HomeMy WebLinkAboutItem 09 - Rental Registry Fee Study Community Development Agency
www.santa-ana.org/community-development
Item # 9
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 16, 2023
TOPIC: Rental Registry Fee Study
AGENDA TITLE
Receive and File the Rental Registry Fee Study
RECOMMENDED ACTION
Receive and file the Rental Registry Fee Study identifying the appropriate Rental
Registry Fee to recover all costs associated with the Rent Stabilization and Just Cause
Eviction Ordinance.
DISCUSSION
On October 18, 2022, the City Council adopted the Rent Stabilization and Just Cause
Eviction Ordinance (“Ordinance”). The Ordinance requires the creation of a rental
registry, which is a portal where landlords register their rental units, update rental unit
information, update tenancy information, submit notices, and pay a Rental Registry Fee.
Per the Ordinance, effective July 1, 2023, the City must create a rental registry and all
landlords with rental units in the City must complete and submit registration forms for
each of their rental units.
In addition, effective July 1, 2023, an annual Rental Registry Fee will be imposed on
each rental unit in the City that is subject to the Ordinance. All landlords with rental units
that are subject to the Ordinance must pay the Rental Registry Fee as established by
the City Council. The purpose of the Rental Registry Fee is to fund the City’s costs to
implement, administer, monitor, support, and enforce the Ordinance. The amount of the
Rental Registry Fee must be determined by resolution of the City Council and set forth
in the City’s Fiscal Year 2023-24 Miscellaneous Fees Schedule. The Fee must not
exceed the amount found by the City Council to be reasonable and necessary to
administer the Ordinance.
To fulfill this statutory requirement, on November 18, 2022, staff issued a Request for
Proposals (No. 22-155) from qualified firms to conduct a comprehensive fee study to
determine appropriate program fees that would recover all program costs associated
with services provided under the Ordinance. The Program fees include, but are not
limited to, a Rental Registry Fee and three petition fees (Fair Return Petition, Capital
Improvement Petition, and Tenant Petition). Following this competitive procurement
Rental Registry Fee Study
May 16, 2023
Page 2
3
4
4
9
process, Revenue & Cost Specialists (“RCS”) was selected by the City. RCS entered
into an Agreement with the City effective January 3, 2023 to conduct this fee study.
In compliance with the Ordinance, staff is now providing the Rental Registry Fee Study
to City Council as Exhibit 1. The Rental Registry Fee Study identifies the appropriate
Rental Registry Fee to recover all costs associated with the Ordinance and the Rent
Stabilization Program. Under Section 50076 of the California Government Code, fees
charged for any service or regulatory activity must not exceed the reasonable cost of
providing the service or regulatory activity for which the fee is charged and which is not
levied for general revenue purposes. In compliance with this law, RCS conducted this
Rental Registry Fee Study on behalf of the City.
The Rent Stabilization Program’s annual cost is approximately $3.24 million and
includes 14.4 full-time equivalent City employees, plus contractual support for hearings,
appeals, education and outreach, translation services, equipment, and technology.
Appendix E of the Rental Registry Fee Study provides the Work Plan to justify and
support this annual cost. The Work Plan served as the baseline of information used by
RCS to establish a Rental Registry Fee to offset and ultimately fully recover the costs
for the administration and enforcement of the Ordinance. Most cities that have adopted
rent stabilization programs have established annual rental registry fees to recover their
costs for program administration and enforcement. Based on this precedence, user fees
are established in circumstances such as this, where unique benefits are established for
a subset of individuals. Under the law, such fees must bear a nexus to the actual costs
incurred in administering the program. The Rental Registry Fee Study and Work Plan is
intended to serve as the nexus for the development of the Rental Registry Fee to
support the administration and enforcement of the Ordinance.
Based on the amount of activity projected for the number of rental units in Santa Ana,
staffing the Rent Stabilization Program with 14.4 full-time equivalent City employees is
appropriate and reasonable for the City. Based upon the Rental Registry Fee Study,
RCS recommends Option 1 below:
Option 1: Single Rental Registry Fee (Petition Fees included in the Rental Registry Fee)
Fee Title Suggested Fee # of Units Revenue
Annual Registration $100 per unit 32,450 $3,245,000
After timely payment of the Rental Registry Fee, the landlord may pass through up to
fifty percent of the Rental Registry Fee to tenants of the applicable rental unit, to be paid
by the tenant in 12 equal monthly installments (Section 8-3161(d)). This is equal to
$4.17 per month to be paid by the tenant.
Options 2 and 3 below were developed to meet the request of the City Council to
present the following options as it relates to the fees associated with a Fair Return
Petition, Capital Improvement Petition, and Tenant Petition:
Option 1. Financial impact of having petition fees included in the Rental Registry Fee;
Rental Registry Fee Study
May 16, 2023
Page 3
3
4
4
9
Option 2. Financial impact of having petition fees separate from the Rental Registry Fee; or
Option 3. Financial impact of having no petition fees.
Option 2: Petition Fees Separate from the Rental Registry Fee
Fee Title Suggested Fee # of Units/Petitions Revenues
Annual Registration $86.12 per unit 32,450 Units $2,794,654
Fair Return Petition $21,357 per petition 4 Petitions $85,428
Capital Improvement Petition $13,442 per petition 4 Petitions $53,768
Tenant Petition $350 per petition 958 Petitions $311,150
Total $3,245,000
Under Option 2, landlords would be required to pay $21,237 to submit a Fair Return
Petition and $13,442 to submit a Capital Improvement Petition. Tenants would also be
required to pay $350 to submit a Tenant Petition. These additional petition fees would
discourage landlords and tenants from submitting petitions under the Ordinance.
Option 3: No Petition Fees
Fee Title Suggested Fee # of Units/Petitions Revenues
Annual Registration $86.12 per unit 32,450 Units $2,794,654
Fair Return Petition $0 per petition 4 Petitions $0
Capital Improvement Petition $0 per petition 4 Petitions $0
Tenant Petition $0 per petition 958 Petitions $0
Total
$2,794,654
-$3,245,000
(-$450,346)
Under Option 3, the removal of petition fees results in an annual operating deficit of up
to ($450,346) to pay for all costs associated with the Ordinance. As a result, the City’s
General Fund would have to annually subsidize the petition fees with up to $450,346 to
ensure the Rent Stabilization Program can process Fair Return Petitions, Capital
Improvement Petitions, and Tenant Petitions as required under the Ordinance. Fair
Return Petitions are a constitutional right for landlords. Meanwhile, Capital Improvement
Petitions and Tenant Petitions are available options for landlords and tenants in the
Ordinance.
Based upon the Rental Registry Fee Study, staff recommends a Rental Registry Fee of
$100 per unit (Option 1). This new Rental Registry Fee of $100 per unit provides a
simple streamlined fee for tenants and landlords that includes all of the costs to
implement, administer, monitor, support, and enforce the Ordinance, while supporting
cost recovery and no impact to the City’s General Fund. This Rental Registry Fee also
adheres to the principles approved by the City Council on September 6, 2022 for the
Rental Registry Fee to be as low and lean as possible to not create an unnecessary
burden on tenants and landlords; to blend a hybrid of services between consultants and
City staff; and builds upon other existing services across the City to administer the
Ordinance.
Rental Registry Fee Study
May 16, 2023
Page 4
3
4
4
9
Next Steps
Following the City Council receiving and filing this Rental Registry Fee Study, staff will
return to the City Council with the new Rental Registry Fee of $100 per unit
incorporated into the FY 2023-24 Miscellaneous Fees Schedule.
FISCAL IMPACT
Staff recommendations for a Rental Registry Fee of $100 per unit and the spending
plan have been included in the City Manager’s proposed budget for FY 2023-24. If the
City Council directs staff to make changes, then staff will update the proposed budget
accordingly.
EXHIBIT(S)
1. Rental Registry Fee Study
Submitted By: Michael L. Garcia, Executive Director of Community Development
Approved By: Kristine Ridge, City Manager
Copyright, 2023 by Revenue & Cost Specialists
Cost of Services
Study for the
City of Santa Ana
March 17, 2023
Prepared by:
Revenue & Cost Specialists, LLC
1519 E Chapman Ave, Ste C
Fullerton, CA 92831
www.revenuecost.com
EXHIBIT 1
City of Santa Ana Rent Stabilization Program Fee – March 2023
City of Santa Ana Rent Stabilization Program Fee – March 2023
March 17, 2023
City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
Honorable Mayor, City Council, and City Manager:
On October 18, 2022, the City Council adopted the Rent Stabilization and Just Cause Eviction
Ordinance (“Ordinance”). The Ordinance includes a rental registry, which is a portal where
landlords register their rental units, update rental unit information, update tenancy information,
submit notices, and pay the Rental Registry Fee. Per the Ordinance, effective July 1, 2023, the City
shall create a rental registry and all landlords with rental units in the City shall complete and submit
registration forms for each of their rental units.
In addition, effective July 1, 2023, or as modified by resolution of the City Council, an annual Rental
Registry Fee shall be imposed on each rental unit in the City. All landlords with rental units that are
subject to the Ordinance shall pay the Rental Registry Fee as established by the City Council. The
Rental Registry Fee is to fund the City’s cost to implement, administer, monitor, support, and enforce
the provisions of the Ordinance. Regarding the amount of the fee, a landlord shall pay to the City a
Rental Registry Fee for each of the landlord’s rental units in the City. The amount of the Rental
Registry Fee shall be determined by resolution of the City Council adopted from time to time and set
forth in the City’s Miscellaneous Fee Schedule. The Fee shall not exceed the amount found by the
City Council to be necessary to administer the provisions of the Ordinance, and the City Council’s
findings in this regard shall be final.
To fulfill this statutory requirement, on November 18, 2022, the City of Santa Ana issued a Request
for Proposals No. 22-155 seeking proposals from qualified firms to conduct a comprehensive fee
study to determine appropriate program fees that would recover all program costs associated with
services provided under the Ordinance. The Program fees include but are not limited to a Rental
Registry Fee and three petition fees (Fair Return Petition, Capital Improvement Petition and Tenant
Petition). Following this competitive procurement process, Revenue & Cost Specialists (“RCS”) was
selected and approved by the City and entered into an Agreement with the City effective January 3,
2023 to conduct this Fee Study.
RCS is now providing the City of Santa Ana (“City”) with a comprehensive Fee Study identifying the
appropriate fee(s) to recover all costs associated with the Rent Stabilization and Just Cause Eviction
City of Santa Ana Rent Stabilization Program Fee – March 2023
Ordinance (“Ordinance”), and the Rent Stabilization Program (“RSP”). [Ordinance and RSP may be
used interchangeably throughout this Fee Study.]
The Rent Stabilization Program’s annual cost is approximately $3.24 million and includes 14.4 full
time equivalent city employees, plus contractual support for hearings, appeals, education &
outreach, on-call translation services, equipment and technology. Based upon this Fee Study, RCS
recommends Option 1 below:
Option 1: Single Rental Registry Fee (Petition Fees Included in the Rental Registry Fee)
Fee Title Suggested Fee # of Units Revenue
Annual Registration $100 per unit 32,450 $3,245,000
After timely payment of the Rental Registry Fee, the landlord may pass through up to fifty
percent (50%) of the Rental Registry Fee to tenants of the applicable rental unit, to be paid
by the tenant in twelve (12) equal monthly installments (Section 8‐3161(d)). This is equal to
$4.17 per month to be paid by the tenant.
Option 2: Petition Fees Separate from the Rental Registry Fee
Fee Title Suggested Fee # of Units/
Petitions Revenues
Annual Registration $86.12 per unit 32,450 Units $2,794,654
Fair Return Petition $21,357 per petition 4 Petitions $85,428
Capital Improvement Petition $13,442 per petition 4 Petitions $53,768
Tenant Petition $350 per petition 958 Petitions $311,150
Total: $3,245,000
Option 3: No Petition Fees
Fee Title Suggested Fee # of Units/
Petitions Revenues
Annual Registration $86.12 per unit 32,450 Units $2,794,654
Fair Return Petition $0 per petition 4 Petitions $0
Capital Improvement Petition $0 per petition 4 Petitions $0
Tenant Petition $0 per petition 958 Petitions $0
Total:
$2,794,654
-$3,245,000
(-$450,346)
Under Option 3, the removal of petition fees results in an annual operating deficit of up to ($450,346)
to pay for all costs associated with the Rent Stabilization and Just Cause Eviction Ordinance. As a
result, the City’s General Fund would have to annually subsidize the petition fees with up to
$450,346 in order to ensure the Rent Stabilization Program can process Fair Return Petitions,
Capital Improvement Petitions and Tenant Petitions. Fair Return Petitions are a constitutional right
City of Santa Ana Rent Stabilization Program Fee – March 2023
for landlords. Meanwhile, Capital Improvement Petitions and Tenant Petitions are available options
for landlords and tenants in the Ordinance.
Option 1 is recommended to the City of Santa Ana because it provides a simple streamlined fee for
program participants that includes all of the costs to implement, administer, monitor, support, and
enforce the provisions of the Ordinance, while supporting cost recovery and no impact to the City’s
General Fund.
Since the Rent Stabilization Program is a new endeavor for the City, reasonable and evidence-based
assumptions were made in the areas of staff time allocation and number of task participants. Where
possible, we benchmarked with data from other cities’ that have a rent stabilization ordinance. Our
Fee Study focused on calculating the lowest fee reasonably possible to operate the Rent Stabilization
Program successfully. Our Fee Study also adheres to the principles approved by City Council for the
Rental Registry Fee to be as low and lean as possible to not create an unnecessary burden on tenants
and landlords; to blend a hybrid of services between consultants and City staff; and builds upon
other existing services across the City to administer the Ordinance.
RCS wants to thank Judson Brown, Housing Division Manager, and his team within the Community
Development Agency, for providing the crucial information needed to complete this Fee Study.
Respectfully submitted,
ERIC JOHNSON CHU THAI
President Partner
City of Santa Ana Rent Stabilization Program Fee – March 2023
Table of Contents
CHAPTER I – THE NEED FOR USER FEES ________________________________________________________________ 7
CHAPTER II – IDENTIFYING THE COST OF SERVICES _________________________________________________ 10
CHAPTER III – ALLOCATING TIME TO SERVICES ______________________________________________________ 13
CHAPTER IV – COST RECOVERY RECOMMENDATIONS _______________________________________________ 22
APPENDIX A – STAFF TIME ALLOCATION SUMMARY ________________________________________________ 25
APPENDIX B – PROGRAM TASK COST SUMMARY _____________________________________________________ 27
APPENDIX C – PROGRAM TASK COST DETAILS _______________________________________________________ 29
APPENDIX D – ESTIMATED RENTAL UNITS ___________________________________________________________ 58
APPENDIX E – WORK PLAN DATED JANUARY 17, 2023 ______________________________________________ 60
APPENDIX F – RENT STABILIZATION AND JUST CAUSE EVICTION ORDINANCE ___________________ 86
Pg. 07 CHAPTER I – THE NEED FOR USER FEES
City of Santa Ana Rent Stabilization Program Fee – March 2023
CHAPTER I – THE NEED FOR USER FEES
Impact of Propositions 13, 4, 218 and 26
Proposition 13 was passed by California voters in 1978, forever changing city budgets. Prior to
1978, cities and counties balanced their budgets with a property tax formula. The property tax
which property owners paid could increase dramatically year over year, creating hardship for
those with fixed incomes. Proposition 13 capped property tax rates at 1%, with annual inflation
increase of no more than 2%. The passage of Proposition 13 immediately reduced property tax
payments from homes, businesses and farms by 57%.
The following year, Proposition 4 was passed primarily to clean up language related to taxes and
appropriations limits after the wake of Proposition 13. However, there is one phrase in section
8(c) of the proposition text which better defines user charges and user fees:
“Proceeds of taxes” shall include, but not be restricted to, all tax revenues and the
proceeds to an entity of government, from (1) regulatory licenses, user charges, and
user fees to the extent that those proceeds exceed the costs reasonably borne by that
entity in providing the regulation, product, or service…”
Restated, any proceeds from user charges and user fees which exceed the “costs reasonably borne”
are considered taxes. The legal ability for government agencies to charge fees in California in the
Pg. 08 CHAPTER I – THE NEED FOR USER FEES
City of Santa Ana Rent Stabilization Program Fee – March 2023
wake of all of the changes wrought by Proposition 13 comes out of that little phrase. The
importance, and the deeper meaning, is detailed in this section of the author’s intent documents:
“The phrase ‘costs reasonably borne by such entity in providing the regulation,
product, or service’ is intended to incorporate all appropriations by an entity for
reasonable costs appropriate for the continuation of service over time. This includes
ongoing expenses such as operation costs and a reasonable allocation for overhead
and administration, but it also includes responsible allocations for capital
replacement, expansion of services, and repayment of related bond issuances would be
considered ‘costs reasonably borne’.”
Then, Proposition 218, passed in 1996 and became Articles XIIIC & D, further restricting municipal
utility rates charged on property owners. Prop 13, 4 and 218 have had, and will continue to have, a
profound effect on California governments.
But it was left to the passage of Proposition 26, passed in 2010, to codify many of the fee setting
practices of the previous 30 years. Article XIII C of the State Constitution was amended to formally
declare that fees are not considered taxes if they do not exceed the reasonable costs of the service.
Government Code Section 66014 further defined that statement for development fees.
Some of the types of services for which reasonable fees are allowable are:
A charge imposed for a specific benefit conferred or privilege granted directly to the payor
that is not provided to those not charged, and which does not exceed the reasonable costs
to the local government of conferring the benefit or granting the privilege.
A charge imposed for a specific government service or product provided directly to the
payor that is not provided to those not charged, and which does not exceed the reasonable
costs to the local government of providing the service or product.
A charge imposed for the reasonable regulatory costs to a local government for issuing
licenses and permits, performing investigations, inspections, and audits, enforcing
agricultural marketing orders, and the administrative enforcement and adjudication
thereof.
Article XIII C also provides that a local government agency must demonstrate that the amount of
revenue to be generated by a fee is no more than necessary to cover the reasonable costs of the
governmental activity supported by the fee, and that the manner in which those costs are allocated
to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received
Pg. 09 CHAPTER I – THE NEED FOR USER FEES
City of Santa Ana Rent Stabilization Program Fee – March 2023
from, the governmental activity. For example, a fee on liquor store owners to fund an alcohol
education program would not be allowed.
While Proposition 26 was built on the foundations of Propositions 4 and 218, it provided a sharper
definition of the reach and limits of service fees, and the courts have looked to it when reviewing
fee challenges.
Legal Approach to User Fees
This Fee Study presents the analytical advantages which are available to the City through the
institution of a comprehensive system designed by RCS to implement Article XIIIB of the California
Constitution.
Systematic and Documented Approach. This analysis was designed to provide the City with a
systematic and documented approach to understand, control, and recapture the costs which are
forced on it by normal service demands, growth and general economic inflation.
Constitutional Methodology. The methodology used for this analysis is the "costs reasonably
borne" test established by Section 8(c) of Proposition 4, now Article XIIIB of the California
Constitution. In following that process, RCS has analyzed the ways in which City services can be
financed more equitably to assure the City's future financial viability.
Full Business Costs Determined. The methodology followed by both the Authors of Proposition 4,
and consequently by RCS, determines the full business cost of providing the reported City services.
It also identifies the beneficiaries of those services and determines if they are paying in
relationship to benefits derived or if they are deserving of a subsidy paid from the taxes paid by all
local citizens and businesses. Thus, the City Council will have full knowledge and cannot ignore
costs which are actually occurring.
Financial Integrity Established. This text summarizes the work accomplished and presents
recommendations. These recommendations, if implemented, would firmly establish the financial
integrity of the analyzed City services and would establish a continuing cost control system
following the business principles which are generally espoused for government, but often are
ignored in application.
Pg. 10 CHAPTER II – IDENTIFYING THE COST OF SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023
CHAPTER II – IDENTIFYING THE COST OF
SERVICES
The costs determined by RCS for the various services are based on the definitions of “costs
reasonably borne” as utilized in Article XIIIB (Proposition 4) and as further defined by its authors
in their background documents. The following are generally accepted elements of "costs
reasonably borne."
Cost of Services
a) Labor costs
b) Employee benefit costs
c) Operational services and supply expenses
d) Overhead expense
e) Administrative costs
f) Start-up costs
g) Future capital and replacement expenses
h) Costs of expansion of services
i) Repayment of debt
Table 1: Salary & Employee Benefits Costs
Program Staffing
# of FTE
Employees
Salary
Costs
Benefit
Costs Total Costs
RSP Board & Management
Division Manager 1.0 170,390 50,535 220,925
Commission Secretary 1.0 68,950 26,734 95,684
Program Administrative Unit
Housing Programs Coordinator 1.0 108,348 42,010 150,358
Housing Programs Analysts 2.0 190,540 73,879 264,419
Management Analyst 1.0 84,233 24,982 109,215
Senior Office Assistant 1.0 57,017 22,107 79,124
Legal Unit
Assistant City Attorney 1.0 130,668 38,754 169,422
Deputy City Attorneys 2.0 204,096 60,532 264,628
Senior Paralegal 1.0 80,424 33,666 114,090
Other City Staffing
Executive Director of Comm. Dev. 0.2 39,398 10,873 50,271
Administrative Services Manager 0.2 32,628 9,677 42,305
Accountant II 0.5 40,212 15,592 55,804
Senior Accounting Assistant 0.5 29,292 11,358 40,650
Code Enforcement Officers 2.0 147,360 57,137 204,497
*Total Program Staffing 14.4 $1,383,556 $477,836 $1,861,392
*The Work Plan includes a detailed description of the functions and responsibilities for each position required to
implement, administer, monitor, support, and enforce the provisions of the Ordinance.
Pg. 11 CHAPTER II – IDENTIFYING THE COST OF SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023
Labor and Employee Benefit Costs - The City provided RCS with its Work Plan for the Rent
Stabilization and Just Cause Eviction Ordinance (“Work Plan”), dated January 17, 2023. The Work
Plan is attached as Appendix E. The Work Plan outlines the necessary staffing, and the essential job
functions and responsibilities for each position needed to implement, administer, monitor,
support, and enforce the provisions of the Ordinance. RCS calculated the labor costs based on
Santa Ana’s methodology for estimating vacant positions. We calculated the employee benefit
costs based on the average fringe benefit percentage of each bargaining group.
Operational Services and Supply Expenses - Various contracted services and operating expenses
are essential to the Rent Stabilization Program. These include the need for a hearing officer and
mediator, rental registry software, education & outreach services, and on-call translation services.
Other expenses include insurance, rent and advertising.
Overhead Expenses and Administrative Costs - The purpose of deriving overhead costs is to
apportion these amounts to direct service program costs. By adopting this method, the City will be
aware of its true costs and be able to mirror business methods.
Santa Ana administrative agencies (ex. Finance and Management Services, Human Resources, City
Attorney’s Office) support other agencies (ex. Community Development Agency, Planning and
Building, Police Department) without providing a deliverable service to the public. The City
produces and updates its Cost Allocation Plan (“CAP”) annually to determine the overhead cost
provided by the administrative agencies. The CAP includes the following citywide functions:
City Manager, City Clerk, City Attorney
Human Resources, Finance and Treasury
Municipal Utility Services, Central Services
City Hall Depreciation, Equipment Use Charge and Other Building Use Charge
For this fiscal year, the Community Development Agency was calculated an overhead rate of
15.91% for salaries. Therefore, the Rent Stabilization Program’s general city overhead is $220,124.
The Rent Stabilization Program budget includes other administrative costs for insurance, IT
maintenance and benefit costs.
Startup Costs – The RSP budget includes costs which are one-time and ongoing. For example, the
City entered into an Agreement with RSG, Inc. (“RSG”) to assist with program implementation and
administration, and it is reasonable to assume the need for these services will lessen as permanent
staff is hired. Costs associated with education and outreach, specialized legal services, and on-call
translation may continue in future years, based on demand and other factors.
Pg. 12 CHAPTER II – IDENTIFYING THE COST OF SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023
Future Capital and Replacement Expense, Costs of Expansion of Services, and Repayment of Debt –
None of these costs apply to the Rent Stabilization Program.
Combined, the full cost for the Rent Stabilization Program is $3.24 million per year. Table 2
below shows the line-item budget for the Rent Stabilization Program’s first year of operations.
