HomeMy WebLinkAboutItem 33 - Rent Stabilization Ordinance and Just Cause Eviction Ordinance Community Development Agency
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Item # 33
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 21, 2021
TOPIC: Rent Stabilization Ordinance and Just Cause Eviction Ordinance
AGENDA TITLE:
Adoption of Rent Stabilization Ordinance and Just Cause Eviction Ordinance
RECOMMENDED ACTION
Receive direction from the Housing Ad Hoc Committee and consider the following
options:
1. Adopt an urgency rent stabilization ordinance prohibiting residential real property and
mobilehome space rental increases that exceed three percent (3%) annually, or eighty
percent (80%) of the change in Consumer Price Index, whichever is less, within the
City. (Requires five affirmative votes)
2. Adopt an urgency ordinance requiring just cause evictions. (Requires five affirmative
votes)
3. Adopt a Resolution directing further study and implementation of the additional
regulatory framework and infrastructure necessary to implement residential rent
stabilization, just cause eviction, and other protections for tenants facing housing
instability.
4. Authorize the City Manager to reallocate up to $300,000 from the Revive Santa Ana
Plan to create an Eviction Defense Fund by entering into an Agreement with a
consultant for the administration, management and implementation of the rent
stabilization ordinance and just cause eviction ordinance, and direct the City Attorney
to finalize and authorize the City Manager to enter into negotiations, execute
agreements, and approve any other required actions necessary with various service
providers, contractors, and sub-recipients, who will implement and manage the
ordinances, subject to non-substantive changes approved by the City Manager and
City Attorney.
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ALTERNATIVE OPTION:
1. Approve first reading of a rent stabilization ordinance prohibiting residential real
property and mobilehome space rental increases that exceed three percent (3%)
annually, or eighty percent (80%) of the change in Consumer Price Index, whichever
is less, within the City.
2. Approve first reading of an ordinance requiring just cause evictions.
3. Adopt a Resolution directing further study and implementation of the additional
regulatory framework and infrastructure necessary to implement residential rent
stabilization, just cause eviction, and other protections for tenants facing housing
instability.
4. Authorize the City Manager to reallocate up to $300,000 from the Revive Santa Ana
Plan to create an Eviction Defense Fund by entering into an Agreement with a
consultant for the administration, management and implementation of the rent
stabilization ordinance and just cause eviction ordinance, and direct the City Attorney
to finalize and authorize the City Manager to enter into negotiations, execute
agreements, and approve any other required actions necessary with various service
providers, contractors, and sub-recipients, who will implement and manage the
ordinances, subject to non-substantive changes approved by the City Manager and
City Attorney.
DISCUSSION
On March 2, 2021, the Mayor and City Council formed a Housing Ad Hoc Committee. The
Housing Ad Hoc Committee members consist of Mayor Sarmiento and Councilmembers
Lopez and Phan. The Committee convened its first meeting on March 22, 2021, and has
since conducted four additional meetings to discuss various housing issues. The first set
of recommendations from the Committee are related to the Housing Opportunity
Ordinance, which is still being reviewed and considered by City Council. The next set of
recommendations from the Committee are related to rent stabilization, rental protections
for tenants, just cause eviction policies, and tenant displacement and protection policies.
On September 9, 2021, and September 15, 2021, the Housing Ad Hoc Committee
convened and directed staff to:
1. Draft a rent stabilization ordinance and a just cause eviction ordinance.
2. Draft a Resolution to conduct due diligence and research into the administrative
formation of a rent control board following the adoption of a rent stabilization ordinance
and a just cause eviction ordinance.
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3. Authorize staff to reallocate Revive Santa Ana funding to create an Eviction Defense
Fund, based on the model of the City’s Deportation Defense Fund.
Following the direction from the Housing Ad Hoc Committee staff have drafted an
ordinance adopting rent stabilization, a second ordinance adopting just cause eviction
protections, a resolution, and a reallocation of Revive Santa Ana funding to create an
Eviction Defense Fund as further described below. These two Ordinances are
recommended by the Housing Ad Hoc Committee as an emergency measure to protect
and preserve the health, safety, and welfare of the residents of the City of Santa Ana in
response to the pending expiration of the State’s COVID-19 emergency residential
eviction moratorium on September 30, 2021. Pursuant to the disclosure of the Mayor at
the City Council meeting on September 7, 2021, the Housing Ad Hoc Committee would
be reviewing policies to protect tenants before the end of the State’s eviction moratorium.
The two Urgency Ordinances will become effective immediately if passed by the
affirmative votes of at least two-thirds (2/3) of the members of the City Council.
Rent Stabilization Ordinance
The Housing Ad Hoc Committee recommends the adoption of an urgency rent
stabilization ordinance prohibiting residential real property and mobilehome space rental
increases that exceed three percent (3%) annually, or eighty percent (80%) of the change
in Consumer Price Index, whichever is less, within the City (Exhibit 1 or 2).
The term Consumer Price Index means, at the time of the adjustment calculation, the
percentage increase in the United State Consumer Price Index (CPI) 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 proposed rent increase/adjustment. Regarding the 80% of the
percentage increase in CPI, this is equal to eighty percent (80%) of the percentage
increase in the CPI (All Items, All Urban Consumers for Los Angeles-Long Beach-
Anaheim, California area, or any successor designation of that index that may later be
adopted by the U.S. Bureau of Labor Statistics). For example, if the percentage increase
in the CPI for All Items were 2.5%, the final percentage would be calculated by multiplying
2.5% by 80%. The new amount equals 2%. The amount is then compared to 3% and a
landlord may not increase their rent greater than the lower of the two percentages. In this
example, the landlord would be prohibited from increasing their rent more than 2%. If the
CPI is negative, no rent increase will be permitted. The Ordinance also prohibits more
than one rent increase in any twelve (12) month period. A violation of the Ordinance
occurs upon the service of notice or demand for a prohibited increase in rent.
The rent stabilization cap will apply to buildings built in 1995 or earlier. The rent
stabilization cap for mobilehomes will apply to those mobilehome parks established in
1990 or before—regardless of ownership. (A new mobilehome park name/owner will not
be a loophole to the rent stabilization ordinance.) Mobilehome parks comprise
approximately 5.2% of all housing in the City according to the Mobile Home Parks Report
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that was received and filed by City Council on May 21, 2019. There are twenty-nine
mobilehome parks containing 3,913 spaces. Six of the mobilehome parks and 1,020
spaces in the City are currently age-restricted to persons 55 years of age or older.
Relative to the State’s Tenant Protection Act of 2019 (“AB 1482”), the State’s rent
stabilization law caps the statewide rent increases to 5% plus the percentage change in
the CPI, or 10%, whichever is lower. The City’s local Ordinance will go further than
AB 1482 and the protections provided in this Ordinance are more restrictive than those
set forth in AB 1482.
An owner must, on or before the date of commencement of a tenancy, give the tenant or
mobilehome resident a written notice in a form prescribed by the City information on the
existence and scope of the Ordinance and the tenant’s right to respond to any petition
filed with the City as described in detail below. A rent increase cannot take effect until
the notice has been provided.
Fair Return in Response to Takings Clause
In cases where a cap on rent increases poses difficulty for a particular landlord, the legal
requirement for a fair return under the Fifth Amendment takings clause is satisfied so long
as an adequate process is established for the landlord to seek an individualized
adjustment. A CPI-based increase in the Ordinance will provide a just and reasonable
return on an owner’s property, and has been included in the Ordinance to encourage
good management, reward efficiency, and discourage the flight of capital, as well as to
be commensurate with returns on comparable investments, but not so high as to defeat
the purpose of curtailing excessive rents and rental increases. Courts in California have
long upheld the constitutionality of the maintenance of net operating income (MNOI)
standard in these individualized determinations. The MNOI standard typically indexes
increases to those found in the CPI, including indexing the MNOI standard at less than
100% of the change in the CPI. One reason is that such indexing accounts for the fact
that a landlord’s return on investment is not limited to the revenue from rent rolls, but also
includes increases to the landlord’s equity in the property and overall appreciation of the
property. Another reason is that a major component of the CPI is determined by increases
in housing costs, which are often driven by speculation rather than maintenance costs,
and thus these costs unduly influence the rise in the overall CPI. Over the last 40 years,
the change in the CPI for the Los Angeles-Long Beach-Anaheim region for “All Items,
less shelter” was approximately 80% of the change in the CPI for “All Items.” The
Ordinance will index the MNOI standard at 80% of the change in the CPI for “All Items”
as a reasonable guarantee that landlords will obtain a fair rate of return on their
investments.
