) Senior Citizen Accessory Units. A Rental Unit that is permitted and in compliance with Santa Ana Municipal Code and Charter Section 41-1325. (c) Temporary Rentals Allowed. A homeowner who is the Primary Resident of a Single -Family Home may create a temporary tenancy. The temporary Tenant must be provided, in writing at the inception of the tenancy, the length of the tenancy and a statement that the tenancy may be terminated at the end of the temporary tenancy and relocation shall not be provided. This subsection only applies to tenancies lasting no more than twelve consecutive months. (d) Renting of a Room Unregulated. The tenancy where the Tenant shares a bathroom or kitchen with the homeowner shall be exempt from this Ordinance if the home is the Primary Residence of the homeowner. SECTION 5 JUST CAUSE FOR EVICTION PROTECTIONS; FAMILY PROTECTIONS (a) No Landlord shall take action to terminate any lawful tenancy, including but not limited to, making a demand for possession of a Rental Unit, threatening to terminate a tenancy orally or in writing, serving any Notice to Terminate Tenancy, Notice to Quit, or other eviction notice, or bringing any action to recover possession, or be granted recovery of possession of a Rental Unit unless at least one of the following conditions exists. This prohibition on impermissible evictions is intended to apply to the fullest extent permitted by law to all Notices to Terminate a Tenancy, Notices to Quit, or other eviction notice that were served on a tenancy before the effective date of this Ordinance. (1) Failure to Pay Rent. The Tenant has failed to pay the Rent to which the Landlord is legally entitled under the Rental Housing Agreement, this Ordinance, or any other state or local law. (2) Breach of Lease. The Tenant has continued, after the Landlord has served the Tenant with Written Notice to Cease, in a language that the Tenant can have interpreted or understand, to substantially violate any of the material terms of the Rental Housing Agreement, other than a violation based on: (A) The obligation to surrender possession upon proper notice; or (B) The obligation to limit occupancy, provided that the additional Tenant who joins the occupants of the unit thereby exceeding the limits on occupancy set forth in the Rental Housing Agreement is either the first or second dependent child to join the existing tenancy of a Tenant of record, the sole additional adult Tenant, or is a replacement Tenant who moved in after an approved Tenant has vacated the Rental Unit. For purposes of this subsection, multiple births shall be considered as one child. The Landlord, however, has the right to approve or disapprove the prospective additional or replacement Tenant, who is not a minor dependent child, provided that the approval is not unreasonably withheld. If the Landlord fails to respond to the Tenant in writing with a description of the reasons for the denial of the request within 14 days of receipt of the Tenant's written request, the Tenant's request shall be deemed approved by the Landlord; or (C) Notwithstanding any contrary provision in this Section, a Landlord shall not take any action to terminate a tenancy based on a Tenant's sublease of the Rental Unit if all of the following requirements are met: i. The Tenant continues to reside in the Rental Unit as his or her Primary Residence; and ii. The sublease replaces one or more departed Tenants under the Rental Agreement on a one-for-one basis; and iii. The Landlord has unreasonably withheld the right to sublease following written request by the Tenant. If the Landlord fails to respond to the Tenant's written request, the Tenant's request shall be deemed approved by the Landlord. A Landlord's reasonable refusal of the Tenant's written request may not be based on the proposed additional occupant's lack of creditworthiness, if that person will not be legally obligated to pay some or all of the Rent to the Landlord. A Landlord's reasonable refusal of the Tenant's written request may be based on, but is not limited to, the ground that the total number of occupants in a Rental Unit exceeds the maximum number of occupants as determined under Section 503(b) of the Uniform Housing Code as incorporated by California Health & Safety Code section 17922. (D) Protections for Families. Notwithstanding any contrary provision in this Section, a Landlord shall not take any action to terminate a tenancy as a result of the addition to the Rental Unit of a Tenant's child, foster child, stepchild, parent, grandchild, grandparent, aunt, uncle, niece, nephew, sibling, or the spouse or partner of such relatives, or the spouse or partner of such relatives, or as the result of the addition of the spouse or partner of a Tenant, so long as the number of occupants does not exceed the maximum number of occupants as determined by Section 503(b) of the Uniform Housing Code as incorporated by California Health & Safety Code section 17922. The City Council may authorize the City Attorney for the City of Santa Ana to amend this Ordinance to include language that will further protect families and promote stability for school -aged children. (3) Nuisance. If, after the issuance of a