Table 2: Rent Stabilization Program Budget
Account Projected
RSP Budget
61000-Salaries Regular $1,383,556
6xxxx-Fringe Benefits 477,836
62010-Communications 1,650
62012-Cellular Phone Charges 3,600
62120-Training, Transportation, Meetings 10,000
62130-Tuition Reimbursement 1,500
62140-Membership, Subscription & Dues 2,500
62200-Advertising 5,000
62300-Contract Services-Professional 100,000
623xx-Contract Services-Mediation & Hearing 267,340
623xx-Contract Services-3Di Rental Registry 85,000
623xx-Contract Services-On Call Translation Svcs. 25,000
623xx-Contract Services-Specialized Legal Svcs. 50,000
623xx-Contract Services- RSG Addl. Contract Svcs. 500,000
62500-Rent Payments 85,203
62600-Parking Validation 250
62700-Auto Expense 250
63001-Miscellaneous Operating Expenses 10,500
65040-IT Maintenance Charge 8,210
65100-Insurance Charges 5,650
65105-Benefits Overhead 830
65400-Indirect Costs (CAP) 220,124
Total $3,244,000
Pg. 13 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023
CHAPTER III – ALLOCATING TIME TO SERVICES
Available Work Hours
The available work hours by position are based on current labor contracts. Available work hours
were calculated as the total possible work-hours in a year (2,080) minus the away-from-work
benefit hours from holidays, vacations, personal leave, sick leave, morning/afternoon breaks, and
start up/down time.
Table 3: Available Work Hours
Group Starting Hours Available Work
Hours
Executive Management
(Executive Director of Community Development)
2,080 1,635
SAMA - Middle Management /Administrative
Management Association
(Administrative Services Manager, Assistant City
Attorney, Deputy City Attorney, Division Manager,
Management Analyst)
SEIU – General Employees
(Accountant II, Code Enforcement Officer, Commission
Secretary, Housing Programs Analyst, Housing
Programs Coordinator, Senior Accounting Assistant,
Senior Office Assistant)
CASA Confidential Association
(Senior Paralegal) 2,080 1,627
The 14.4 full-time equivalent city employees within the Rent Stabilization Program equals 23,541
total available work hours. To validate the reasonableness of the Fee Study, 100% of the available
work hours for all City employees must be accounted for, even if it’s not public serving. In other
words, one staff member cannot state they overworked on fee services beyond 100% of their
hours, and another staff member cannot account for 100% of their time. Their times were
distributed to those program tasks where the time would be expended.
Identifying Program Tasks
From reviewing the Rent Stabilization and Just Cause Eviction Ordinance, the Work Plan, and the
proposed organizational chart provided by the City, we have divided the Rent Stabilization
Program into the following service delivery areas:
Service Delivery Area
1. Rental Registry – Section 8-3160
2. Enforcement and Compliance
3. Notice of Termination of Tenancy/Evictions – Section 8-3121(a)(4)
To validate the
reasonableness of
the Fee Study,
100% of the
available work
hours for all RSP
employees were
distributed and
accounted for,
even if it’s not
public serving.
Pg. 14 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023
4. Petition Process – Section 8-3145
5. Voluntary Mediation – Section 8-3146(a)
6. Petition Hearings and Appeals – Section 8-3145(f)
7. Rental Housing Board – Section 8-3180
8. Administration (Overhead)
For each of the service delivery areas above, we further identified relevant program tasks. The
program tasks were created based on the ability to measure the time of work performed and
estimate the number of service recipients. For instance, the Rental Registry applies to all units
covered by the city’s Ordinance, while the petition process only applies to those who submit such
petitions. Our list of service delivery areas and program tasks also capture 100% of the work to be
performed by every staff person within the Rent Stabilization Program.
Allocating Times to Tasks
The following Table 4 below summarizes the times allocated to program tasks. Times are
presented as per unit, per week or per year, depending on the frequency that the task is
performed. Per unit times multiplied by the number of units equal the total annual time for that
project task. Conversely, the annual time, divided by the number of units, gives us the time per
task.
Since the Rent Stabilization Program is a new endeavor for the City of Santa Ana, reasonable
assumptions were made to the times required for each task. It was a collaborative effort, engaging
City staff, RCS’ decades of experience in measuring workflow times, and RSG’s experience in
assisting to administer the City’s Ordinance and similar programs in other jurisdictions. We
referred to the City’s Rent Stabilization and Just Cause Eviction Ordinance, and reviewed other
cites’ rent stabilization program annual reports to identify trends in annual services provided. The
allocation of time to tasks required several reviews before everyone was comfortable with the
results.
The number of units per year are based on City staff’s experience within the past year, evaluation
of other city’s data, and available industry standards. Where the unit per year is 1, that number
represents how often that program task is performed. The base number of units covered by the
City’s Ordinance is 32,450. See Appendix D – Estimated Rental Units for the details on partially and
fully covered rental units. This number was identified by conducting a detailed analysis of the
County of Orange tax assessor’s data, ArcGIS, existing City data, and data available through CoStar.
Pg. 15 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023
Table 4: Allocation of Time (Page 1 of 4)
ALLOCATION OF TIME
PROGRAM TASKS
Housing
Programs
Coordinator
Housing
Programs
Analyst
Management
Analyst
Senior Office
Assistant
1) Rental Registry ‐ Section 8‐3160 10% of time 1% of time 15% of time 15% of time
Change of Onwership - Section 8-3160(b) 30 min ea 15 min ea 15 min ea
Re-Registration - Section 8-3160(c) 30min/wk 3hrs/wk
Claim of Exemption - Section 8-3160(d) 30min/wk 1hr/wk
Termination of Exemption - Section 8-3160(e) 30min/wk 15min/wk
Rental Registry Fee (Collection) - Section 8-3161(a) 5% of time 30% of time
Late Fee - Section 8-3161(c)/Settlements/Admin Cite 3hrs/wk
General Inquiries (Phone Calls & Walk Ins) 10% of time Remainder
2) Enforcement and Compliance
Inquiry about compliance/violation 30 min ea 10 min ea
Notices of violation/complaints 30 min ea 15 min ea
Investigation of complaints 2hrs ea
Citations, Prosecutions & Litigations 2hrs/wk
Code Enforcement Inspections 1hr/wk 15 min ea
Case correspondence and record keeping 10% of time
3) Notice of Termination of Tenancy/Evictions – Section 8‐3121(a)(4)
Receive and file - Sections 8-3121(a)4) & 8-3149(d) 1hr/wk 4hrs/wk
Follow-up on unjust evictions 2hrs/wk 4hrs/wk
4) Petition Process ‐ Section 8‐3145
Direct Inquiries & Petition Review 8hrs/wk 10hrs/wk
Annual Allowable Rent Adj - Section 8-3140(b) 40hrs/yr 80 hrs/yr 80 hrs/yr 20hrs/yr
Fair Return Petition - Section 8-3142 25hrs ea 125hrs ea
Capital Improvement Petition - Section 8-3143 15hrs ea 75hrs ea
Tenant Petition - Section 8-3144 2hrs/wk 15 min ea
5) Voluntary Mediation ‐ Section 8‐3146(a)
Mediation (pre)counseling 1hr/wk 2hrs/wk 4hrs/wk
Mediation cases heard 1hr/wk 2hrs/wk
6) Petition Hearings and Appeals – Section 8‐3145(f)
Direct Inquiries for hearings and appeals 1hr ea
Time of Hearing - Section 8-3145(h) 2hrs/wk
Appeal (of decision) - Section 8-3145(q) 2hr ea 1hr ea
7) Rental Housing Board ‐ Section 8‐3180
8) Administration (Overhead)Remainder Remainder Remainder
Budget, Staffing, Training, Department Coordination
Policy/Program Development, Legal Compliance
Education & Outreach - Section 8-3162
Agency Liaison & Regional/State representation
Pg. 16 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023
Table 4: Allocation of Time (Page 2 of 4)
ALLOCATION OF TIME
PROGRAM TASKS
Contract
Hearing
Officer
Contract
Mediator
Assistant City
Attorney
Deputy City
Attorney
1) Rental Registry ‐ Section 8‐3160
Change of Onwership - Section 8-3160(b)
Re-Registration - Section 8-3160(c)
Claim of Exemption - Section 8-3160(d)
Termination of Exemption - Section 8-3160(e) 4hrs/mo
Rental Registry Fee (Collection) - Section 8-3161(a)
Late Fee - Section 8-3161(c)/Settlements/Admin Cite
General Inquiries (Phone Calls & Walk Ins)
2) Enforcement and Compliance
Inquiry about compliance/violation
Notices of violation/complaints 30 min ea 2hr ea
Investigation of complaints 30 min ea
Citations, Prosecutions & Litigations 2hrs ea 8hrs ea
Code Enforcement Inspections
Case correspondence and record keeping
3) Notice of Termination of Tenancy/Evictions – Section 8‐3121(a)(4)
Receive and file - Sections 8-3121(a)4) & 8-3149(d)
Follow-up on unjust evictions 10hrs/wk 20hrs/wk
4) Petition Process ‐ Section 8‐3145
Direct Inquiries & Petition Review
Annual Allowable Rent Adj - Section 8-3140(b) 4hrs/yr
Fair Return Petition - Section 8-3142 3hrs ea 5hrs ea
Capital Improvement Petition - Section 8-3143 3hrs ea 5hrs ea
Tenant Petition - Section 8-3144 10hrs/wk 20hrs/wk
5) Voluntary Mediation ‐ Section 8‐3146(a)
Mediation (pre)counseling
Mediation cases heard 20hrs/wk
6) Petition Hearings and Appeals – Section 8‐3145(f)
Direct Inquiries for hearings and appeals
Time of Hearing - Section 8-3145(h) 20hrs/wk
Appeal (of decision) - Section 8-3145(q) 3hrs ea
7) Rental Housing Board ‐ Section 8‐3180 16hrs/mo
8) Administration (Overhead)Remainder Remainder
Budget, Staffing, Training, Department Coordination
Policy/Program Development, Legal Compliance
Education & Outreach - Section 8-3162
Agency Liaison & Regional/State representation
Pg. 17 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023
Table 4: Allocation of Time (Page 3 of 4)
ALLOCATION OF TIME
PROGRAM TASKS
Senior
Paralegal
Division
Manager
Commission
Secretary
Code
Enforcement
Officers
1) Rental Registry ‐ Section 8‐3160 10% of time
Change of Onwership - Section 8-3160(b)
Re-Registration - Section 8-3160(c)
Claim of Exemption - Section 8-3160(d) 4hrs/wk
Termination of Exemption - Section 8-3160(e)
Rental Registry Fee (Collection) - Section 8-3161(a) 5% of time
Late Fee - Section 8-3161(c)/Settlements/Admin Cite
General Inquiries (Phone Calls & Walk Ins)
2) Enforcement and Compliance
Inquiry about compliance/violation 5 min ea
Notices of violation/complaints 20 min ea 15 min ea 2hrs ea
Investigation of complaints 1hr ea 4hrs ea
Citations, Prosecutions & Litigations 8hrs ea
Code Enforcement Inspections 25% of time
Case correspondence and record keeping 25% of time
3) Notice of Termination of Tenancy/Evictions – Section 8‐3121(a)(4)
Receive and file - Sections 8-3121(a)4) & 8-3149(d)
Follow-up on unjust evictions 1hr/wk
4) Petition Process ‐ Section 8‐3145
Direct Inquiries & Petition Review
Annual Allowable Rent Adj - Section 8-3140(b) 4hrs/yr
Fair Return Petition - Section 8-3142 4hrs ea
Capital Improvement Petition - Section 8-3143 4hrs ea
Tenant Petition - Section 8-3144 8hrs/wk
5) Voluntary Mediation ‐ Section 8‐3146(a)
Mediation (pre)counseling
Mediation cases heard
6) Petition Hearings and Appeals – Section 8‐3145(f)
Direct Inquiries for hearings and appeals
Time of Hearing - Section 8-3145(h)
Appeal (of decision) - Section 8-3145(q) 3hrs ea 1hr ea 1hr ea 1hr
7) Rental Housing Board ‐ Section 8‐3180 40% of time 75% of time
8) Administration (Overhead)Remainder Remainder Remainder Remainder
Budget, Staffing, Training, Department Coordination
Policy/Program Development, Legal Compliance
Education & Outreach - Section 8-3162
Agency Liaison & Regional/State representation
Pg. 18 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023
Table 4: Allocation of Time (Page 4 of 4)
ALLOCATION OF TIME
PROGRAM TASKS
Senior
Accounting
Assistant
Accountant
II
Administrative
Services
Manager
Executive
Director of
Comm Dev
Units
Per Year
1) Rental Registry ‐ Section 8‐3160 32,450
Change of Onwership - Section 8-3160(b)120
Re-Registration - Section 8-3160(c)10,281
Claim of Exemption - Section 8-3160(d)4,835
Termination of Exemption - Section 8-3160(e)240
Rental Registry Fee (Collection) - Section 8-3161(a) 80% of time 20% of time 10% of time 32,450
Late Fee - Section 8-3161(c)/Settlements/Admin Cite 5% of time 5% of time 1,000
General Inquiries (Phone Calls & Walk Ins)16,225
2) Enforcement and Compliance
Inquiry about compliance/violation 325
Notices of violation/complaints 16
Investigation of complaints 24
Citations, Prosecutions & Litigations 18
Code Enforcement Inspections 208
Case correspondence and record keeping 1
3) Notice of Termination of Tenancy/Evictions – Section 8‐3121(a)(4)
Receive and file - Sections 8-3121(a)4) & 8-3149(d) 10,281
Follow-up on unjust evictions 103
4) Petition Process ‐ Section 8‐3145
Direct Inquiries & Petition Review 1,388
Annual Allowable Rent Adj - Section 8-3140(b)1
Fair Return Petition - Section 8-3142 4
Capital Improvement Petition - Section 8-3143 4
Tenant Petition - Section 8-3144 889
5) Voluntary Mediation ‐ Section 8‐3146(a)
Mediation (pre)counseling 103
Mediation cases heard 103
6) Petition Hearings and Appeals – Section 8‐3145(f)
Direct Inquiries for hearings and appeals 45
Time of Hearing - Section 8-3145(h)897
Appeal (of decision) - Section 8-3145(q)123
7) Rental Housing Board ‐ Section 8‐3180 1
8) Administration (Overhead)Remainder Remainder Remainder 100% of time 1
Budget, Staffing, Training, Department Coordination
Policy/Program Development, Legal Compliance
Education & Outreach - Section 8-3162
Agency Liaison & Regional/State representation
Pg. 19 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023
With the allocation of time completed, we analyzed the data and tested for reasonableness.
Table 5: Analysis of Time Allocation
TIME ANALYSIS
PROGRAM TASKS
Units Per
Year
Time Per
Unit
(Hours)
Annual
Time
(Hours)
% of Total
Time
Service
Area % of
Total Time
1) Rental Registry ‐ Section 8‐3160 32,450 0.02 850 3.3%16%
Change of Onwership - Section 8-3160(b) 120 0.50 120 0.5%
Re-Registration - Section 8-3160(c) 10,281 0.02 182 0.7%
Claim of Exemption - Section 8-3160(d) 4,835 0.06 286 1.1%
Termination of Exemption - Section 8-3160(e) 240 0.36 87 0.3%
Rental Registry Fee (Collection) - Section 8-3161(a) 32,450 0.04 1,505 5.9%
Late Fee - Section 8-3161(c)/Settlements/Admin Cite 1,000 0.24 238 0.9%
General Inquiries (Phone Calls & Walk Ins) 16,225 0.04 721 2.8%
2) Enforcement and Compliance 10%
Inquiry about compliance/violation 325 0.75 244 1.0%
Notices of violation/complaints 16 5.33 93 0.4%
Investigation of complaints 24 7.50 180 0.7%
Citations, Prosecutions & Litigations 18 18.00 428 1.7%
Code Enforcement Inspections 208 4.18 922 3.6%
Case correspondence and record keeping 1 570.30 570 2.2%
3) Notice of Termination of Tenancy/Evictions – Section 8‐3121(a)(4) 9%
Receive and file - Sections 8-3121(a)4) & 8-3149(d) 10,281 0.02 260 1.0%
Follow-up on unjust evictions 103 17.67 1,924 7.5%
4) Petition Process ‐ Section 8‐3145 18%
Direct Inquiries & Petition Review 1,388 0.67 936 3.7%
Annual Allowable Rent Adj - Section 8-3140(b) 1 188.00 228 0.9%
Fair Return Petition - Section 8-3142 4 137.00 648 2.5%
Capital Improvement Petition - Section 8-3143 4 87.00 408 1.6%
Tenant Petition - Section 8-3144 889 2.47 2,302 9.0%
5) Voluntary Mediation ‐ Section 8‐3146(a) 6%
Mediation (pre)counseling 103 3.03 364 1.4%
Mediation cases heard 103 11.11 1,196 4.7%
6) Petition Hearings and Appeals – Section 8‐3145(f) 10%
Direct Inquiries for hearings and appeals 45 1.00 45 0.2%
Time of Hearing - Section 8-3145(h) 897 1.28 1,144 4.5%
Appeal (of decision) - Section 8-3145(q) 123 10.00 1,476 5.8%
7) Rental Housing Board ‐ Section 8‐3180 1 2,072.63 2,073 8.1%8%
8) Administration (Overhead)1 5,834.53 6,191 24.2%24%
Pg. 20 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023
The data shows that staff resources are divided among the eight service areas. Having 24% for
administration (overhead) is typical and reasonable. By completing a comprehensive analysis of
time allocation for each program task, we were able to identify the Rental Registry and Petition
Process as the most time-consuming services to administer, with a combined 33% of total time
spent on these two service delivery areas.
Finally, we compared the staff time allocation to their job functions and responsibilities described
in the Work Plan. For example, in the table below the Management Analyst’s job functions are
properly allocated 69.9% to the Rental Registry, where they will be responsible for database and
financial analysis, and 25.2% towards general administration (overhead). The two Housing
Program Analysts’ job functions are properly spread between petition processing, mediation, and
reviewing the notices of terminations of tenancy and evictions. The Housing Programs
Coordinator’s job functions are correctly spread among all service areas as a supervisor position.
Table 6: Percent of Staff Time (Example from Administrative Unit)
We conducted this exercise for all positions in the Rent Stabilization Program, and times were
allocated to the correct service areas. See Appendix A – Staff Time Allocation Summary for the
other positions.
Fines and Penalties
Section 8-3161(c) of the Ordinance refers to late payment, and states that [a]ny Landlord
responsible for paying the Rental Registry Fee who fails to pay the Fee by October 1, or within
sixty (60) calendar days of any midyear due date, will be delinquent and shall, in addition to the
Fee, pay additional late charges, penalties of assessments as determined by resolution of the City
Council. The amount of Rental Registry Fee and any penalty imposed by the provisions of this
Article shall be deemed a debt to the City.
Establishing the appropriate fines and penalties is necessary to ensure compliance with the
Ordinance. Fines are not governed by Propositions 13, 4, 218 and 26, and the City may set the
PERCENT OF TIME
SERVICE DELIVERY AREA
Housing
Programs
Coordinator
Housing
Programs
Analyst
Management
Analyst
Senior Office
Assistant
1) Rental Registry - Section 8-3160 18.7% 13.4% 69.9% 40.9%
2) Enforcement and Compliance 10.0% 8.1% 0.0% 13.3%
3) Notice of Termination of Tenancy/
Evictions – Section 8-3121(a)(4)9.5% 12.7% 0.0% 0.0%
4) Petition Process - Section 8-3145 18.6% 46.4% 4.9% 33.0%
5) Voluntary Mediation - Section 8-3146(a)6.4% 6.4% 0.0% 12.7%
6) Petition Hearings and Appeals –
Section 8-3145(f)15.0% 8.3% 0.0% 0.0%
7) Rental Housing Board - Section 8-3180 0.0% 0.0% 0.0% 0.0%
8) Administration (Overhead)21.8% 4.7% 25.2% 0.0%
Total 100.0% 100.0% 100.0% 100.0%
Pg. 21 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023
terms and amounts to what is appropriate and reasonable for the City. RCS recommends the
following fee/late fee for the City based upon best practices from other jurisdictions with a rent
stabilization ordinance:
Late Fees starting on October 1 Total Fees & Fines
If paid late, 30 days or less past October 1, add 10% late fee Rental Registry Fee + 10%
of remaining balance due
If paid 31 to 60 days past October 1, add 25% late fee Rental Registry Fee + 25%
of remaining balance due
If paid after 60 days past October 1, add 50% late fee Rental Registry Fee + 50%
of remaining balance due
However, RCS recommends waiving all late fees within the first year (FY 2023/24) as the Rent
Stabilization Program is being established. This is common with many city programs, which offer
amnesty periods to encourage higher participation. Enforcement of the fines and penalties should
resume after the first year, subject to approval by City Council in the Miscellaneous Fee Schedule
for FY 24/25.
Pg. 22 CHAPTER IV – COST RECOVERY RECOMMENDATIONS
City of Santa Ana Rent Stabilization Program Fee – March 2023
CHAPTER IV – COST RECOVERY
RECOMMENDATIONS
User Fee versus Tax
The Rent Stabilization Program meets the three criteria of a user fee, based on the following:
1) The customer is identifiable
2) The service is measurable
3) The service benefits the individual or group
A tax-based service typically benefits the community as a whole. Police service is a good example
of a tax-based service, because it cannot meet the three criteria of a user fee and requires tax
revenues to operate.
Fee Options
The Study shows that the service times involved are reasonable. With the amount of activity
projected, staffing the Rent Stabilization Program with 14.4 full-time equivalent city employees is
appropriate and reasonable for the City of Santa Ana. The Program’s budget is $3.24 Million.
Based upon this Fee Study, RCS recommends Option 1 below:
Option 1: Single Rental Registry Fee (Petition Fees Included in the Rental Registry Fee)
Fee Title Suggested Fee # of Units Revenue
Annual Registration $100 per unit 32,450 $3,245,000
After timely payment of the Rental Registry Fee, the landlord may pass through up to fifty
percent (50%) of the Rental Registry Fee to tenants of the applicable rental unit, to be paid
by the tenant in twelve (12) equal monthly installments (Section 8‐3161(d)). This is equal to
$4.17 per month to be paid by the tenant.
Options 2 and 3 below were developed to meet the request of the City Council to present the
following options as it relates to the fees associated with a Fair Return Petition, Capital
Improvement Petition, and Tenant Petition:
Option 1. Financial impact of having petition fees included in the Rental Registry Fee;
Option 2. Financial impact of having petition fees separate from the Rental Registry Fee; or
Option 3. Financial impact of having no petition fees.
Pg. 23 CHAPTER IV – COST RECOVERY RECOMMENDATIONS
City of Santa Ana Rent Stabilization Program Fee – March 2023
Option 2: Petition Fees Separate from the Rental Registry Fee
Fee Title Suggested Fee # of Units/
Petitions Revenues
Annual Registration $86.12 per unit 32,450 Units $2,794,654
Fair Return Petition $21,357 per petition 4 Petitions $85,428
Capital Improvement Petition $13,442 per petition 4 Petitions $72,680
Tenant Petition $350 per petition 958 Petitions $311,150
Total: $3,245,000
Option 3: No Petition Fees
Fee Title Suggested Fee # of Units/
Petitions Revenues
Annual Registration $86.12 per unit 32,450 Units $2,794,654
Fair Return Petition $0 per petition 4 Petitions $0
Capital Improvement Petition $0 per petition 4 Petitions $0
Tenant Petition $0 per petition 958 Petitions $0
Total:
$2,794,654
-$3,245,000
(-$450,346)
Under Option 3, the removal of petition fees results in an annual operating deficit of up to
(-$450,346) to pay for all costs associated with the Rent Stabilization and Just Cause Eviction
Ordinance. As a result, the City’s General Fund would have to annually subsidize the petition fees
with up to $450,346 in order to ensure the Rent Stabilization Program can process Fair Return
Petitions, Capital Improvement Petitions and Tenant Petitions. Fair Return Petitions are a
constitutional right for landlords. Meanwhile, Capital Improvement Petitions and Tenant Petitions
are available options for landlords and tenants in the Ordinance.
Option 1 is recommended to the City of Santa Ana because it provides a simple streamlined fee for
program participants that includes all of the costs to implement, administer, monitor, support, and
enforce the provisions of the Ordinance, while supporting cost recovery and no impact to the City’s
General Fund. Option 1 also adheres to the principles approved by City Council for the Rental
Registry Fee to be as low and lean as possible to not create an unnecessary burden on tenants and
landlords; to blend a hybrid of services between consultants and City staff; and builds upon other
existing services across the City to administer the Ordinance.
OTHER CONSIDERATIONS
In considering all options related to the Rental Registry Fee, we also analyzed the number of rental
units that would be only partially covered by the Rent Stabilization and Just Cause Eviction
Pg. 24 CHAPTER IV – COST RECOVERY RECOMMENDATIONS
City of Santa Ana Rent Stabilization Program Fee – March 2023
Ordinance, meaning they are exempt from the Rent Stabilization provisions of the Ordinance, but
the Just Cause Eviction provisions apply. Due to the substantially low number of partially covered
units (currently less than 633), and the small impact of separating out the fee, this was not
considered as a necessary and viable option for the city to explore.
