Carson Gardens, L.L.C. v. City of Carson Mobilehome Park Rental Review Board

SUMMARY

This case involves a rent control board’s decision on reconsideration, based on a trial court’s peremptory writ, of a general rent increase application by a mobilehome park owner. The trial court’s judgment and writ rejecting the board’s initial decision required the board to apply an analysis or methodology that “gives due consideration to” debt service costs (mortgage interest) in calculating a fair return on the owner’s investment. The board did not appeal the trial court’s judgment. Instead, it conducted a new hearing and received new evidence as required by the writ. However, the methodology it ultimately employed excluded debt service costs in calculating a fair return to the park owner. The park owner moved for an order further enforcing the original judgment. The trial court granted the motion, finding that the board’s decision was not in compliance with the judgment and writ because it employed a methodology that excluded debt service costs. The trial court declared the board’s decision null and void, and set the rent increase based on a methodology the board had considered and rejected, concluding there was no evidence in the record of any alternative…