However, any owner of residential real property or a mobilehome park who contends that
the limit on rental increases set forth in the Ordinance will prevent the owner from
receiving a fair and reasonable return on their property, may petition for relief from the
cap. The owner’s petition must be on an application form prescribed by the City Manager
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and shall be decided by the City Manager, or her designee. The owner shall also provide
a copy of any petition submitted to the City to the applicable tenant(s), and provide the
City with proof of completing such service to the applicable tenant(s). The tenant(s) will
then have thirty (30) days from the date of receiving the petition to reply or provide
additional materials to the City in response to the petition. The applicant shall bear the
burden of establishing that a rate increase in excess of the rent stabilization cap is
necessary to provide the applicant with a fair and reasonable return on their property,
including by providing an independent financial report and verified financial data
demonstrating that without such an increase, they will not realize a fair and reasonable
return on their property.
The owner will be responsible for all costs associated with the City’s review of the petition.
Upon receipt of a fair return petition/application, the City Manager shall determine if the
employment of expert(s) will be necessary or appropriate for a proper analysis of the
applicant’s request. If the City Manager so determines, she shall also determine the
anticipated costs of employing such expert(s). The resulting figure shall be
communicated to the applicant, and the application will not be processed until the
applicant has paid to the City the estimated cost of the expert analysis (e.g. cost
recovery). The entire list of factors the City Manager may consider in deciding a fair return
petition/application are provided in the Ordinance. The most notable factors include
consideration of the completion of any capital improvements or rehabilitation work related
to the residential real property or mobilehome space; changes in property taxes; changes
in reasonable operating and maintenance expenses; the need for repairs caused by
circumstances other than ordinary wear and tear; or any existing written lease lawfully
entered into between the applicant and the affected tenant(s). The petition will be decided
by the City Manager within sixty (60) days of the date that the petition was deemed
complete.
Any appeal of the City Manager decision on an application for a fair return adjustment
shall proceed pursuant to the administrative appeal procedures found in Chapter 3 of the
Santa Ana Municipal Code. This procedure involves the Clerk of the Council contracting
with an independent hearing officer to adjudicate the appeal.
Exemptions
Pursuant to the Costa-Hawkins Rental Housing Act, the provisions of the Ordinance
regulating the amount of rent that a residential real property owner may charge shall not
apply to any residential real property that has a certificate of occupancy issued after
February 1, 1995; and, any other provisions of the Costa-Hawkins Rental Housing Act
addressing exemptions, as applicable. Pursuant to the Mobilehome Residency Law
(MRL), the provisions of the 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; any
newly constructed mobilehome space first offered for rent on or after January 1, 1990;
mobilehomes not being used as a person’s primary residence that are not being leased
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to someone else; and, any other provisions of the MRL addressing exemptions, as
applicable.
Just Cause Eviction Ordinance
The Housing Ad Hoc Committee recommends the adoption of an urgency ordinance
requiring just cause evictions (Exhibit 3 or 4). The Just Cause Eviction Ordinance
incorporates AB 1482 as a local Ordinance in the Santa Ana Municipal Code and adds
additional tenant protections. Specifically, AB 1482 provides that a local ordinance
adopted after September 1, 2019, requiring just cause for termination of a residential
tenancy shall supersede AB 1482 only if the ordinance is “more protective.” The
Ordinance therefore adds the following additional tenant protections that are not already
available to Santa Ana residents under AB 1482:
1. Reduces the prior occupancy requirement from 12 months to 30 days before
qualifying for protections;
2. Adds notice of termination of tenancy requirements, including:
a. The owner must serve a written notice 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 the Ordinance; and
b. The owner is not allowed to accept rent for use of property beyond the
termination date; and
c. The owner qualifies the termination as at-fault or no-fault just cause, as
specified in the Ordinance; and
d. A copy of the owner’s Notice of Termination of Tenancy sent to the tenant
must be provided to the City within five (5) days after service of the Notice
of Termination to the tenant.
e. The owner must provide the notice in the language that the owner and
tenant used to negotiate the terms of the lease.
3. Adds a requirement that the owner must provide written notice to tenants and/or
mobilehome residents of their rights under the Ordinance on a form prescribed by
the City in the language that the owner and tenant used to negotiate the terms of
the tenancy.
4. The following violations of leases or rental agreements shall not be grounds for
evictions:
a. The obligation to limit occupancy, provided that the additional
tenant/resident who joins the occupants of the unit thereby exceeding the
limits on occupancy set forth in the rental agreement is a dependent under
18, or is a replacement tenant/resident who moved in after an approved
tenant/resident vacated the rental unit, so long as the addition does not
exceed the Uniform Housing Code.
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b. A change in the terms of the tenancy that is not the result of an express
written agreement signed by both of the parties.
c. A landlord shall not take any action to terminate a tenancy based on a tenant
/resident’s sublease of the rental unit if certain requirements are met as
described in the Ordinance.
d. Eviction Protections for Victims of Domestic Violence, Elder or Dependent
Adult Abuse, or Sexual Assault, Human Trafficking, or Stalking.
5. Adds a requirement that the owner must provide advance notice to the tenant of
the ability to reoccupy the unit upon completion of repairs or the right of first refusal
of a comparable unit.
6. Adds relocation assistance equal to three (3) months of the tenant’s rent if an
owner issues a notice to terminate for no-fault just cause.
7. Adds retaliatory eviction and anti-harassment regulations.
Enforcement
In the interim period, the City of Santa Ana will not be responsible for the enforcement of
the Ordinances. This is similar to how the State’s Tenant Protection Act of 2019 (AB 1482)
is enforced. When a landlord accepts, receives, or retains any payment or payments in
excess of the lawful rent pursuant to the Ordinance, the tenant/mobile home owner/
resident may file a civil suit against the landlord. A tenant/mobile home owner/resident
may bring a civil suit in the court alleging that a landlord has violated any of the provisions
of the Ordinance(s). A landlord found to violate the Ordinance(s) shall be liable to the
tenant/mobile home owner/resident for all actual damages. Tenants/mobile home
owners/residents and landlords of rental units or mobile homes may seek relief from the
appropriate court in the City of Santa Ana to enforce any provision of the Ordinance(s) or
its implementing regulations or to restrain or enjoin any violation of the Ordinance(s) and
of the rules, regulations, orders, and decisions of the City. However, a consultant hired
by the City will enforce and administer an owner’s right to a fair return process under the
Rent Stabilization Ordinance as required in the Ordinance.
Resolution to Conduct due Diligence and Research on Rent Control Board
The Housing Ad Hoc Committee recommends adoption of a Resolution directing staff to
conduct further study of the additional regulatory framework and infrastructure necessary
to implement residential rent stabilization, just cause eviction, and other protections for
tenants facing housing instability (Exhibit 5). These measures are to include the creation
and operation of a Rent Control Board or similar body, a rent registry, and the related
costs thereof.
Due to the nature of this due diligence process, which could take staff from nine to 12
months to complete, the Committee determined that a resolution to conduct this due
diligence would be the most effective method to adopt the Ordinances. On February 6,
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2018, City Council held a work-study session on rent control, which included a
presentation by Tracy Condon, Executive Director of the Santa Monica Rent Control
Board. At the time of the presentation, the Santa Monica Rent Control Board consisted
of 25 staff required to administer and enforce their City’s rent stabilization
ordinance. Building upon this work-study and research that staff started in February 2018
regarding how to administer a rent stabilization ordinance; this resolution directs staff to
conduct further study.
Eviction Defense Fund
In response to the pending expiration of the state COVID-19 emergency residential
eviction moratorium on September 30, 2021, the Housing Ad Hoc Committee
recommends to reallocate up to $300,000 of Revive Santa Ana funding to create an
Eviction Defense Fund by entering into an Agreement with a consultant for the
administration, management and implementation of the rent stabilization ordinance and
just cause eviction ordinance. Specifically, staff will work with the City Attorney’s Office
to enter into negotiations, execute agreements, and approve any other required actions
necessary with various service providers, contractors, and sub-recipients, who will
implement and manage the City’s rent stabilization ordinance and just cause eviction
ordinance. This will be an interim solution to bridge the time between the effective date
of the Ordinances and the full implementation of the Ordinances through the formation of
a rent control board with full-time staff. The consultant will assist the City to transition the
management of the rent control ordinance to the City’s full-time staff and rent control
board. This solution will ensure the successful and efficient implementation of the
Ordinances in the short-term with the least impact to City staff. The full long-term
implementation of the Ordinance may require an amendment to the Rent Stabilization
Ordinance for the collection of fees from owners and the hiring of at least 25 staff, based
upon the model in the City of Santa Monica.