Written Notice to Cease in a language that the Tenant can interpret or understand, the Landlord may terminate a tenancy if the Tenant is committing or permitting to exist a nuisance in, or 10 is causing substantial damage to, the Rental Unit or to the unit's appurtenances, or to the common areas of the Property containing the Rental Unit, or is creating an unreasonable interference with the comfort, safety, or enjoyment of any of the other residents of the Property. The tern "nuisance" as used in this subsection includes, but is not limited to, any gang -related crime, violent crime, unlawful weapon or ammunition crime or threat of violent crime, illegal drug activity, any documented activity commonly associated with illegal drug dealing, such as complaints of noise, steady traffic day and night to a particular unit, barricaded units, possession of weapons, or drug loitering as defined in California Health & Safety Code Section 11532. For purposes of this subsection, gang -related crime is any crime motivated by gang membership in which the perpetrator, victim or intended victim is a known member of a gang. Violent crime is any crime which involves use of a gun, a deadly weapon or serious bodily injury and for which a police report has been completed. A violent crime under this subsection shall not include a crime that is committed against a person residing in the same Rental Unit as the person committing the crime. Unlawful weapon or ammunition crime is the illegal use, manufacture, causing to be manufactured, importation, possession, possession for sale, sale, furnishing, or giving away of ammunition or any weapon listed in subsection (c)(1)-(5) of Section 3485 of the California Civil Code. The threat of violent crime is any statement made by a Tenant, or at his or her request, by his or her agent to any person who is on the premises or to the owner. of the premises, or his or her agent, threatening the commission of a crime which will result in death or great bodily injury to another person, with the specific intent that the statement is to be taken as a threat, even if there is no intent of actually carrying it out, when on its face and under the circumstances in which it is made, it is so unequivocal, immediate and specific as to convey to the person threatened, a gravity of purpose and an immediate prospect of execution of the threat, and thereby causes that person reasonably to be in sustained fear for his or her own safety or for his or her immediate family's safety. Such a threat includes any statement made verbally, in writing, or by means of an electronic communication device and regarding which a police report has been completed. A threat of violent crime under this subsection shall not include a crime that is committed against a person who is residing in the same Rental Unit as the person making the threat. Immediate family means any spouse, whether by marriage or not, parent, child, any person related by consanguinity of affinity within the second degree, or any other person who regularly resides in the household, or who, within the prior six 11 85B-11 months, regularly resided in the household. Electronic communication device includes but is not limited to, telephones, cellular telephones, video recorders, fax machines, or pagers. Electronic communications has the same meaning as the term is defined in subsection 12 of Section 2510 of Title 18 of the United States Code, except that electronic communication for purposes of this definition shall not be limited to electronic communication that affects interstate or foreign commerce. Illegal drug activity is admissible evidence of a violation of any of the provisions of Chapter 6 (commencing with Section 113 50) or Chapter 6.5 (commencing with Section 11400) of the California Health & Safety Code. (4) Illegal Purpose. The Tenant is using, or permitting a Rental Unit, the common areas of the Property containing the Rental Unit to be used for any illegal purpose. The term "illegal purpose" as used in this subsection includes, but is not limited to, admissible evidence of violations of any of the provisions of Division 10, Chapter 6 (commencing with Section 11350) and Chapter 6.5 (commencing with Section 11400) of the California Health & Safety Code, and does not include the use of housing accommodations lacking a legal approved use or which have been cited for occupancy or other housing code violations. (5) Refusal to Execute New Lease. The Tenant, who had a Rental Housing Agreement which terminated on or after the effective date of this Ordinance, has refused, after written request or demand by the Landlord in a language that the Tenant can interpret or understand to execute a written extension or renewal thereof for a further term of like duration with terms which are materially the same as in the previous Rental Housing Agreement and provided that such terms do not conflict with any provision of this Ordinance or any other provision of law. (6) Failure to Give Access. The Tenant, after service of proper notice in a language that the Tenant can interpret or understand, has refused the Landlord reasonable access to the unit for the purpose of making repairs or