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Supreme Court Rules on MRL

By Janice G. Inman
February 28, 2007

The Supreme Court of California determined in January that the state Mobilehome Residency Law (MRL), codified at Civ. Code, ' 798 et seq., does not preempt local rent control ordinances that allow mobilehome park owners to separately charge park residents for property taxes imposed on park land. Cacho v. Boudreau, 40 Cal.4th 341 (Cal.,1/11/2007) (Kennard, J.). The opinion clarified an apparent conflict between the MRL and the mobilehome rent control law then in force in the City of Chula Vista ' a local law similar to many rent control ordinances throughout the State. The decision also resolved a split among the Appellate Divisions as to which items may be considered components of 'rent' for which landlords may raise monthly rents without violating the anti-gouging provision of the MRL.

Tax Bill Shared with Renters

In Cacho, after the City of Chula Vista increased the property tax assessment on a mobilehome park owned by Luis J. Cacho and his family, the Cachos wanted to pass the tax increase on to the park's residents. Chula Vista had a rent control ordinance limiting rent increases for mobilehome 'space rent,' defined as 'the consideration ' demanded or received in connection with the use and occupancy of the mobilehome space ' exclusive of ' allowable pass-throughs.' (Chula Vista Mun.Code, tit. 9, ch. 9.50, former ' 9.50.030, subd. (A), italics added.) One of the pass-throughs that the ordinance then allowed, and excluded from the definition of 'space rent,' was 'governmental assessments such as real property taxes.' It also listed '[p]roperty or other taxes' as one component of the owner expense factor that the mobilehome rent review commission was to consider in fixing space rent through the hearing process.

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