The consultant who is selected by staff and the corresponding Agreement will not return
to City Council for approval. However, staff have preliminarily identified RSG as one
consultant with experience administering rent stabilization ordinances. RSG is currently
administering two mobilehome park rent control ordinances. They have been
administering the mobilehome park rent control ordinance for the City of El Monte and
Carson. For the City of Carson, they have been directly administering their City’s
ordinance for over four years. For the administration of their rent stabilization ordinance,
the City of Carson calculates and publishes information on the CPI adjustment each year
while RSG administers the right to a fair return process for landlords. RSG also assisted
the City of Hollywood in the past when their City was re-evaluating their
ordinance. Currently RSG is assisting the City of Southgate to evaluate the feasibility of
creating a rent stabilization ordinance. RSG is locally based in the City of Irvine. The
Agreement will be a full-service contract to ensure there are no issues or delays for
tenants and owners after the initial approval of the Ordinances.
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Next Steps
Following adoption of the Ordinances, an Agreement will be drafted and executed with a
consultant who will establish a webpage and phone line to provide clear and consistent
information on the new protections under the Ordinances. A right to a fair return process
will be established for owners to submit a petition as required in the Ordinance. A press
release will also be issued prior to the expiration of the State eviction moratorium on
September 30, 2021.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Following the adoption of the Urgency Rent Stabilization Ordinance, Just Cause Eviction
Ordinance and Resolution, staff will reallocate up to $300,000 in Revive Santa Ana
funding to create an Eviction Defense Fund by entering into an agreement with a
consultant for the administration, management and implementation of the rent
stabilization ordinance and just cause eviction ordinance. Funds will be available upon
carry forward of the American Rescue Plan Act (ARPA) grant funds from FY 20-21 to FY
21-22 in account no. 18118013-62300.
The future fiscal impact of the Ordinances is unknown but may require an amendment to
the Rent Stabilization Ordinance for the collection of fees from owners and the hiring of
at least 25 staff following the due diligence process as directed in the Resolution.
EXHIBIT(S)
1. Urgency Rent Stabilization Ordinance
2. Rent Stabilization Ordinance
3. Urgency Just Cause Eviction Ordinance
4. Just Cause Eviction Ordinance
5. Resolution
Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
ORDINANCE NO. NS-XXXX
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA PROHIBITING RESIDENTIAL
REAL PROPERTY AND MOBILEHOME SPACE RENTAL
RATE INCREASES THAT EXCEED THREE PERCENT
(3%) ANNUALLY, OR EIGHTY PERCENT (80%) OF THE
CHANGE IN CONSUMER PRICE INDEX, WHICHEVER IS
LESS, WITHIN THE CITY
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 meeting on September 21, 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.The increasing housing rent burden and poverty faced by many residents in the
City of Santa Ana threatens the health, safety, and welfare of its residents by
forcing them to choose between paying rent and providing food, clothing, and
medical care for themselves and their families.
C.According to the May 2017 report by the California Housing Partnership
Corporation, median rent in Orange County, which includes Santa Ana, has
increased twenty-eight percent (28%) since 2000, while median renter household
income has declined by 9%, when adjusted for inflation. Additionally, the May
2020 report by the California Housing Partnership Corporation demonstrated that
renters need to earn $42.23/hr, or, 3.2 times the state minimum wage to afford
an average monthly asking rent of $2,196 for a two-bedroom apartment in
Orange County.
D.Orange County’s lowest income renters spend eighty-one percent (81%) of their
income on rent, leaving very little to meet other basic human needs such as food
and health.
E.If Santa Ana renter-occupied households paid thirty percent (30%) of their
income on housing, renters would have an extra $176 million dollars of
disposable income (income minus housing costs) to spend in the community
each year, or $7,000 per household. Additionally, racial inequities would
decrease, as the yearly disposable income would increase by 14% for Latinos,
13% for Asian or Pacific Islanders, and 7% for Whites.
EXHIBIT 1
F. The housing rent burden and poverty faced by many residents in Santa Ana
threatens the health, safety, and welfare of its residents, particularly when
resulting in eviction and displacement. Studies have shown that evictions play an
impactful role in the lives of low income renter households and can also
contribute to poverty through disruptive effects such as job loss, adverse health
effects, and negative consequences for children.
G. Moreover, an eviction can remain on a renter’s credit history for at least seven
years, impacting one’s ability to rent and find employment opportunities .
H. The Costa-Hawkins Rental Housing Act, California Civil Code section 1954.50, et
seq., limits the applicability of local rent stabilization policies, including prohibiting
local jurisdictions from applying rent stabilization to certain residential rental
properties. This Ordinance intends to comply with the Costa-Hawkins Rental
Housing Act, and all other applicable state and federal laws.
I. Mobilehome Parks comprise approximately five percent (5.1%) of all housing in
Santa Ana. The city has 29 Mobilehome Parks containing 3,913 spaces. Six of
the Mobilehome Parks and one thousand twenty spaces in Santa Ana are
currently age-restricted to persons 55 years of age or older.
J. Many residents of mobilehome parks could become homeless if mobilehome
park owners were to impose significant rent increases.
K. Increasing the number of homeless residents in Santa Ana, particularly elderly
residents who may be in need of medical or other care, could create a public
health and safety risk.
L. The economic conditions and recognized housing shortage in Southern
California has the potential to detrimentally impact a substantial number of
residents in Santa Ana, and impose a particular hardship on senior citizens,
persons living on fixed incomes, and other vulnerable persons living in
mobilehome parks in Santa Ana.
M. The Mobilehome Residency Law (“MRL”), California Civil Code sections 798, et
seq., expressly authorizes cities to regulate the setting and/or increasing of rents
for the use and occupancy of a mobilehome space, subject to certain exceptions.
N. Santa Ana Municipal Code (“SAMC”), Chapter 41, Article X, establishes
standards for the development of mobilehome parks as a type of multiple-family
residential development, and provides for the establishment of said development
in areas throughout the City that will ensure their compatibility with other
permitted uses in the district, consistent with the Housing Element of the City’s
General Plan.
EXHIBIT 1
O. The City has not previously regulated the setting and increasing of rents for
residential real property or mobilehome spaces. However, given the concerns
discussed herein, the City Council desires to evaluate rent stabilization policies
protecting residents from unreasonable rent increases, while ensuring that the
owners of residential real property and mobilehome parks may earn a fair and
reasonable return on their property.
P. 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.
Q. Based on the foregoing facts, and the facts presented to the City Council at the
meeting at which this ordinance was introduced and adopted, the City Council
finds that allowing owners of residential real property and mobilehome parks to
have unfettered discretion to increase rents prior to the City’s completion of a
study of the legality, feasibility, impacts, and regulation of rent increases in an
effort to avoid displacing large numbers of Santa Ana residents, would pose a
current and immediate threat to the public health, safety or welfare, and that a
prohibition of rent increases, except as allowed herein, is therefore necessary.
R. Pursuant to Santa Ana City Charter Sections 415 and 417, this Ordinance is
declared by the City Council to be necessary as an emergency measure to
protect and preserve the health, safety and welfare of the residents of the City of
Santa Ana and will become effective immediately if passed by the affirmative
votes of at least two-thirds (2/3) of the members of the City Council. The City
Council hereby finds that there is an urgent need to adopt these regulations in
order to address the current and immediate threats set forth below.
1. Absent the adoption of this ordinance, as a result of the economic conditions
and recognized housing shortage in Southern California, significant rent
increases will impact a substantial number of residents in Santa Ana and
constitute 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;
2. Housing costs continue to escalate in Orange County, and mobilehome parks
serve as an important affordable housing option for Santa Ana residents ;
3. Because a mobilehome is affixed to the property on which it resides, it is
generally not cost effective to move it, resulting in the owner losing the
mobilehome if they cannot pay the rent imposed by the landlord;
4. Certain aspects of public health, safety, and welfare are not adequately
protected due to the lack of rent stabilization mechanics or controls in Santa
Ana, and it is the interest of the City, the owners, residents, and the
EXHIBIT 1
community as a whole that the City consider regulations to protect affordab le
housing within the City, including, but not limited to, rent stabilization
regulations applicable to residential real property and mobilehomes.
S. The Request for Council Action for this ordinance dated September 21, 2021,
shall be incorporated herein by this reference, and together with this ordinance,
any amendments or supplements, and oral testimony, shall constitute the
necessary findings for this ordinance.
T. The City Council finds, determines and declares that the current and immediate
threat to the public health, safety and welfare of the City and its residents
necessitates the immediate enactment of the ordinance. The facts constituting
such urgency are set forth in this Section 1, paragraphs A-S, of 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. Section 8-1998 of the Santa Ana Municipal Code is deleted in its
entirety.
Section 4. Division 5 is hereby added to Article X (Property Maintenance) of
Chapter 8 (Buildings and Structures) of the Santa Ana Municipal Code to read as
follows:
Division 5. – RENT STABILIZATION
Section 8-1998.1 – 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.
