Legal context Costa-Hawkins Rental Housing Act

a site of supreme court on s. spring st. in los angeles.

for california state assembly analyst stephen holloway commented on constitutional , legal context of rent control, between state , local governments (e.g., cities). when costa-hawkins enacted, existing

california law made no statutory provision for, not prohibit, adoption of local rent control ordinances. case law, birkenfeld v. city of berkeley (1976) 17 cal. 3d 129, held rent control proper exercise of local government s police power if reasonably calculated eliminate excessive rents , @ same time provide landlords , reasonable returns on properties.

in 1997 kavanau case, rental property owner challenged city of santa monica s rent control law form of taking or inverse condemnation prohibited federal constitution. california supreme court affirmed rulings lower state courts in favor of city. in 2005 berger foundation case, california court of appeal upheld ordinance provided city council sitting rent board determine fair, just, , reasonable regarding owner s comparable return on investment. ordinance did not establish specific formula or procedure apply when faced requested rent increase, instead stated eleven factors consider. here board had relied on expert s opinion.