Fee Title Suggested Fee # of Units Revenues
Partially Covered Units $94.97 per unit 633 60,118
Fully Covered Units $100.10 per unit 31,817 3,184,882
Total: $3,245,000
SUPPORTING DOCUMENTATION
The following appendices provide backup documentation that support the Rent Stabilization
Program calculated costs throughout this Fee Study.
APPENDIX A – STAFF TIME ALLOCATION SUMMARY
Page 25 of 130
PERCENT OF TIME
SERVICE DELIVERY AREA
Housing
Programs
Coordinator
Housing
Programs
Analyst
Management
Analyst
Senior Office
Assistant
1) Rental Registry - Section 8-3160 18.7%13.4%69.9%40.9%
2) Enforcement and Compliance 10.0%8.1%0.0%13.3%
3) Notice of Termination of Tenancy/
Evictions – Section 8-3121(a)(4)9.5%12.7%0.0%0.0%
4) Petition Process - Section 8-3145 18.6%46.4%4.9%33.0%
5) Voluntary Mediation - Section 8-3146(a)6.4%6.4%0.0%12.7%
6) Petition Hearings and Appeals –
Section 8-3145(f)15.0%8.3%0.0%0.0%
7) Rental Housing Board - Section 8-3180 0.0%0.0%0.0%0.0%
8) Administration (Overhead)21.8%4.7%25.2%0.0%
Total 100.0% 100.0% 100.0% 100.0%
PERCENT OF TIME
SERVICE DELIVERY AREA
Contract
Hearing Officer
Contract
Mediator
Assistant City
Attorne y
Deputy City
Attorney
1) Rental Registry - Section 8-3160 0.0%0.0%0.0%1.5%
2) Enforcement and Compliance 0.0%0.0%2.7%5.7%
3) Notice of Termination of Tenancy/
Evictions – Section 8-3121(a)(4)0.0%0.0%31.8%31.8%
4) Petition Process - Section 8-3145 0.0%0.0%33.5%33.0%
5) Voluntary Mediation - Section 8-3146(a)0.0%100.0%0.0%0.0%
6) Petition Hearings and Appeals –
Section 8-3145(f)100.0%0.0%22.6%0.0%
7) Rental Housing Board - Section 8-3180 0.0%0.0%0.0%5.9%
8) Administration (Overhead)0.0%0.0%9.4%22.1%
Total 100.0% 100.0% 100.0% 100.0%
PERCENT OF TIME
SERVICE DELIVERY AREA
Senior
Paralegal
Division
Manager
Commission
Secretary
Code
Enforcement
Officers
1) Rental Registry - Section 8-3160 0.0%15.0%0.0%6.4%
2) Enforcement and Compliance 26.8%1.9%0.0%33.3%
3) Notice of Termination of Tenancy/
Evictions – Section 8-3121(a)(4)0.0%0.0%0.0%1.6%
4) Petition Process - Section 8-3145 0.0%0.2%0.0%13.7%
5) Voluntary Mediation - Section 8-3146(a)0.0%0.0%0.0%0.0%
6) Petition Hearings and Appeals –
Section 8-3145(f)22.7%7.5%7.5%3.8%
7) Rental Housing Board - Section 8-3180 0.0%40.0%75.0%0.0%
8) Administration (Overhead)50.5%35.3%17.5%41.3%
Total 100.0% 100.0% 100.0% 100.0%
PERCENT OF TIME
SERVICE DELIVERY AREA
Senior
Accounting
Assistant Accountant II
Administrative
Services
Manager
Executive
Director of
Comm Dev
1) Rental Registry - Section 8-3160 85.0%25.0%10.0%0.0%
2) Enforcement and Compliance 0.0%0.0%0.0%0.0%
3) Notice of Termination of Tenancy/
Evictions – Section 8-3121(a)(4)0.0%0.0%0.0%0.0%
4) Petition Process - Section 8-3145 0.0%0.0%0.0%0.0%
5) Voluntary Mediation - Section 8-3146(a)0.0%0.0%0.0%0.0%
6) Petition Hearings and Appeals –
Section 8-3145(f)0.0%0.0%0.0%0.0%
7) Rental Housing Board - Section 8-3180 0.0%0.0%0.0%0.0%
8) Administration (Overhead)15.0%75.0%90.0% 100.0%
Total 100.0% 100.0% 100.0% 100.0%
Page 26 of 130
APPENDIX B – PROGRAM TASK COST SUMMARY
Page 27 of 130
Task Program Task Title Full Cost % of Total
T-100 Rental Registry 195,025
T-101 Change Of Ownership 14,395
T-102 Re-Registration 20,459
T-103 Claim Of Exemption 29,832
T-104 Termination Of Exemption 7,798
T-105 Rental Registry Fee (Collection)160,303
T-106 Late Payment/Other Finance Transact 24,740
T-107 General Inquiries 72,526
525,078 16%
T-201 Inquiry About Compliance/Violation 30,969
T-202 Notices Of Violation/Complaints 11,946
T-203 Investigation Of Complaints 20,016
T-204 Citations Prosecution & Litigations 54,790
T-205 Code Enforcement Inspections 95,861
T-206 Case Correspondence & Record Keepin 57,734
271,316 8%
T-301 Receive/File T.O.T/Evictions 34,441
T-302 Follow-Up On Unjust Evictions 273,152
307,593 9%
T-401 Direct Inquires & Petition Review 93,773
T-402 Annual Allowable Rent Adjustment 28,036
T-403 Fair Return Petitions 85,427
T-404 Capital Improvement Petitions 53,768
T-405 Tenant Petition 311,283
572,287 18%
T-501 Mediation (Pre)Counseling 37,085
T-502 Mediation Cases Heard 154,706
191,791 6%
T-601 Direct Inquiries For Hearings/Appea 5,803
T-602 Time Of Hearing 147,081
T-603 Appleal (Of Decision)206,398
359,282 11%
T-700 Rental Housing Board 284,493 9%
T-800 Rent Stabilization Program 732,064 23%
TOTAL BY PROGRAM TASKS $3,243,904 100%
Page 28 of 130
APPENDIX C – PROGRAM TASK COST DETAILS
Page 29 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
RENTAL REGISTRY T-100
32,450
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION DIVISION MANAGER 10% Of Time 0.01 $1.11 32,450 $36,020
RENT STABILIZATION HOUSING PROGRAMS ANALYST 1% Of Time 0.00 $0.13 32,450 $4,219
RENT STABILIZATION HOUSING PROGRAMS COORD 10% Of Time 0.01 $0.74 32,450 $24,013
RENT STABILIZATION MANAGEMENT ANALYST 15% Of Time 0.01 $0.83 32,450 $26,934
RENT STABILIZATION SR OFFICE ASST 15% Of Time 0.01 $0.58 32,450 $18,821
RENT STABILIZATION 3Di Software 0.00 $2.62 32,450 $85,019
$195,025 $6.01 0.03TYPE SUBTOTAL
$195,025 0.03TOTALS $6.01
Page 30 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
CHANGE OF OWNERSHIP T-101
120
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION HOUSING PROGRAMS COORD 30 Min Ea 0.50 $73.34 120 $8,801
RENT STABILIZATION MANAGEMENT ANALYST 15 Min Ea 0.25 $27.33 120 $3,280
RENT STABILIZATION SR OFFICE ASST 15 Min Ea 0.25 $19.29 120 $2,315
$14,395 $119.96 1.00TYPE SUBTOTAL
$14,395 1.00TOTALS $119.96
Page 31 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
RE-REGISTRATION T-102
10,281
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION HOUSING PROGRAMS ANALYST 30 Min/Wk 0.00 $0.33 10,281 $3,393
RENT STABILIZATION MANAGEMENT ANALYST 3 Hrs/Wk 0.02 $1.66 10,281 $17,066
$20,459 $1.99 0.02TYPE SUBTOTAL
$20,459 0.02TOTALS $1.99
Page 32 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
CLAIM OF EXEMPTION T-103
4,835
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION CODE ENF OFFICER 4 Hrs/Wk 0.04 $4.29 4,835 $20,742
RENT STABILIZATION HOUSING PROGRAMS ANALYST 30 Min/Wk 0.01 $0.70 4,835 $3,385
RENT STABILIZATION MANAGEMENT ANALYST 1 Hr/Wk 0.01 $1.18 4,835 $5,705
$29,832 $6.17 0.06TYPE SUBTOTAL
$29,832 0.06TOTALS $6.17
Page 33 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
TERMINATION OF EXEMPTION T-104
240
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION DEPUTY CITY ATTORNEY 4 Hrs/Mo 0.20 $26.53 240 $6,367
RENT STABILIZATION MANAGEMENT ANALYST 15 Min/Wk 0.05 $5.96 240 $1,430
$7,798 $32.49 0.25TYPE SUBTOTAL
$7,798 0.25TOTALS $32.49
Page 34 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
RENTAL REGISTRY FEE (COLLECTION)T-105
32,450
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION ACCOUNTANT II 20% Of .5 Fte 0.01 $0.55 32,450 $17,848
RENT STABILIZATION ADMIN SVCS MGR 10% Of Time 0.00 $0.21 32,450 $6,815
RENT STABILIZATION DIVISION MANAGER 5% Of Time 0.00 $0.56 32,450 $18,172
RENT STABILIZATION HOUSING PROGRAMS COORD 5% Of Time 0.00 $0.37 32,450 $12,007
RENT STABILIZATION MANAGEMENT ANALYST 30% Of Time 0.02 $1.65 32,450 $53,543
RENT STABILIZATION SR ACCOUNTING ASST 80% Of .5 Fte 0.02 $1.60 32,450 $51,920
$160,303 $4.94 0.05TYPE SUBTOTAL
$160,303 0.05TOTALS $4.94
Page 35 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
LATE PAYMENT/OTHER FINANCE TRANSACT T-106
1,000
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION ACCOUNTANT II 5% Of .5 Fte 0.04 $4.45 1,000 $4,450
RENT STABILIZATION MANAGEMENT ANALYST 3 Hrs/Wk 0.16 $17.05 1,000 $17,050
RENT STABILIZATION SR ACCOUNTING ASST 5% Of .5 Fte 0.04 $3.24 1,000 $3,240
$24,740 $24.74 0.24TYPE SUBTOTAL
$24,740 0.24TOTALS $24.74
Page 36 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
GENERAL INQUIRIES T-107
16,225
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION HOUSING PROGRAMS ANALYST 10% Of Time 0.02 $2.60 16,225 $42,185
RENT STABILIZATION SR OFFICE ASST Remainder 0.02 $1.87 16,225 $30,341
$72,526 $4.47 0.04TYPE SUBTOTAL
$72,526 0.04TOTALS $4.47
Page 37 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
INQUIRY ABOUT COMPLIANCE/VIOLATION T-201
325
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION DIVISION MANAGER 5 Min Ea 0.08 $17.69 325 $5,749
RENT STABILIZATION HOUSING PROGRAMS ANALYST 30 Min Ea 0.50 $64.48 325 $20,956
RENT STABILIZATION SR OFFICE ASST 10 Min Ea 0.17 $13.12 325 $4,264
$30,969 $95.29 0.75TYPE SUBTOTAL
$30,969 0.75TOTALS $95.29
Page 38 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
NOTICES OF VIOLATION/COMPLAINTS T-202
16
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION ASST CITY ATTORNEY 30 Min Ea 0.50 $84.80 16 $1,357
RENT STABILIZATION CODE ENF OFFICER 2 Hrs Ea 2.00 $199.46 16 $3,191
RENT STABILIZATION DEPUTY CITY ATTORNEY 2 Hrs Ea 2.00 $264.88 16 $4,238
RENT STABILIZATION DIVISION MANAGER 15 Min Ea 0.25 $55.29 16 $885
RENT STABILIZATION HOUSING PROGRAMS ANALYST 15 Min Ea 0.25 $32.24 16 $516
RENT STABILIZATION HOUSING PROGRAMS COORD 30 Min Ea 0.50 $73.34 16 $1,173
RENT STABILIZATION SR PARALEGAL 20 Min Ea 0.33 $36.60 16 $586
$11,946 $746.61 5.83TYPE SUBTOTAL
$11,946 5.83TOTALS $746.63
Page 39 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
INVESTIGATION OF COMPLAINTS T-203
24
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION CODE ENF OFFICER 4 Hrs Ea 4.00 $398.92 24 $9,574
RENT STABILIZATION DEPUTY CITY ATTORNEY 30 Min Ea 0.50 $66.22 24 $1,589
RENT STABILIZATION HOUSING PROGRAMS ANALYST 2 Hrs Ea 2.00 $257.92 24 $6,190
RENT STABILIZATION SR PARALEGAL 1 Hr Ea 1.00 $110.92 24 $2,662
$20,016 $833.98 7.50TYPE SUBTOTAL
$20,016 7.50TOTALS $834.00
Page 40 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
CITATIONS PROSECUTION & LITIGATIONS T-204
18
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION ASST CITY ATTORNEY 2 Hrs Ea 2.00 $339.18 18 $6,105
RENT STABILIZATION CODE ENF OFFICER 8 Hrs/Ea 8.00 $797.84 18 $14,361
RENT STABILIZATION DEPUTY CITY ATTORNEY 8 Hrs Ea 8.00 $1,059.52 18 $19,071
RENT STABILIZATION HOUSING PROGRAMS COORD 2 Hrs/Wk 5.78 $847.35 18 $15,252
$54,790 $3,043.89 23.78TYPE SUBTOTAL
$54,790 23.78TOTALS $3,043.89
Page 41 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
CODE ENFORCEMENT INSPECTIONS T-205
208
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION CODE ENF OFFICER 25% Of Time 3.93 $391.97 208 $81,530
RENT STABILIZATION HOUSING PROGRAMS ANALYST 15 Min Ea 0.25 $32.24 208 $6,706
RENT STABILIZATION HOUSING PROGRAMS COORD 1 Hr/Wk 0.25 $36.66 208 $7,625
$95,861 $460.87 4.43TYPE SUBTOTAL
$95,861 4.43TOTALS $460.87
Page 42 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
CASE CORRESPONDENCE & RECORD KEEPIN T-206
1
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION SR OFFICE ASST 10% Of Time 163.50 $12,617.30 1 $12,617
RENT STABILIZATION SR PARALEGAL 25% Of Time 406.75 $45,116.71 1 $45,117
$57,734 $57,734.01 570.25TYPE SUBTOTAL
$57,734 570.25TOTALS $57,734.00
Page 43 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
RECEIVE/FILE T.O.T/EVICTIONS T-301
10,281
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION HOUSING PROGRAMS ANALYST 4 Hrs/Wk 0.02 $2.61 10,281 $26,833
RENT STABILIZATION HOUSING PROGRAMS COORD 1 Hr/Wk 0.01 $0.74 10,281 $7,608
$34,441 $3.35 0.03TYPE SUBTOTAL
$34,441 0.03TOTALS $3.35
Page 44 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
FOLLOW-UP ON UNJUST EVICTIONS T-302
103
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION ASST CITY ATTORNEY 10 Hrs/Wk 5.05 $856.07 103 $88,175
RENT STABILIZATION CODE ENF OFFICER 1 Hr/Wk 0.50 $50.34 103 $5,185
RENT STABILIZATION DEPUTY CITY ATTORNEY 20 Hrs/Wk 10.10 $1,337.08 103 $137,719
RENT STABILIZATION HOUSING PROGRAMS ANALYST 4 Hrs/Wk 2.02 $260.39 103 $26,820
RENT STABILIZATION HOUSING PROGRAMS COORD 2 Hrs/Wk 1.01 $148.08 103 $15,252
$273,152 $2,651.96 18.68TYPE SUBTOTAL
$273,152 18.68TOTALS $2,651.96
Page 45 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
DIRECT INQUIRES & PETITION REVIEW T-401
1,388
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION HOUSING PROGRAMS ANALYST 8 Hrs/Wk 0.30 $38.65 1,388 $53,646
RENT STABILIZATION SR OFFICE ASST 10 Hrs/Wk 0.37 $28.91 1,388 $40,127
$93,773 $67.56 0.67TYPE SUBTOTAL
$93,773 0.67TOTALS $67.56
Page 46 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
ANNUAL ALLOWABLE RENT ADJUSTMENT T-402
1
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION ASST CITY ATTORNEY 4 Hrs/Yr 4.00 $678.36 1 $678
RENT STABILIZATION DIVISION MANAGER 4 Hrs/Yr 4.00 $884.56 1 $885
RENT STABILIZATION HOUSING PROGRAMS ANALYST 80 Hrs/Yr 80.00 $10,316.80 1 $10,317
RENT STABILIZATION HOUSING PROGRAMS COORD 40 Hrs/Yr 40.00 $5,866.80 1 $5,867
RENT STABILIZATION MANAGEMENT ANALYST 80 Hrs/Yr 80.00 $8,746.40 1 $8,746
RENT STABILIZATION SR OFFICE ASST 20 Hrs/Yr 20.00 $1,543.40 1 $1,543
$28,036 $28,036.32 228.00TYPE SUBTOTAL
$28,036 228.00TOTALS $28,036.00
Page 47 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
FAIR RETURN PETITIONS T-403
4
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION ASST CITY ATTORNEY 3 Hrs Ea 3.00 $508.77 4 $2,035
RENT STABILIZATION CODE ENF OFFICER 4 Hrs Ea 4.00 $398.92 4 $1,596
RENT STABILIZATION DEPUTY CITY ATTORNEY 5 Hrs Ea 5.00 $662.20 4 $2,649
RENT STABILIZATION HOUSING PROGRAMS ANALYST 125 Hrs Ea 125.00 $16,120.00 4 $64,480
RENT STABILIZATION HOUSING PROGRAMS COORD 25 Hrs Ea 25.00 $3,666.75 4 $14,667
$85,427 $21,356.64 162.00TYPE SUBTOTAL
$85,427 162.00TOTALS $21,356.75
Page 48 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
CAPITAL IMPROVEMENT PETITIONS T-404
4
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION ASST CITY ATTORNEY 3 Hrs Ea 3.00 $508.77 4 $2,035
RENT STABILIZATION CODE ENF OFFICER 4 Hrs Ea 4.00 $398.92 4 $1,596
RENT STABILIZATION DEPUTY CITY ATTORNEY 5 Hrs Ea 5.00 $662.20 4 $2,649
RENT STABILIZATION HOUSING PROGRAMS ANALYST 75 Hrs Ea 75.00 $9,672.00 4 $38,688
RENT STABILIZATION HOUSING PROGRAMS COORD 15 Hrs/Ea 15.00 $2,200.05 4 $8,800
$53,768 $13,441.94 102.00TYPE SUBTOTAL
$53,768 102.00TOTALS $13,442.00
Page 49 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
TENANT PETITION T-405
889
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION ASST CITY ATTORNEY 10 Hrs/Wk 0.58 $99.18 889 $88,171
RENT STABILIZATION CODE ENF OFFICER 8 Hrs/Wk 0.47 $46.66 889 $41,481
RENT STABILIZATION DEPUTY CITY ATTORNEY 20 Hrs/Wl 1.17 $154.91 889 $137,715
RENT STABILIZATION HOUSING PROGRAMS ANALYST 15 Min Ea 0.25 $32.24 889 $28,661
RENT STABILIZATION HOUSING PROGRAMS COORD 2 Hrs/Wk 0.12 $17.16 889 $15,255
$311,283 $350.15 2.59TYPE SUBTOTAL
$311,283 2.59TOTALS $350.15
Page 50 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
MEDIATION (PRE)COUNSELING T-501
103
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION HOUSING PROGRAMS ANALYST 2 Hrs/Wk 1.01 $130.20 103 $13,411
RENT STABILIZATION HOUSING PROGRAMS COORD 1 Hr/Wk 0.50 $74.03 103 $7,625
RENT STABILIZATION SR OFFICE ASST 2.02 $155.82 103 $16,049
$37,085 $360.05 3.53TYPE SUBTOTAL
$37,085 3.53TOTALS $360.05
Page 51 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
MEDIATION CASES HEARD T-502
103
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION HOUSING PROGRAMS ANALYST 2 Hrs/Wk 1.01 $130.20 103 $13,411
RENT STABILIZATION HOUSING PROGRAMS COORD 1 Hr/Wk 0.50 $74.03 103 $7,625
RENT STABILIZATION Contr Mediator 0.00 $1,297.77 103 $133,670
$154,706 $1,502.00 1.51TYPE SUBTOTAL
$154,706 1.51TOTALS $1,502.00
Page 52 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
DIRECT INQUIRIES FOR HEARINGS/APPEA T-601
45
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION HOUSING PROGRAMS ANALYST 1 Hr Ea 1.00 $128.96 45 $5,803
$5,803 $128.96 1.00TYPE SUBTOTAL
$5,803 1.00TOTALS $128.96
Page 53 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
TIME OF HEARING T-602
897
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION HOUSING PROGRAMS ANALYST 2 Hrs/Wk 0.12 $14.95 897 $13,410
RENT STABILIZATION Contr Hearing Ofcr 0.00 $149.02 897 $133,671
$147,081 $163.97 0.12TYPE SUBTOTAL
$147,081 0.12TOTALS $163.97
Page 54 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
APPLEAL (OF DECISION)T-603
123
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION ASST CITY ATTORNEY 3 Hrs Ea 3.00 $508.77 123 $62,579
RENT STABILIZATION CODE ENF OFFICER 1 Hr Ea 1.00 $99.73 123 $12,267
RENT STABILIZATION COMMISSION SECRETARY 1 Hr Ea 1.00 $93.33 123 $11,480
RENT STABILIZATION DIVISION MANAGER 1 Hr/Ea 1.00 $221.14 123 $27,200
RENT STABILIZATION HOUSING PROGRAMS ANALYST 2 Hrs Ea 1.00 $128.96 123 $15,862
RENT STABILIZATION HOUSING PROGRAMS COORD 2 Hrs/Ea 2.00 $293.34 123 $36,081
RENT STABILIZATION SR PARALEGAL 3 Hrs Ea 3.00 $332.76 123 $40,929
$206,398 $1,678.03 12.00TYPE SUBTOTAL
$206,398 12.00TOTALS $1,678.03
Page 55 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
RENTAL HOUSING BOARD T-700
1
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION COMMISSION SECRETARY 75% Of Time 1,226.25 $114,445.91 1 $114,446
RENT STABILIZATION DEPUTY CITY ATTORNEY 16 Hrs/Mo 191.95 $25,421.86 1 $25,422
RENT STABILIZATION DIVISION MANAGER 40% Of Time 654.00 $144,625.56 1 $144,626
$284,493 $284,493.33 2,072.20TYPE SUBTOTAL
$284,493 2,072.20TOTALS $284,493.00
Page 56 of 130
March 21, 2023
CITY OF SANTA ANA
FY 2022/23
COST DETAIL WORKSHEET
SERVICE
RENT STABILIZATION PROGRAM T-800
1
REFERENCE NO.
