Council Adopts Rent-Control Law : Ordinance: Mobile home residents are delighted with the strict measure, but park owners threaten litigation.

Malibu’s City Council on Tuesday approved a tough rent-control ordinance that elated residents of the city’s two mobile home parks, but incensed park owners.

Brooks London, an attorney who represents the owners of the Paradise Cove mobile home park warned after the vote, “There’s major litigation to follow soon.”

The new law extends for 16 months a rent freeze put into effect when Malibu became a city. Left unchallenged, it could ultimately reduce rents for many residents of the mobile home parks at Paradise Cove and Point Dume.

After three weeks of public testimony and council deliberation, the ordinance was adopted on a 4-1 vote. It took effect immediately.

Rents in the parks will be recalculated from 1984 to determine if they exceed what was allowed by the county’s rent-control law.

Mayor Larry Wan voted against the ordinance, saying that he shared the concern of City Atty. Michael Jenkins that the new law might not withstand a legal challenge.

“We’ve constructed an excellent ordinance,” Wan said, “except for one part which destroys the whole.”

He was referring to the determination of a base year for recalculating rents. Jenkins had recommended using March 28, 1991, the date Malibu became a city. But the residents convinced the council that Dec. 31, 1984, should be used, contending that owners of the mobile homes had illegally raised their rents for several years.

“I can’t guarantee you won’t be sued, but I think you’re taking the safer route by going back to 1984,” Kurt Delsack, attorney for Paradise Cove residents told the council, reasoning that 1984 is the base year written into Los Angeles County law.

Attorneys for the mobile home park owners did not agree.

“This ordinance is well outside the environment of constitutionality and enforceability. I’m shocked the council would take such an action,” John Gamble, attorney for the Adamson Cos., which owns the Point Dume park, commented after the vote.

Other contentious elements to the new law included a rent freeze to March, 1993, automatic rent increases and vacancy decontrol.

Councilman Mike Caggiano said he was concerned that the rent freeze coupled with the potential rollback on rents would be “the Achilles heel of this ordinance.”

He said he voted for it only because the current moratorium on rents ends Monday.

Without four council votes, the ordinance would have taken effect in 30 days, leaving a month in which renters would not be covered.

Under the new law, rents could be increase annually by 5%, or 75% of the consumer price index, whichever is less. If the owners believe they are not receiving a fair rate of return they can appeal to the soon-to-be-appointed rent commission.

The residents wanted a limit of 10% on the increase the owners can impose once a spot becomes vacant, which would make the potential purchase of a mobile home more attractive.

Jenkins had recommended 25%. The council settled at 18%, which displeased both owners and residents. Overall, however, mobile home residents were delighted.

“This is a victory for homeowners’ rights,” said Jeffrey Glover, president of the Point Dume Homeowners Assn.