Section 1805

Citation: Section 1805
Parent Document: Sterling v. Santa Monica Rent Control Board, 168 Cal. App. 3d 176 (1985)
Jurisdiction: California (state)
Effective Date: 1985-05-15
Original Source: https://www.courtlistener.com/opinion/2158620/sterling-v-santa-monica-rent-co... ↗

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In addition, it is apparent the superior court construed too narrowly the purposes of article XVIII. Respondent properly may consider “increases or decreases in operating and maintenance expenses” in determining whether a rent decrease should be granted. Section 1800 states: “The purpose of this Article, ... is to alleviate the hardship caused by this serious housing shortage by establishing a Rent Control Board empowered to regulate rents in the City of Santa Monica so that rents will not be increased unreasonably and so that landlords will receive no more than a fair return on their investment.” (Italics added.) This is consistent with the statement of intent in section 1805(e) that increases be granted only when necessary to a fair return. Since a landlord may increase his rate of return (and hence have the *186effect of increasing rents) by failing to make repairs or to correct defective conditions, by reducing services, space or equipment or by permitting deterioration of the unit, the stated purpose of article XVIII is broad enough to justify decreasing rents for the existence of any of these conditions.

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