improvements, or for the purpose of inspection as permitted or required by law, or for the purpose of showing the Rental Unit to any prospective purchaser or mortgagee. The notice shall inform the Tenant that if they are unable to comply based on a disability -related reason, they have the right to request a reasonable adjustment or change in the Landlord's policies or practices to accommodate the Tenant's disability. (7) Subtenant in Sole Possession. The person in possession of the Rental Unit at the end of a lease term, after the Landlord provides written notice 12 85B-12 to said person in a language that said person can interpret or understand, is not a subtenant approved by the Landlord. (8) Owner Move -in. The Landlord seeks, after providing written notice in a language that the Tenant can interpret or understand to the Tenant pursuant to state law, to recover possession of the Rental Unit in good faith for use and occupancy as a Primary Residence by the Landlord, or the Landlord's spouse, partner, children, grandchildren, parents or grandparents. (A) As used in subsection (a)(8) herein, Landlord shall only include a Landlord that is a natural person and has at least a fifty percent (50%) recorded ownership interest in the Property. (B) No eviction may take place under this subsection if the same Landlord or enumerated relative already occupies a unit on the Property, or if a vacancy already exists on the Property. If a comparable unit does become vacant and available before the recovery of possession, the Landlord shall rescind the notice to vacate and immediately dismiss any action filed to recover possession of the premises. (C) Any notice terminating a tenancy pursuant to this subsection shall contain the name, address and relationship to the Landlord of the person intended to occupy the Rental Unit and the rights pursuant to Subparagraph (E) herein. (D) The Landlord or enumerated relative must intend in good faith to move into the Rental Unit within sixty (60) days after the Tenant vacates and to occupy the Rental Unit as a Primary Residence for at least thirty-six (36) consecutive months. (E) If the Landlord or relative specified on the notice terminating tenancy fails to occupy the Rental Unit within sixty (60) days after the Tenant vacates, the Landlord shall: (i) Offer the Rental Unit to the Tenant who vacated it at the same Rent in effect when the Tenant vacated; and (ii) Pay to said Tenant all reasonable expenses incurred in moving to and from the Rental Unit. (F) Eviction Protection for Elderly or Disabled Tenant. A Landlord may not evict a Tenant pursuant to Subsection (a)(8) herein if the Tenant (1) has resided in the Rental Unit for at least five (5) years and is either at least sixty-two (62) years old or Disabled; or (2) is certified as being terminally ill by the Tenant's treating physician. 13 85B-13 Notwithstanding the above, a Landlord may evict a Tenant who qualifies for the exemption herein if the Landlord or enumerated relative who will occupy the Rental Unit also meets the criteria for this exemption and there are no other units are available. (G) Notwithstanding Section 5(a)(8)(F), at all times, a Landlord may request a reasonable accommodation from the Tenant, if the Tenant or enumerated relative is Disabled and another unit or Rental Unit in the City of Santa Ana is necessary to accommodate the Tenant's or enumerated relative's disability. (9) Necessary and Substantial Repairs Requiring Temporary Vacancy. The Landlord, after having obtained all necessary permits from the City of Santa Ana, and having provided written notice to the Tenant, seeks in good faith to undertake substantial repairs that are necessary to bring the Rental Unit into compliance with applicable codes and laws affecting the health and safety of Tenants of the building, provided that: (A) The repairs necessitate that the Tenant vacate the Rental Unit because the work will render the Rental Unit uninhabitable for a period of not less than thirty (30) days; (B) The Landlord gives advance notice to the Tenant of the right to elect between: (i) The right of first refusal to any comparable vacant Rental Unit owned by the Landlord at -the same Rent, if such comparable vacant unit exists; or (ii) The first right of return to reoccupy the Rental Unit upon completion of the repairs at the same Rent charged to the Tenant before the Tenant temporarily vacated the Rental Unit. (iii) In the event that the Tenant elects to accept an offer to move to a comparable vacant Rental Unit at the same Rent, the Tenant is not eligible for any Relocation Assistance pursuant to Section 5(c) herein, however the length of tenancy shall continue to be calculated from the date the tenant first entered into a Rental Housing Agreement at the Property. (C) In the event the Landlord files a Petition for Individual Rent Adjustment within six (6) months following the completion of the work, the Tenant shall be party to such proceeding as if he or she were still in possession, unless the Landlord submits with such 14 application a written waiver by the Tenant of his or her right to reoccupy the premises pursuant to this subsection. (10) Withdrawal of the Unit Permanently