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(IrVa -1 _ I <I �. <br />CITY OF COLTON <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF JUNE 16, 1998 <br />TO: Honorable Mayor and City Council <br />APPROVAL: Henry Garciak.a <br />City anage <br />FROM: <br />Community DeVsk4 cent Director <br />SUBJECT: Amendment to the De -Control Provision of the Rent <br />Stabilization Ordinance <br />DATE: June 9, 1998 <br />BACKGROUND: <br />Lake Cadena Investments, Ltd. ("Lake Cadena") has demanded that Chapter 15.48 of <br />the City's Mobilehome Park Rent Stabilization Ordinance be amended because, "the <br />provisions prohibiting rent increases to a fair market rent on the sale or other transfer of <br />a mobile home" violate the Fifth Amendment, under a recent decision rendered by the <br />United States Court of Appeals, Ninth Circuit, in Richardson v. City and County of <br />Honolulu, 124 F.3d 1150 (9th Circuit 1997). Moreover, Lake Cadena demands that <br />Chapter 15.48 also be amended to allow rent increases in sublease situations because <br />the same Fifth Amendment analysis applies. <br />In sum, the purpose of Chapter 15.48 is "to protect mobilehome owners from <br />unreasonable rent increases." Chapter 15.48 does not contain a vacancy decontrol <br />provision. Hence, the mobilehome park owner is not allowed to increase the rent on <br />the land on the sale, transfer, or sublease of a mobilehome. <br />DISCUSSION/ANALYSIS: <br />The Takings Clause of the Fifth Amendment provides: "[N]or shall private property be <br />taken for public use without just compensation." The Supreme Court cases addressing <br />the taking issue have been divided into two lines of authority: the regulatory taking <br />cases and the physical occupation cases. <br />The regulatory taking cases are "those where the value or usefulness of private <br />property is diminished by regulatory action not involving a physical occupation of the <br />property." (Hall v. City of Santa Barbara, 813 F. 2d 198, 202, (9th Circuit, 1987). <br />Lake Cadena makes its demand that the City amend its ordinance on the basis that the <br />Ordinance constitutes a regulatory taking based on Richardson v. City and County of <br />Honolulu, supra 124 F. 3d 1150. <br />Item # I <br />