TOTAL UNITSNOTE
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST
RENT STABILIZATION ASST CITY ATTORNEY Remainder Of 1 Fte 154.14 $26,140.60 1 $26,141
RENT STABILIZATION CODE ENF OFFICER Remainder Of 1 Fte 1,349.60 $134,595.61 1 $134,596
RENT STABILIZATION COMMISSION SECRETARY Remainder Of 1 Fte 285.75 $26,669.05 1 $26,669
RENT STABILIZATION DEPUTY CITY ATTORNEY Remainder Of 2 Fte 722.26 $95,656.11 1 $95,656
RENT STABILIZATION DIVISION MANAGER Remainder Of 1 Fte 578.73 $127,980.35 1 $127,980
RENT STABILIZATION HOUSING PROGRAMS ANALYST Remainder Of 1 Fte 177.37 $22,873.64 1 $22,874
RENT STABILIZATION HOUSING PROGRAMS COORD Remainder Of 1 1 Fte 355.80 $52,185.19 1 $52,185
RENT STABILIZATION MANAGEMENT ANALYST Remainder Of Time 412.20 $45,065.83 1 $45,066
RENT STABILIZATION SR ACCOUNTING ASST Remainder Of .5 Fte 122.63 $9,724.56 1 $9,725
RENT STABILIZATION SR PARALEGAL Remainder Of 1 821.97 $91,172.91 1 $91,173
RENT STABILIZATION Educ & Outreach 0.00 $100,000.00 1 $100,000
$732,064 $732,063.85 4,980.45TYPE SUBTOTAL
$732,064 4,980.45TOTALS $732,064.00
Page 57 of 130
APPENDIX D – ESTIMATED RENTAL UNITS
Page 58 of 130
Year Built Total Rental
Units
Single‐Family
Rental Units
Multi‐Family
Rental Units
Mobile
Homes
Fully Covered (Pre 1995) 31,817 4,908 24,039 2,870
Partially Covered (1995-2008) 633 24 609 -
Total 32,450 4,932 24,648 2,870
Source: City of Santa Ana
Page 59 of 130
APPENDIX E – WORK PLAN DATED JANUARY 17, 2023
Page 60 of 130
January 17, 2023
City of Santa Ana
Work Plan for the Rent Stabilization
and Just Cause Eviction Ordinance
Page 61 of 130
1
TABLE OF CONTENTS
RENT STABILIZATION DIVISION OVERVIEW .............................................................. 4
Functions of the Division .............................................................................................. 4
ORGANIZATIONAL CHART ........................................................................................... 5
FUNCTIONAL UNITS ...................................................................................................... 7
Administrative Unit ....................................................................................................... 9
Legal Unit .................................................................................................................. 15
Hearings and Mediation Unit ..................................................................................... 17
ADDITIONAL STAFF AND SERVICES ......................................................................... 18
STAFFING PLAN METHODOLOGY AND ESTIMATED COSTS .................................. 20
EXISTING CITY RESOURCES ..................................................................................... 21
Code Enforcement Division ....................................................................................... 21
City Attorney’s Office ................................................................................................. 21
ADDITIONAL CONSIDERATIONS................................................................................ 22
Budget Considerations .............................................................................................. 22
Contractor Considerations ......................................................................................... 22
Division Office ............................................................................................................ 23
Subscriptions ............................................................................................................. 23
EXHIBIT A ..................................................................................................................... 24
Page 62 of 130
2
INTRODUCTION
Effective November 18, 2022, the Santa Ana City Council (“City Council”) adopted the Rent
Stabilization and Just Cause Eviction Ordinance (“Ordinance”). The Ordinance provides for the
administration and enforcement of renter protections for Santa Ana renters by establishing a
rental housing board and a rental registry program. The Ordinance also includes petitions for
tenants and landlords, voluntary mediation services, and various other administrative
components. The Ordinance adheres to the Long-Term Implementation Plan adopted by City
Council on September 6, 2022. In compliance with the Ordinance and the Long-Term
Implementation Plan, City staff and RSG, Inc. have developed this Work Plan describing the
administrative structure necessary to support the delivery of efficient and effective program
services to landlords and tenants.
The City currently administers the Ordinance through a consultant, RSG, Inc. and partial staff time
from a Housing Programs Analyst, Housing Division Manager, and Assistant City Attorney. Before
adopting a rental registry fee, a W ork Plan detailing and itemizing exactly how the Ordinance will
be administered (e.g., how the fees will be used) needs to be established. In our research of
sample jurisdictions throughout the State of California, the following general services were
provided as best practices to effectively implement rent stabilization and just cause eviction
ordinances:
Annual Registration – Process registration fees for the rental registry, maintain rental
registry, and send annual notices of maximum allowable rent increases.
Compliance – Process notices of violations and complaints, send notices of
noncompliance to landlords, and pursue compliance activities as necessary for
noncompliant properties.
Evictions/Termination of Tenancy – Review notices of eviction/termination of tenancy to
ensure compliance with the JCEO.
Hearings and Appeals – Process hearings for appeals to rent amounts and petitions. This
includes communicating with the tenants and landlords involved, collecting supporting
documentation, coordinating with the Rental Housing Board, and writing letters of
determination.
Housing Counseling/Mediation – Provide tenant and landlord housing counseling and
mediation services.
Petitions – Receive, review, and analyze data to provide decisions on petitions, subject to
appeal.
Public Information – Provide customer service to inquiring tenants and landlords and
conduct on-going community outreach and education.
Rental Housing Board Administration – Facilitate regular meetings and complete
administrative tasks related to the Rental Housing Board.
Considering all these best practices, this W ork Plan has been prepared and provided to Revenue
& Cost Specialists, LLC to conduct a fee study to determine the rental registry fee. A detailed
budget to match the Work Plan will also be included in the process to develop a rental registry
fee. Under Section 50076 of the California Government Code, fees charged for any service or
Page 63 of 130
3
regulatory activity must not exceed the reasonable cost of providing the service. To ensure this
requirement is satisfied, the City is conducting the fee study. The Fee Study will determine the
Rental Registry Fee to be adopted by the City Council and paid by landlords to finance the
Program's reasonable and necessary expenses.
The Work Plan accounts for the best practices outlined above in jurisdictions with existing rent
stabilization and just cause eviction programs across the State of California while adhering to the
guiding principles approved by the City Council. Specifically:
1) The Rental Registry Fee will be as low and lean as possible as to avoid any unnecessary
burdens on tenants;
2) Analyze the efficiency and provide a cost comparison of utilizing a hybrid of services
between consultants and city staff; and
3) Identify and analyze ways to build upon other existing services across the City to
administer the Ordinance.
This Work Plan is considered a key component of the administrative framework needed to
proceed with program implementation. The Work Plan will serve as the baseline of information
needed by Revenue & Cost Specialists, LLC to establish a Rental Registry Fee to offset and
ultimately fully recover the costs of Program administration and enforcement. Most cities that
have adopted rent stabilization and just cause eviction programs have established annual rental
registry fees to recover the cost of program administration and enforcement. Based on this
precedence, user fees are established in circumstances such as this, where unique benefits are
established for a subset of individuals. Under the law, such fees must bear a nexus to the actual
costs incurred in administering the program. The following Work Plan is intended to serve as the
primary nexus for the development of a fee to support the administration and enforcement of the
Ordinance.
Page 64 of 130
4
RENT STABILIZATION DIVISION OVERVIEW
The Rent Stabilization Division (“Division”) will administer the Rent Stabilization Program
(“Program”).1 The Division and Program will serve landlords and tenants who are covered by the
Ordinance by providing rental housing stability, housing affordability, and housing habitability for
renters and landlords in the City of Santa Ana.
The Division will be established as a new division in the Community Development Agency
(“Agency”). The Agency currently has four divisions: Housing Division, Homeless Services,
Economic Development, and Administrative Services. The Renter Protections Division will be the
fifth division in the Agency. To date, the Agency has been integrally involved in the development
and implementation of the Ordinance. The Agency overall has developed a strong knowledge of
the policy foundations and program issues and is well suited to oversee the Division. To
implement the services required in the Ordinance, the Division will require paid administrative
staff and support functions from consultants and other Departments in the City. The Rent
Stabilization Division staff will manage the day-to-day administration and enforcement of the
Ordinance, including all the administrative components outlined within this Work Plan.
Functions of the Division
The primary functions of the Division are to:
Promote rental housing stability, housing affordability, and housing habitability for renters.
Protect tenants from unreasonable rent increases and unjust evictions.
Implement, administer, monitor, support, and enforce all the provisions of the Ordinance.
Support the Rental Housing Board to administer their powers and duties including
schedule regular meetings at least once each calendar month; conduct hearings on
petitions, applications and appeals; promulgate and implement policies and procedures
for the administration and enforcement of the Ordinance; and other duties specified in the
Ordinance.
Implement, administer, monitor, support, and enforce the policies and procedures issued
and approved by staff and the Rental Housing Board.
Protect, enforce, support, educate and publicize: 1) a landlord’s right to receive a fair return
on their property through a Fair Return Petition; 2) a landlord’s right to submit a Capital
Improvement Petition; and 3) a tenant’s right to submit a Tenant Petition.
Provide the highest level of customer service to the rental housing community including
landlords, tenants, real estate brokers, prospective tenants and prospective property
owners.
Conduct education and outreach to the community related to the Ordinance.
1 Division and Program may be used interchangeably throughout this Work Plan.
Page 65 of 130
5
Collect, enforce, account, budget, allocate, expend and report rental registry fees.
Hire, train, develop, support, retain, deploy and compensate paid staff and consultants to
fulfill these goals with revenue generated through the rental registry fee.
Report to the Executive Director of Community Development, City Manager, Rental
Housing Board, and the Santa Ana City Council, in that order.
All the activities and actions described in this Work Plan must conform to the Ordinance and these
functions. The activities, actions and functions described in this Work Plan are not intended to be
exhaustive.
ORGANIZATIONAL CHART
The administration and enforcement of the Ordinance will require an Administrative Unit
supported by a Legal Unit, and a Hearings and Mediation Unit. The Organizational Chart on the
following page details the full-time equivalents (FTEs) that will be assigned to each unit.
Page 66 of 130
6
Page 67 of 130
7
FUNCTIONAL UNITS
The administration and enforcement of the Ordinance will require the following functional units:
Administrative Unit, Legal Unit and Hearings Unit. Each unit will be responsible for the following
functions as part of the Division.
I. Administrative Unit
The Administrative Unit will have the most responsibility amongst all three units. The unit
will be responsible for the general management and oversight of the Rent Stabilization
Program including the following functions:
Promote rental housing stability, housing affordability, and housing habitability for
renters.
Protect tenants from unreasonable rent increases and unjust evictions (Shared
with Legal Unit)
Implement, administer, monitor, support, and enforce all the provisions of the
Ordinance. (Shared with Legal and Hearings Unit)
Support the Rental Housing Board to administer their powers and duties including
schedule regular meetings at least once each calendar month; conduct hearings
on petitions, applications and appeals; promulgate and implement policies and
procedures for the administration and enforcement of the Ordinance; and other
duties specified in the Ordinance. (Shared with Legal and Hearings Unit)
Implement, administer, monitor, support, and enforce policies and procedures
issued and approved by staff and the Rental Housing Board. (Shared with Legal
and Hearings Unit)
Collect, enforce, account, budget, allocate, expend and report rental registry fees.
Hire, train, develop, support, retain, deploy and compensate paid staff and
consultants to fulfill these goals with revenue generated through the rental registry
fee.
Protect, enforce, support, educate and publicize: 1) a landlord’s right to receive a
fair return on their property through a Fair Return Petition; 2) a landlord’s right to
submit a Capital Improvement Petition; and 3) a tenant’s right to submit a Tenant
Petition. (Shared with Hearings Unit)
Provide the highest level of customer service to the rental housing community
including landlords, tenants, real estate brokers, prospective tenants and
prospective property owners. (Shared with Legal and Hearings Unit)
Conduct education and outreach to the community related to the Ordinance.
In addition, the unit will be responsible to 1) administer and enforce the Rental Registry
on behalf of tenants and landlords; 2) respond to and direct action throughout the Division;
3) fully resolve issues and concerns; and 4) provide management support to the other two
units.
Page 68 of 130
8
II. Legal Unit
The Legal Unit services will be provided by a new division in the City Attorney’s Office and
generally responsible for enforcing the Ordinance, including the following functions:
Protect tenants from unreasonable rent increases and unjust evictions (Shared
with Administrative Unit)
Implement, administer, monitor, support, and enforce all the provisions of the
Ordinance. (Shared with Administrative and Hearings Unit)
Support the Rental Housing Board to administer their powers and duties including
regular meetings at least once each calendar month; conduct hearings on
petitions, applications and appeals; promulgate and implement policies and
procedures for the administration and enforcement of the Ordinance; and other
duties specified in the Ordinance. (Shared with Administrative and Hearings Unit)
Implement, administer, monitor, support, and enforce policies and procedures
issued and approved by staff and the Rental Housing Board. (Shared with
Administrative and Hearings Unit)
Provide the highest level of customer service to the rental housing community
including landlords, tenants, real estate brokers, prospective tenants and
prospective property owners. (Shared with Administrative and Hearings Unit)
In addition, the unit will be responsible to investigate allegations and complaints; make
referrals to code enforcement officers to conduct inspections, and follow-up and prosecute
violations of the Ordinance. The Planning and Building Agency will provide two Code
Enforcement Officers (2 FTEs) dedicated to this unit and will be responsible to conduct
inspections on behalf of this unit.
III. Hearings and Mediation Unit
The Hearings and Mediation Unit will consist of two consultants and be responsible for
overseeing petitions, voluntary mediation services, hearings and appeals including the
following functions:
Implement, administer, monitor, support, and enforce all the provisions of the
Ordinance. (Shared with Administrative and Legal Unit)
Support the Rental Housing Board to administer their powers and duties including
conduct hearings on petitions, applications and appeals. (Shared with
Administrative and Legal Unit)
Implement, administer, monitor, support, and enforce policies and procedures
issued and approved by staff and the Rental Housing Board. (Shared with
Administrative and Legal Unit)
Protect, enforce, support, educate and publicize: 1) a landlord’s right to recei ve a
fair return on their property through a Fair Return Petition; 2) a landlord’s right to
submit a Capital Improvement Petition; and 3) a tenant’s right to submit a Tenant
Petition. (Shared with Administrative Unit)
Page 69 of 130
9
Administrative Unit
The Administrative Unit’s primary goal is to administer the Ordinance and implement the day-to-
day operations of the Rent Stabilization Program. The structure of the Administrative Unit includes
seven (7) full-time equivalents (FTEs). The Division Manager – Rent Stabilization Program is a
new position to the City. The Housing Programs Coordinator position and Housing Programs
Analyst position are existing positions that will need to be formally updated to incorporate new
responsibilities into the job descriptions. The other positions are existing positions shared
throughout the City; these positions will have specific responsibilities when assigned to the Rent
Stabilization Program that comply with their current job description(s).
These positions will be responsible for the following essential functions and job responsibilities:
1. NEW - Division Manager – Rent Stabilization Program (1 FTE): Manages the
implementation, administration, monitoring, support, and enforcement of the Rent
Stabilization and Just Cause Eviction Ordinance. Manages and oversees the Rent
Stabilization Division and provides highly responsible and complex administrative support
to the Executive Director of Community Development. Administers the development of
policies, procedures, performance standards, strategies, and priorities for the Rent
Stabilization Program based on analysis and interpretation of state and local laws and
direction from the Executive Director of Community Development, City Manager, Rental
Housing Board and City Council, in that order. Oversees the formulation of long and short-
term strategies to fulfill the goals and functions of the Ordinance and Division.
Page 70 of 130
10
Manages the City's Rental Registry and collection, enforcement, accounting, budgeting,
allocation, expenditure and reporting of fees. Manages the general enforcement of the
Ordinance and all legal actions undertaken by the City. Approves and enforces the
administrative citation process and schedule of fines for violations of the Ordinance.
Fosters compliance with the Ordinance by educating the rental community on their rights
and responsibilities, correcting curable violations, and citing instances of violations when
necessary. Identifies instances of potential non-compliance and investigates and enforces
such instances with a targeted approach to inform residents and landlords of their rights
and responsibilities. Strengthens enforcement with follow up on key requirements of the
Ordinances, including landlords’ filing of tenancy termination notice to identify potential
non-compliance.
Protects, enforces, supports, educates and publicizes: 1) a landlord’s right to receive a fair
return on their property through a Fair Return Petition; 2) a landlord’s right to submit a
Capital Improvement Petition; and 3) a tenant’s right to submit a Tenant Petition. Ensures
tenants and landlords who participate in the Petitions or in mediation follow through with
the process, are accountable with the outcomes, and are satisfied with the process.
Manages the outreach and multilingual engagement to vulnerable communities to provide
petition and mediation services to resolve tenant and landlord conflicts.
Manages all public information issued and released pertaining to the Ordinance. Fully
responds to all general inquiries and complaints. Provides the highest level of customer
service to the rental housing community including landlords, tenants, real estate brokers,
prospective tenants and prospective property owners. Hires, trains, develops, supports,
retains, deploys, compensates, and supervises all paid staff in the Rent Stabilization
Division. Oversee staff procurement and training as it relates to the administration of the
Ordinance. Appoints and contracts a Mediator, Hearing Officer and any other contracted
services and positions as needed. Serves as direct staff for the Rental Housing Board to
administer their powers and duties including schedules regular meetings at least once
each calendar month; conducts hearings on petitions, applications and appeals;
promulgates and implements policies and procedures for the administration and
enforcement of the Ordinance; and other duties specified in the Ordinance. Designates
and coordinates training requirements for the Rental Housing Board and all staff. Provides
direct support to the Rental Housing Board by coordinating meeting agendas and
preparing reports for all Board meetings. Oversees the preparation of agendas for the
Rental Housing Board. Implements, administers, monitors, supports, and enforces
policies and procedures issued and approved by staff and the Rental Housing Board.
Conducts education and outreach to the community related to the Ordinance. Coordinates
and participates in citywide and neighborhood-based housing planning activities to
promote rental housing stability, housing affordability, and housing habitability for renters
in the City. Protects tenants from unreasonable rent increases and unjust evictions.
Develops the Division budget. Coordinates the annual audit of the Division with outside
agencies; conducts internal audits and quality control to ensure compliance with the
Ordinance; responds to external audit reviews. Establishes Division goals and objectives.
Monitors and evaluates the efficiency and effectiveness of customer service delivery
methods and procedures. Prepares, publishes, presents and maintains a variety of
reports, including annual reports to the Rental Housing Board and financial reports and
records; conducts and oversees complex studies and related research. Establishes and
Page 71 of 130
11
maintains effective relationships with community-based organizations, neighborhood
groups, citizen advisory bodies and elected officials; resolves complaints and mediates
disputes. Acts as an advisor to appointed and elected officials on housing stability,
housing affordability, and housing habitability issues; ensures record management in
accordance with legal requirements and City policy; represents the City, or delegates such
authority, in relations with the community, local, and state agencies and professional
organizations. Performs other assigned functions as required.
2. NEEDS FORMAL UPDATE - Housing Programs Coordinator (1 FTE): Click Here for
City Job Description
Coordinates and manages the Rental Registry, Ordinance Enforcement, Petitions,
Housing Counseling, Public Information, General Inquiries and Complaints. Provides
highly responsible and complex administrative support to the Division Manager.
Supervises assigned staff including the Housing Programs Analyst (2 FTEs), the
Management Analyst (1 FTE), and Senior Office Assistant (1 FTE). Performs responsible
and professional staff work to ensure efficient and effective internal operations of
administrative and management systems in the Rent Stabilization Program.
Coordinates and manages the Rental Registry, including processing and accepting a
registration fee, maintaining the Rental Registry, and sending notices to landlords as
needed. Collects, enforces, accounts, budgets, allocates, expends and reports rental
registry fees. Works with landlords and tenants to submit required documentation, verify
coverage under the Program, and ensure rental unit data is always up to date (e.g., rent
increases, vacancies, and notices). Performs complex studies, research, and analysis
relative to the Rent Stabilization Program. Prepares annual Division Budget and mid-year
budget adjustment for Division Manager based on annual fees collected.
Coordinates with the Legal Unit to investigate, coordinate, implement and oversee
enforcement action; coordinates and manages advice on legal matters as they pertain to
the Ordinance and public inquiries. Coordinates and manages inspections for Code
Enforcement Officers on matters related to rental housing habitability and inspections of
units. Coordinates and manages the administrative citation process and schedule of fines
for violations of the Ordinance.
Coordinates and manages all Fair Return, Capital Improvement, and Tenant Petitions.
Implements processes and procedures to ensure the most efficient implementation of
petitions. Coordinates and manages tenant and property owner petitions, as well as
scheduling mediations and administrative hearings. Coordinates hearing officers,
mediations and administrative hearings to assist in resolving rental issues under the
Ordinance including contracted hearing officer services. Coordinates and manages all
mediation services including contracted mediator(s) services. Coordinates and manages
the outreach and multilingual engagement to vulnerable communities to provide petition
and mediation services to resolve tenant and landlord conflicts.
Coordinates and manages tenant and landlord housing counseling and mediation
services.
Page 72 of 130
12
Coordinates and manages compliance with the Ordinance to reduce avoidable
displacement by providing access to resources, and analyzes data compiled to
understand trends among just cause terminations.
Coordinates and manages the spread of information about the Ordinance by maintaining
informational handouts and keeping the City’s webpage up to date. Plans, prepares, and
conducts community educational workshops for landlords and tenants and maintains the
Agency’s social media accounts.
Coordinates and manages Division-wide response to daily inquiries from landlords and
tenants on their rights and responsibilities under the Ordinance, including phone calls,
emails, and walk-ins.
Coordinates and manages Division-wide response to questions and concerns by tenants
and landlords through phone calls, emails and in-person appointments. Provides
additional information to tenants and landlords to meet individual needs, ensures public
information materials are available and responsive to the latest questions and concerns
made by the public.
3. NEEDS FORMAL UPDATE - Housing Programs Analyst (2 FTEs): Click Here for City
Job Description
When assigned to the Rent Stabilization Division:
Under general supervision, assists with the administration and enforcement of the Rent
Stabilization Ordinance. Analyzes and evaluates Rent Stabilization Program for the
purpose of developing plans and procedures. Conducts surveys and research; performs
financial analyses. Collects, analyzes and evaluates data to assess local housing needs.
Oversees and implements the rental registry, collection of rental registry fees and related
software. Researches, analyzes, makes recommendations and implements the Rent
Stabilization and Just Cause Eviction Ordinance. Develops measurable program
objectives to ensure effective operation of the Rent Stabilization Program. Coordinates
implementation of Rent Stabilization Program and monitors compliance. Works closely
with Legal Unit and Hearings Unit to monitor and enforce compliance.
Responds to general inquiries and meets with property owners and tenants to address
issues, develop solutions, and answer questions; develops and implements policies and
procedures; manages notices of tenancy termination, including reviewing notices to
examine accuracy and analyze trends; engages and educates community members and
community-based organizations through printed and digital medias, community
presentations, site visits to both apartment complexes and mobilehome communities, and
multilingual workshops.
Assists owners with the process to withdraw rent stabilized units from the rental market.
Assists and coordinates with tenants to ensure relocation assistance is provided. Monitors
withdrawn properties that have or have not been rehabilitated, as well as evaluate impacts
on tenants displaced by the economics of redevelopment.
Administers the Rental Registry with primary financial and administrative support from the
Management Analyst, including processing and accepting a registration fee, maintaining
the Rental Registry, and sending notices to landlords as needed. Works with landlords
Page 73 of 130
13
and tenants to submit required documentation, verify coverage under the Program, and
ensure rental unit data is always up to date (e.g., rent increases, vacancies, and notices).
Receives and processes Fair Return, Capital Improvement, and Tenant Petitions.
Reviews petitions for completeness, notifies petitioners of the acceptance or denial of the
petition based on completeness. Provides complete petitions to the Hearings Unit in a
timely manner. Manages tenant and property owner petitions, as well as scheduling
mediation and administrative hearings. Coordinates hearing officers, mediators and
administrative hearings to assist in resolving rental issues under the Ordinance. Receive,
facilitate and coordinate requests for mediation. Field inquiries and submit referrals to get
the mediation process started. Ensure tenants and landlords who participate in the
petitions or in mediation follow through with the process, are accountable with the
outcomes, and are satisfied with the process. Manage the outreach and multilingual
engagement to vulnerable communities to provide petition and mediation services to
resolve tenant and landlord conflicts.
Collaborates and coordinates with the Division Manager, Housing Programs Coordinator
and Legal Unit to investigate, coordinate, and implement enforcement action; receive and
implement advice on legal matters as they pertain to the Ordinance and public inquiries.
Reviews notices of eviction/termination of tenancy to ensure compliance with the
Ordinance. Coordinates and refers inspections to Code Enforcement Officers on matters
related to rental housing habitability and inspections of units. Implements the
administrative citation process and schedule of fines for violations of the Ordinance with
approval by the Division Manager.
Provides community members with individualized counseling and supportive services on
issues related to the Ordinance and associated state laws. Provides tenant and landlord
housing counseling and mediation services to prevent displacement.
Monitors compliance with the Ordinance to reduce avoidable displacement by pro viding
access to resources; analyzes data compiled to understand trends among just cause
terminations. Follows-up with landlords who fail to provide a copy of a notice to the city.
Coordinates the spread of information about the Ordinance by maintaining informational
handouts and keeping the City’s webpage up to date. Plans, prepares, and conducts
community educational workshops for landlords and tenants and maintains the Agency’s
social media accounts.
Responds to daily inquiries from landlords and tenants on their rights and responsibilities
under the Ordinance, including phone calls, emails, and walk-ins. General inquiries are
most often about the Ordinance and basic provisions such as evictions, allowable rent
increases, and the petition process.
Receives and responds to questions and concerns by tenants and landlords through
phone calls, emails and in-person appointments. Provides additional information to
tenants and landlords to meet individual needs, ensures public information materials are
available and responsive to the latest questions and concerns made by the public.
Page 74 of 130
14
4. Management Analyst (1 FTE): Click Here for City Job Description
When assigned to the Rent Stabilization Division:
Oversees and administers the Rental Registry, including processing and accepting the
rental registry fee, maintaining the Rental Registry, and sending notices to landlords as
needed. Oversees the enrollment of all properties in the City in the rental registry.
Collects, enforces, accounts, budgets, allocates, expends and reports all rental registry
fees for the entire operation of the Division. Works with landlords and tenants to submit
required documentation and payment; verify coverage under the Program, and ensure
rental unit data is always up to date (e.g., rent increases, vacancies, and notices).