from Rental Market. To the extent required by California Government Code Section 7060 et seq., the Landlord may seek in good faith to recover possession to withdraw all Rental Units of an entire Property from the rental housing market. Tenants affected by this provision shall be entitled to a minimum of 120 -day notice or one (1) year in the case Tenants are defined as senior or Disabled. Notice times may be increased by regulations, if state law allows for additional time. (11) Government Order. The Landlord seeks in good faith to recover possession of the Rental Unit to comply with a governmental agency's order to vacate, order to comply, order to abate, or any other order that necessitates the vacating of the building housing the Rental Unit as a result of a violation of the Santa Ana Municipal Code and Charter or any other provision of law. (12) Vacating an Unpermitted Rental Unit. The Landlord seeks in good faith to recover possession of an unpermitted Rental Unit in order to terminate the unpermitted use. (b) Tenant Protections during Foreclosure. Notwithstanding anything to the contrary in Sections 4 or 5 herein, a Landlord who obtains title through foreclosure to Property containing Rental Units subject to this Ordinance may bring an action to recover possession of the Rental Unit from a Tenant whose tenancy commenced on or before the date that the Landlord obtained title, only upon the grounds set forth in Section 5. To recover possession of the Rental Unit from a Tenant, the Landlord must comply with all of the requirements and provisions of this section, including, without limitation, the payment of Relocation Assistance required, pursuant to the provisions of Section 5(c). (c) Relocation Assistance. (1) A Landlord seeking to recover possession under Subsections (a)(8)-(12) above shall provide Relocation Assistance to affected Tenant households in an amount equal to six (6) times the current Fair Market Rent for a similar Rental Unit in Orange County as determined by the U.S. Department of Housing and Urban Development. Tenant households with at least one Qualified Tenant shall be entitled to an additional payment equal to one (1) times the current Fair Market Rent for a similar Rental Unit as determined by HUD as part of their Relocation Assistance. To the extent permitted by law, the Relocation Assistance required herein shall be a minimum amount. (2) The Landlord shall notify the affected Tenants of their rights under this subsection, if any, at the time of the service of any notice terminating the 15 85B-15 tenancy. The Relocation Assistance shall be paid to Tenant households who vacate a Rental Unit no later than the time that they vacate the Rental Unit. (d) Right of Return and First Right of Refusal. All Tenants whose tenancy is terminated on a basis enumerated in Subsections (a)(8)-(12) herein shall have the first right of refusal to return to the Rental Unit if that Rental Unit is returned to the market by the Landlord or successor Landlord to the maximum extent permitted by state law. Rent for the Rental Unit shall be the Rent lawfully paid by the Tenant at the time the Landlord gave notice of termination based upon Subsections (a)(8)-(12) herein to the maximum extent permitted by state law. (e) Withdrawal of Rental Unit Permanently from the Rental Market. The Landlord seeks in good faith to recover possession to withdraw all Rental Units of an entire Property from the rental housing market. Tenants affected by this provision shall be entitled to a minimum of 120 -day notice, or a notice of not less than one (1) year in the case of Tenants defined as seniors or Disabled under Government Code Section 12955.3. (f) Retaliation is Barred. No Landlord may threaten to bring, or bring, an action to recover possession of the Rental Unit, cause the Tenant to quit the unit involuntarily, serve any Written Notice to Cease or Notice of Termination of Tenancy/Notice to Quit, or other eviction notice, decrease any services or increase the Rent where the Landlord's partial motive is retaliation against the Tenant for the Tenant's assertion or exercise of rights under this Ordinance. Such retaliation shall be a defense to an action to recover possession, or it may serve as the basis for an affirmative action by the Tenant for actual and punitive damages and injunctive relief. A Tenant may assert retaliation affirmatively or as a defense to the Landlord's action regardless of the period of time which has elapsed between the Tenant's assertion or exercise of rights under this Ordinance and the alleged act of retaliation. The City Council shall designate its Community Redevelopment and Housing Commission for the City of Santa Ana to maintain a repository of complaints received regarding violations of this Ordinance, and the Community Redevelopment and Housing Commission, shall upon Tenant request, make certified copies of the records of complaints initiated by Tenant. (g) Harassment is Prohibited. No Landlord may threaten to bring, or bring, an action to recover possession, cause the Tenant to quit the unit involuntarily, serve any Written Notice to Cease, Notice of Termination of Tenancy/Notice to Quit, or other eviction