Mobilepark West Homeowners Ass'n v. Escondido Mobilepark West

35 Cal. App. 4th 32, 41 Cal. Rptr. 2d 393, 95 Daily Journal DAR 6653, 95 Cal. Daily Op. Serv. 3885, 1995 Cal. App. LEXIS 477
CourtCalifornia Court of Appeal
DecidedMay 24, 1995
DocketD019470
StatusPublished
Cited by31 cases

This text of 35 Cal. App. 4th 32 (Mobilepark West Homeowners Ass'n v. Escondido Mobilepark West) 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
Mobilepark West Homeowners Ass'n v. Escondido Mobilepark West, 35 Cal. App. 4th 32, 41 Cal. Rptr. 2d 393, 95 Daily Journal DAR 6653, 95 Cal. Daily Op. Serv. 3885, 1995 Cal. App. LEXIS 477 (Cal. Ct. App. 1995).

Opinion

Opinion

HUFFMAN, J.

The trial court granted a judgment on the pleadings, declaring certain ordinances of the City of Escondido (the City) to be facially valid, in the City’s complaint in intervention in an underlying action *36 between plaintiff Mobilepark West Homeowners Association (the residents) against their landlord, Escondido Mobilepark West and Charles E. Jacobson (the owners). The owners have appealed this judgment on the pleadings, contending that the ordinances (Nos. 91-19 & 88-50), which the City characterizes as clarification and implementation of a voter initiative measure establishing rent control in the City (commonly known as Proposition K, section 29-101 et seq. of the City Municipal Code), were actually invalid legislative amendments of the initiative measure. (Elec. Code, 1 former § 4013, now renumbered to § 9217.) The owners also contend the ordinances invaded an area preempted by state law. (Civ. Code, § 798.17.)

We agree with the owners that ordinance No. 91-19 was an improper legislative amendment of Proposition K and is thus facially invalid. 2 We further agree with the owners that as to existing homeowners, ordinance No. 91-19 is preempted by Civil Code section 798.17 (covering the field of setting conditions on the right of a park owner and existing homeowners to enter into rent control-exempt leases) and is therefore facially invalid on that basis also. We reverse the judgment with directions to the trial court to enter judgment in favor of the owners on the facial invalidity issues. 3

Factual and Procedural Background

In June 1988, the City’s voters passed Proposition K, an initiative ordinance establishing mobilehome park space rent review for the City. The initiative defines numerous terms it uses, including “tenant” as “a person *37 who has a tenancy in a mobilehome park.” It establishes a mobilehome park rental review board (Rent Review Board), which has the duty of hearing rent increase applications and approving or disapproving rent increases. The initiative sets base rents as of a certain date and establishes procedures for park owners to apply for rent increases.

After the initiative was passed, disputes arose among owners and residents as to whether the residents or prospective residents could be required to sign long-term leases (12 months or over). Such long-term leases are exempt from rent control pursuant to Civil Code section 798.17, subdivision (a), which has been in effect in various forms since 1985.

A series of events, set out in legislative history materials submitted here, then took place with respect to whether park owners could require prospective homeowners to sign long-term leases that would be exempt from rent control. 4 In August 1988, the city council passed ordinance No. 88-50, with the stated intention of clarifying that under Proposition K, a park owner could not require either an existing or prospective homeowner to sign a long-term lease which would be exempt from rent control. In 1990, the Legislature amended Civil Code section 798.17 with Senate Bill 2009 (Stats. 1990, ch. 1046), which appeared to permit owners to require prospective homeowners to sign long-term leases that would be exempt from rent control. In response, the city council repealed ordinance No. 88-50. However, due to unforeseen problems that arose regarding preemption, the Legislature in 1991 repealed Senate Bill 2009 by further amending Civil Code section 798.17, with the purpose of reinstating the state law as it existed before Senate Bill 2009 was enacted. Language accompanying the measure which repealed Senate Bill 2009 stated that it was being repealed because it had inadvertently preempted local ordinances which gave certain protections to prospective homeowners. (Stats. 1991, ch. 24, § 3, Rep. to Sen. Com. on Judiciary, “Mobilehome Parks—Repeal of S.B. 2009, 1990”; Rep. to Sen. Rules Com.; Rep. to the Assem. Com. on Housing & Community Development.)

Once Senate Bill 2009 and its amendments to Civil Code section 798.17 were repealed, the City adopted on May 15, 1991, as an urgency matter, ordinance No. 91-19, which essentially reenacted ordinance No. 88-50. The declaration of urgency for the ordinance stated that it was intended to deal with hardships on purchasers and prospective purchasers, as well as sellers, *38 of mobilehomes, because certain park owners were informing prospective mobilehome purchasers that they must sign a long-term lease as a condition of the park owner’s approval of the sale, resulting in denial of the benefits of the rent protection initiative.

Ordinance No. 91-19 first defines the term “tenant” as “not only a person who has an existing tenancy in a mobile home park but also a person who has purchased or is in the process of purchasing or otherwise acquiring a mobilehome that will remain at that particular park.” Section 2 of the ordinance then sets forth a procedure for dealing with leases for periods of more than 12 months (exempt from rent control) in the following manner: subdivision (a) requires submission of a long-term lease to the Rent Review Board for review to determine if it complies with the terms of the rent protection ordinance (Proposition K), before it is offered to any tenant. Subdivision (b) then requires that before any long-term lease (in excess of 12 months) is executed by the tenant, the owner must “(1) offer the tenant the option of a rental agreement for a term of 12 months or less, (2) provide the tenant with a copy of the Rent Protection Ordinance, and (3) inform the tenant both orally and in writing that if the tenant signs a lease or rental agreement with a term in excess of 12 months which has been reviewed and approved by the Board in accordance with the provisions of the Rent Protection ordinance, the lease or rental agreement may not be subject to the terms and protections of the Rent Protection Ordinance.” Subdivision (c) then provides that a long-term lease shall not be exempt from Proposition K unless it complies with each and every requirement in Civil Code section 798.17, subdivisions (a) through (c), for exemption from rent control of such leases offered to homeowners.

Six months after ordinance No. 91-19 went into effect, a number of residents of Mobilepark West sued the owners, alleging, among other things, that they had refused to follow the procedures in the City’s rent ordinances, including Nos. 88-50 and 91-19. An amended pleading brought in the residents as the plaintiff. The City filed a complaint in intervention seeking declaratory relief as to the validity of those ordinances. 5

In the underlying action between the residents and the owners, the owners filed a motion for a judgment on the pleadings, arguing that ordinances Nos. *39 88-50 and 91-19 were preempted by Civil Code section 798.17 and were void as illegal amendments of the initiative (pursuant to Elec. Code, former § 4013, now § 9217). Ultimately, this motion was denied before trial. However, as the case proceeded between the residents and the owners, the residents filed a motion

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35 Cal. App. 4th 32, 41 Cal. Rptr. 2d 393, 95 Daily Journal DAR 6653, 95 Cal. Daily Op. Serv. 3885, 1995 Cal. App. LEXIS 477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mobilepark-west-homeowners-assn-v-escondido-mobilepark-west-calctapp-1995.