EXHIBIT 1
(b) No later than June 30th each year, beginning with the year 2022, the City
shall announce the amount of allowable re nt increase based on
subsection (a) herein, which shall be effective as of September 1st of that
year.
Section 8-1998.2 – 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 a n owner’s property,
and has been adopted to encoura ge good management, reward efficiency, and
discourage the flight of capital, as well as to be commensurate with returns on
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 8-1998.1 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 8-1998.1 pursuant to the procedures set forth in section 8-
1998.3.
Section 8-1998.3 – Fair Return Petition for Rent Increase.
(a) An owner of residential real property or a mobilehome park owner may
petition for a rent increase in excess of that provided in section 8-1998.1 in order to
obtain a fair and reasonable return on their property (“Fair Return Petition). Such Fair
Return Petition shall be on an application form prescribed by the City Manager and shall
be decided by the City Manager, or their designee (“City Manager”). Owner shall
provide a copy of any Fair Return Petition submitted to the City to the applicable
tenant(s), and provide City with proof of completing such service to the app licable
tenant(s). The tenant(s) will then have thirty (30) days from the date of receiving the
Fair Return Petition to reply or provide additional materials to the City in response to the
Fair Return Petition. The applicant shall bear the burden of establishing that a rate
increase in excess of that provided in section 8-1998.1 is necessary to provide the
applicant with a fair and reasonable return on their property, including by providing an
independent financial report and verified financial data demon strating that without such
an increase, they will not realize a fair and reasonable return on their property.
(b) Applicant shall be responsible for all costs associated with the City’s
review of the Fair Return Petition. Upon receipt of a Fair Return Petition, the City
Manager shall determine the anticipated costs of review and if the employment of
expert(s) will be necessary or appropriate for a proper analysis of the applicant’s
request. If the City Manager so determines, the City Manager shall also determine the
anticipated costs of employing such expert(s). The resulting figure shall be
communicated to the applicant, and the Fair Return Petition shall not be processed until
the applicant has paid to the City the estimated cost of the complete analysis. City will
EXHIBIT 1
provide applicant with an invoice of all costs incurred after the review of the Fair Return
Petition. Any unused portion of the advance payment for analysis shall be refunded to
the applicant. If additional funds are required, payment will be required before applicant
receives the determination on the Fair Return Petition from the City.
(c) The factors the City Manager may consider in deciding a Fair Return
Petition may include, but not be limited to:
(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 residential real property
or mobilehome spaces in the City.
(3) The length of time since the last determination by the City Manager
on a rent increase application, or the last rent increase if no
previous rent increase application has been made.
(4) The completion of any capital improvements or rehabilitation work
related to the residential real property or mobilehome space or
spaces specified in the Fair Return Petition, and the cost thereof,
including materials, labor, construction interest, permit fees, and
other items the City Manager deems appropriate.
(5) Changes in property taxes or other taxes related to the subject
residential real property or mobilehome park.
(6) Changes in the rent paid by the applicant for the lease of the
residential real property or land on which the subject mobilehome
park is located.
(7) Changes in the utility charges for the subject residential real
property or mobilehome park paid by the applicant, and the extent,
if any, of reimbursement from the tenants.
(8) Changes in reasonable operating and maintenance expenses.
(9) The need for repairs caused by circumstances other than ordinary
wear and tear.
(10) The amount and quality of services provided by the applicant to the
affected tenant(s).
(11) Any existing written lease lawfully entered into between the
applicant and the affected tenant(s).
EXHIBIT 1
(d) A Fair Return Petition shall be decided by the City Manager within sixty
(60) calendar days of the date that the application has been deemed complete ,
including proof of service of the Fair Return Petition on the applicable tenant(s). The
decision shall be emailed and sent by mail, with proof of mailing to the subject property
owner, the owner's designated representative(s) for the Fair Return Petition, and a
designated representative of the tenant(s). Any appeal of the City Manager decision on
a Fair Return Petition shall proceed pursuant to the administrative appeal procedures
found in Chapter 3 of the Santa Ana Municipal Code.
Section 8-1998.4 – 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 interim
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.
Section 8-1998.5 – 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; or
(c) Fails to make repairs ordered by the City or court of competent
jurisdiction.
EXHIBIT 1
Section 8-1998.6 – 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:
(1) The existence and scope of this Division 5 of Chapter 8 of the
Santa Ana Municipal Code; and
(2) The tenant’s right to respond to any Fair Return Petition filed with
the City by the owner pursuant to section 8-1998.3.
(b) As part of any notice to increase rent, an owner must include:
(1) Notice of the existence of this Division 5 of Chapter 8 of the Santa
Ana Municipal Code; and
(2) The tenant’s right to respond to any Fair Return Petition filed with
the City by the owner pursuant to section 8-1998.3, 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.
Section 8-1998.7 – Violations.
It shall be unlawful and a misdemeanor for any person to violate or fail to comply
with any provision of the ordinance. The violation of any provision of this ordinance
shall be punished as provided in SAMC section 1-8.
Section 5. The City Council finds that this ordinance is not subject to the
California Environmental Quality Act (CEQA) pursuant to sections 15060(c)(2),
15060(c)(3) and 15061(b)(3) of the State CEQA Guidelines because it will not result in a
direct or reasonably foreseeable indirect physical change in the environment, because
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.
Section 6. If any section, subsection, phrase, or clause of this ordinance is for
any reason held to be unconstitutional, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council hereby declares that it would
have passed this ordinance and each section, subsection, p hrase or clause thereof
EXHIBIT 1
irrespective of the fact that any one or more sections, subsections, phrases, or clauses
be declared invalid or unconstitutional.
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.
Section 8. This ordinance is introduced, passed and adopted at one and the
same meeting and is thereafter immediately effective. The City Council finds that this
ordinance is necessary to protect the public safety, health and welfare. The reasons for
the emergency are set forth in Section 1, paragraphs A-S, inclusive of this ordinance.
EXHIBIT 1
ADOPTED this ___ day of ___________________, 2021.
_______________________
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
_______________________________
Ryan O. Hodge
Assistant City Attorney
AYES: Councilmembers: ________________________________________
NOES: Councilmembers: ________________________________________
ABSTAIN: Councilmembers: ________________________________________
NOT PRESENT: Councilmembers: ________________________________________
EXHIBIT 1
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached
Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the
City of Santa Ana on _________________, 2021.
Date: ________________ ____________________________________
Clerk of the Council
City of Santa Ana
EXHIBIT 1
ORDINANCE NO. NS-XXXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA PROHIBITING RESIDENTIAL REAL
PROPERTY AND MOBILEHOME SPACE RENTAL RATE
INCREASES THAT EXCEED THREE PERCENT (3%)
ANNUALLY, OR EIGHTY PERCENT (80%) OF THE
CHANGE IN CONSUMER PRICE INDEX, WHICHEVER IS
LESS, WITHIN THE CITY
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 meeting on September 21, 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.The increasing housing rent burden and poverty faced by many residents in the
City of Santa Ana threatens the health, safety, and welfare of its residents by
forcing them to choose between paying rent and providing food, clothing, and
medical care for themselves and their families.
C.According to the May 2017 report by the California Housing Partnership
Corporation, median rent in Orange County, which includes Santa Ana, has
increased twenty-eight percent (28%) since 2000, while median renter household
income has declined by 9%, when adjusted for inflation. Additionally, the May
2020 report by the California Housing Partnership Corporation demonstrated that
renters need to earn $42.23/hr, or, 3.2 times the state minimum wage to afford
an average monthly asking rent of $2,196 for a two-bedroom apartment in
Orange County.
D.Orange County’s lowest income renters spend eighty-one percent (81%) of their
income on rent, leaving very little to meet other basic human needs such as food
and health.
E.If Santa Ana renter-occupied households paid thirty percent (30%) of their
income on housing, renters would have an extra $176 million dollars of
disposable income (income minus housing costs) to spend in the community
each year, or $7,000 per household. Additionally, racial inequities would
decrease, as the yearly disposable income would increase by 14% for Lat inos,
13% for Asian or Pacific Islanders, and 7% for Whites.
EXHIBIT 2
F. The housing rent burden and poverty faced by many residents in Santa Ana
threatens the health, safety, and welfare of its residents, particularly when
resulting in eviction and displacement. Studies have shown that evictions play an
impactful role in the lives of low income renter households and can also
contribute to poverty through disruptive effects such as job loss, adverse health
effects, and negative consequences for children.
G. Moreover, an eviction can remain on a renter’s credit history for at least seven
years, impacting one’s ability to rent and find employment opportunities .
