Brookside Investments, Ltd. v. City of El Monte

5 Cal. App. 5th 540, 209 Cal. Rptr. 3d 863, 2016 Cal. App. LEXIS 979
CourtCalifornia Court of Appeal
DecidedNovember 15, 2016
DocketB267081
StatusPublished
Cited by14 cases

This text of 5 Cal. App. 5th 540 (Brookside Investments, Ltd. v. City of El Monte) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brookside Investments, Ltd. v. City of El Monte, 5 Cal. App. 5th 540, 209 Cal. Rptr. 3d 863, 2016 Cal. App. LEXIS 979 (Cal. Ct. App. 2016).

Opinion

Opinion

PERLUSS, P. J.

In 1990 the City of El Monte enacted by initiative an ordinance that prohibited the El Monte City Council (City Council) from *544 passing any form of mobilehome park rent control. In 2012 the City Council sponsored a successful ballot measure to repeal that ordinance and then in 2013 enacted ordinance No. 2829, the Mobilehome Space Rent Stabilization Ordinance, a program of rent control for mobilehome parks with more than 100 mobilehome park spaces.

Brookside Investments, Ltd. (Brookside), which owns and operates Brookside Mobile Country Club, a large mobilehome park, sued the City of El Monte, alleging the City Council’s actions in proposing and advocating repeal of the 1990 ordinance violated an express prohibition of such activity in that ordinance. The superior court granted El Monte’s motion for summary judgment. On appeal from the judgment Brookside repeats its argument concerning the scope of the prohibitory language in the 1990 ordinance and also argues the City Council’s actions violated the California Constitution’s implicit withholding of authority for a local government to propose initiative measures that amend or repeal earlier voter-approved ordinances. We reject both contentions and affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND

1. El Monte ’s Mobilehome Park Rent Ordinances

Beginning in January 1988 El Monte, a general law city, attempted to curb excessive rent increases by mobilehome park owners by mandating arbitration of rent disputes in parks of 60 or more spaces through its Mobilehome Park Rent Review Commission (ordinance No. 2216). The commission’s procedures for resolving disputes between park owners and residents were intended to provide for rent increases “consistent with basic constitutional principles] of fairness and equity for property owners and the need to maintain affordable housing opportunities in mobilehome parks in the City of El Monte in [the face] of rapidly escalating rents, the continuing scarcity of affordable housing, especially for low- and very-low income senior citizens, and the social and economic disruption which excessive increases in space rentals will cause in this community

At a municipal election on April 10, 1990 El Monte voters approved an initiative ordinance that repealed ordinance No. 2216 and established the Mobilehome Tenant Rent Assistance Program (MTRAP). MTRAP mandated a 10 percent rental discount for qualified low-income seniors but limited its “rental assistance subsidy” to no more than 10 percent of the occupied spaces in a mobilehome park. It also guaranteed mobilehome park owners “the sole right to establish the price for which [the owner’s] mobilehome park or premises therein is sold, leased, rented, transferred, or exchanged” and repealed “[a]ny law of the City of El Monte that would abridge such right.”

*545 Of particular significance for the case at bar, section 10 of MTRAP, Prohibition of Laws and Expenditures, provided in part, “The People of El Monte hereby prohibit the City Council from the passage of any ordinance which requires or authorizes restrictions, ceilings, controls, or arbitration, mediation, administrative hearings, or trials concerning or which in any way relates to the subject of mobilehome park rents in El Monte which affects any Landlord. The City Council is also prohibited from the expenditure of any tax revenues in connechon with any such ordinance.”

On July 31, 2012 the City Council approved resolution No. 9321 calling a special municipal election to be held on November 6, 2012 (the date of the regularly scheduled general elechon) for El Monte voters to consider proposed ordinance No. 2804, the El Monte Fairness for Mobilehome Owners Ordinance, which would repeal MTRAP “in order to allow the City Council to investigate the reasonableness of rent charged to mobilehome owners and if appropriate, consider the regulation of proposed mobilehome park rent increases in the future.” 1 The City Council also authorized its members to submit written ballot arguments in favor of or against the proposal (denominated Measure F on the ballot). The voters approved Measure F, and ordinance No. 2804 became effective December 18, 2012.

Prior to July 31, 2012 the City Council had authorized an inquiry into the effectiveness of MTRAP, including distribution of a questionnaire to mobile-home park owners seeking information regarding the extent to which the tenant rent assistance program was actually being used. Between July 31, 2012 and the election on November 6, 2012, the City approved expenditures for the conduct of the election in the form of legal notices in newspapers, translation services and the election itself.

Following adoption of ordinance No. 2804 the City Council retained a land economics and real estate consulting firm to determine baseline rental conditions at mobilehome parks in El Monte. To address “a current threat to the public health, safety and welfare of the City,” the City Council also adopted ordinance No. 2811, an interim urgency ordinance that imposed a temporary moratorium on pending or new rent increases for mobilehome park spaces with a monthly rent of $1,000 or more and limited rent increases to no more than 7 percent on mobilehome park spaces with a monthly rental between $600 and $1,000. The inihal 45-day moratorium was extended twice and remained in effect through September 30, 2013.

*546 On September 3, 2013, after receiving the study from its consultants, the City Council enacted ordinance No. 2829, adding chapter 8.70, Mobilehome Park Rent Stabilization, to the El Monte Municipal Code. Ordinance No. 2829, which took effect October 3, 2013, applies only to mobilehome parks with 101 or more spaces. (Brookside has 421 spaces; one or two other mobilehome parks in El Monte also have more than 100 spaces.) According to ordinance No. 2829’s statement of purpose and findings, mobilehomes are disproportionately occupied by low-income households; rental rates at large mobilehome parks were substantially in excess of the average rents at mobilehome parks in El Monte; and rents at large mobilehome parks even exceeded the average rent for one- and two-bedroom apartments in the city. To limit future rent increases at covered mobilehome parks, ordinance No. 2829 establishes $760 per month as the “ceiling rent amount” and permits monthly rent increases each year by an amount not to exceed $50 per month for spaces with rent less than the ceiling rent amount. All proposed rent increases in excess of $50 per month and any increases that would result in monthly rent above the ceiling rent amount are subject to review by the newly established El Monte Mobilehome Park Rental Review Board. That board is mandated to consider 11 specified factors, including changes in the consumer price index and the rent lawfully charged for comparable mobile-home spaces in other parks in El Monte, when evaluating applications for rent increases with a goal of protecting mobilehome park residents from exorbitant rents and providing mobilehome park owners with a fair return on investment.

2. Brookside’s Lawsuit and the Orders Granting Summary Adjudication and Summary Judgment

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Cite This Page — Counsel Stack

Bluebook (online)
5 Cal. App. 5th 540, 209 Cal. Rptr. 3d 863, 2016 Cal. App. LEXIS 979, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brookside-investments-ltd-v-city-of-el-monte-calctapp-2016.