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TO: <br />FOR: <br />FROM: <br />SUBJECT: <br />HONORABLE MAYOR and CITY COUNCIL <br />Council Meeting of 2 June 1992 <br />Jaime R. Aguilera, Director of Community Development �L'� <br />Consider Amendment of Rent Control Ordinance to Provide <br />for Rent Control of Vacant Spaces. <br />BACKGROUND: <br />The Rent Stabilization Commission was recently informed, by Commissioner Fredrickson, <br />of a Supreme Court ruling regarding Yee vs. the City of Escondido. Essentially, the Yee <br />decision now allows cities to continue to control mobile home space rent by ordinance <br />when a mobile home is sold or moved from its pad, if the space was previously subject to <br />such rent control. <br />For many years, the cornerstone of defensible rent control ordinances was vacancy <br />decontrol. That is, municipalities were allowed to control rents on occupied spaces, but <br />when a unit was sold, or moved off the pad, the rent control provisions of the City's <br />Ordinance no longer applied. Our current ordinance complies with that requirement. <br />However, following the Yee decision, some cities have amended their ordinances to allow <br />rent control to continue indefinitely so long as the spaces are not subject to long-term <br />leases. This means that if a tenant sells his mobile home to a new tenant, that new tenant <br />cannot be charged space rental at a higher rate than that charged the previous tenant. <br />The Rent Stabilization Commission reviewed the issue over a three meeting time span and <br />eventually agreed to recommend to the Council that the City's Rent Stabilization Ordinance <br /># O-19A-89 be amended per the attached information. <br />Best, Best & Krieger has issued an opinion to the Rent Commission (attached) which <br />essentially stated that the City might be well advised to wait for another court case which <br />is pending and which might further clarify the Yee decision; however, Mrs. Biggs indicated <br />that it is within the discretion of the City to adopt the proposed amendment during this <br />interim period of time pending further resolution and definition of this area of the law. <br />/�� <br />G <br />E <br />\ <br />_�� <br />0 <br />Agenda Report C_RENTOR <br />Page 1 of 2 Item No. �� <br />Li <br />E <br />� <br />u <br />•� <br />■ <br />T <br />