Monitors compliance and analyzes trends for rent-stabilized properties subject to the
Ordinance. Collects information in the rental registry relating to rent increases, security
deposits, vacancies, and vacancy reasons, to ensure tenants’ rights are protected. Tracks
rent stabilized rents and annual rent increases. Analyzes the length of tenancy and
turnover rates in rent stabilized apartments to measure effects of rent stabilization and
compare to market rate turnover rates. Leverages database as an enforcement
mechanism of rent increases to ensure rent stabilization by informing landlords of
improper rent increases beyond the lower of 3% or 80% of the Consumer Price Index in
the Rent Registry and assists and coordinates with tenants to verify rent levels. Provides
rental registry workshops; issues mailers to property owners and managers; sends e-mail
blasts to e-mail subscribers. Develops video tutorials and responds to phone, e-mail and
in-person interaction to provide support. Provides guidance and information in multiple
languages. Provides paper registration forms to landlords who prefer not to submit
information electronically. Inform s landlords about the Rental Registry, educates them
about their obligations, and provides technical assistance throughout the registration
process. Reviews non-registered property owners and identifies property owners in
violation. Mails and e-mails corrective action and notices of violation as needed.
Receives and processes payments for Fair Return, Capital Improvement, and Tenant
Petitions. Collects, enforces, accounts, budgets, allocates, expends and reports all petition
payments for the entire operation of the Division. Notifies petitioners of the acceptance or
denial of the petition based on payment. Provides efficient and effective customer service
to process petitions submitted by landlords and mobilehome park owners.
5. Senior Office Assistant (1 FTE): Click Here for City Job Description
When assigned to the Rent Stabilization Division:
Responds to daily inquiries from landlords and tenants on their rights and responsibilities
under the Ordinance, including phone calls, emails, and walk-ins. General inquiries are
most often about the Ordinance and basic provisions such as evictions, allowable rent
increases, and the petition process.
Coordinates the spread of information about the Ordinance by maintaining all
informational handouts in multiple languages and keeping the City’s front-desk and
webpage up to date with the most current public documents.
Receives and responds to questions and concerns by tenants and landlords through
phone calls, emails and in-person appointments. Maintains detailed records of public
inquiries and complaints; provides additional information to tenants and landlords to meet
Page 75 of 130
15
individual needs, ensures public information materials are available and responsive to the
latest questions and concerns made by the public.
6. Commission Secretary (1 FTE): Click Here for City Job Description
When assigned to the Rent Stabilization Division:
Under general supervision of the Division Manager, performs responsible and complex
clerical work, secretarial work and routine administrative activities in support of the City’s
Rental Housing Board. Facilitates regular meetings and complete administrative tasks
related to the Rental Housing Board.
Legal Unit
The Legal Unit’s primary goal is to enforce the Ordinance and provide legal services for the
Division. The unit will be an entirely separate division physically located in the City Attorney’s
Office. The structure of this unit includes three (3) full-time equivalents (FTEs). Two of the three
full-time equivalents could be replaced by specialized legal services contracted by the City
(<$150,000), but at least one FTE must be a City employee dedicated only to the Ordinance.
There is also one (1) shared position with the Hearings and Mediation Unit in the Division. These
positions may be assigned to the City Attorney’s Office instead of the Community Development
Agency.
These positions will be responsible for the following essential functions and job responsibilities:
1. Assistant City Attorney (1 FTE): Click Here for City Job Description
When assigned to the Rent Stabilization Division:
Directly supports the Division Manager and Housing Programs Coordinator to manage the
implementation, administration, monitoring, support, and enforcement of the Rent
Stabilization and Just Cause Eviction Ordinance. Protects tenants from unreasonable rent
increases and unjust evictions. Implements, administers, monitors, supports, and
enforces all the provisions of the Ordinance. Enforces compliance with the City's Rental
Registry and collection and enforcement of fees to administer the Ordinance. Manages
the general enforcement of the Ordinance and any legal actions undertaken by the City
Page 76 of 130
16
together with the Division Manager. Oversees the administrative citation process and
schedule of fines for violations of the Ordinance together with the Division Manager.
Provides investigatory and enforcement support for violations of the Ordinance as
determined by Division staff. This includes the use of administrative citations, followed by
prosecution as a misdemeanor or infraction.
Provides enforcement against any landlord who fails to register a rental unit or provide
current and accurate data regarding a Rental Unit. Additionally, monitors situations in
which the landlord has advertised for Rent, demanded or accepted rent, or evicted any
tenant from a rental unit, if the registration is not complete and accurate.
Serves as staff support together with the Division Manager – Rent Stabilization Division
to the Rental Housing Board. Facilitates regular meetings and completes administrative
tasks related to legal aspects of the Rental Housing Board. Supports the Rental Housing
Board to administer their powers and duties including attends regular meetings at least
once each calendar month; facilitates and attends hearings on petitions, applications and
appeals; promulgates and implements policies and procedures for the administration and
enforcement of the Ordinance; and other duties specified in the Ordinance. Implements,
administers, monitors, supports, and enforces policies and procedures issued and
approved by staff and the Rental Housing Board. Provides an annual training to the Board
on the Brown Act.
Assists the Division’s contracted Mediator, Hearing Officer and any other contracted
services and positions.
Reviews all public information issued and released pertaining to the Ordinance.
Acts as a direct advisor to the Division Manager on housing stability, housing affordability,
and housing habitability issues; advises on record management in accordance with legal
requirements and City policy.
Provides the highest level of customer service to the rental housing community including
landlords, tenants, real estate brokers, prospective tenants and prospective property
owners.
2. Deputy City Attorney (2 FTEs): Click Here for City Job Description
When assigned to the Rent Stabilization Division:
Identifies instances of potential non-compliance and investigates and enforces such
instances with a targeted approach on behalf of both tenants and landlords. Strengthens
enforcement with follow up on key requirements of the Ordinances, including landlords’
filing of tenancy termination notice to identify potential non-compliance.
Investigates all allegations and complaints of violations of the Ordinance. Reviews notices
of eviction/termination of tenancy to ensure compliance with the Ordinance.
Makes referrals of possible code violations. Provides enforcement support for violations
of the Ordinance as determined by Division staff, including the issuance of non-
compliance notices, citations, and forwarding cases to the City Attorney for prosecution
Page 77 of 130
17
as needed. Two Code Enforcement Officers (2 FTEs) will be located in the Planning and
Building Agency and will be responsible to conduct inspections on behalf of this position.
Provide tenant and landlord housing counseling and mediation services.
3. Senior Paralegal (1 FTE): Click Here for City Job Description
When assigned to the Rent Stabilization Division:
Manages and coordinates all hearings for appeals to rent amounts and petitions.
Communicates with the tenants and landlords involved, collects supporting
documentation, coordinates with the Rental Housing Board, and coordinates the issuance
of letters of determination. Manages and coordinates all mediation services and hearing
officer services for the Hearings and Mediation Unit.
Manages the collection, organization and distribution of all documentation for actions
undertaken by the Deputy City Attorney, Assistant City Attorney, Contract Hearing Officer,
and Contract Mediator.
Hearings and Mediation Unit
The Hearing and Mediation Unit’s primary goal is to process petitions, appeals, hearings and
voluntary mediations. The structure of this unit includes two contracted, full-time equivalents
(FTEs). There is also one (1) shared Senior Paralegal position with the Legal Unit in the Division.
These positions maintain the following roles:
1. Contract Hearing Officer: Conducts administrative hearings dealing with tenant or
landlord petitions for relief under the Ordinance. Coordinates hearing schedules with City
and Division Staff and facilitates pre-hearing routine matters. Reviews Appeals, Petitions
and all relevant documents and identifies potential concerns. Performs legal research,
interprets complex statutes, policies, and procedural guidelines. Conducts hearings in a
fair, impartial, courteous and professional manner. Prepares written determinations of
decisions, which sets forth the legal and evidentiary basis for the decision. Provides
Page 78 of 130
18
reports to the City Attorney, City Manager, Assistant City Manager, Community
Development Director and Division Manager and/or designee as requested.
Petitions: Coordinates and manages the appeal of all petitions including Fair Return
Petitions, Capital Improvement Petitions, and Tenant Petitions. This includes reviewing
the petition, collecting supporting documentation, scheduling inspections, providing
written notice to the Landlord or Tenant of the receipt of an appeal, coordinating hearings,
and providing notice of the decision.
Hearings: Coordinates hearings for appeals to the Rental Housing Board. May present to
Rental Housing Board. This includes collecting supporting documentation, coordinating
with the Commission Secretary for scheduling, administering settlement agreements,
writing letters of determination, and processing the hearing.
Appeals: Responds to appeals, including inquiries, calling the counterparty to coordinate
the appeal, collecting supporting documentation, coordinating appeals with the Rental
Housing Board, and drafting letters of determination.
2. Contract Mediator: Coordinates and manages the voluntary confidential mediation
process. This includes educating petitioners on the option for voluntary mediation, and
administering settlement agreements if issues are mediated successfully. Works with
broad discretion, prudence, and independence with minimum supervision to facilitate
communications between complainants and respondents to discuss their dispute and
reach a mutually agreeable resolution. Educates landlords and tenants with respect to
their rights and responsibilities under State and local law. Keeps thorough documentation
on cases and assists in preparing accurate periodic program reports.
SHARED POSITION - Senior Paralegal (1 FTE): Click Here for City Job Description
When assigned to the Rent Stabilization Division:
Manages and coordinates all hearings for appeals to rent amounts and petitions.
Communicates with the tenants and landlords involved, collects supporting
documentation, coordinates with the Contract Hearing Officer, Rental Housing Board, and
coordinates the issuance of letters of determination. Manages and coordinates all
mediation services and hearing officer services for the Hearings and Mediation Unit.
ADDITIONAL STAFF AND SERVICES
The administration and enforcement of the Ordinance will require additional staff support and
services from throughout the City including the following:
1. Executive Director of Community Development (.2 FTE): Click Here for City Job
Description
When assigned to the Rent Stabilization Division:
Plans, organizes, and directs program functions in the Community Development Agency.
The agency is divided into five divisions: Housing Division, Rent Stabilization Division,
Economic Development, Homeless Services, and Administrative Services.
2. Administrative Services Manager (.2 FTE): Click Here for City Job Description
When assigned to the Rent Stabilization Division:
Page 79 of 130
19
Under administrative direction, plans, manages and supervises the development and
operation of systems for budgeting, accounting, payroll, personnel and/or other
administrative functions for the Rent Stabilization Division.
3. Code Enforcement Officer (2 FTEs): Click Here for City Job Description
When assigned to the Rent Stabilization Division:
Conducts and enforces inspections for habitability for the Rent Stabilization Division, this
includes inspections for units based on the landlord claim of exemption, the filing of a
landlord or tenant petition, or other issues of habitability for covered units. Enforces
Federal, State and Municipal Laws pertaining to rent stabilization and property
maintenance; coordinates code enforcement activities with other divisions, departments,
and outside agencies; prepares cases for court as needed. Coordinates and assists the
Legal Unit with documentation for enforcement of the Ordinance.
4. Accountant II (.5 FTE): Click Here for City Job Description
When assigned to the Rent Stabilization Division:
Collects, enforces, accounts, budgets, allocates, expends and reports all rental registry
fees for the entire operation of the Division. Collects, enforces, accounts, budgets,
allocates, expends and prepares reports of all petition payments for the entire operation
of the Division. Coordinates and assists the Management Analyst.
5. Senior Accounting Assistant (.5 FTE): Click Here for City Job Description
When assigned to the Rent Stabilization Division:
Collects, accounts, budgets, and reports all rental registry fees for the entire operation of
the Division. Collects, accounts, and reports all petition payments for the entire operation
of the Division. Provides paper registration forms to landlords who prefer not to submit
payments electronically. Informs landlords about the Rental Registry, educates them
about their obligations, and provides technical assistance throughout the payment and
registration process. Coordinates and assists the Management Analyst.
6. Specialized Legal Services (<$50,000):
Advanced legal services from outside legal counsel to landlord-tenant law to support the
enforcement, defense, litigation, and risk management of the Ordinance under housing
issues and landlord-tenant law.
7. Education and Outreach Services (<$100,000):
The Division Manager shall contract with community-based organizations for them to
assist in the education and outreach for the Ordinance. The community-based
organization(s) will have the following responsibilities: assists in the development of a
comprehensive strategy and methodology for citizen, participant and stakeholder
engagement (e.g. proposed outreach process, methods of outreach, outreach tools and
anticipated timelines). Assists with drafting content and messaging for the Program,
including social media, press releases, newsletters, talking points, frequently asked
questions (FAQs), flyers, and/or mailers. Designs graphics for social media, flyers,
informational videos, signage, and/or mailers and coordinates distribution. Develops and
Page 80 of 130
20
implements outreach strategies for engaging target audiences, including those with limited
access to the internet or limited English-language proficiency. Coordinates with program
staff on key updates to keep the community informed. Monitors social media to understand
community sentiment and highest needs. Facilitates media inquiries and assists with
developing messaging for interviews. Evaluates and measures outreach efforts.
STAFFING PLAN METHODOLOGY AND ESTIMATED COSTS
The proposed staffing outlined in this Work Plan is based on an analysis of the number of potential
rental housing units subject to the Ordinance and the current staffing in other jurisdictions with
rent stabilization and just cause eviction programs. Staffing depends largely on the number of
units within the jurisdiction and the program services being offered. Because the actual workload
that will be associated with the program is unknown at this time, staff and RSG have estimated
the number of positions as we believe reasonable and necessary to carry out the essential
elements of the program. Once the program is in full operation, data regarding the actual workload
will be available and the City will be able to update this Work Plan and the staffing needs.
This Work Plan also follows the guiding principles approved by the City Council:
The Rental Registry Fee will be as low and lean as possible as to avoid any unnecessary
burdens on tenants and landlords:
o The Work Plan has been designed to reduce duplication, maximize efficiency and
reduce any unnecessary work that would increase the fee upon tenants and
landlords.
Analyze the efficiency and provide a cost comparison of utilizing a hybrid of services
between consultants and city staff:
o The Work Plan utilizes a hybrid of consultants in the Hearings and Mediation Unit
and a portion of the Legal Unit. Two consultants would be hired for this Unit instead
of two full-time equivalents.
Identify and analyze ways to build upon other existing services across the City to
administer the Ordinance.
o The Work Plan builds upon existing services in the Community Development
Agency (Executive Director of Community Development, Administrative Services
Manager), Code Enforcement department (Code Enforcement Officers) and the
City Attorney’s Office. Only one new job classification will be created from the
Ordinance.
Page 81 of 130
21
PROGRAM STAFFING IN OTHER JURISDICTIONS
The table below provides full-time equivalent (“FTE”) staff of several cities with rent stabilization
and just cause eviction programs along with the approximate number of rental units.
City Total FTEs
Management
and
Administration
Legal Hearing Approximate
Rental Units
Alameda 10 9 0 1 12,000
Berkeley 25 20 3 2 20,000
Beverly
Hills 6 4 1 1 7,700
Inglewood 8 (Projected to
reach 17) 8 0 0 23,000
Richmond 12 9 2 1 7,750
Santa
Monica 24 13 4 7 26,600
West
Hollywood 10 8 1 1 16,700
Each city is unique in its approach, however, some commonalities include that a higher number
of rental units requires a higher number of staff to administer the Ordinance. Management and
Administrative staff also consistently account for the largest portion of staff, making up nearly 70%
of comparable jurisdictions’ Rental Housing Divisions on average. For Legal and Hearings Units,
these units each account for approximately 10% of staff on average.
EXISTING CITY RESOURCES
There are existing departments within the City of Santa Ana that currently perform some
responsibilities related to the Ordinance. The protections offered by the amended Ordinance are
expected to increase the number of complaints generally, including those related to code
violations and legal services; thus, additional staff resources will be necessary.
Code Enforcement Division
The City’s Code Enforcement Division works closely within the community to protect public health,
safety and welfare, enforcing City codes related to nuisance and land use violations. Code
Enforcement Officers also examine properties either in response to a complaint or as part of
ongoing proactive enforcement efforts.
City Attorney’s Office
The City Attorney’s Office, appointed by and serving at the pleasure of the City Council, is
mandated to provide legal services to the various officials and departments of the City of
Santa Ana. The powers and duties of the City Attorney include appearing in litigation on
Page 82 of 130
22
behalf of the City and its officials; d rafting all Ordinances, resolutions and contracts; and
advising officials and employees on all matters of law pertaining to official duties. The Santa
Ana City Attorney is also empowered to prosecute violations of municipal and state law on
behalf of the P eople of the State of California.
ADDITIONAL CONSIDERATIONS
Budget Considerations
In addition to the staffing needs required to effectively implement the Program, the fee study
should account for the additional budget considerations associated with staffing and administering
a new division.
Expense Description
Permanent
Employees
Salary-related costs for all required
Positions, including fringe benefits
Advertising
and
Outreach
The cost of publishing public notices, other announcements required by law, and
other miscellaneous announcements.
Building
Rental,
Office Space
and Office
Equipment
Funds to rent office space, reconfigure workspaces, purchase and install office
equipment and furniture for the Division.
Existing
Staff Time
(Allocation
Plan)
Services provided by the departments of
Finance, Purchasing, Human Resources, Facilities, Maintenance, Code
Enforcement, and Information Services
Printing Newsletter, announcement letter, registration fee bills/envelopes, special
mailings
Risk
Management Insurance policies for the Division
Contractor Considerations
During year one of operations, the Rent Stabilization Division may require external contractors for
services while the new Division determines actual staffing needs. Each agreement or contract
would include performance expectations and costs, which would then be charged to the
program. Examples of contractor considerations by Unit are detailed below.
Unit Contractor Considerations
Administrative
Unit
Continuing work with RSG through a $500,000 renewal Agreement to assist in
the administration of the Ordinance and Year 1 of operations.
Legal Unit Utilizing contracts with outside counsel for matters related to the Ordinance.
Hearings Unit Contracting with local organizations to provide voluntary mediation services
and a hearing officer.
Page 83 of 130
23
Division Office
The Rent Stabilization Division will occupy office space in the Santa Ana WORK Center.
Necessary equipment and supplies include postage and mailing materials, available printers for
publication notices, general office supplies, telephones, office furniture, and computers.
Estimated monthly expenses for housing up to ten (10) employees at the Santa Ana WORK
Center are included as Exhibit A.
Subscriptions
Annual subscriptions include:
3Di for the Rental Registry
On-call translation services
CoStar
Zoom
Page 84 of 130
24
Exhibit A
Page 85 of 130
APPENDIX F – RENT STABILIZATION AND JUST CAUSE EVICTION ORDINANCE
Page 86 of 130
ORDINANCE NO. NS-3027
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA AMENDING ARTICLE X OF CHAPTER 8
OF THE SANTA ANA MUNICIPAL CODE AND CREATING
A NEW ARTICLE XIX IN CHAPTER 8 OF THE SANTA ANA
MUNICIPAL CODE PERTAINING TO THE RENT
STABILIZATION AND JUST CAUSE EVICTION
ORDINANCES
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS
FOLLOWS:
Section 1. The City Council of Santa Ana hereby finds, determines, and
declares as follows:
A. At the City Council meetings on September 21, 2021, and October 5, 2021,
the City Council discussed the City of Santa Ana's ("Santa Ana" or "City")
ability to address rent increases on residential real property and in
mobilehome parks.
B. On October 19, 2021, the City Council adopted Ordinance No. NS- 3009,
known as the Rent Stabilization Ordinance ("RSO") and Ordinance No. NS-
3010, known as the Just Cause Eviction Ordinance ("JCEO") appearing as
Article X, Division 4 and Division 5 in the Santa Ana Municipal Code
SAMC"). The RSO and JCEO were adopted to regulate rent increases and
evictions in certain rental properties and mobilehome spaces in the City of
Santa Ana.
C. The findings in Ordinance No. NS- 3009 and Ordinance No. NS-3010
articulate that significant rent increases and housing instability pose a threat
to public health, safety and welfare, and a particular hardship for senior
citizens, persons living on fixed incomes, and other vulnerable persons living
in Santa Ana. These findings are still true and incorporated herein.
D. Additionally, the City Council adopted Resolution No. 2021- 054, directing
staff to: (1) Conduct further study of the additional regulatory framework and
infrastructure necessary to implement residential rent stabilization, just cause
eviction, and other protections for Santa Ana residents facing housing
instability; and, (2) Include the creation and operation of a Rent Board or
similar body, a rent registry, and the related costs thereof.
E. On September 6, 2022, staff presented the Long -Term Implementation Plan
for the RSO and JCEO to the City Council detailing various best practices
based on findings from local sample jurisdictions with similar ordinances in
the State of California.
Ordinance No. NS-3027
Page 1 of 43Page 87 of 130
F. On September 6, 2022, the City Council adopted the Long -Term
Implementation Plan for the RSO and JCEO and provided direction to staff to
prepare amendments to the RSO and JCEO to implement efficient and
effective program services to rental property owners and tenants and promote
long-term sustainability of the programs.
G. The amendments proposed by this Ordinance are consistent with the adopted
Long -Term Implementation Plan of the RSO and JCEO and the direction by
City Council at the September 6, 2022 City Council meeting. These include:
1. Create a Rental Housing Board;
2. Create a Rental Registry;
3. Adopt a Rental Registry Fee;
4. Develop a Work Plan;
5. Conduct a Fee Study Based on the Work Plan and Staffing Needs;
6. Expand Compliance Activities;
7. Create a Capital Improvement Petition and Tenant Petition;
8. Establish Petition Fees and a Petition Review Process;
9. Create a Voluntary Mediation Process; and,
10. Join the Rent Stabilization Consortium.
H. Pursuant to the City's police power, as granted broadly under Article XI,
section 7 of the California Constitution, and Santa Ana Charter section 200,
the Santa Ana City Council has the authority to enact and enforce ordinances
and regulations for the public peace, health, and welfare of the City and its
residents.
I. The City Council finds, determines and declares that the threat to the public
health, safety and welfare of the City and its residents necessitates the
enactment of the Ordinance.
The Request for City Council Action for amendments to these Ordinances
dated October 4, 2022, shall, by this reference, be incorporated herein, and
together with this Ordinance, any amendments or supplements, and oral
testimony, constitute the necessary findings for this Ordinance.
Section 2. The recitals and statements of fact set forth in the preamble to this
Ordinance are true and correct, constitute a substantive part of this Ordinance, and are
incorporated herein by this reference.
Section 3. Divisions 4 and 5 of Article X (Property Maintenance) of Chapter 8
Buildings and Structures) of the Santa Ana Municipal Code are hereby amended and
moved to a new Article XIX (Rent and Evictions) of Chapter 8 of the Santa Ana
Municipal Code to read as follows:
Ordinance No. NS-3027
Page 2 of 43 Page 88 of 130
ARTICLE XIX. — RENT STABILIZATION AND JUST CAUSE EVICTION ORDINANCE
DIVISION 1. — GENERALLY
Section 8-3100 — Title
This Article shall be known in its entirety as the "City of Santa Ana Rent
Stabilization and Just Cause Eviction Ordinance" and, for the sake of convenience, as
the "Rent Stabilization and Just Cause Eviction Ordinance."
Section 8-3101 — Background
The Rent Stabilization Ordinance, previously adopted by the City Council on
October 19, 2021, and the Just Cause Eviction Ordinance, also previously adopted by
the City Council on October 19, 2021, are hereby amended pursuant to this newly
adopted Rent Stabilization and Just Cause Eviction Ordinance.
Section 8-3102 — Definitions
a) For purposes of this Article, the words and phrases shall be defined as set
forth herein, unless the context clearly indicates a different meaning is intended.
b) Words and phrases used in this Article, which are not specifically defined,
shall be construed according to their context and the customary usage of the language.
c) Words and phrases defined:
Annual Allowable Rent Adjustment" means the limit on the Maximum
Allowable Rent Increase, which a Landlord may charge on any Rental Unit
each year.
Capital Improvement" means an improvement, addition or major repair to
a Rental Unit that were paid for and completed after November 19, 2021
the effective date of the first adopted Rent Stabilization Ordinance),
provided such new improvement, addition or major repair has a useful life
of five (5) years or more and that is required to be amortized over the
useful life of the improvement, such as: structural, electrical, plumbing, or
mechanism system, roofing, carpeting, draperies, stuccoing the outside of
a building, air conditioning, security gates, swimming pool, sauna or hot
tub, fencing, children's play equipment permanently installed, the
complete exterior painting of a building, and other similar improvements as
defined under the straight line depreciation provisions of the Internal
Revenue Code and the regulations issued pursuant thereto and
determined by the Rental Housing Board. Capital Improvement does not
Ordinance No. NS-3027
Page 3 of 43Page 89 of 130
include normal or routine maintenance, repair, replacements, and/or
deterioration resulting from an unreasonable delay in the undertaking of
completion or after a Notice of Violation by a government agency ordering
repairs.
