Section 1805

Citation: Section 1805
Parent Document: Santa Monica Properties v. Santa Monica Rent Control Board, 203 Cal. App. 4th 739 (2012)
Jurisdiction: California (state)
Effective Date: 2012-02-16
Original Source: https://www.courtlistener.com/opinion/5810885/santa-monica-properties-v-santa... ↗

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*752As Sterling itself recognizes, rent control law is a proper exercise of municipal police power “so long as it is ‘reasonably calculated to eliminate excessive rents’ and at the same time provided the landlord with a just and reasonable return on his or her property.” (Sterling, supra, 168 Cal.App.3d at p. 183, citing Birkenfeld v. City of Berkeley (1976) 17 Cal.3d 129, 165 [130 Cal.Rptr. 465, 550 P.2d 1001]; see also Kavanau v. Santa Monica Rent Control Bd. (1997) 16 Cal.4th 761, 771-772, 778-779 [66 Cal.Rptr.2d 672, 941 P.2d 851].) The current language in sections 1800 and 1805(e) recognizes this duality and balancing of interests. Section 1800 states that the purpose of the RCL is to regulate rental units to assure that “rents will not be increased unreasonably,” and that “landlords will receive no more than a fair return” on their property. To these ends, section 1805(e) requires RGB to consider the purposes of the RCL, “and the requirements of law” in ruling on a rent decrease petition.6 In light of the RCL’s express language, and the requirements of law governing the validity of rent control ordinances, section 1805(e) may not be interpreted to mean that its listed factors constitute freestanding bases for adjusting rents. Instead, the factors listed in section 1805(e) must be interpreted to be no more than “relevant indicators of the comparative return on investment.” (Sterling, supra, at p. 186.) A reduction in recreational facilities may be considered on a rent decrease petition, but where, as here, the reduction is a minor adjustment in the hours of luxury spa services, no rent decrease may be ordered without evidence that it resulted in excessive rent or an unjust return on the landlord’s property.

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