H. The Costa-Hawkins Rental Housing Act, California Civil Code section 1954.50, et
seq., limits the applicability of local rent stabilization policies, including prohibiting
local jurisdictions from applying rent stabilization to certain residential rental
properties. This Ordinance intends to comply with the Costa-Hawkins Rental
Housing Act, and all other applicable state and federal laws.
I. Mobilehome Parks comprise approximately five percent (5.1%) of all housing in
Santa Ana. The city has 29 Mobilehome Parks containing 3,913 spaces. Six of
the Mobilehome Parks and one thousand twenty spaces in Santa Ana are
currently age-restricted to persons 55 years of age or older.
J. Many residents of mobilehome parks could become homeless if mobilehome
park owners were to impose significant rent increases.
K. Increasing the number of homeless residents in Santa Ana, particularly elderly
residents who may be in need of medical or other care, could create a public
health and safety risk.
L. The economic conditions and recognized housing shortage in Southern
California has the potential to detrimentally impact a substantial number of
residents in Santa Ana, and impose a particular hardship on senior citizens,
persons living on fixed incomes, and other vulnerable persons living in
mobilehome parks in Santa Ana.
M. The Mobilehome Residency Law (“MRL”), California Civil Code sections 798, et
seq., expressly authorizes cities to regulate the setting and/or increasing of rents
for the use and occupancy of a mobilehome space, subject to certain exceptions.
N. Santa Ana Municipal Code (“SAMC”), Chapter 41, Article X, establishes
standards for the development of mobilehome parks as a type of multiple-family
residential development, and provides for the establishment of said development
in areas throughout the City that will ensure their compatibility with other
permitted uses in the district, consistent with the Housing Element of the City’s
General Plan.
EXHIBIT 2
O. The City has not previously regulated the setting and increasing of rents for
residential real property or mobilehome spaces. However, given the concerns
discussed herein, the City Council desires to evaluate rent stabilization policies
protecting residents from unreasonable rent increases, while ensuring that the
owners of residential real property and mobilehome parks may earn a fair and
reasonable return on their property.
P. 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.
Q. Based on the foregoing facts, and the facts presented to the City Council at the
meetings at which this ordinance was introduced and adopted, the City Council
finds that allowing owners of residential real property and mobilehome parks to
have unfettered discretion to increase rents, would pose a threat to the public
health, safety or welfare, and that a prohibition of rent increases, except as
allowed herein, is therefore necessary.
R. The City Council hereby adopts these regulations in order to address the threats
set forth below.
1. Absent the adoption of this ordinance, as a result of the economic conditions
and recognized housing shortage in Southern California, significant rent
increases will impact a substantial number of residents in Santa Ana and
constitute 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;
2. Housing costs continue to escalate in Orange County, and mobilehome parks
serve as an important affordable housing option for Santa Ana residents ;
3. Because a mobilehome is affixed to the property on which it resides, it is
generally not cost effective to move it, resulting in the owner losi ng the
mobilehome if they cannot pay the rent imposed by the landlord;
4. Certain aspects of public health, safety, and welfare are not adequately
protected due to the lack of rent stabilization mechanics or controls in Santa
Ana, and it is the interest of the City, the owners, residents, and the
community as a whole that the City consider regulations to protect affordable
housing within the City, including, but not limited to, rent stabilization
regulations applicable to residential real property and mobilehomes.
S. The Request for Council Action for this ordinance dated September 21, 2021,
shall be incorporated herein by this reference, and together with this ordinance,
EXHIBIT 2
any amendments or supplements, and oral testimony, shall constitute the
necessary findings for this ordinance.
T. 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.
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. Section 8-1998 of the Santa Ana Municipal Code is deleted in its
entirety.
Section 4. Division 5 is hereby added to Article X (Property Maintenance) of
Chapter 8 (Buildings and Structures) of the Santa Ana Municipal Code to read as
follows:
Division 5. – RENT STABILIZATION
Section 8-1998.1 – 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 fo r 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 30th each year, beginning with the year 2022, the City
shall announce the amount of allowable re nt increase based on
subsection (a) herein, which shall be effective as of September 1st of that
year.
EXHIBIT 2
Section 8-1998.2 – 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 a n 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
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 8-1998.1 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 8-1998.1 pursuant to the procedures set forth in section 8-
1998.3.
Section 8-1998.3 – Fair Return Petition for Rent Increase.
(a) An owner of residential real property or a mobilehome park owner may
petition for a rent increase in excess of that provided in section 8-1998.1 in order to
obtain a fair and reasonable return on their property (“Fair Return Petition). Such Fair
Return Petition shall be on an application form prescribed by the City Manager and shall
be decided by the City Manager, or their designee (“City Manager”). Owner shall
provide a copy of any Fair Return Petition submitted to the City to the applicable
tenant(s), and provide City with proof of completing such service to the applicable
tenant(s). The tenant(s) will then have thirty (30) days from the date of receiving the
Fair Return Petition to reply or provide additional materials to the City in response to the
Fair Return Petition. The applicant shall bear the burden of establishing that a rate
increase in excess of that provided in section 8-1998.1 is necessary to provide the
applicant with a fair and reasonable return on their property, including by providing an
independent financial report and verified financial data demonstrating that withou t such
an increase, they will not realize a fair and reasonable return on their property.
(b) Applicant shall be responsible for all costs associated with the City’s
review of the Fair Return Petition. Upon receipt of a Fair Return Petition, the City
Manager shall determine the anticipated costs of review and if the employment of
expert(s) will be necessary or appropriate for a proper analysis of the applicant’s
request. If the City Manager so determines, the City Manager shall also determine the
anticipated costs of employing such expert(s). The resulting figure shall be
communicated to the applicant, and the Fair Return Petition shall not be processed until
the applicant has paid to the City the estimated cost of the complete analysis. City will
provide applicant with an invoice of all costs incurred after the review of the Fair Return
Petition. Any unused portion of the advance payment for analysis shall be refunded to
the applicant. If additional funds are required, payment will be requ ired before applicant
receives the determination on the Fair Return Petition from the City.
EXHIBIT 2
(c) The factors the City Manager may consider in deciding a Fair Return
Petition may include, but not be limited to:
(1) Changes in the Consumer Price Index for All Urba n Consumers in
the Los Angeles-Long Beach-Anaheim Metropolitan Area published
by the Bureau of Labor Statistics.
(2) The rent lawfully charged for comparable residential real property
or mobilehome spaces in the City.
(3) The length of time since the last determination by the City Manager
on a rent increase application, or the last rent increase if no
previous rent increase application has been made.
(4) The completion of any capital improvements or rehabilitation work
related to the residential real property or mobilehome space or
spaces specified in the Fair Return Petition, and the cost thereof,
including materials, labor, construction interest, permit fees, and
other items the City Manager deems appropriate.
(5) Changes in property taxes or other taxes related to the subject
residential real property or mobilehome park.
(6) Changes in the rent paid by the applicant for the lease of the
residential real property or land on which the subject mobilehome
park is located.
(7) Changes in the utility charges for the subject residential real
property or mobilehome park paid by the applicant, and the extent,
if any, of reimbursement from the tenants.
(8) Changes in reasonable operating and maintenance expenses.
(9) The need for repairs caused by circumstances other than ordinary
wear and tear.
(10) The amount and quality of services provided by the applicant to the
affected tenant(s).
(11) Any existing written lease lawfully entered into between the
applicant and the affected tenant(s).
(d) A Fair Return Petition shall be decided by the City Manager within sixty
(60) calendar days of the date that the application has been deemed complete ,
including proof of service of the Fair Return Petition on the applicable tenant(s). The
decision shall be emailed and sent by mail, with proof of mailing to the subject property
EXHIBIT 2
owner, the owner's designated representative(s) for the Fair Return Petition, and a
designated representative of the tenant(s). Any appeal of the City Manager decision on
a Fair Return Petition shall proceed pursuant to the administrative appeal procedures
found in Chapter 3 of the Santa Ana Municipal Code.
Section 8-1998.4 – 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 interim
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.
Section 8-1998.5 – 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 require d; 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; or
(c) Fails to make repairs ordered by the City or court of competent
jurisdiction.
Section 8-1998.6 – 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:
EXHIBIT 2
(1) The existence and scope of this Division 5 of Chapter 8 of the
Santa Ana Municipal Code; and
(2) The tenant’s right to respond to any Fair Return Petition filed with
the City by the owner pursuant to section 8-1998.3.
(b) As part of any notice to increase rent, an owner must include:
(1) Notice of the existence of this Division 5 of Chapter 8 of the Santa
Ana Municipal Code; and
(2) The tenant’s right to respond to any Fair Return Petition filed with
the City by the owner pursuant to section 8-1998.3, 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.
