LOS ANGELES (Legal Newsline) - The owner of a southern California mobile home park is challenging a new California law that limits its ability to raise rents.
A law that went into effect on Jan. 1, 2022, keeps Anaheim Mobile Estates from raising gross rental rates for mobile home spaces more than 3% plus the percentage change in the cost of living over a 12-month period. It caps any raise at 5%.
This restriction applies to mobile home parks that are located within two or more cities. AME's property is located in Anaheim and Stanton.
"It is well established that a rent control measure is unconstitutional on its face if it operates to deprive the property owner of a 'just and reasonable' return on their property by foreclosing all avenues for a 'fair return' increase in rents," the lawsuit says.
"Additionally, a rent control measure is impermissibly 'confiscatory' if no rent adjustment mechanism is provided. Here, newly enacted Civil Code Section 798.30.5 contains no rent adjustment."
AME complains it is not allowed to apply for a rent increase above what is laid out in the law. It is represented by Chris Chapman of Rudderow Law Group, and the lawsuit names California Attorney General Rob Bonta as defendant.