Venice Town Council, Inc. v. City of Los Angeles

This case raises the issue whether the Mello act (Gov. Code, §§ 65590 & 65590.1) imposes a mandatory duty on local governments to require developers to replace residential units, or pay an in-lieu fee, whenever they demolish or convert dwelling units occupied by low- or moderate-income persons in the coastal zone. Appellants, the Venice Town Council, Inc., the Barton-Hill Neighborhood Association and Carol Berman, a low-income tenant who resides in Venice, contend the Mello act imposes such a duty. Respondent, the City of Los Angeles (City), argues the Mello act imposes no mandatory duties on local governments. It claims the Mello act only requires replacement dwelling units when the City in its discretion determines replacement of low- or moderate-income housing is “feasible.”

We conclude the City’s interpretation of its responsibilities under the Mello act is erroneous. The plain language of the statute imposes a mandatory duty on the City in certain circumstances to require replacement housing for low- or moderate-income persons or families where units occupied by qualifying persons are converted or destroyed. We further conclude the City has no discretion to allow a…