Ordinances Without Across-the-Board Reviews

INCREASES SUBJECT TO CHALLENGE

Some ordinances do not place any ceilings on rent increases which are not opposed by mobilehome owners, but instead make all rent increases subject to challenge. Usually these ordinances provide that rent increases are collectible unless objected to by 50% or more of the homeowners.  

REVIEWS OF ALL RENT INCREASES

Other ordinances do not provide for any across-the-board increases, but instead require that park owners must obtain permission for all rent increases, no matter how small.  

COURT RULINGS

The California Supreme Court has ruled that ordinances do not have to include provisions for across-the-board increases provided that they contain a reasonably prompt mechanism for obtaining rent increases through petitions (1).

The California Supreme Court has ruled that the net operating income of rent controlled properties cannot be frozen "indefinitely." (2)  But the word "indefinitely" has not been defined. As previously indicated, no level of rent increases has to be provided through across-the-board increases.

REFERENCES

1. Carson Mobilehome Park Owners' Association v. City of Carson (1983) 35 Cal.3d 184 [197 Cal.Rptr. 284].
2. Fisher v. City of Berkeley (1986) 37 Cal.3d 644 [209 Cal.Rptr. 682].

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