Channing Properties v. City of Berkeley

11 Cal. App. 4th 88, 14 Cal. Rptr. 2d 32, 92 Cal. Daily Op. Serv. 9522, 92 Daily Journal DAR 15821, 1992 Cal. App. LEXIS 1375
CourtCalifornia Court of Appeal
DecidedNovember 25, 1992
DocketA053695
StatusPublished
Cited by12 cases

This text of 11 Cal. App. 4th 88 (Channing Properties v. City of Berkeley) 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
Channing Properties v. City of Berkeley, 11 Cal. App. 4th 88, 14 Cal. Rptr. 2d 32, 92 Cal. Daily Op. Serv. 9522, 92 Daily Journal DAR 15821, 1992 Cal. App. LEXIS 1375 (Cal. Ct. App. 1992).

Opinion

Opinion

KLINE, P. J.

Channing Properties appeals from a judgment on the pleadings in favor of the City of Berkeley and City of Berkeley Rent Stabilization Board in an action regarding the city’s laws regulating the removal of housing from the residential rental market. It claims the judgment must be reversed because state law preempts the local laws in question.

*91 Statement of the Case and Facts

Appellant Channing Properties is the owner of rental property in the City of Berkeley (the City) consisting of 33 residential units. On June 29, 1989, appellant filed a complaint for declaratory relief as to the validity of the City’s laws restricting removal of housing from the rental market. Appellant challenged certain provisions of the Berkeley Municipal Code (B.M.C.) as imposing more stringent requirements on landlords wishing to remove residential property from the rental market than allowed under the Ellis Act (Gov. Code, § 7060 et seq.; hereinafter Act), 1 including requirements that such landlords provide tenants six months’ notice before removing the property from the rental housing market and pay $4,500 per unit for relocation expenses. On November 16, the complaint was amended to add “2601 Channing Way Tenant’s Union” as real party in interest. On April 9, 1990, 2601 Channing Way Tenant’s Union filed a cross-complaint for injunctive relief against appellant and its general partner.

On March 7, 1991, the City moved for judgment on the pleadings on the grounds that the challenged laws were not preempted by the Act. This motion was granted by order filed April 17 and a judgment of dismissal was entered on April 18. A timely notice of appeal was filed on May 14, 1991.

Discussion

In 1984, the California Supreme Court ruled that a city could restrict the circumstances in which owners of residential rental properties could evict their tenants in order to remove the properties from the rental market. (Nash v. City of Santa Monica (1984) 37 Cal.3d 97 [207 Cal.Rptr. 285, 688 P2d 894].) In response, the Legislature enacted the Act for the express purpose of overruling Nash “to the extent that the holding, or portion of the holding, conflicts with this chapter, so as to permit landlords to go out of business.” (§ 7060.7.) Section 7060, subdivision (a), provides: “No public entity, as defined in Section 811.2, shall, by statute, ordinance, or regulation, or by administrative action implementing any statute, ordinance or regulation, compel the owner of any residential real property to offer, or to continue to offer, accommodations in the property for rent or lease.”

B.M.C. chapter 13.77 contains local requirements for withdrawal of residential rental accommodations from the market, adopted with the express intent “to accord tenants the maximum protections which are available pursuant to Government Code Section 7060 and to provide certain additional *92 rights and protections necessary to deal with the housing shortage in the city of Berkeley.” (B.M.C., § 13.77.020.A.) Among other things, the City requires owners who intend to withdraw their units from the rental market to provide written notice of that intention to each tenant no less than six months prior to the date upon which the accommodation is to be withdrawn, along with notices of termination of tenancy having effective dates “no earlier than one hundred eighty days after the date of service . . . .” (B.M.C., § 13.77.050.A. 1.) Within five days of service on the tenants of the notice of intent to withdraw the accommodation from rent or lease, owners must deposit into escrow in trust for the tenants a relocation payment of $4,500 per unit, to be divided equally among all tenants occupying the unit at the time of service of the notice of intention. (B.M.C., §§ 13.77.055.A., 13.77.055.B.) Tenants are entitled to an advance of $2,000 at anytime thereafter, and to the balance of $2,500 upon surrender of possession or stipulation for judgment for possession. (B.M.C., § 13.77.055.C.) Additionally, owners must notify the city of their intention to withdraw rental property no less than 60 days prior to the date of withdrawal (B.M.C., § 13.77.050.A.2) and at the same time record with the county recorder a memorandum summarizing the provisions of that notice (B.M.C., § 13.77.050.A.3), file and record a certificate that actions have been initiated as required by chapter 13 and other applicable law to terminate any existing tenancies (B.M.C., § 13.77.050.A.3), and notify any tenant to be displaced that the city has been notified. (B.M.C., § 13.77.050.A.4.)

Appellant claims the City’s ordinances are preempted because the Act fully occupies the field of substantive eviction controls over landlords wishing to remove rental properties from the market, the City’s notice requirements conflict with notice provisions of the Act, and the City’s relocation payment requirement exceeds the scope of such assistance authorized by the Act.

I.

“Under the police power granted by the Constitution, counties and cities have plenary authority to govern, subject only to the limitation that they exercise this power within their territorial limits and subordinate to state law. (Cal. Const., art. XI, § 7.)” (Candid Enterprises, Inc. v. Grossmont Union High School Dist. (1985) 39 Cal.3d 878, 885 [218 Cal.Rptr. 303, 705 P.2d 876].) “If otherwise valid local legislation conflicts with state law, it is preempted by such law and is void. [Citations.] A conflict exists if the local legislation ‘ “duplicates, contradicts, or enters an area fully occupied by general law, either expressly or by legislative implication.” ’ ” (Ibid.; People ex rel. Deukmejian v. County of Mendocino (1984) 36 Cal.3d 476, 484 [204 *93 Cal.Rptr. 897, 683 P.2d 1150].) “‘If the subject matter or field of the legislation has been fully occupied by the state, there is no room for supplementary or complementary local legislation, even if the subject were otherwise one properly characterized as a “municipal affair.” [Citations omitted.]’ ” (People ex rel. Deukmejian v. County of Mendocino, supra, 36 Cal.3d at p. 484.)

Where local legislation does not expressly contradict or duplicate state law, it must be determined whether the local legislation has been preempted by implication. “In determining whether the Legislature has preempted by implication to the exclusion of local regulation we must look to the whole purpose and scope of the legislative scheme.

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Bluebook (online)
11 Cal. App. 4th 88, 14 Cal. Rptr. 2d 32, 92 Cal. Daily Op. Serv. 9522, 92 Daily Journal DAR 15821, 1992 Cal. App. LEXIS 1375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/channing-properties-v-city-of-berkeley-calctapp-1992.