Santa Ana pushes ban on rent-setting algorithms

City Council approves the initial reading of a proposed law aimed at collusion by landlords.

- BY GABRIEL SAN ROMÁN

THE BAN aims to address ", unfair rent-setting practices." Above, on South Minnie Street in Santa Ana.

(DON BARTLETTI Los Angeles Times)

Santa Ana has joined a growing pushback across the nation by advancing a ban on landlords using software platforms to coordinate rental rates.

The City Council unanimously approved the first reading of the ban at a meeting this month. The law aims to address concerns that algorithmic devices enable landlords to collude on “unfair rent-setting practices,” including artificial rent hikes.

“An algorithm has been created with different companies — RealPage is one of them. What the algorithm is doing is creating an unfair advantage for landlords,” Mike Garcia, head of Santa Ana’s community development agency, told the council members. “What the ordinance would do is prohibit the use and the sale of [such] algorithms to landlords within the city.”