City" means the City of Santa Ana.
Hearing Officer" means a person who has been appointed by the
Program Administrator to perform the duties set forth in this Article.
Housing Services" means those services provided and associated with
the use or occupancy of a Rental Unit including, but not limited to,
insurance, repairs, replacement, maintenance, effective waterproofing and
weather protection, painting, providing light, heat, hot and cold water,
elevator service, window shades and screens, laundry facilities and
privileges, janitorial services, utilities that are paid by the Landlord, refuse
removal, allowing pets, telephone, parking, storage, the right to have a
specified number of Tenants or occupants, computer technologies,
entertainment technologies, including cable or satellite television services,
and any other benefits, privileges or facilities connected with the use or
occupancy of such Rental Unit including a proportionate share of the
services provided to common facilities of the building in which such Rental
Unit is located and/or of the property on which such Rental Unit is located.
Landlord" or "Owner" means an owner of record, lessor, sublessor or any
person, partnership, corporation, family trust, or any other business entity,
or any successor in interest thereto, offering for rent or lease any Rental
Unit or Mobilehome or Mobilehome Space in a Mobilehome Park in the
City and shall include the employee, agent or representative of the
Landlord if the agent or representative has the full authority to answer for
the Landlord and enter into binding agreements on behalf of the Landlord.
Mediator" means a person whom the Program Administrator determines
meets all of the following criteria:
1) Has received forty (40) to eighty (80) hours of formal training in
mediation, including training in anti -racism, elimination of bias,
diversity, equity, inclusion, and cultural competency; and,
2) Has mediated Rent disputes and/or has had other experience or
training showing a capability to mediate the issues which arise in
landlord/tenant disputes.
Mobilehome" means a structure designed for human habitation and for
being moved on a street or highway under permit pursuant to Section
35790 of the Vehicle Code. Mobilehome includes a manufactured home,
as defined in Section 18007 of the Health and Safety Code, and a
Mobilehome, as defined in Section 18008 of the Health and Safety Code,
Ordinance No. NS-3027
Page 4 of 43 Page 90 of 130
but does not include a recreational vehicle, as defined in Section 799.29 of
this code and Section 18010 of the Health and Safety Code or a
commercial coach as defined in Section 18001.8 of the Health and Safety
Code.
Mobilehome Space" means the rental of a spot for a Mobilehome within a
Mobilehome Park by a homeowner, as defined in Civil Code section
798.9, or a resident, as defined in Civil Code section 798.11.
Mobilehome Park" means an area of land where two or more Mobilehome
Spaces are rented, or held out for rent, to accommodate Mobilehomes
used for human habitation.
Net Operating Income" means the net revenue received by the Landlord
after paying the normal Operating Expenses (gross revenue less normal
operating expenses).
Operating Expenses" means the costs of normal operations, including,
but not limited to, management, taxes, insurance, maintenance, repairs
and other recurring costs.
Program Administrator" is a person designated by the City Manager to
administer the provisions of this Article.
Rental Registry Fee" or "Fee" means the fee the City imposes on each
Rental Unit to cover the costs to administer the provisions of this Article.
Rent' means all periodic compensation, including all non -monetary
consideration, that a Tenant provides to a Landlord concerning the use or
occupancy of a Rental Unit, including any amount included in the Rent for
utilities (unless separately billed to the Tenant by the utility company),
parking, storage, pets or for any other fee or charge associated with the
Tenancy for the use or occupancy of a Rental Unit and related Housing
Services. Rent includes, without limitation, the fair market value of goods
accepted, labor performed, or services rendered. With respect to
Mobilehomes and Mobilehome Spaces in Mobilehome Parks, any
regulations of rent, fees, and costs included within the Mobilehome
Residency Law, Civil Code section 798, et seq., shall be incorporated into
the definition of Rent, as applicable.
Rent Increase" means any additional Rent demanded of or paid by a
Tenant for a Rental Unit, including any reduction in Housing Services
without a corresponding reduction in the amount demanded or paid for
Rent; or a pro rata increase in costs of Housing Services apportioned to a
Rental Unit.
Ordinance No. NS-3027
Page 5 of 43Page 91 of 130
Rental Agreement" means a lease, sublease, or other agreement, written,
oral or implied, between a Landlord and a Tenant for the use and/or
occupancy of a Rental Unit and for Housing Services. With respect to
Mobilehomes and Mobilehome Spaces in Mobilehome Parks, any
regulations of rental agreements or leases within the Mobilehome
Residency Law, Civil Code section 798, et seq., shall be incorporated into
the definition of Rental Agreement, as applicable.
Rental Housing Board" or "Board" means the Rental Housing Board
established by Division 5 of this Article XIX of Chapter 8 of the Santa Ana
Municipal Code.
Rental Registry" means the database or portal where Landlords register
Rental Units, update Rental Unit information, update Tenancy information,
submit notices, and pay the Rental Registry Fee.
Rental Unit" means any building, structure, or part thereof, or any
Mobilehome and Mobilehome Spaces in a Mobilehome Park, offered or
available for rent for residential use or occupancy in the City, including the
land appurtenant thereto, together with all Housing Services in connection
with the use or occupancy thereof, including common areas and
recreational facilities held out for use by the Tenant, which is not exempt
pursuant to the exemptions set forth in this Article.
Residential Real Property" or "Residential Property" means any housing
unit, including a room or group of rooms designed and intended for
occupancy by one or more persons, including a Rental Unit and a
Mobilehome or Mobilehome Space in a Mobilehome Park, offered for rent
or lease in the City.
Tenancy" means the right or entitlement of a Tenant to use or occupy a
Rental Unit, including a Mobilehome or Mobilehome Space in a
Mobilehome Park.
Tenant" means any renter, tenant, subtenant, lessee, sub -lessee,
roommate with Landlord's consent, or any other person or entity entitled
under the terms of a Rental Agreement, or by sufferance, or by state or
federal law, to the use or occupancy of any Rental Unit and (i) has the
legal responsibility for the payment of Rent for a Rental Unit or (ii) has
agreed to pay the Rent for a Rental Unit.
Section 8-3103 — Implementing Regulations, Policies and Procedures
The City Manager or Program Administrator shall have the authority to
promulgate regulations, policies and procedures to implement the requirements and
Ordinance No. NS-3027
Page 6 of 43 Page 92 of 130
fulfill the purposes of this Article. No person shall fail to comply with such regulations,
policies and procedures.
Section 8-3104 — Mobilehome Residency Law
The provisions of this Article shall not supersede the regulations of the state
Mobilehome Residency Law, Civil Code section 798, et seq., as applicable. If there is
any conflict between the terms of this Article and the Mobilehome Residency Law, the
Mobilehome Residency Law shall prevail.
DIVISION 2. — JUST CAUSE EVICTIONS
Section 8-3120 — Restrictions on Termination of Tenancy without Just Cause
a) After a Tenant has continuously and lawfully occupied a Residential Real
Property for thirty (30) days, the Owner of the Residential Real Property
shall not terminate the Tenancy without just cause, which shall be stated
in the written notice to terminate Tenancy. The provisions of this section
related to the termination of Tenants shall not apply to Mobilehomes or
Mobilehome Spaces in Mobilehome Parks subject to the termination
provisions of the Mobilehome Residency Law, Civil Code section 798.56,
as applicable.
1) The Owner shall post a notice on a form prescribed by the City,
providing information about the existence of this Division 2 of Article
XIX of Chapter 8 of the Santa Ana Municipal Code, including
protections related to immigration or citizenship status of Tenant found
under Civil Code section 1940.35 and Code of Civil Procedure section
1161.4, as may be amended. Notice must be posted in a conspicuous
location on the property. The notice shall be written in the language
that the Owner and Tenant used to negotiate the terms of the Tenancy
e.g., Spanish, Chinese, Tagalog, Vietnamese and Korean), as well as
English.
2) In addition to all other notice requirements specified elsewhere in this
Division, the Owner of any Residential Real Property or Mobilehome
Space, is required to provide written notice to Tenants of their rights
under this Division as follows:
A. The notice required by this Division must be on a form
prescribed by the City and include the following information:
The existence and scope of this Division 2 of Article XIX
of Chapter 8 of the Santa Ana Municipal Code; and,
Ordinance No. NS-3027
Page 7 of 43Page 93 of 130
ii. The right to relocation assistance in limited
circumstances pursuant to subsection (d)(2) herein.
B. The Owner must provide Tenant with the notice upon serving
any notice of change in terms of Tenancy.
C. The Owner must provide the notice on or before the
commencement of all Tenancies initiated after the effective date
of this Division.
b) For purposes of this section, "just cause" includes either of the following:
1) At -fault just cause, which is any of the following:
A. Default in the payment of Rent.
B. A breach of a material term of the lease, as described in
paragraph (3) of Section 1161 of the Code of Civil Procedure,
including, but not limited to, violation of a provision of the lease
after being issued a written notice to correct the violation. A
breach of a material term" shall not include:
i. The obligation to limit occupancy, provided that the
additional occupant who joins the Tenant of the
Residential Real Property thereby exceeding the limits on
occupancy set forth in the lease is:
I. A dependent under age 18, or
II. A replacement Tenant who moved in after an
approved Tenant vacated the Residential Real
Property, so long as the addition does not exceed
the Uniform Housing Code.
I. The Owner shall have the right to approve
or deny the prospective additional or
replacement Tenant, who is not a minor
dependent child, provided that the Owner
does not unreasonably withhold approval. If
the Owner fails to respond to the Tenant in
writing with a description of the reasons for
the denial of the request within a
reasonable amount of time of receipt of the
Tenant's written request, the Tenant's
request shall be deemed approved by the
Ordinance No. NS-3027
Page 8 of 43 Page 94 of 130
Owner if the lease is for a period of one (1)
year or less.
ii. A change in the terms of the Tenancy that is not the
result of an express written agreement signed by both of
the parties. An Owner is not required to obtain a Tenant's
written consent to a change in the terms of the Tenancy if
the change in the terms of the Tenancy is authorized by
this section, or if the Owner is required to change the
terms of the Tenancy pursuant to federal, State, or local
law. Nothing in this subsection shall exempt an Owner
from providing legally required notice of a change in the
terms of the Tenancy.
C. Maintaining, committing, or permitting the maintenance or
commission of a nuisance as described in paragraph (4) of
Section 1161 of the Code of Civil Procedure.
D. Committing waste as described in paragraph (4) of Section
1161 of the Code of Civil Procedure.
E. The Tenant had a written lease that terminated on or after the
effective date of this Ordinance, and after a written request or
demand from the Owner, the Tenant has refused to execute a
written extension or renewal of the lease for an additional term
of similar duration with similar provisions, provided that those
terms do not violate this section or any other provision of law.
F. Criminal activity by the Tenant on the Residential Real Property,
including any common areas, or any criminal activity or criminal
threat, as defined in subdivision (a) of Section 422 of the Penal
Code, on or off the Residential Real Property, that is directed at
any Owner or agent of the Owner of the Residential Real
Property or members of Tenant's household or other Tenants of
the Residential Real Property. This at -fault, just cause provision
shall apply if the Owner has, within a reasonable time, reported
the criminal activity to law enforcement. Further, at -fault, just
cause eviction of a Tenant under this provision shall only apply
to that Tenant who committed the criminal activity described
herein. If a Tenant is acquitted or found not guilty of the charges
giving rise to eviction, or if charges are not filed against the
Tenant within the applicable statute of limitations period, the
Tenant shall be offered the right to restore the Tenancy only if
the same Residential Real Property is available.
Ordinance No. NS-3027
Page 9 of 43Page 95 of 130
G. Assigning or subletting the premises in violation of the Tenant's
lease, as described in paragraph (4) of Section 1161 of the
Code of Civil Procedure.
i. Notwithstanding any contrary provision in this section, an
Owner shall not take any action to terminate a Tenancy
based on a Tenant's sublease of the Residential Real
Property if all the following requirements are met:
I. The Tenant requests permission from the Owner
in writing to sublease the Residential Real
Property;
II. The Tenant continues to reside in the Residential
Real Property as their primary residence;
III. The sublease replaces one or more departed
Tenants under the lease on a one -for -one basis;
and
IV. The Owner fails to respond to the Tenant in writing
within a reasonable amount of time of the receipt
of the Tenant's written request. If the Owner fails
to respond to the Tenant's written request, the
request shall be deemed approved by the Owner if
the lease is for a period of one (1) year or less. An
Owner'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
Residential Real Property exceeds the maximum
number of occupants as determined under Section
503(b) of the Uniform Housing Code or successor
provision.
H. The Tenant's refusal to allow the Owner to enter the Residential
Real Property as authorized by Sections 1101.5 and 1954 of the
Civil Code, and Sections 13113.7 and 17926.1 of the Health
and Safety Code.
I. Using the premises for an unlawful purpose as described in
paragraph (4) of Section 1161 of the Code of Civil Procedure.
J. The employee, agent, or licensee's failure to vacate after their
termination as an employee, agent, or a licensee as described
in paragraph (1) of Section 1161 of the Code of Civil Procedure.
Ordinance No. NS-3027
Page 10 of 43 Page 96 of 130
K. When the Tenant fails to deliver possession of the Residential
Real Property after providing the Owner written notice as
provided in Section 1946 of the Civil Code of the Tenant's
intention to terminate the hiring of the real property, or makes a
written offer to surrender that is accepted in writing by the
Owner but fails to deliver possession at the time specified in that
written notice as described in paragraph (5) of Section 1161 of
the Code of Civil Procedure.
2) No-fault just cause, which includes any of the following:
0
Intent to occupy the Residential Real Property by the
Owner or their spouse, domestic partner, children,
grandchildren, parents, or grandparents.
ii. For leases entered into on or after the effective date of
this Ordinance, this subsection shall apply only if the
Tenant agrees, in writing, to the termination, or if a
provision of the lease allows the Owner to terminate the
lease if the Owner, or their spouse, domestic partner,
children, grandchildren, parents, or grandparents
unilaterally decides to occupy the Residential Real
Property for a period of at least 24 months, as affirmed
by the Owner in a written affidavit submitted to the City.
Addition of a provision allowing the Owner to terminate
the lease as described in this clause to a new or renewed
Rental Agreement or fixed -term lease constitutes a
similar provision for the purposes of subparagraph (E) of
paragraph (1).
B. Withdrawal of the Residential Real Property from the rental
market for an anticipated period of at least 24 months, as
affirmed by the Owner in a written affidavit submitted to the City.
C.
The Owner complying with any of the following:
An order issued by a government agency or court
relating to habitability that necessitates vacating
the Residential Real Property.
II. An order issued by a government agency or court
to vacate the Residential Real Property.
Ordinance No. NS-3027
Page 11 of 43Page 97 of 130
791
Ordinance No. NS-3027
Page 12 of 43
III. A local ordinance that necessitates vacating the
Residential Real Property.
ii. If it is determined by any government agency or court
that the Tenant is at fault for the condition or conditions
triggering the order or need to vacate under clause (i),
the Tenant shall not be entitled to relocation assistance
as outlined in paragraph (3) of subdivision (d).
Intent to demolish or to substantially remodel the
Residential Real Property.
The Owner shall provide advance notice to the
Tenant of the ability to reoccupy the unit upon
completion of the repairs, or if requested by the
Tenant, the right of first refusal to any comparable
vacant Rental Unit which has been offered at
comparable Rent owned by the Owner; and
II. In the event the Owner seeks to rent the
remodeled unit within six (6) months following the
completion of the remodeling work, the evicted
Tenant shall have the right of first refusal to
reoccupy and rent the unit, unless the Owner
provides a written waiver by the Tenant of their
right to reoccupy the premises pursuant to this
subsection.
iii. For purposes of this subparagraph, "substantially
remodel' means the replacement or substantial
modification of any structural, electrical, plumbing, or
mechanical system that requires a permit from a
governmental agency, or the abatement of hazardous
materials, including lead -based paint, mold, or asbestos,
in accordance with applicable federal, State, and local
laws, that cannot be reasonably accomplished in a safe
manner with the Tenant in place and that requires the
Tenant to vacate the Residential Real Property for at
least 30 days. Cosmetic improvements alone, including
painting, decorating, and minor repairs, or other work that
can be performed safely without having the Residential
Real Property vacated, do not qualify as a substantial
remodel.
Page 98 of 130
c) Before an Owner of Residential Real Property issues a notice to terminate
a Tenancy for just cause that is a curable lease violation, the Owner shall
first give notice of the violation to the Tenant with an opportunity to cure
the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil
Procedure. If -the violation is not cured within the time period set forth in
the notice, a three-day notice to quit without an opportunity to cure may
thereafter be served to terminate the Tenancy.
d)
1) Any written notice to cease or correct must:
A. Be dated and served upon the Tenant, pursuant to at least one
of the methods authorized under California Code of Civil
Procedure Section 1162, as may be amended;
B. Inform the Tenant that failure to cure may result in the initiation
of eviction proceedings;
C. Inform the Tenant of the right to request a reasonable
accommodation;
D. Inform the Tenant of the contact number for the Program
Administrator; and
E. Include a specific statement of the reasons for the written notice
to cease or correct with specific facts to help the Tenant
determine the date(s), place(s), witness(es), and
circumstance(s) that support the reason(s) for the eviction.
1) For a Tenancy for which just cause is required to terminate the
Tenancy under subdivision (a), if an Owner of Residential Real
Property issues a termination notice based on a no-fault just cause
described in paragraph (2) of subdivision (b), the Owner shall,
regardless of the Tenant's income, at the Owner's option, do one of the
following:
A. Assist the Tenant to relocate by providing a direct payment to
the Tenant as described in paragraph 3; or
B. Waive in writing the payment of Rent for the final three (3)
months of the Tenancy, prior to the Rent becoming due.
2) If an Owner issues a notice to terminate a Tenancy for no-fault just
cause, the Owner shall notify the Tenant of the Tenant's right to
relocation assistance or Rent waiver and all other rights pursuant to
this section. If the Owner elects to waive the Rent for the final three (3)
Ordinance No. NS-3027
Page 13 of 43Page 99 of 130
3)
month of the Tenancy as provided in subparagraph (B) of paragraph
1), the notice shall state the amount of Rent waived and that no Rent
is due for the final three (3) months of the Tenancy.
A. The amount of relocation assistance or Rent waiver shall be
equal to three (3) months of the Tenant's Rent that was in effect
when the Owner issued the notice to terminate the Tenancy.
Any relocation assistance shall be provided within 15 calendar
days of service of the notice.
B. If a Tenant fails to vacate after the expiration of the notice to
terminate the Tenancy, the actual amount of any relocation
assistance or Rent waiver provided pursuant to this subdivision
shall be recoverable as damages in an action to recover
possession.
C. The relocation assistance or Rent waiver required by this
section shall be credited against any other relocation assistance
required by any other law.
4) An Owner's failure to strictly comply with this section shall render the
notice of termination void.
e) This section shall not apply to the following types of residential real
properties or residential circumstances:
1) Transient and tourist hotel occupancy as defined in subdivision (b) of
Section 1940 of the Civil Code.
2) Housing accommodations in a nonprofit hospital, religious facility,
extended care facility, licensed residential care facility for the elderly,
as defined in Section 1569.2 of the Health and Safety Code, or an
adult residential facility, as defined in Chapter 6 of Division 6 of Title 22
of the Manual of Policies and Procedures published by the State
Department of Social Services.
3) Dormitories owned and operated by an institution of higher education
or a kindergarten and grades 1 to 12, inclusive, school.
4) Housing accommodations in which the Tenant shares bathroom or
kitchen facilities with the Owner who maintains their principal residence
at the Residential Real Property.
5) Single-family Owner -occupied residences, including a residence in
which the Owner -occupant rents or leases no more than two units or
Ordinance No. NS-3027
Page 14 of 43 Page 100 of 130
bedrooms, including, but not limited to, an accessory dwelling unit or a
junior accessory dwelling unit.
6) A duplex in which the Owner occupied one of the units as the Owner's
principal place of residence at the beginning of the Tenancy, so long
as the Owner continues in occupancy.
7) Housing that has been issued a certificate of occupancy within the
previous 15 years.
8) Residential Real Property that is alienable separate from the title to
any other dwelling unit, provided that both of the following apply:
A. The Owner is not any of the following:
I
A real estate investment trust, as defined in Section 856
of the Internal Revenue Code.
ii. A corporation.
iii. A limited liability company in which at least one member
is a corporation.
The Tenants have been provided written notice that the
Residential Property is exempt from this section using the
following statement: "This property is not subject to the
just cause requirements of Santa Ana Municipal Code
Chapter 8, Article XIX, Division 2. This property meets
the requirements of Santa Ana Municipal Code section 8-
3120(e)(8) and the Owner is not any of the following: (1)
a real estate investment trust, as defined by Section 856
of the Internal Revenue Code; (2) a corporation; or (3) a
limited liability company in which at least one member is
a corporation."
ii. For a Tenancy existing before the effective date of this
Ordinance, the notice required under clause (i) may, but
is not required to, be provided in the Rental Agreement.
iii. For any Tenancy commenced or renewed on or after the
effective date of this Ordinance, the notice required under
clause (i) must be provided in the Rental Agreement.
iv. Addition of a provision containing the notice required
under clause (i) to any new or renewed Rental
Ordinance No. NS-3027
Page 15 of 43Page 101 of 130
Agreement or fixed -term lease constitutes a similar
provision for the purposes of subparagraph (E) of
paragraph (1) of subdivision (b).
9) Housing restricted by deed, regulatory restriction contained in an
agreement with a government agency, or other recorded document as
affordable housing for persons and families of very low, low, or
moderate income, as defined in Section 50093 of the Health and
Safety Code, or subject to an agreement that provides housing
subsidies for affordable housing for persons and families of very low,
low, or moderate income, as defined in Section 50093 of the Health
and Safety Code or comparable federal statutes.
f) An Owner of Residential Real Property subject to this section shall provide
notice to the Tenant as follows:
1) For any Tenancy commenced or renewed on or after the effective date
of this Ordinance, as an addendum to the lease or Rental Agreement,
or as a written notice signed by the Tenant, with a copy provided to the
Tenant.
2) For a Tenancy existing prior to the effective date of this Ordinance, by
written notice to the Tenant no later than thirty (30) days after the
effective date of this Ordinance, or as an addendum to the lease or
Rental Agreement.
3) The notification or lease provision shall be in no less than 12-point
type, and shall include the following: "The Santa Ana Municipal Code
provides that after all of the Tenants have continuously and lawfully
occupied the property for at least thirty (30) days, an Owner must
provide a statement of cause in any notice to terminate a Tenancy.
See Division 2 of Article XIX of Chapter 8 of the Santa Ana Municipal
Code for more information."
g) It shall be a defense to an action for possession of a Rental Unit under this
Division if a trier of fact determines that:
1) Both of the following provisions apply:
A. The Tenant or Tenant's household member is a victim of an act
or acts that constitute domestic violence, elder or dependent
adult abuse, sexual assault, human trafficking, or stalking if the
domestic violence, elder or dependent adult abuse, sexual
assault, human trafficking, or stalking has been documented by
one of the following:
Ordinance No. NS-3027
Page 16 of 43 Page 102 of 130
i. A temporary restraining order, emergency protective
order, or protective order issued within the last 180 days
pursuant to law that protects the Tenant or a household
member from domestic violence, elder or dependent
adult abuse, sexual assault, human trafficking, or
stalking; or
ii. The Tenant or a member of their household has filed a
police report within the previous 180 days alleging that
they are a victim of domestic violence, elder or
dependent adult abuse, sexual assault, human
trafficking, or stalking.
B. The notice to vacate is substantially based upon the act or acts
constituting domestic violence, elder or dependent adult abuse,
sexual assault, human trafficking, or stalking against the Tenant
or their household member, including, but not limited to, an
action for possession based on complaints of noise,
disturbances, or repeated presence of police.
2) Notwithstanding this Section, an Owner may terminate the Tenancy if:
A. The Tenant or the person protected by a court order or who filed
a police report allows the person against whom the protective
order has been issued or who was named in the police report as
committing an act of domestic violence, elder or dependent
adult abuse, sexual assault, human trafficking, or stalking, to
visit the rental property; or
B. The Owner reasonably believes the presence of the person
against whom the protective order has been issued or who was
named in the police report as having committed an act of
domestic violence, elder or dependent adult abuse, sexual
assault, human trafficking, or stalking poses a physical threat to
other Tenants, guests, invitees, or to a Tenant's right to quiet
enjoyment and the Owner previously gave the Tenant a three
3) day written notice to cease and correct this violation.