notice, decrease any services, refuse to accept or acknowledge receipt of a Tenant's lawful Rent pursuant to this Ordinance, or interfere with the Tenant's quiet enjoyment of the Rental Unit and common areas as part of an attempt to increase the Rent above the maximum allowable Rent permitted under this Ordinance, either by obtaining such excessive Rent from the Tenant or by creating a vacancy and increasing the Rent to a new Tenant. Such harassment shall be a defense to an action to recover possession, or it may serve as the basis for an affirmative action by the Tenant for actual and punitive damages and injunctive relief. (h) Notice to Specify Basis for Termination. Any notice purporting to terminate tenancy on any of the bases specified in this section must state with specificity the basis on which the Landlord seeks to terminate the tenancy. 16 .o • (i) Landlord Compliance with this Ordinance. In any action brought to recover possession of a Rental Unit subject to this Ordinance, the Landlord shall allege compliance with this Ordinance. 0) Failure to Comply. A Landlord's failure to comply with any requirement of this section, including without limitation, the failure to serve any of the required notices, is a complete and affirmative defense in an unlawful detainer or other action brought by the Landlord to recover possession of the Rental Unit. :9ReY[1RE111DWI TO111yDid IDWI rW Olo)a1Ila) :7V The City, at its sole discretion, may choose to enforce the provisions of this Ordinance through administrative fines and any other administrative procedures as set forth in Chapter 1, Section 1- 21 et seq., of the Santa Ana Municipal Code and Charter. The City's decision to pursue or decline enforcement of any kind regarding a violation of this Ordinance, shall not affect a Tenant's rights to pursue civil remedies associated with enforcing the Sections of this Ordinance. SECTION 7 CIVIL REMEDIES A Tenant may bring a civil suit in the courts of the State of California alleging that a Landlord has violated any of the provisions of this Ordinance or any regulations promulgated hereunder including that the Landlord has demanded, accepted, received, retained a payment or payments in excess of the lawful Rent, failed to maintain a Rental Unit in compliance with applicable health and safety and building codes, including but not limited to, California Civil Code section 1941.1 et seq., and California Health and Safety Code sections 17920.3 and 17920. 10, or decreased Housing Services. In a civil suit, a Landlord found to violate this Ordinance shall be liable to the Tenant for all actual damages, including but not limited to, the damages described in this Section. A prevailing Tenant in a civil action brought to enforce this Ordinance shall be awarded reasonable attorneys' fees and costs. Additionally, upon a showing that the Landlord has acted willfully or with oppression, fraud, or malice, the Tenant shall be awarded treble (triple) damages. No administrative remedy need be exhausted before filing suit pursuant to this Section. SECTION 8 SEVERABILITY If any section, subsection, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, or portions be declared invalid or unconstitutional. SECTION 9 CONFLICTING CHARTER PROVISIONS To the extent that any of the provisions of this Ordinance conflict with other provisions of the Santa Ana City Municipal Code and Charter, the provisions of this Ordinance 17 85B-17 shall govern. This Ordinance, however, is, not intended to revise, repeal, or supersede any other provisions of the Santa Ana City Municipal Code and Charter regarding matters not addressed herein. As such, this Ordinance shall have the effect of amending the Santa Ana City Municipal Code and Charter as necessary for the City Attorney to exercise his or her authority and fulfill his or her responsibilities as specifically identified herein, but this Ordinance shall not otherwise amend the Santa Ana City Municipal Code and Charter with respect to the powers and limitations of other boards and commissions. SECTION 10 CODIFICATION The City Clerk and the City Attorney shall take all necessary steps to ensure the proper and efficient codification of this Ordinance into the Santa Ana City Municipal Code and Charter. This authority shall include making any necessary revisions to the numbering and revising or substituting any references herein to other provisions of the Santa Ana Municipal Code and Charter or State law, and similar non -substantive items. In exercising this authority, the City Clerk and City Attorney shall not alter the substantive provisions of this Ordinance, nor take any action that contradicts the express terms and purpose of this Ordinance. :y 0[40IMegg 8alyyarigI&'/as17:11Y This Ordinance shall take effect immediately following its adoption by the City Council. SECTION 12 ENVIRONMENTAL DETERMINATION The City Council finds that adoption and implementation of this Ordinance are exempt from the provisions of the California Environmental Quality Act under Section 15061(b)(3) in that the City Council finds there is no possibility that the implementation of this Ordinance may have significant effects on this environment. 18 .O •