Section 8-1998.7 – Violations.
It shall be unlawful and a misdemeanor for any person to violate or fail to comply
with any provision of the ordinance. The violation of any provision of this ordinance
shall be punished as provided in SAMC section 1-8.
Section 5. The City Council finds that this ordinance is not subject to the
California Environmental Quality Act (CEQA) pursuant to sections 15060(c)(2),
15060(c)(3) and 15061(b)(3) of the State CEQA Guidelines because it will not result in a
direct or reasonably foreseeable indirect physical change in the environmen t, because
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.
Section 6. If any section, subsection, phrase, or clause of this ordinance is fo r
any reason held to be unconstitutional, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council hereby declares that it would
have passed this ordinance and each section, subsection, phrase or clause ther eof
irrespective of the fact that any one or more sections, subsections, phrases, or clauses
be declared invalid or unconstitutional.
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.
EXHIBIT 2
ADOPTED this ___ day of ___________________, 2021.
_______________________
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
_______________________________
Ryan O. Hodge
Assistant City Attorney
AYES: Councilmembers: ________________________________________
NOES: Councilmembers: ________________________________________
ABSTAIN: Councilmembers: ________________________________________
NOT PRESENT: Councilmembers: ________________________________________
EXHIBIT 2
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached
Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the
City of Santa Ana on _________________, 2021.
Date: ________________ ____________________________________
Clerk of the Council
City of Santa Ana
EXHIBIT 2
Ordinance No. NS - ____
Page 1 of 22
ORDINANCE NO. NS-XXXX
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA REQUIRING JUST CAUSE
EVICTIONS
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 meeting on September 21, 2021, the City Council discussed
the City of Santa Ana’s (“Santa Ana” or “City”) ability to address just cause
evictions.
B.Housing instability threatens the public peace, health, and safety as eviction from
one’s home can lead to prolonged homelessness; increased residential mobility;
loss of community; strain on household finances due to the necessity of paying
rental application fees and security deposits; stress and anxiety experien ced by
those displaced; increased commute times and traffic impacts if displaced
workers cannot find affordable housing within the city in which they work; and
interruption of the education of children in the home .
C.Eviction creates particular hardships for individuals and households of limited
means, given the shortage of affordable housing within the City of Santa Ana and
the region generally.
D.According to the May 2017 report by the California Housing Partnership
Corporation, median rent in Orange County, which includes Santa Ana, has
increased twenty-eight percent (28%) since 2000, while median renter household
income has declined by 9%, when adjusted for inflation. Additionally, the May
2020 report by the California Housing Partnership Corporation demon strated that
renters need to earn $42.23/hr, or, 3.2 times the state minimum wage to afford
an average monthly asking rent of $2,196 for a two-bedroom apartment in
Orange County.
E.Orange County’s lowest income renters spend eighty-one percent (81%) of their
income on rent, leaving very little to meet other basic human needs such as food
and health.
F.If Santa Ana renter-occupied households paid thirty percent (30%) of their
income on housing, renters would have an extra $176 million dollars of
disposable income (income minus housing costs) to spend in the community
each year, or $7,000 per household. Additionally, racial inequities would
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decrease, as the yearly disposable income would increase by 14% for Latinos,
13% for Asian or Pacific Islanders, and 7% for Whites.
G. The housing rent burden and poverty faced by many residents in Santa Ana
threatens the health, safety, and welfare of its residents, particularly when
resulting in eviction and displacement. Studies have shown that evictions play an
impactful role in the lives of low income renter households and can also
contribute to poverty through disruptive effects such as job loss, adverse health
effects, and negative consequences for children.
H. Moreover, an eviction can remain on a renter’s credit history for at least seven
years, impacting one’s ability to rent and find employment opportunities .
I. Mobilehome Parks comprise approximately five percent (5.1%) of all housing in
Santa Ana. The city has 29 Mobilehome Parks containing 3,913 spaces. Six of
the Mobilehome Parks and one thousand twenty spaces in Santa Ana are
currently age-restricted to persons 55 years of age or older.
J. The City Council has received public testimony at multiple meetings from Santa
Ana residents who declared that they and their neighbors were unwilling to
register complaints against their landlords over unsuitable living conditions and/or
violations of their leases by landlords or management companies, based on a
fear of being evicted without just cause.
K. The California State Legislature adopted the Tenant Protection Act of 2019 (“AB
1482”), codified in part in California Civil Code section 1946.2 (“section 1946.2”),
which became effective by its own terms on January 1, 2020, and, with certain
exceptions, prohibits an owner of residential property from terminating a tenancy
without just cause.
L. AB 1482 provides that a local ordinance adopted after September 1, 2019 ,
requiring just cause for termination of a residential tenancy shall supersede
California Civil Code section 1946.2 only if the ordinance is “more protective”
than section 1946.2.
M. In accordance with California Civil Code section 1946.2(g)(1)(B), the City Council
finds that the provisions of this Ordinance regulating just cause terminations or
tenancies are more protective than California Civil Code section 1946.2 for the
following reasons:
1. The just cause for termination of a residential tenancy under this Ordinance is
consistent with California Civil Code section 1946.2.
2. This Ordinance provides additional tenant protections that are not prohibited
by any other provisions of applicable law.
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N. The City Council finds and determines that regulating the relations between
residential landlords and tenants will increase certainty and fairness within the
residential rental market in the City and thereby serve the public peace, health,
and safety.
O. 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.
P. Pursuant to Santa Ana City Charter sections 415 and 417, this Ordinance is
declared by the City Council to be necessary as an emergency measure to
protect and preserve the health, safety and welfare of the residents of the City of
Santa Ana and will become effective immediately if passed by the affirmative
votes of at least two-thirds (2/3) of the members of the City Council. The City
Council hereby finds that there is an urgent need to adopt these regulations in
order to address the current and immediate threats set forth below.
1. Housing, particularly affordable housing, is difficult to procure in this region,
including in Santa Ana. Evictions without just cause destabilize the housing
market and can result in the loss of affordable housing;
2. For the immediate preservation of the public peace, health , and safety, the
City Council finds that it is necessary to adopt an ordinance regulating just
cause evictions, for all of the reasons set forth in the recitals above, which are
hereby incorporated by reference;
3. Without the imposition of this Urgency Ordinance, evictions without just cause
may result in the displacement of residential tenants who would be forced to
find new housing in an ever-more expensive housing market before a non-
urgency ordinance would become effective, and would significantly increase
the risk of residential tenants becoming homeless; and,
4. There is a current and immediate threat to the public peace, health, and
safety of the City and its community due in part to the pending expiration of
the state COVID-19 emergency residential eviction moratorium on
September 30, 2021, which increases the risk of evictions without just cause,
thereby necessitating the immediate enactment of this Urgency Ordinance in
order to ensure that tenants are not turned out of their homes without just
cause.
Q. The Request for Council Action for this ordinance dated September 21, 2021,
shall be incorporated herein by this reference, and together with this ordinance,
any amendments or supplements, and oral testimony, shall constitute the
necessary findings for this ordinance.
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R. The City Council finds, determines, and declares that the current and immediate
threat to the public health, safety, and welfare of the City and its residents
necessitates the immediate enactment of the ordinance. The facts constituting
such urgency are set forth in this Section 1, paragraphs A-Q, of 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. Sections 8-1993 through 8-1997 of the Santa Ana Municipal Code
are deleted in their entirety.
Section 4. Division 4 is hereby added to Article X (Property Maintenance) of
Chapter 8 (Buildings and Structures) of the Santa Ana Municipal Code to read as
follows:
Division 4. – JUST CAUSE EVICTIONS
Section 8-1993 – Citation.
This Division shall be known as the “Just Cause Eviction Ordinance.”
Section 8-1994 – Restrictions on Termination of Tenancy Without Just Cause
(a) Notwithstanding any other law, 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 T enancy without just
cause, which shall be stated in the written notice to terminate Tenancy.
1) The Owner shall post a notice on a form prescribed by the City,
providing information about the existence of this Division 4 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:
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i. The existence and scope of this Division 4 of Chapter 8
of the Santa Ana Municipal Code; and,
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
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reasonable amount of time of receipt of the
tenant’s written request, the tenant’s
request shall be deemed approved by the
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 T enancy 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 42 2 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
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offered the right to restore the Tenancy only if the same
residential real property is available.
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.
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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.
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:
A.
i. 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 t he 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.
i. The Owner complying with any of the following:
I. An order issued by a government agency or court
relating to habitability that necessitates vacating
the residential real property.
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II. An order issued by a government agency or court
to vacate the residential real property.
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).
D.
i. Intent to demolish or to substantially remodel the
residential real property.
ii.
I. 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
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real property vacated, do not qualify as a substantial
remodel.
