City of Oceanside v. McKenna

Here, we consider whether the covenants, conditions and restrictions (CC&Rs) of a publicly subsidized condominium project validly can require owner occupancy and forbid the leasing of units. Michael Shawn McKenna appeals from a judgment against him on the City of Oceanside’s (City) suit for injunctive and declaratory relief seeking to enforce such restrictions at the Sea Village condominium project, a part of the City’s downtown redevelopment program.

Facts

Sea Village is a condominium project that was developed on property within the coastal zone as part of the City’s residential waterfront housing portion of the downtown redevelopment project. The redevelopment project included plans to demolish residential dwelling units occupied by persons of low and moderate income located within the coastal zone. The City’s Community Development Commission (Commission) purchased the property upon which Sea Village was developed for $1,100,000 and sold it to Oceanside Beach Partners for $300,000. Oceanside Beach Partners was required to construct Sea Village as replacement dwellings pursuant to the City’s housing plan and Government Code section 65590, which mandates replacement…