Kavanau v. Santa Monica Rent Control Board, 16 Cal. 4th 761 (1997)

Citation: Kavanau v. Santa Monica Rent Control Board, 16 Cal. 4th 761 (1997)
Parent Document: Kavanau v. Santa Monica Rent Control Board, 16 Cal. 4th 761 (1997)
Jurisdiction: California (state)
Effective Date: 1997-08-26
Original Source: https://www.courtlistener.com/opinion/5607899/kavanau-v-santa-monica-rent-con... ↗

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As the United States Supreme Court affirmed in Pennell, a rent control case: “[W]e have long recognized that a legitimate and rational goal of price or rate regulation is the protection of consumer welfare.” (Pennell, supra, 485 U.S. at p. 13 [108 S.Ct. at p. 858].) Thus, that court upheld a facial challenge to a rent control ordinance that “represents a rational attempt to accommodate the conflicting interests of protecting tenants from burdensome rent increases while at the same time ensuring that landlords are guaranteed a fair return on their investment.” (Ibid.) Accordingly, the notion advanced by some commentators (see Radford, Regulatory Takings Law in the 1990’s: The Death of Rent Control? (1992) 21 Sw.U.L.Rev. 1019) that rent control laws are subject to a heightened constitutional scrutiny that goes beyond the substantive due process “rational relationship” analysis to which other economic regulation is subject, is without constitutional basis. Nor is it constitutionally sound to assert that a trial court, sitting as trier of fact, may act as a kind of “Super City Council” that can evaluate whether a rent control law has been successful in achieving its stated purposes. (See ibid.) A trial court may not arrogate to itself such a role. Neither may an appellate court. “In a substantive due process challenge, we do not require that the City’s legislative acts actually advance its stated purpose, but instead look to whether “ ‘ “the governmental body could have had no legitimate reason for its decision.” ’ ” (Kawaoka v. City of Arroyo Grande (9th Cir. 1994) 17 F.3d *7881227, 1234, italics in original.) Whether rent control is the best way to remedy the problem of excessive rents in a given locale, and whether the benefits it brings in terms of lower-than-market rents for some tenants outweigh its costs, is a matter to be addressed to legislative bodies.1

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