Bill to Weaken Local Rent Controls Clears Hurdle in Assembly

The Assembly on Thursday voted to exclude new mobile home parks from a controversial bill supported by real estate interests to weaken local rent controls.

Supporters of the bill said passage of the amendment to exclude mobile homes resolves an issue that has held up the measure for weeks and sets the stage for Assembly approval as early as Monday.

The bill by Assemblyman Jim Costa (D-Fresno) would allow landlords to raise rents without limit when vacancies occur and would exempt single-family and new home construction from rent controls. A similar bill died in the Senate Judiciary Committee last year.

Opponents of the Costa bill point out that the legislation would prevent local governments from determining and enacting their own rent control policies, while proponents have insisted that the bill is necessary to encourage construction of more rental housing.

Local Ordinances

Santa Monica and Berkeley officials have criticized the measure because it would wipe out the key part of their local ordinances limiting rent increases when apartments become vacant. Santa Monica and Berkeley are among a handful of cities in the state with this tough rent control provision.

In Los Angeles, which allows unlimited rent increases when vacancies occur, rent stabilization officials have said the measure would prevent the city from enacting tougher controls.

At least 14 cities in California, including Los Angeles, fix rents on some or all residential units. Another 40 or so cities and counties fix rents for space in mobile home parks.

The bill is backed by Gov. George Deukmejian, the California Assn. of Realtors, the California Apartment Assn. and the Western Mobilehome Assn. It is opposed by the League of California Cities, tenant organizations and various cities and counties that have rent control ordinances.

The amendment to exclude new mobile home parks from rent controls was offered by Assemblyman Richard Robinson (D-Garden Grove) and was approved 32 to 27. An extraordinarily large number of members, 21, were reported absent or did not vote on the controversial amendment.

No Limit

The Robinson amendment would exclude mobile home parks established after next Jan. 1, the effective date of the proposal if it becomes law. Robinson said owners of the parks would be able to raise rents between vacancies without limit.

However, mobile homes in existing parks would still be subject to local controls. The amendment was backed by the Golden State Mobilehomes League Inc., which represents 200,000 California mobile home park residents.

Costa, who abstained from voting on the amendment, said owners of existing mobile home parks are not satisfied with the changes and he would seek further changes to satisfy them when the bill reaches the Senate.

Last year, a similar measure was approved by the Assembly but died in the Senate in the face of opposition from Senate President Pro Tem David A. Roberti (D-Los Angeles).

Costa acknowledged that he must still overcome opposition from Roberti, who said he remains a foe of any bill that hampers local governments from passing rent control ordinances.

Of the Costa bill, with the new mobile home park exclusion, Roberti said “it would be intolerable,” because mobile home parks would be “treated differently.”

In a related development, the Senate approved 25 to 7 and sent to the Assembly a measure to prohibit a city from compelling a landlord to continue renting an apartment building.

The bill, by Sen. Jim Ellis (R-San Diego), would nullify a state Supreme Court decision that last year upheld a key part of Santa Monica’s rent control ordinance that bars landlords from getting out of the rental business by demolishing their apartments.