3) The provisions of this Division shall not supersede any other applicable
state laws relating to victims of an act of domestic violence, sexual
assault, stalking, human trafficking, abuse of an elder or a dependent
adult, or of other specified crimes, as provided for in Civil Code section
1946.7 and Code of Civil Procedure sections 1161.3 and 1174.27.
h) It shall be a defense to a no fault just cause action for possession of a
Rental Unit under this Division if a person under the age of 21 is a resident
Ordinance No. NS-3027
Page 17 of 43Page 103 of 130
of the subject Rental Unit, or has a custodial or family relationship with a
Tenant in the subject Rental Unit, and who is registered and actively
attending any level of school during a specified school term.
i) At least sixty (60) days prior to the sale of a Mobilehome Park, the Owner
shall provide notice of such proposed sale to the Mobilehome Park
residents and prepare a report on the impact of the sale of the
Mobilehome Park, including a replacement and relocation plan that
adequately mitigates the impact upon the ability of any displaced residents
of the Mobilehome Park to be sold to find adequate housing in a
Mobilehome Park, as applicable.
Q) Any waiver of the rights under this section shall be void as contrary to
public policy.
Section 8-3121 — Notice of Termination of Tenancy.
a) When terminating a Tenancy either at -fault or no-fault, an Owner must
comply with all of the following:
1) The Owner must serve a written notice in accordance with Civil Code
sections 1946 through 1946.5, to the Tenant that states that, in
addition to any information required by federal or State law, the Owner
will terminate the Tenancy, and that indicates at least one at -fault or
no-fault just cause reason as provided in section 8-3120(b); and
2) The Owner has not accepted and will not accept Rent or any other
consideration in return for the continued use of the Residential
Property beyond the term of the terminated Tenancy in compliance
with Civil Code sections 1945 through 1946.5; and
3) The Owner qualifies the termination as at -fault or no-fault just cause,
as specified in section 8-3120(b); and
4) The Owner has submitted to the City, within five (5) days after service
of the notice of termination on the Tenant, a true and accurate copy of
the Owner's written notice of termination, and proof of such service,
signed under penalty of perjury, on the Tenant, through the City's
Rental Registry portal. The Owner shall maintain proof of service to the
City as evidence that the Owner has complied with this section.
5) The Owner must provide the notice in the language that the Owner and
Tenant used to negotiate the terms of the Tenancy, in addition to
English.
Ordinance No. NS-3027
Page 18 of 43 Page 104 of 130
Section 8-3122 — Retaliatory Eviction and Anti -Harassment.
a) Retaliatory Eviction.
1) If the main intent of the Owner in terminating a Tenancy or refusing to
renew a Tenancy is retaliatory in nature, and if the Tenant is not in
default as to the payment of Rent, then the Owner may not terminate
the Tenancy or refuse to renew the Tenancy or cause the Tenant to
quit involuntarily.
2) A Tenant may assert retaliation affirmatively or as a defense to the
Owner's action regardless of the period of time which has elapsed
between the Tenant's assertion or exercise of rights under this Article
and the alleged act of retaliation.
3) Retaliation against a Tenant because of the Tenant's exercise of rights
under this Article is prohibited. Retaliation claims may only be brought
in court and may not be addressed administratively. A court may
consider the protections afforded by this Article in evaluating a claim of
retaliation.
b) Anti -Harassment. No Owner, or any person, acting as a principal or agent,
offering Residential Real Property for rent, or any contractor, subcontractor or
employee of the Owner shall, with respect to Residential Real Property under
any Rental Agreement or other Tenancy or estate at will, however created, do
any of the following:
1) Interrupt, terminate, or fail to provide Housing Services required by
Rental Agreement or by federal, State, County, or local housing,
health, or safety laws, or threaten to do so, or violate or threaten to
violate Civil Code section 789.3.
A. `Interrupt, terminate, or fail to provide Housing Services' in this
provision does not include interruptions, terminations, or failure
to provide Housing Services as a result of interruptions,
outages, or terminations caused by events or actions outside of
the Owner's control, such as utility outages caused by natural
disaster. Further, this provision does not include stoppages,
outages, terminations, and interruptions properly noticed to
Tenants as required by a signed Rental Agreement.
2) Take any of the following actions in bad faith:
A. Fail to perform repairs and maintenance required by Rental
Agreement or by federal, State, or local laws;
Ordinance No. NS-3027
Page 19 of 43Page 105 of 130
B. Fail to exercise due diligence in completing repairs and
maintenance once undertaken;
C. Fail to follow appropriate industry repair, containment, or
remediation protocols designed to minimize exposure to noise,
dust, lead, paint, mold, asbestos, or other building materials with
potentially harmful health impacts;
D. Conduct elective renovation or construction of unit for the
purpose of harassing a Tenant;
E. Refuse to acknowledge or accept receipt of a Tenant's lawful
Rent payment as set forth in a Rental Agreement, by usual
practice of the parties, or in a notice to pay Rent or quit;
F. Refuse to cash or process a Rent check or other form of
acceptable Rent payment for over thirty (30) days after it is
tendered;
G. Fail to maintain a current address for delivery of Rent payments;
H. Violate a Tenant's right to privacy without limitation, by
requesting information regarding residence or citizenship status,
protected class status, or social security number, except as
required by law or in the case of a social security number, for
the purpose of obtaining information for the qualifications for a
Tenancy;
I. Release information protected by the Tenant's right to privacy
except as required or authorized by law; or
J. Request or demand an unreasonable amount of information
from Tenant in response to a request for reasonable
accommodation.
3) Abuse the right of access into Residential Real Property as established
by Civil Code section 1954 or other applicable law. This includes
entries for inspections that are not related to necessary repairs or
services; entries excessive in number; entries that improperly target
certain Tenants or are used to collect evidence against the occupant or
otherwise beyond the scope of an otherwise lawful entry; entries or
demands for entry at times outside of normal business hours, unless
for health and safety reasons or if the Tenant agrees otherwise; entries
contrary to a Tenant's reasonable request to change the date or time of
entry; photographing or otherwise recording portions of a Rental Unit
Ordinance No. NS-3027
Page 20 of 43 Page 106 of 130
that are beyond the scope of lawful entry or inspection; and
misrepresenting the reasons for accessing Residential Real Property.
4) Influence or attempt to influence a Tenant to vacate Residential Real
Property through fraud, misrepresentation, intimidation or coercion,
which shall include threatening to report a Tenant to the United States
Department of Homeland Security.
5) Threaten the Tenant, by word or gesture, with physical harm, or abuse
Tenant with words, either orally or in writing, which are offensive and
inherently likely to provoke an immediate violent reaction. This includes
words used during in -person conversations, through social media
postings or messages, or other communications.
6) Violate any law which prohibits discrimination based on race, gender,
sexual preference, sexual orientation, ethnic background, nationality,
religion, age, parenthood, marriage, pregnancy, disability, human
immunodeficiency virus (HIV)/ acquired immune deficiency syndrome
AIDS), occupancy by a minor child, or source of income.
7) Take action to terminate any Tenancy including service of any notice to
quit or other eviction notice or bring any action to recover possession
of a Rental Unit based upon facts which the Owner has no reasonable
cause to believe to be true or upon a legal theory which is untenable
under the facts known to the Owner. No Owner shall be liable under
this subsection for bringing an action to recover possession unless and
until the Tenant has obtained a favorable termination of that action.
8) Remove from the Rental Unit personal property, furnishings, or any
other items without the prior written consent of the Tenant, except
when done pursuant to enforcement of a legal termination of Tenancy.
9) Provide false written or verbal information regarding any federal, State,
County, or local Tenant protections, including mischaracterizing the
nature or effect of a notice to quit or other eviction notice. False
information includes, without limitation, requesting or demanding a
Tenant:
A. Sign a new Rental Agreement not in the Tenant's primary
language if:
Rental Agreement negotiations were conducted in the
Tenant's primary language;
ii. The existing Rental Agreement is in the Tenant's primary
language; or
Ordinance No. NS-3027
Page 21 of 43Page 107 of 130
iii. Owner is otherwise aware that the new Rental
Agreement is not in Tenant's primary language.
B. Enter into a Rent repayment plan if the Owner states,
misrepresents, suggests, or implies, that the Tenant should or
must do so to take advantage of Tenant protection laws that do
not in fact require such plans.
10)Offer payments to:
A. A Tenant to vacate more than once in six (6) months, after the
Tenant has notified the Owner in writing that the Tenant does
not desire to receive further offers of payments to vacate;
B. Attempt to coerce Tenant to vacate accompanied with threats or
intimidation. This shall not include settlement offers in pending
eviction actions made in good faith and not accompanied with
threats or intimidation.
11)Communicate with Tenant in a language other than Tenant's primary
language for the purpose of intimidating, confusing, deceiving or
annoying Tenant.
12)lnterfere with a Tenant's right to quiet use and enjoyment of a Rental
Unit as that right is defined by law.
13)Commit repeated acts or omissions of such significance as to
substantially interfere with or disturb the comfort, repose, peace, or
quiet of any person lawfully entitled to occupancy of such Rental Unit
and that cause, are likely to cause, or are intended to cause any
person lawfully entitled to occupancy of a Rental Unit to vacate such
Rental Unit or to surrender or waive any rights in relation to such
occupancy.
14)Remove a housing service for the purpose of causing the Tenant to
vacate the Residential Real Property. For example, taking away a
parking space knowing that a Tenant cannot find alternative parking
and must move.
15)lnterfere with the right of Tenants to organize as Tenants and engage
in concerted activities with other Tenants for the purpose of mutual aid
and protection; provide property access to Tenant organizers,
advocates, or representatives working with or on behalf of Tenants
living at a property; convene Tenant or Tenant organization meetings
in an appropriate space accessible to Tenants under the terms of their
Rental Agreement; or distribute and post literature informing other
Ordinance No. NS-3027
Page 22 of 43 Page 108 of 130
Tenants of their rights and of opportunities to involve themselves in
their project in common areas, including lobby areas and bulletin
boards.
16)Threatening or intimidating a Tenant based on their immigration or
citizenship status or otherwise disclosing a Tenant's immigration or
citizenship status in violation of California Civil Code section
1940.35(a) and California Code of Civil Procedure section 1161.4, as
may be amended.
DIVISION 3. — RENT STABILIZATION
Section 8-3140 — Prohibited Increases.
a) Increases in Rent on Residential Real Property or Mobilehome Spaces in
the City of Santa Ana in excess of three percent (3%), or eighty (80%) of
the change in the Consumer Price Index, whichever is less, and more than
one Rent Increase in any twelve (12) month period, are prohibited, unless
expressly exempt under the Costa -Hawkins Rental Housing Act codified in
California Civil Code section 1954.50, et seq., or the Mobilehome
Residency Law codified in California Civil Code sections 798, et seq. If
the change in the Consumer Price Index is negative, no Rent Increase is
permitted. The term Consumer Price Index means, at the time of the
adjustment calculation completed by the City pursuant to subsection (b),
the percentage increase in the United State Consumer Price Index for all
Urban Consumers in the Los Angeles -Long Beach -Anaheim Metropolitan
Area published by the Bureau of Labor Statistics, not seasonally adjusted,
for the most recent twelve (12) month period ending prior to the City's
calculation pursuant to subsection (b). A violation of this section occurs
upon the service of notice or demand for a prohibited increase in Rent.
b) No later than June 30 each year, beginning with the year 2022, the City
shall announce the amount of allowable Rent Increase based on
subsection (a) herein, which shall be effective as of September 1 of that
year.
Section 8-3141 — Reasonable Rate of Return.
This ordinance allows for an annual adjustment of Residential Real Property or
Mobilehome Space Rent of up to three percent (3%), or eighty (80%) of the change in
the Consumer Price Index, whichever is less. A Consumer Price Index -based increase
is found and determined to provide a just and reasonable return on an Owner's
property, and has been adopted to encourage good management, reward efficiency,
and discourage the flight of capital, as well as to be commensurate with returns on
Ordinance No. NS-3027
Page 23 of 43Page 109 of 130
comparable investments, but not so high as to defeat the purpose of curtailing
excessive Rents and rental increases. Notwithstanding the foregoing, however, any
Owner of Residential Real Property or a Mobilehome Park who contends that the limit
on rental increases set forth in Section 8-3140 above will prevent the Owner from
receiving a fair and reasonable return on their property may petition for relief from the
cap set forth in section 8-3140 pursuant to the procedures set forth in this Division.
Section 8-3142 — Fair Return Petition for Rent Increase.
a) A Landlord may submit a Fair Return Petition to the Program
Administrator in accordance with the procedures set forth in this Division requesting a
Rent Increase in excess of that provided in this Division in order to obtain a fair and
reasonable return on the Rental Unit.
b) Standard of Review. All relevant factors shall be considered when
evaluating a Fair Return Petition, including, but not limited to, the following:
1) Changes in the Consumer Price Index for All Urban Consumers in
the Los Angeles -Long Beach -Anaheim Metropolitan Area published
by the Bureau of Labor Statistics;
2) The Rent lawfully charged for comparable Rental Units in the City;
3) The length of time since the last determination on a Fair Return
Petition, or the last Rent Increase if no previous Fair Return Petition
has been made;
4) The completion of any rehabilitation work related to the Rental Unit,
and the cost thereof, including materials, labor, construction
interest, permit fees, and other items deemed appropriate;
5) Changes in property taxes or other taxes related to the Rental Unit;
6) Changes in the Rent paid by the Landlord for the lease of the
Rental Unit;
7) Changes in the utility charges for the Rental Unit paid by the
Landlord, and the extent, if any, of reimbursement from the
Tenants;
8) Changes in reasonable Operating Expenses;
9) Changes in Net Operating Income;
10) The need for repairs caused by circumstances other than ordinary
wear and tear;
11) The amount and quality of Housing Services provided by the
Landlord to the Tenants;
12) Compliance with any existing Rental Agreement lawfully entered
into between the Landlord and Tenants; and
13) Landlord's substantial compliance with this Article and applicable
housing, health and safety codes.
Ordinance No. NS-3027
Page 24 of 43 Page 110 of 130
Section 8-3143 — Capital Improvement Petition
a) Effective July 1, 2023, or as modified by resolution of the City Council, a
Landlord may submit a Capital Improvement Petition to the Program Administrator in
accordance with the procedures set forth in this Division requesting a pass -through cost
to the Tenants to cover expenses incurred by the Landlord to complete Capital
Improvements for the Rental Unit pursuant to the following provisions:
1) The Capital Improvement was paid for and completed after
November 19, 2021 (the effective date of the first adopted Rent
Stabilization Ordinance);
2) The Capital Improvement was paid for and completed prior to the
filing of the Capital Improvement Petition;
3) A Capital Improvement Petition must be initiated by the Landlord
within two (2) years of completion of the Capital Improvement;
4) A Capital Improvement Petition shall not apply to Rental Units or
new Tenants whose initial Rent was established after the Landlord
completed the Capital Improvement;
5) The Landlord may not require a Tenant to pay any amount of any
cost that is attributable to any period of time that the Tenant was
not entitled to use and occupy the Rental Unit;
6) The Landlord may not require a Tenant to pay more than the
Tenant's share of the cost attributable to that Tenant's Rental Unit
that is permitted to be passed through to the Tenant;
7) If the Capital Improvement inures solely to the benefit of one or
more of the Rental Units, but to less than all, the surcharge shall be
so annualized, but shall be applied and/or prorated only with
respect to the one or more Rental Units actually so benefited;
8) Equipment otherwise eligible as a Capital Improvement will not be
considered if a "use fee" is charged (i.e. — coin operated washer
and dryers); and,
9) Pass through costs for Capital Improvements shall not be
considered Rent and shall not be increased when Rent Increases,
nor shall they be considered Rent for purposes of calculating a
Rent Increase.
b) Calculating Capital Improvements. Any Capital Improvement pass -
through cost must be calculated according to the following:
1) Capital Improvement costs must be amortized over the useful life of
the Capital Improvement, not to exceed ten percent (10%) of the
current Rent; for the purposes of such computation, the current
Rent for any time period shall not include any Capital Improvement
pass -through amounts;
Ordinance No. NS-3027
Page 25 of 43Page 111 of 130
2) For mixed -use structures and Landlord -occupied Rental Units, only
the percent of residential square footage will be applied in the
calculations;
3) If a unit is occupied by an agent of the Landlord, this unit must be
included when determining the average costs per Rental Unit; and,
4) If the Landlord is reimbursed for Capital Improvements (i.e. —
insurance, court -awarded damages, subsidies, etc.), such
reimbursement must be deducted from the Capital Improvements
before costs are amortized and allocated among the Rental Units.
c) Standard of review. All relevant factors shall be considered when
evaluating a Capital Improvement Petition, including the following:
1) Capital Improvement completed;
2) Landlord's Petition made within two (2) years of completion of
Capital Improvement;
3) Distinguished from ordinary repair or maintenance;
4) For the primary benefit, use, and enjoyment of the Tenant;
5) Permanently fixed in place or relatively immobile and appropriated
to the use of the Rental Unit;
6) No "use fee" or other charge imposed on Tenants for its use; and,
7) Cost -factored and amortized.
Section 8-3144 — Tenant Petition
a) Effective July 1, 2023, or as modified by resolution of the City Council,
Tenant may submit a Petition to the Program Administrator in accordance with the
procedures set forth in this Division on any one (1) or more of the following grounds:
1) To request review of a Rent Increase in excess of the maximum
allowed Rent Increase;
2) To request a reduction in Rent based on decreased Housing
Services;
3) To request a reduction in Rent based on failure of the Landlord to
maintain a habitable premises, including health, safety, fire, or
building code violations;
4) To contest a Capital Improvement cost as an unauthorized or
excessive pass through; or,
5) For any other violation of this Article by the Landlord.
b) Tenant's time to file a Petition. Where applicable, a Tenant filing a Petition
under this Division shall do so within the following time limits:
Ordinance No. NS-3027
Page 26 of 43 Page 112 of 130
1) Tenant receiving a notice of Rent Increase shall have thirty (30)
days after service of such notice to file a Petition for review of Rent;
2) In instances where notice is not provided as required, the Tenant
shall file a Petition for review of Rent within thirty (30) days after
Tenant knew of the alleged failure to comply with the requirements
of this Article; and,
3) For any other violation(s) of this Article by the Landlord, the Tenant
shall file a Petition within one hundred and eighty (180) days of the
alleged violation(s).
c) Standard of Review. All relevant factors shall be considered when
evaluating a Tenant Petition, including the following:
1) Landlord allows violations of this Article or other applicable state
and local statutes to persist;
2) Any reduction of Housing Services, living space, or amenities;
3) Substantial deterioration of the Rental Unit other than as a result of
ordinary wear and tear;
4) Landlord's failure to provide adequate Housing Services;
5) Tenant provided Landlord with reasonable notice and opportunity to
correct the conditions that provide the basis for the petition; and,
6) Landlord's failure to comply substantially with this Article or
applicable housing, health and safety codes.
d) Restoration of Rent Decrease. Where a Rent decrease has been ordered
pursuant to this Division due to a decrease in Housing Services or failure to maintain
habitability, the amount of Rent decreased (return of excess Rent) may be restored in
accordance with procedures set out in the regulations when the former Housing
Services or maintenance levels are reinstated.
Section 8-3145 — Petition Process
A Landlord or a Tenant may file Petitions with the Program Administrator, as
provided in this Division. For purposes of this Petition process, the Landlord and each
Tenant of a Rental Unit that is the subject of a Petition shall be a "party" to the Petition.
The Program Administrator shall promulgate regulations regarding procedures for
Petitions filed under this Article. Petitions shall be governed by such regulations and by
the provisions of this Section. Petitions shall be available in the language that the
Owner and Tenant used to negotiate the terms of the Tenancy (e.g., Spanish, Chinese,
Tagalog, Vietnamese and Korean), as well as English.
a) Filing Petition. Upon the filing of a Petition, the Program Administrator
shall notify the petitioner of the acceptance or denial of the Petition based on the
Ordinance No. NS-3027
Page 27 of 43Page 113 of 130
completeness of the submission. The Program Administrator shall not assess the
merits of the Petition, and shall only refuse acceptance of a Petition that does not
include required information or documentation or comply with the requirements of this
Division.
b) Filing Fee. Fees for the filing of any Petition shall be established by City
Council resolution in the City's Miscellaneous Fee Schedule.
c) Prior Petition. Notwithstanding any other provision of this Division, no
Petition shall proceed if a decision has been made with regard to a prior Petition based
on the same or substantially the same grounds within the previous one hundred and
eighty (180) days.
d) No Landlord Petition or upward adjustment of Rent shall be authorized
under this Division if the Landlord:
1) Has continued to fail to comply, after order of the Board, with any
provisions of this Article and/or orders or regulations issued
thereunder by the Board; or,
2) Has failed to bring the Rental Unit into compliance with the implied
warranty of habitability.
e) Notice of Petition. As soon as possible after acceptance of a Petition, the
Program Administrator shall provide written notice to the Landlord, if the Petition was
filed by the Tenant, or the Tenant, if the Petition was filed by the Landlord, of the receipt
of such a Petition. The written notice shall inform the parties of the Petition process, the
right to respond, and include a copy of the completed Petition and supportive
documents. Any response submitted by the responding party will be made available to
the petitioning party.
f) Hearing Officer. An impartial Hearing Officer appointed by the Program
Administrator shall conduct a hearing to act upon the Petition. The Hearing Officer has
the following powers:
1) To make a determination on a Petition; and
2) Any other powers delegated to the Hearing Officer by the Board.
g) Board Action in Lieu of Reference to Hearing Officer. The Board, on its
own motion, in the Board's sole discretion, may hold a hearing on a Petition without the
Petition first being heard by a Hearing Officer.
h) Time of Hearing. Each accepted Petition shall be scheduled for a hearing
by the Hearing Officer to be held on a date not more than sixty (60) days from the date
the Program Administrator accepts the Petition. With agreement of the parties, the
Hearing Officer may hold the hearing beyond the sixty (60) days. In no event later than
ten (10) days prior to the hearing, the Hearing Officer shall notify all parties as to the
time, date, and place of the hearing.
Ordinance No. NS-3027
Page 28 of 43 Page 114 of 130
i) Consolidation. All Landlord Petitions pertaining to Tenants in the same
building shall be consolidated for hearing, and all Petitions filed by Tenants occupying
the same building shall be consolidated for hearing, unless the Program Administrator
or Hearing Officer finds good cause not to consolidate such Petitions.
Q) Right of Assistance. All parties to a hearing may have assistance in
presenting evidence and developing their position from attorneys, legal workers, or any
other persons designated by said parties.
k) Rules of Evidence. Formal rules of evidence shall not be applicable to
hearings on Petitions. At such a hearing, the parties may offer any documents,
testimony, written declarations, or other evidence that, in the opinion of the Hearing
Officer, is credible and relevant to the Petition. The Hearing Officer may consider the
results of inspections of the property in question and the results of any other
investigations conducted by or at the request of the Hearing Officer or Program
Administrator. Evidence unduly repetitious, lacking credibility, or irrelevant evidence
shall be excluded upon order by the Hearing Officer.
1) Evidence. Any party may appear and offer such documents, testimony,
written declarations, or other evidence as may be pertinent to the proceeding. The
Hearing Officer may require either party to a Petition to provide any books, records, or
papers deemed pertinent, in addition to that information contained in the Petition and
Rental Registry. The Hearing Officer may request the City to conduct a current building
inspection if the Hearing Officer finds good cause to believe the current information
does not reflect the current condition of the Rental Unit. All documents required under
this section shall be made available to the parties involved prior to the hearing. In cases
where information filed in a Petition or in additional submissions filed at the request of
the Hearing Officer is inadequate or false, no action shall be taken on said Petition until
the deficiency is remedied.
m) Quantum of Proof. The party who files the Petition shall have the burden
of proof. No Petition shall be granted unless supported by the preponderance of the
evidence submitted at the hearing.
n) Time for Decision. The policies and procedures adopted by the Board
shall provide for final action on any Petition within a reasonable time.
o) Notice of Decision. The Hearing Officer shall make a determination on the
merits of the Petition and shall provide a written statement of decision, including findings
upon which the determination is based. The Hearing Officer's decision on a Petition
may be reasonably conditioned in any manner necessary to effectuate the purposes of
this Article. Additionally, the parties to the hearing shall also be notified of their right to
any appeal allowed by the Board and/or to judicial review of the decision pursuant to
this Division.
