Santa Ana Worsens Rent Control Ordinance

SEPTEMBER 6, 2022

One year ago this month, the city of Santa Ana introduced a Rent Stabilization Ordinance that restricted annual rent increases to 3% or 80% of CPI - whichever was lower. The city council, on a 4-3 vote, ultimately approved the ordinance with no implementation strategy, no research into the impacts, and no industry input prior to the item being placed on the agenda.

Things haven't gotten any better in the ensuring year. Since the adoption of the ordinance, the rental-housing industry has continued to be shut out from providing input as the city has worked to develop a long-term implementation plan.

At the Santa Ana City Council on September 6th, 2022, the city took its lack of understanding, awareness, and stakeholder engagement to a NEW LEVEL.

City staff presented their report - one developed without any formal engagement with rental property owners - on how to implement a rent control ordinance that works. Suggestions in the staff report included:

• Rent Registry of all rental properties, units, rent amounts, lease dates, lease renewals, last rent increases, list of tenants, and other detailed business information for each property.
• Rent Registry Fee, somewhere in the neighborhood of $200 PER UNIT, and no more than HALF of the fee can be passed on to the tenant(s).
• Rent Control Board made up of seven (7) members - weighted 5-to-2 (tenants-to-real estate industry professionals). Mind you, "real estate industry professionals" does not necessarily mean rental property owners, or multifamily professionals, or anyone operating rental property in the city, just whomever they chose.
• Rent Control Appeals Process not just for rental-housing providers to appeal to increase their rents above the limits - but for tenants to appeal to LOWER their rents.
• Mandatory Mediation to resolve any disputes and discrepancies - paid for, of course, by the rental property owner/operator - and maybe the tenants can have free legal counsel.

Several other proposals were sugested that you can read about HERE (Item 26).

Additionally, Councilmember Thai Viet Phan, who originally claimed she opposed rent control while she was running for office - ONLY TO FLIP ON THE RENTAL HOUSING INDUSTRY - proposed several amendments to the existing Rent Stabilization Ordinance, including:

• ELIMINATE EXEMPTIONS for SIGNIFICANTLY UPGRADED rental properties/units - in favor of requiring property/unit improvements to be completed PRIOR to applying for rental increases.
• ELIMINATE EXEMPTIONS for AFFORDABLE HOUSING rental properties - in favor of requiring income restricted affordable housing projects to also comply with the 3% rent control limit.

These significant impacts on rental property owners and operators will devastate our industry.

However, YOU CAN HELP US STOP THIS!

We MUST elect candidates who understand and respect the rental-housing industry - or who are at least willing to discuss policies with us prior to forcing regulations that HURT OUR COMMUNITIES.