Legal Standing

RENT STABILIZATION ORDINANCE

Does the State of California have a rent stabilization ordinance (RSO)? Yes/No/Maybe

The correct answer is No. A rent stabilization ordinance (RSO) which "controls" rents is a regulatory act of local government which regulates space rents.

CONSTITUTIONALITY

Are park owners right when they contend that local rent controls are unconstitutional? Yes/No/Maybe

The correct answer is No. The courts of California and the nation have consistently upheld the constitutionality of local rent controls.(1) In addition, the United States Supreme Court "has consistently affirmed that state and local governments have broad power to regulate housing conditions in general and the landlord-tenant relationship in particular. When a landowner decides to rent his land to tenants, the government may place ceilings on the rents the landowner can charge."(2) California courts have upheld rent control provisions as legitimate and rational exercises of the police power where they are "reasonably calculated to eliminate excessive rents and at the same time provide landlords with a just and reasonable return on their property."(3)

JUSTIFICATION

Is the rapid increase of space rents a legal justification for local rent ordinances? Yes/No/Maybe.

The correct answer is Yes. Mobilehome rent ordinances recognize the special characteristics and problems of mobilehome living, namely the relative immobility of the homes, the typical low or fixed-income nature of the residents, the shortage of available spaces, the cost of relocating the home, the homeowner's substantial investment therein, and, above all, the rapid escalation of rents. These issues, in combination, provide ample and legitimate justification for the enactment of local rent ordinances.

REFERENCES

1. Birkenfeld v. City of Berkeley (1976) 17 Cal.3d 129 [130 Cal.Rptr. 465].

2. Yee v. City of Escondido (1990) 503 U.S. ___ [112 S.Ct. 1522, 1529, 118 L.Ed.2d 153, 166].

3. Casella v. City of Morgan Hill (1991) 230 Cal.App.3d 43, 56 [280 Cal.Rptr. 876].

Source: The GSMOL Mobilehome Rent Stabilization Ordinance Handbook, Second Edition: Guidelines for Drafting and Enacting a Mobilehome Rent Stabilization Ordinance.

Prepared by: Bruce Stanton, Esq., Corporate Counsel

Image courtesy of Salvatore Vuono at freedigitalphotos.net.