El Dorado Palm Springs, Ltd. v. City of Palm Springs

118 Cal. Rptr. 2d 15, 96 Cal. App. 4th 1153, 2002 Daily Journal DAR 2937, 2002 Cal. Daily Op. Serv. 2418, 2002 Cal. App. LEXIS 2819
CourtCalifornia Court of Appeal
DecidedMarch 14, 2002
DocketE029198
StatusPublished
Cited by23 cases

This text of 118 Cal. Rptr. 2d 15 (El Dorado Palm Springs, Ltd. v. City of Palm Springs) 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
El Dorado Palm Springs, Ltd. v. City of Palm Springs, 118 Cal. Rptr. 2d 15, 96 Cal. App. 4th 1153, 2002 Daily Journal DAR 2937, 2002 Cal. Daily Op. Serv. 2418, 2002 Cal. App. LEXIS 2819 (Cal. Ct. App. 2002).

Opinion

Opinion

HOLLENHORST, Acting P. J.

Appellant El Dorado Palm Springs, Ltd. (El Dorado), is the owner of a 377-unit mobilehome park in Palm Springs. On September 28, 2000, it filed a petition for writ of mandate to compel approval by respondent City of Palm Springs (City) of its application for a tentative subdivision map. The application, which was initially filed in 1993, sought to subdivide the units within the mobilehome park as the requisite first step in converting the park from a rental mobilehome park to a resident-owned park. Upon subdivision, the parcels would be sold to the current mobilehome owners, or others, to complete the conversion. The application was finally accepted as complete in 1999.

*1157 The Palm Springs Planning Commission approved the application for subdivision subject to a number of conditions, and it recommended that the Palm Springs City Council (City Council) approve the application. After several delays, the City Council conditionally approved the application after adding three further conditions.

El Dorado contends that the City Council lacked the authority to impose the three further conditions. The three conditions generally require (1) the use of a “Map Act Rent Date,” defined as the date of the close of escrow of not less than 120 lots; (2) the use of a sale price established by a specified appraisal firm, the appraisal costs to be paid by El Dorado; and (3) financial assistance to all residents in the park to facilitate their purchase of the lots underlying their mobilehomes. The total amount of the required assistance would exceed $1 million.

The first condition is especially significant because the selected date would determine when the mobilehome park would cease to be subject to the rent control ordinance of the City. After the map’s effective date, the rent control phaseout provisions of Government Code section 66427.5, subdivision (d) would become applicable. 1

On September 28, 2000, El Dorado filed its petition for writ of mandate to compel approval of the subdivision map without the three further conditions. On October 5, 2000, El Dorado filed a “motion” for a peremptory writ of mandate pursuant to Code of Civil Procedure section 1094. The motion alleged that the facts were undisputed and the only issue was an issue of law, i.e., whether the City Council had the power to impose the three further conditions. Further, the motion alleged that El Dorado’s application was approved by operation of law because of the City Council’s failure to act on the application within certain statutory time limits.

After hearing, the trial court denied the motion for a writ of mandate. El Dorado appeals.

Issues

El Dorado contends the trial court erred in denying its motion because the City’s imposition of the three further conditions exceeded the City’s authority. El Dorado argues that its application for subdivision is governed by section 66427.5. It relies on subdivision (d) of that section, which states, in part, that the scope of the City Council’s hearing is limited *1158 to the issue of compliance with the requirements of that section. Second, El Dorado renews its argument that its application was deemed approved because the City Council failed to act within the statutory time. There being no factual dispute, we agree with El Dorado that these questions are questions of law subject to our independent review. (County Mobilehome Positive Action Com., Inc. v. County of San Diego (1998) 62 Cal.App.4th 727, 733 [73 Cal.Rptr.2d 409].)

The City justifies its imposition of further conditions by relying on section 66427.4, subdivision (c), which authorizes the City Council to “require the subdivider to take steps to mitigate any adverse impact of the conversion on the ability of displaced mobilehome park residents to find adequate space in a mobilehome park.” The City argues that this section requires it to impose reasonable conditions of approval and that it did so in a timely manner.

The issue presented by these arguments is whether section 66427.4 or section 66427.5 is applicable to the proposed conversion of the mobilehome park from a rental mobilehome park to a resident-owned park. In resolving this question, El Dorado contends that the words of the statutes are dispositive, while respondents rely on the legislative history of the 1991 and 1995 amendments to these sections.

Intervener El Dorado Mobile Country Club Homeowners Association (Association) was granted leave to intervene as the representative of the homeowners and tenants living in the mobilehome park. 2 It relies on extensive legislative history to argue that section 66427.5 applies only to resident-owned parks, i.e., parks more than 50 percent owned by residents. Accordingly, it argues that El Dorado’s application was properly processed under section 66427.4, and the conditions of approval were properly imposed. The Association further contends that a park owner must disclose the proposed purchase price to comply with section 66427.5, and the park owner cannot force conversion on unwilling tenant/purchasers, particularly if the conversion is designed to avoid a local rent control ordinance. The Association also agrees with the City that there was no deemed approval of El Dorado’s application.

Amici curiae are organizations involved in the conversion of mobilehome parks to resident ownership. They agree with El Dorado that El Dorado’s application is governed by section 66427.5. They argue that the section *1159 applies to all conversions of mobilehome parks to resident ownership, no matter who initiates the conversion process. Further, they argue that conversion occurs when the first subdivided unit is sold. The import of this argument is that the City’s rent control ordinance would cease to control rents in the mobilehome park as soon as the first sale occurred.

El Dorado and the tenants have a long history of litigation and mutual distrust. 3 Thus, despite certain statutory incentives for the purchase of mobilehome parks by nonprofit organizations, 4 the mobilehome owners here oppose the conversion, contending that they do not have enough information to decide whether to purchase or not, and the proposed conversion is merely a sham to avoid the City’s rent control ordinance. Thus, although the Legislature enacted the Mobilehome Park Purchase Fund to provide supplemental funding to encourage and assist mobilehome park residents to purchase the mobilehome parks and convert them to resident ownership (Health & Saf. Code, § 50780, subd. (a)), this appears to be the first case in which the park owner has attempted to convert a park to resident ownership despite the opposition of the park residents.

The Statutory Scheme

The Mobilehome Residency Law (Civ. Code, § 798 et seq.) governs tenancies in mobilehome parks, but many other statutes regulate or affect mobilehome parks, their tenancies, and their sale or conversion. (See, e.g., Mobilehomes—Manufactured Housing Act of 1980 [Health & Saf.

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118 Cal. Rptr. 2d 15, 96 Cal. App. 4th 1153, 2002 Daily Journal DAR 2937, 2002 Cal. Daily Op. Serv. 2418, 2002 Cal. App. LEXIS 2819, Counsel Stack Legal Research, https://law.counselstack.com/opinion/el-dorado-palm-springs-ltd-v-city-of-palm-springs-calctapp-2002.