Ordinance No. NS-3027
Page 29 of 43Page 115 of 130
p) Hearing Record. The record of the hearing shall include: the Petition; all
exhibits, papers, and documents required to be filed or accepted into evidence during
the proceedings; a list of participants present; a summary of all testimony accepted in
the proceedings; a statement of all materials officially noticed; all recommended
decisions, orders and/or rulings; all final decisions, orders and/or rulings; and the
reasons for each final decision, order and/or ruling. All hearings shall be recorded.
q) Appeal. Any person aggrieved by the decisions of the Hearing Officer
may appeal to the Board. An appeal to the Board shall be filed no later than thirty (30)
days after receipt of the notice of the decision of the Hearing Officer. On appeal, the
Board shall affirm, reverse, or modify the decision of the Hearing Officer. Unless the
Board elects to conduct a de novo hearing, Board review of the Hearing Officer's
decision shall be based on the hearing record without holding a new hearing. The
Board may consider additional evidence for good cause, including evidence which did
not exist at the time of the hearing or which could not be discovered using due diligence
by a party. If no Board exists, any appeal of the Hearing Officer decision on a Petition
shall proceed pursuant to the administrative appeal procedures found in Chapter 3 of
the Santa Ana Municipal Code.
r) Finality of Decision. The decision of the Hearing Officer shall be the final
decision of the Board in the event of no appeal to the Board. The decision of the
Hearing Officer shall not be stayed pending appeal; however, in the event that the
Board on appeal reverses or modifies the decision of the Hearing Officer, the Board
shall order the appropriate party to make retroactive payments, as applicable, to restore
the parties to the position they would have occupied had the Hearing Officer's decision
been the same as that of the Board.
Section 8-3146 — Voluntary Mediation
a) Voluntary mediation services shall be provided by the City. Upon request,
the Program Administrator shall appoint a Mediator and set a date for a mediation no
later than thirty (30) days after the acceptance of the subject Petition, unless the
Program Administrator determines that additional time is required under the
circumstances. The Program Administrator shall notify the Landlord and Tenant(s) in
writing of the date, time, and place of the mediation hearing at least ten (10) days prior
to the mediation. This notice shall be served either in person or through ordinary mail or
electronic correspondence.
b) It is the intent and purpose of mediation to provide a process in which
Mediators may assist disputants in reaching a voluntary agreement. Accordingly, except
as otherwise expressly provided herein, there shall be no penalty or disability, either
civil or criminal, for failure to participate in the mediation process, and there shall be no
penalty, either civil or criminal, for failure to reach agreement with a disputant in the
mediation process.
Ordinance No. NS-3027
Page 30 of 43 Page 116 of 130
c) Mediation is a voluntary collaborative process wherein the Landlord and
Tenant(s) who have a disagreement can develop options, consider alternatives, and
develop a consensual agreement. The role of the Mediator is to facilitate open
communication to resolve a dispute in a non -adversarial and confidential manner.
d) If the Landlord and Tenant agree to a resolution, the Mediator may assist
the parties in preparing a written settlement agreement for the signature of the Landlord
and the Tenant, provided that in doing so the Mediator confines the assistance to
stating the settlement as determined by the parties. Such agreement shall constitute a
legally enforceable contract.
e) Should the parties fail to agree to a resolution, or the Mediator determines
that the parties have reached an impasse, the Mediator may refer the Petition back to
the Program Administrator to continue the Petition review process detailed in this
Division.
f) All documents and results related to mediations and facilitations held
pursuant to this Article shall be kept confidential and shall be inadmissible as evidence
in any subsequent administrative or judicial proceeding.
g) The Mediator and/or Program Administrator shall provide documentation and
translation services in the language that the Owner and Tenant used to negotiate the
terms of the Tenancy (e. g., Spanish, Chinese, Tagalog, Vietnamese and Korean), as
well as English.
Section 8-3147 — Exemptions.
a) Pursuant to the Costa -Hawkins Rental Housing Act, the provisions of this
ordinance regulating the amount of Rent that a Residential Real Property Owner may
charge shall not apply to the following: any Residential Real Property that has a
certificate of occupancy issued after February 1, 1995 (California Civil Code section
1954.52(a)(1)); and, any other provisions of the Costa -Hawkins Rental Housing Act
addressing exemptions, as applicable.
b) Pursuant to the Mobilehome Residency Law, the provisions of this
ordinance regulating the amount of Rent that a Mobilehome Park Owner may charge for
a Mobilehome Space shall not apply to the following: any Mobilehome Space subject to
a long term (more than one year) Rental Agreement (California Civil Code section
798.17); any newly constructed Mobilehome Space first offered for rent on or after
January 1, 1990 (California Civil Code section 798.45); Mobilehomes not being used as
a person's primary residence that are not being leased to someone else (California Civil
Code section 798.21); and, any other provisions of the Mobilehome Residency Law
addressing exemptions, as applicable.
Ordinance No. NS-3027
Page 31 of 43Page 117 of 130
c) Pursuant to the Tenant Protection Act of 2019, Civil Code section
1947.12(d), the provisions of this ordinance regulating the amount of Rent that a
Residential Real Property Owner may charge shall not apply to the following:
1) Housing restricted by deed, regulatory restriction contained in an
agreement with a government agency, or other recorded document
as affordable housing for persons and families of very low, low, or
moderate income, as defined in Section 50093 of the Health and
Safety Code, or subject to an agreement that provides housing
subsidies for affordable housing for persons and families of very
low, low, or moderate income, as defined in Section 50093 of the
Health and Safety Code or comparable federal statutes.
2) Dormitories owned and operated by an institution of higher
education or a kindergarten and grades 1 to 12, inclusive, school.
3) Housing that has been issued a certificate of occupancy within the
previous 15 years.
4) Residential Real Property that is alienable separate from the title to
any other dwelling unit, provided that both of the following apply:
A. The Owner is not any of the following:
51
Ordinance No. NS-3027
Page 32 of 43
A real estate investment trust, as defined in section 856
of the Internal Revenue Code.
ii. A corporation.
iii. A limited liability company in which at least one member
is a corporation.
The Tenants have been provided written notice that the
Residential Real Property is exempt from this section
using the following statement:
This property is not subject to the Rent limits
imposed by Santa Ana Municipal Code section 8-
3140 and the Owner is not any of the following: (1) a
real estate investment trust, as defined by section 856
of the Internal Revenue Code; (2) a corporation; or (3)
a limited liability company in which at least one
member is a corporation."
Page 118 of 130
ii. For a Tenancy existing before the effective date of this
ordinance, the notice required under clause (i) may, but
is not required to be provided in the Rental Agreement.
iii. For a Tenancy commenced or renewed on or after the
effective date of this ordinance, the notice required under
clause (i) must be provided in the Rental Agreement.
5) A property containing two separate dwelling units within a single
structure in which the Owner occupied one of the units as the
Owner's principal place of residence at the beginning of the
Tenancy so long as the Owner continues in occupancy, and neither
unit is an accessory dwelling unit or a junior accessory dwelling
unit.
Section 8-3148 — Rent Increase Ineffective.
No Rent Increase shall be effective if the Owner:
a) Fails to substantially comply with all provisions of this Division, including
but not limited to the failure to provide notices as required; or
b) Fails to maintain the Residential Real Property or Mobilehome Space in
compliance with California Civil Code Sections 1941.1 et seq. and California Health and
Safety Code sections 17920.3 and 17920.10, except as to Mobilehomes and
Mobilehome Spaces in Mobilehome Parks that are subject to the Mobilehome Parks
Act, Health and Safety Code section 18200, et seq.; Manufactured Housing Act, Health
and Safety Code section 18000, et seq.; or the National Manufactured Housing
Construction and Safety Standards Act of 1974, 42 U.S.C. sections 5401, et seq., as
applicable; or
c) Fails to make repairs ordered by the City or court of competent
jurisdiction.
d) No Rent Increases shall take effect for any Rental Unit unless the
Landlord has accurately completed the Rental Unit Registration.
Section 8-3149 — Notice Requirements.
a) An Owner of any Residential Real Property or Mobilehome Space subject
to this provision shall, on or before the date of commencement of a Tenancy, give the
Tenant a written notice in a form prescribed by the City which must include the following
information:
Ordinance No. NS-3027
Page 33 of 43Page 119 of 130
1) The existence and scope of this Division 3 of Article XIX of Chapter
8 of the Santa Ana Municipal Code; and
2) The Tenant's right to respond to any Fair Return or Capital
Improvement Petition filed with the City by the Owner pursuant to
this Division.
b) As part of any notice to increase Rent, an Owner must include:
1) Notice of the existence of this Division 3 of Article XIX of Chapter 8
of the Santa Ana Municipal Code; and
2) The Tenant's right to respond to any Fair Return or Capital
Improvement Petition filed with the City by the Owner pursuant to
this Division, unless such Rent Increase is pursuant to an approved
Fair Return Petition.
3) No Rent Increase shall take effect until the requirements of this
Division have been met.
c) The Owner must give notices to the Tenant in the language that the
Owner and Tenant used to negotiate the terms of the Tenancy (e. g., English, Spanish,
Chinese, Tagalog, Vietnamese, and Korean) as well as English.
d) Any notices or documents required to be provided from a Landlord to a
Tenant by this Article or any other federal, state, or local law, including, but not limited
to, notice of Rent Increase and notice of eviction, shall be provided to the City through
the Rental Registry portal.
DIVISION 4. — RENTAL REGISTRY AND RENTAL REGISTRY FEE
Section 8-3160 — Rental Registry
Effective July 1, 2023, or as modified by resolution of the City Council, the City
shall create a Rental Registry and all Landlords with Rental Units in the City of Santa
Ana shall complete and submit Registration Forms for each Rental Unit pursuant to the
following:
a) Initial Registration. A Landlord must file an initial Registration Form with
the City for each Rental Unit that is subject to the provisions of this Article.
Registration of a Rental Unit shall not be complete until an Owner has:
1) Completely and accurately provided a Registration Form; and,
2) Paid all fees owed to the City with respect to the Rental Unit
including Registration Fees imposed pursuant to this Article.
Ordinance No. NS-3027
Page 34 of 43 Page 120 of 130
b) Change of Ownership or Management.
1) Whenever a change in ownership of a Rental Unit occurs, the
Landlord shall provide the City with written notice of the change in
ownership, including the date of transfer, and the name, address
and contact information of the new Owner, within thirty (30) days of
the close of escrow.
2) The new Owner is required to file a Registration Form with the City
within sixty (60) days of such change. The new Owner's
Registration Form will only be accepted by the City if it is
accompanied by a copy of a written notification on a form
prescribed by the Program Administrator from the Landlord to all
Tenants advising the Tenants of the change in ownership of the
building and setting forth the name, address and contact
information of the new Owner and of the new Owner's property
manager or representative, and a declaration that the new Owner
served the written notification on all the Tenants.
3) Registration amendments also shall be required to be filed with the
City within sixty (60) days of a change of the property management
or authorized agent or if the address of the Owner or authorized
agent changes.
c) Re -Registration Following a Vacancy. A Landlord shall, in the manner
described herein, re -register a Rental Unit with the City within thirty (30) days after a
vacancy has occurred and the Rental Unit is re -rented.
d) Claim of Exemption. Any Landlord that is claiming any exemption from
this Article must file a claim of exemption with the City. The Landlord shall provide the
City, on a form approved by the Program Administrator and accompanied by supporting
documentation, a written declaration stating the facts which support the claim of
exemption from the provisions of this Article. If the written declaration and supporting
documents are not submitted by July 1 of each year for any Rental Unit, that Rental Unit
shall be deemed to be subject to the provisions of this Article. If the Board determines
that any Unit was incorrectly registered as exempt due to any affirmative
misrepresentation by the Owner, the exemption for that Unit may be revoked
retroactively, and the Unit will be subject to any applicable enforcement measures.
e) Termination of Exemption. Any time a Rental Unit that has been exempted
under the provisions of this Article loses its exempt status due to termination of the
conditions qualifying it for exemption, the Landlord of such Rental Unit is required to file
a Registration Form for said Rental Unit within thirty (30) days of the change in status.
f) Annual Requirement. For the subsequent years after the initial
Registration date, each Registration Form and claims of exemption(s) must be annually
Ordinance No. NS-3027
Page 35 of 43Page 121 of 130
filed on or before July 1 of each year. The Rental Housing Board may modify the
annual registration date.
g) Contents of Registration Form. The Rental Registration Form shall
completely and accurately provide the following information from the Landlord for each
Rental Unit as of the date of filing the Registration Form:
1) Address of each Rental Unit including identifying number or letter;
2) Number of bedrooms and bathrooms in the Rental Unit;
3) Name, current address, and contact information of current Owners,
authorized representatives and property managers;
4) Date of assumption of ownership by current Owners;
5) Current Rent;
6) Date and amount of last Rent Increase; and
7) Move -in date of current Tenant(s).
The Board and/or Program Administrator may adopt policies and procedures that
require additional information to be collected and recorded in Registration Forms in
furtherance of the objectives of this Article.
h) Affidavit. All Rental Registration Forms provided by Landlords in
accordance with this Division shall include an affidavit signed by the Landlord declaring
under penalty of perjury that the information provided in the Rental Registration Form is
true and correct.
i) Notices. Any notices or documents required to be provided from a
Landlord to a Tenant by this Article or any other federal, state, or local law, including,
but not limited to, notice of Rent Increase and notice of eviction, shall be provided to the
City through the Rental Registry portal.
Q) Proper Registration. Registration of a Rental Unit shall not be complete
until the Landlord has:
1) Paid all fees and penalties owed to the City with respect to the
Rental Unit, including the Rental Registry Fee, imposed pursuant to
this Article; and,
2) Filed a complete and accurate Registration Form for that Rental
Unit including all information required by this Division and any
policies and procedures adopted by the Board and/or Program
Administrator.
k) Commencing October 1, 2023, the City may commence enforcement
against any Landlord who fails to register a Rental Unit, or provide current and accurate
data regarding a Rental Unit, according to this Division. Furthermore, no Landlord shall
advertise for rent, demand or accept Rent for a Rental Unit, or evict any Tenant from a
Rental Unit, if the Rental Unit Registration is not complete and accurate. In addition, no
Ordinance No. NS-3027
Page 36 of 43 Page 122 of 130
petition, application, claim or request, and no Rent increases shall take effect for any
Rental Unit unless the Landlord has accurately completed the Rental Unit Registration.
Section 8-3161 — Rental Registry Fee
Effective July 1, 2023, or as modified by resolution of the City Council, an annual
Rental Registry Fee shall be imposed on each Rental Unit in the City. All Landlords
with Rental Units that are subject to this Article shall pay the Rental Registry Fee as
established by the City Council. The Rental Registry Fee is to fund the City's cost to
implement, administer, monitor, support, and enforce the provisions of this Article.
a) Amount of Fee. A Landlord shall pay to the City a Rental Registry Fee for
each of the Landlord's Rental Units in the City. The amount of the Fee shall be
determined by resolution of the City Council adopted from time to time and set forth in
the City's Miscellaneous Fee Schedule. The Fee shall not exceed the amount found by
the City Council to be necessary to administer the provisions of this Article, and the City
Council's findings in this regard shall be final.
b) Deadline for Landlord Payment of Rental Registry Fee. Annual Rental
Registry Fees shall be due and owing on July 1 each year, or within thirty (30) calendar
days of any subsequent changes to the Rental Unit.
c) Late Payment. Any Landlord responsible for paying the Rental Registry
Fee who fails to pay the Fee by October 1, or within sixty (60) calendar days of any mid-
year due date, will be delinquent and shall, in addition to the Fee, pay additional late
charges, penalties of assessments as determined by resolution of the City Council. The
amount of Rental Registry Fee and any penalty imposed by the provisions of this Article
shall be deemed a debt to the City.
d) Pass Through to Tenants. After timely payment of the Rental Registry
Fee, the Landlord may pass through up to fifty percent (50%) of the Fee to Tenants of
the applicable Rental Unit, to be paid by the Tenant in twelve (12) equal monthly
installments. The Fee pass -through shall not be considered part of the Rent in
calculating any Rent Increase. If a Landlord fails to timely pay the Fee and becomes
delinquent, neither the Fee nor any penalties can be passed through to the Tenant. In
the event a Tenant paid Registration Fee pass -through costs in excess of that permitted
by this Division, the Landlord shall reimburse the Tenant for the Registration Fee pass -
through cost overpayment.
1) No Pass -Through for Subsidized Tenants. No portion of the
Registration Fee may be passed through to Tenants who reside in
housing restricted by deed, regulatory restriction contained in an
agreement with a government agency, or other recorded document
as affordable housing for persons and families of very low, low, or
moderate income, as defined in Section 50093 of the Health and
Ordinance No. NS-3027
Page 37 of 43Page 123 of 130
Safety Code, or subject to an agreement that provides housing
subsidies for affordable housing for persons and families of very
low, low, or moderate income, as defined in Section 50093 of the
Health and Safety Code or comparable federal statutes.
Section 8-3162 — Education and Outreach.
The Program Administrator shall have the authority to contract with community -
based organizations for them to assist in the education and outreach related to this
Article.
DIVISION 5. — RENTAL HOUSING BOARD
Section 8-3180 — Rental Housing Board
There is hereby created and established a Rental Housing Board to perform the
functions designated in this Article. The composition of the Board and selection of
Board Members shall be based upon the following:
a) Membership of Board. The Rental Housing Board shall consist of seven
7) Board Members. Each City Councilmember shall appoint one (1) Board Member, to
be approved by the City Council, in an equitable order based upon a random lottery
process. The Board Members of the Rental Housing Board shall be comprised of:
1) Three (3) Tenants, including at least one (1) Mobilehome Tenant;
2) Two (2) Landlords; and
3) Two (2) at -large Members with no financial interest in and no
ownership of income -generating rental housing.
b) Chairperson. The Board shall elect annually one of its Members to serve
in the capacity as Chairperson.
c) Eligibility. Residents of the City are eligible to serve as members of the
d) Full Disclosure of Holdings. Nominees for the position of Board Member
shall submit a verified statement listing all of their interests and dealings in real property,
including, but not limited to, ownership, sale or management of real property during the
previous three (3) years. The Board may promulgate additional regulations.
e) Conflict of Interest. Board Members shall be subject to the requirements
of the California Political Reform Act and other applicable state and local conflict of
interest codes. Accordingly, a Board member shall be disqualified from participating in
any hearing on an application, petition, or appeal where the Board Member is either the
Ordinance No. NS-3027
Page 38 of 43 Page 124 of 130
Landlord or a Tenant residing at the subject property, or has any other form of conflict of
interest.
f) Training Required. All Board members shall attend training as designated
by the Program Administrator.
Section 8-3181 — Rental Housing Board Member Term and Compensation
a) Term. Board Members shall serve for a term of four (4) years or until their
respective successors are appointed or qualified, but in no event shall any persons be
eligible for reappointment who has served three (3) consecutive terms of four (4) years
each, irrespective of what seat or seats the Board Member is appointed to by the City
Council. However, the City Council may remove a Board Member at any time for any
reason.
b) Compensation. Fifty dollars ($50.00) per meeting, plus fifty dollars
50.00) per month automobile allowance.
Section 8-3182 — Rental Housing Board Powers and Duties
a) The Rental Housing Board shall have the following powers and duties:
1) To hold regular meetings at least once each calendar month, or as
needed, as fixed by the by-laws of the Board.
2) Conduct hearings on petitions, applications, and appeals of
hearings determined by a Hearing Officer submitted by Landlords
or Tenants under this Article. Any fees for such hearings shall be
established by City Council resolution in the City's Miscellaneous
Fee Schedule.
3) Promulgate and implement policies and procedures for the
administration and enforcement of this Article. Make such studies,
surveys, and investigations, conduct such hearings, and obtain
such information as is necessary to carry out its powers and duties.
4) Review and assess yearly that sufficient number of staff are
employed, including a Program Administrator, Hearing Officers,
housing counselors and legal staff, as may be necessary to perform
its function efficiently in order to fulfill the purpose of this Article.
5) Any other duties as necessary to administer and enforce this
Article.
6) Such other duties as are designated by resolution of the City
Council.
Section 8-3183 — Rental Housing Board Policies and Procedures
Ordinance No. NS-3027
Page 39 of 43Page 125 of 130
The Board shall issue and follow such policies and procedures, including those
which are contained in this Article, as will further the purposes of the Article.
Section 8-3184 — Rental Housing Board Meetings
a) The Board shall hold such regularly scheduled meetings as are necessary
to ensure the timely performance of its duties under this Article. All regular and special
meetings shall be called and conducted in accordance with state law.
b) Quorum. Four (4) members of the Board shall constitute a quorum for the
transaction of business.
c) Voting. The affirmative vote of four (4) members of the Board is required
for a decision, including all motions, rules, regulations, and orders of the Board.
Section 8-3185 —Judicial Review
Any decision of the Rental Housing Board shall be final unless judicial review is
sought in a court of competent jurisdiction within thirty (30) days of the date of the
Board's decision. The Board decision shall take effect immediately unless provided
otherwise in the decision, regardless of whether a party seeks judicial review.
DIVISION 6. — ENFORCEMENT AND REMEDIES
Section 8-3200 — Violations
a) It shall be unlawful for any person to violate or fail to comply with any
provision of this Article. The violation of any provision of this Article shall first be
punished through the use of an administrative citation, as provided in Santa Ana
Municipal Code section 1-21, et seq., prior to prosecution as a misdemeanor or
infraction, as provided in Santa Ana Municipal Code section 1-8.
b) Civil Action. Any aggrieved person, including the City and the People of
the State of California, may bring a civil action for damages for any violation of this
Article or the rules, regulations, orders and decisions of the Rental Housing Board. The
burden of proof in such cases shall be by a preponderance of the evidence. No
administrative remedy need be exhausted prior to filing a civil suit pursuant to this
section.
c) Injunctive Relief. Any person who commits an act, proposes to commit an
act, or engages in any pattern and practice that violates this Division, or the policies,
procedures, regulations, rules, orders and decisions of the Rental Housing Board, may
be enjoined therefrom by any court of competent jurisdiction. An action for injunction
Ordinance No. NS-3027
Page 40 of 43 Page 126 of 130
under this section may be brought by any aggrieved person, including the City and
People of the State of California. No administrative remedy need be exhausted prior to
filing an action for injunctive relief pursuant to this section.
d) Affirmative Defense. A Landlord's failure to comply with any requirement
of this Article may be asserted as a complete affirmative defense in an unlawful detainer
or any other action brought by the Landlord to recover possession of the Rental Unit.
Additionally, any attempt to recover possession of a Rental Unit in violation of this
Article shall render the Landlord liable to the Tenant for damages in a civil action for
wrongful eviction. The prevailing party in an action for wrongful eviction shall recover
costs and reasonable attorneys' fees.
e) Public Nuisance. In addition to other penalties provided by law, any
condition caused or permitted to exist in violation of any provision of this Article shall be
deemed a public nuisance and may be summarily abated as such by the City, and each
day such condition continues shall constitute a new and separate offense.
f) Non -Exclusive. The remedies provided in this Article are not exclusive,
and nothing in this Article shall preclude any person from seeking any other remedies,
penalties or procedures provided by law, nor is exhaustion of remedies under this
section a prerequisite to the assertion of any other such right.
Section 4. The City Council finds and determines that this Ordinance is not
subject to the California Environmental Quality Act (CEQA) pursuant to sections
15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a
direct or reasonably foreseeable indirect physical change in the environment, as there is
no possibility it will have a significant effect on the environment and it is not a "project,"
as defined in section 15378 of the State CEQA Guidelines. Furthermore, the proposed
Ordinance falls within the "common sense" CEQA" exemption set forth in CEQA
Guidelines section 15061(b)(3), excluding projects where "it can be seen with certainty
that there is no possibility that the activity in question may have a significant effect on
the environment."
Section 5. If any section, subsection, sentence, 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 of the City of Santa Ana 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, phrases, or portions be declared invalid or
unconstitutional.
Ordinance No. NS-3027
Page 41 of 43Page 127 of 130
Section 6. This Ordinance shall become effective thirty (30) days after its
adoption.
Section 7. The Clerk of the Council shall certify to the adoption of this
Ordinance and cause the same to be published in the manner prescribed by law.
ADOPTED this 18l" day of October, 2022.
1
414
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
SoniaA Canialho, City Attorney
Ryan{ Off ` Ho
Assi t ClAttorney AYES:
Councilmembers: Hernandez Lopez Phan Sarmiento (4) NOES:
Councilmembers: Mendoza Penaloza Bacerra (3) ABSTAIN:
Councilmembers: None (0) NOT
PRESENT: Councilmembers: None (0) Ordinance
No. NS-3027 Page
42 of 43 Page 128 of 130
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No.
NS-3027 to be the original ordinance adopted by the City Council of the City of Santa
Ana on October 18, 2022 and that said ordinance was published in accordance with the
Charter of the City of Santa Ana.
Date: It)I2o122 A,: -"4- m
rClerk of the Counci
City of Santa Ana
Ordinance No. NS-3027
Page 43 of 43Page 129 of 130
Contact Information
Eric Johnson
President
Tel 714-992-9027
eric@revenuecost.com
Chu Thai
Partner
Tel 714-992-9024
chu@revenuecost.com
Company Information
Revenue & Cost Specialists
1519 E Chapman Ave, Ste C
Fullerton, CA 92831
Tel (714) 992-9020
www.revenuecost.com
Page 130 of 130