Palomar Mobilehome Park Ass'n v. Mobile Home Rent Review Comm'n

Plaintiff Palomar Mobilehome Park Association, owner of two mobilehome parks in the city of San Marcos (City), appeals the denial of its petitions for writ of mandate to compel the City and its Mobile Home Rent Review Commission (Commission) to grant a requested increase in the rents which can be charged for spaces in the Palomar Estates West and Palomar Estates East mobilehome parks. While we reject the majority of Palomar’s arguments—including its principal contention that the park owner must be assured a fair rate of return on the current value of the property—we agree that factual issues remain to be resolved before the Commission’s decision to deny any increase can be approved. Accordingly, we reverse.

Factual and Procedural Background

The City first enacted a mobilehome rent control ordinance in 1978. Under the current version of the ordinance, mobilehome park owners may adjust rates once in any 12-month period by giving written notice to both the City and the homeowners. Rents for all spaces in the park must be adjusted at the same time.

Homeowners may seek review of a park owner’s proposed rate increase if they believe it is excessive. Review is initiated by a…