(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.
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 Eviction Defense
Fund or the City if no such fund exists; 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.
(d)
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
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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)
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.
3)
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 f acility 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.
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5) Single-family Owner-occupied residences, including a residence in
which the Owner-occupant rents or leases no more than two units or
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.
B.
i. The tenants have been provided written notice that the
residential property is exempt from this section usin g the
following statement: “This property is not subject to the
just cause requirements of Santa Ana Municipal Code
Chapter 8, Article X, Division 4. This property meets the
requirements of Santa Ana Municipal Code section 8-
1994(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.
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iv. Addition of a provision containing the notice required
under clause (i) to any new or renewed rental 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 co ntinuously 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 4 of Article X 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
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assault, human trafficking, or stalking has been documented by
one of the following:
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.
(h) Any waiver of the rights under this section shall be void as contrary to
public policy.
(i) For the purposes of this Division, the following definitions shall apply:
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1) “Owner” and “residential real property” have the same meaning as
those terms are defined in Civil Code Section 1954.51.
2) “Tenancy” means the lawful occupation of residential real property or
mobilehome space and includes a lease or sublease, as such may be
subject to local ordinance pursuant to the terms of the Costa -Hawkins
Rental Housing Act, California Civil Code section 1954.50. et seq., and
the Mobilehome Residency Law, Civil Code section 798, et seq.
Section 8-1995 – 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 8-1994(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 8-1994(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. 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.
Section 8-1996 – 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
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the Tenancy or refuse to renew the Tenan cy 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 t enant'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.
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;
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;
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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 lawfu l 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
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,
EXHIBIT 3
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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:
i. Rental Agreement negotiations were conducted in the
tenant's primary language;
ii. The existing Rental Agreement is in the tenant's primary
language; or
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;
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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) Interfere 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) Interfere 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
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 imm igration 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.
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Section 8-1997 – Violations.
It shall be unlawful and a misdemeanor for any person to violate or fail to comply
with any provision of the ordinance. The violation of any provision of this ordinance
shall be punished as provided in Santa Ana Municipal Code section 1-8.
Section 5. The City Council finds that this ordinance is not subject to the
California Environmental Quality Act (CEQA) pursuant to sections 15060(c)(2),
15060(c)(3) and 15061(b)(3) of the State CEQA Guidelines because it will not result in a
direct or reasonably foreseeable indirect physical change in the environment, because
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.
Section 6. If any section, subsection, phrase, or clause of this ordinance is for
any reason held to be unconstitutional, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council hereby declares that it would
have passed this ordinance and each section, subsection, phrase or clause thereof
irrespective of the fact that any one or more sections, subsections, phrases, or clauses
be declared invalid or unconstitutional.
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.
Section 8. This ordinance is introduced, passed and adopted at one and the
same meeting and is thereafter immediately effective. The City Council finds that this
ordinance is necessary to protect the public safety, health and welfare. The reasons for
the emergency are set forth in Section 1, paragraphs A-Q, inclusive of this ordinance.
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ADOPTED this ___ day of ___________________, 2021.
_______________________
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
_______________________________
Ryan O. Hodge
Assistant City Attorney
AYES: Councilmembers: ________________________________________
NOES: Councilmembers: ________________________________________
ABSTAIN: Councilmembers: ________________________________________
NOT PRESENT: Councilmembers: ________________________________________
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CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached
Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the
City of Santa Ana on .
Date: ________________ ____________________________________
Clerk of the Council
City of Santa Ana
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ORDINANCE NO. NS-XXXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA REQUIRING JUST CAUSE EVICTIONS
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 meeting on September 21, 2021, the City Council discussed
the City of Santa Ana’s (“Santa Ana” or “City”) ability to address just cause
evictions.
B.Housing instability threatens the public peace, health, and safety a s eviction from
one’s home can lead to prolonged homelessness; increased residential mobility;
loss of community; strain on household finances due to the necessity of paying
rental application fees and security deposits; stress and anxiety experienced by
those displaced; increased commute times and traffic impacts if displaced
workers cannot find affordable housing within the city in which they work; and
interruption of the education of children in the home .
C.Eviction creates particular hardships for individuals and households of limited
means, given the shortage of affordable housing within the City of Santa Ana and
the region generally.
D.According to the May 2017 report by the California Housing Partnership
Corporation, median rent in Orange County, which includes Santa Ana, has
increased twenty-eight percent (28%) since 2000, while median renter household
income has declined by 9%, when adjusted for inflation. Additionally, the May
2020 report by the California Housing Partnership Corporation demonstrated that
renters need to earn $42.23/hr, or, 3.2 times the state minimum wage to afford
an average monthly asking rent of $2,196 for a two-bedroom apartment in
Orange County.
E.Orange County’s lowest income renters spend eighty-one percent (81%) of their
income on rent, leaving very little to meet other basic human needs such as food
and health.
F.If Santa Ana renter-occupied households paid thirty percent (30%) of their
income on housing, renters would have an extra $176 million dollars of
disposable income (income minus housing costs) to spend in the community
each year, or $7,000 per household. Additionally, racial inequities would
decrease, as the yearly disposable income would increase by 14% for Latinos,
13% for Asian or Pacific Islanders, and 7% for Whites.
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G. The housing rent burden and poverty faced by many residents in Santa Ana
threatens the health, safety, and welfare of its residents, particularly when
resulting in eviction and displacement. Studies have shown that evictions play an
impactful role in the lives of low income renter households and can also
contribute to poverty through disruptive effects such as job loss, adverse health
effects, and negative consequences for children.
H. Moreover, an eviction can remain on a renter’s credit history for at lea st seven
years, impacting one’s ability to rent and find employment opportunities .
I. Mobilehome Parks comprise approximately five percent (5.1%) of all housing in
Santa Ana. The city has 29 Mobilehome Parks containing 3,913 spaces. Six of
the Mobilehome Parks and one thousand twenty spaces in Santa Ana are
currently age-restricted to persons 55 years of age or older.
J. The City Council has received public testimony at multiple meetings from Santa
Ana residents who declared that they and their neighbors were unwilling to
register complaints against their landlords over unsuitable living conditions and/or
violations of their leases by landlords or management companies, based on a
fear of being evicted without just cause.
K. The California State Legislature adopted the Tenant Protection Act of 2019 (“AB
1482”), codified in part in California Civil Code section 1946.2 (“section 1946.2”),
which became effective by its own terms on January 1, 2020, and, with certain
exceptions, prohibits an owner of residential property from terminating a tenancy
without just cause.
L. AB 1482 provides that a local ordinance adopted after September 1, 2019 ,
requiring just cause for termination of a residential tenancy shall supersede
California Civil Code section 1946.2 only if the ordinance is “more protective”
than section 1946.2.
M. In accordance with California Civil Code section 1946.2(g)(1)(B), the City Council
finds that the provisions of this Ordinance regulating just cause terminations or
tenancies are more protective than California Civil Code section 1946.2 for the
following reasons:
1. The just cause for termination of a residential tenancy under this Ordinance is
consistent with California Civil Code section 1946.2.
2. This Ordinance provides additional tenant protections that are no t prohibited
by any other provisions of applicable law.
N. The City Council finds and determines that regulating the relations between
residential landlords and tenants will increase certainty and fairness within the
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residential rental market in the City and thereby serve the public peace, health,
and safety.
O. 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.
P. The City Council hereby adopts these regulations in order to address the threats
set forth below.
1. Housing, particularly affordable housing, is difficult to procure in this region,
including in Santa Ana. Evictions without just cause destabilize the housing
market and can result in the loss of affordable housing;
2. For the preservation of the public peace, health , and safety, the City Council
finds that it is necessary to adopt an ordinance regulating just cause
evictions, for all of the reasons set forth in the recitals above, which are
hereby incorporated by reference;
3. Without the imposition of this Ordinance, evictions without just cause ma y
result in the displacement of residential tenants who would be forced to find
new housing in an ever-more expensive housing market, and would
significantly increase the risk of residential tenants becoming homeless; and,
4. There is a threat to the public peace, health, and safety of the City and its
community, thereby necessitating the enactment of this Ordinance in order to
ensure that tenants are not turned out of their homes without just cause.
Q. The Request for Council Action for this ordinance dated September 21, 2021,
shall be incorporated herein by this reference, and together with this ordinance,
any amendments or supplements, and oral testimony, shall constitute the
necessary findings for this ordinance.
R. 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.
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. Sections 8-1993 through 8-1997 of the Santa Ana Municipal Code
are deleted in their entirety.
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Section 4. Division 4 is hereby added to Article X (Property Maintenance) of
Chapter 8 (Buildings and Structures) of the Santa Ana Municipal Code to read as
follows:
Division 4. – JUST CAUSE EVICTIONS
Section 8-1993 – Citation.
This Division shall be known as the “Just Cause Eviction Ordinance.”
Section 8-1994 – Restrictions on Termination of Tenancy Without Just Cause
(a) Notwithstanding any other law, 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.
1) The Owner shall post a notice on a form prescribed by the City,
providing information about the existence of this Division 4 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:
i. The existence and scope of this Division 4 of Chapter 8
of the Santa Ana Municipal Code; and,
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.
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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
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
EXHIBIT 4
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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.
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:
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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.
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.
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2) No-fault just cause, which includes any of the following:
A.
i. 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 prop erty
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.
i. The Owner complying with any of the following:
I. 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.
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).
D.
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i. Intent to demolish or to substantially remodel the
residential real property.
ii.
I. 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.
(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.
1) Any written notice to cease or correct must:
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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 Eviction Defense
Fund or the City if no such fund exists; 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.
(d)
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 fo r 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)
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.
3)
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.
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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
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.
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8) Residential real property that is alienable separate from the title t o 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.
B.
i. 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 X, Division 4. This property meets the
requirements of Santa Ana Municipal Code section 8-
1994(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 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,
EXHIBIT 4
Ordinance No. NS - ____
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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 4 of Article X 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:
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
EXHIBIT 4
Ordinance No. NS - ____
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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.
(h) Any waiver of the rights under this section shall be void as contrary to
public policy.
(i) For the purposes of this Division, the following definitions shall apply:
1) “Owner” and “residential real property” have the same meaning as
those terms are defined in Civil Code Section 1954.51.
2) “Tenancy” means the lawful occupation of residential real property or
mobilehome space and includes a lease or sublease, as such may be
subject to local ordinance pursuant to the terms of the Costa -Hawkins
Rental Housing Act, California Civil Code section 1954.50. et seq., and
the Mobilehome Residency Law, Civil Code section 798, et seq.
Section 8-1995 – 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:
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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 8-1994(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 8-1994(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. 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.
Section 8-1996 – 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 t enant'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.
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(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.
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;
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 qualif ications for a
Tenancy;
EXHIBIT 4
Ordinance No. NS - ____
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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; entrie s 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
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.
EXHIBIT 4
Ordinance No. NS - ____
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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:
i. Rental Agreement negotiations were conducted in the
tenant's primary language;
ii. The existing Rental Agreement is in the tenant's primary
language; or
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 off ers 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) Interfere with a tenant's right to quiet use and enjoyment of a rental unit
as that right is defined by law.
EXHIBIT 4
Ordinance No. NS - ____
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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) Interfere 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
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.
Section 8-1997 – Violations.
It shall be unlawful and a misdemeanor for any person to violate or fail to comply
with any provision of the ordinance. The violation of any provision of this ordinance
shall be punished as provided in Santa Ana Municipal Code section 1-8.
Section 5. The City Council finds that this ordinance is not subject to the
California Environmental Quality Act (CEQA) pursuant to sections 15060(c)(2),
15060(c)(3) and 15061(b)(3) of the State CEQA Guidelines because it will not result in a
direct or reasonably foreseeable indirect physical change in the environment, because
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.
Section 6. If any section, subsection, phrase, or clause of this ordinance is for
any reason held to be unconstitutional, such decisi on shall not affect the validity of the
remaining portions of this ordinance. The City Council hereby declares that it would
EXHIBIT 4
Ordinance No. NS - ____
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have passed this ordinance and each section, subsection, phrase or clause thereof
irrespective of the fact that any one or more sec tions, subsections, phrases, or clauses
be declared invalid or unconstitutional.
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.
EXHIBIT 4
Ordinance No. NS - ____
Page 21 of 22
ADOPTED this ___ day of ___________________, 2021.
_______________________
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
_______________________________
Ryan O. Hodge
Assistant City Attorney
AYES: Councilmembers: ________________________________________
NOES: Councilmembers: ________________________________________
ABSTAIN: Councilmembers: ________________________________________
NOT PRESENT: Councilmembers: ________________________________________
EXHIBIT 4
Ordinance No. NS - ____
Page 22 of 22
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached
Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the
City of Santa Ana on .
Date: ________________ ____________________________________
Clerk of the Council
City of Santa Ana
EXHIBIT 4
Resolution No. 2021-XXX
Page 1 of 3
RESOLUTION NO. 2021-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
ANA DIRECTING FURTHER STUDY OF THE ADDITIONAL
REGULATORY FRAMEWORK AND INFRASTRUCTURE
NECESSARY TO IMPLEMENT RESIDENTIAL RENT
STABILIZATION, JUST CAUSE EVICTION, AND OTHER
PROTECTIONS FOR RESIDENTS FACING HOUSING
INSTABILITY
WHEREAS, a shortage of decent, safe, affordable, and sanitary housing exists in
the City of Santa Ana, causing the displacement of long-term residents, 54% of whom are
renters according to the 2019 American Community Survey; and
WHEREAS, eviction creates extreme hardships for individuals and households of
limited means in Santa Ana, given the shortage of affordable housing within the City and
Orange County in general; and
WHEREAS, the COVID-19 pandemic has taken an enormous physical, economic,
and psychological toll on the residents of Santa Ana, many of whom are lower-income
renters experiencing either reduction of work hours and job loss, or heightened risk of
contracting COVID-19 where they have continued to work in service-sector and other
positions that cannot be performed from home; and
WHEREAS, the City of Santa Ana, with a majority Latino population, has
experienced nearly 50,000 confirmed COVID-19 cases, the highest in Orange County,
and over 800 deaths from COVID-19, leading to even greater housing instability; and
WHEREAS, housing instability threatens the public peace, health, and safety,
because eviction from one’s home can lead to prolonged homelessness, increased
residential mobility, loss of community, strain on household finances due to the necessity
of paying rental application fees and security deposits, stress and anxiety experienced by
those displaced, increased commute times and traffic impacts if displaced workers cannot
find affordable housing within the city in which they work, and interruption of the education
of children in the home; and
WHEREAS, since 2016, the Santa Ana City Council has considered and received
public testimony at multiple meetings from residents threatened by eviction without good
cause and rapidly escalating rental rates who have advocated for the adoption of rent
stabilization and just cause eviction regulations, among others; and
WHEREAS, displacement from eviction has been an acute risk for many tenants
in Santa Ana, who are largely Latino and work in occupations most impacted by the
COVID-19 pandemic; and
EXHIBIT 5
Resolution No. 2021-XXX
Page 2 of 3
WHEREAS, the financial impacts of displacement include, but are not limited to,
packing, moving, temporary housing, application for new housing, and storage costs, as
well as lost wages and time due to taking time off work; and
WHEREAS, landlords often require that prospective tenants pay the equivalent of
three months’ rent up front to secure a lease—generally representing the first and last
month’s rent, and a security deposit, the total of which can exceed $10,000 and can
frequently reach $20,000 or greater; and
WHEREAS, renter households are more likely to be low-income than the
households of families who own their homes; and
WHEREAS, a household is generally rent-burdened if it spends more than 30% of
its gross income on housing costs, and according to the 2019 American Community
Survey, 58.5% of all renter households in the City of Santa Ana are either moderately or
severely rent burdened; and
WHEREAS, renters in Santa Ana were protected from eviction for nonpayment of
rent due to COVID-19 through September 30, 2020, by City Executive Order No. 10-2020
and remain similarly protected by state law but only through September 30, 2021; and
WHEREAS, within the confines of existing state law, including the Costa-Hawkins
Rental Housing Act and the Tenant Protection Act of 2019, the City of Santa Ana is
presently taking steps to restrict rental increases and grounds for eviction in response to
the above concerns; and
WHEREAS, these protections are designed to exceed those offered by state law
wherever permissible and also to apply to mobilehome owners, as the City is home to 29
mobilehome home parks containing 3,913 spaces, most of which are owned or inhabited
by low-income or fixed-income seniors and families; and
WHEREAS, the concerns identified above related to housing instability warrant the
further study of additional framework and infrastructure to optimize the implementation of
related measures, including without limitation the creation of a Rent Board or similar body.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa
Ana as follows:
Section 1. City staff is hereby directed to 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.
Section 2. These measures are to include the creation and operation of a Rent
Board or similar body, a rent registry, and the related costs thereof.
EXHIBIT 5
Resolution No. 2021-XXX
Page 3 of 3
Section 3. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this _____ day of ____________, 2021.
________________________________
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
John M. Funk
Sr. Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers _
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2021-XXX to be the original resolution adopted by the City Council of the
City of Santa Ana on _______________.
Date: ______________________ ________________________________
Clerk of the Council
City of Santa Ana
EXHIBIT 5