Rainbow Disposal Co. v. Escondido Mobilehome Rent Review Bd.

Jeffrey Epp for Real Party in Interest.

OPINION

O'NEILL, J. [*]

Rainbow Disposal Company, Inc. (Rainbow), owner of a mobilehome park in the City of Escondido, appeals a judgment denying its petition for writ of mandate (Code Civ. Proc., § 1094.5) challenging the adequacy of a rental increase authorized by the Escondido Mobilehome Rent Review Board (the Board). Rainbow contends (1) the Board improperly excluded from consideration as capital improvement expenses the money Rainbow spent in improvements to the park's gas and electric utilities and (2) the rental increase the Board authorized gives Rainbow an insufficient return on the park's depreciated net assets. We affirm.

In 1990 Rainbow purchased a 165-space mobilehome park known as Lake Bernardo Mobile Estates (the park) for $4,950,000 plus closing costs. The park is subject to an Escondido rent control ordinance which, as this court has noted, "has generated significant appellate activity." ( Westwinds Mobile Home Park v. Mobilehome Park Rental Review Bd. (1994) 30 Cal. App.4th 84, 88 [ 35 Cal. Rptr.2d 315 ], fn. omitted.)

In June 1994 Rainbow filed its second application for a rent increase. The Board granted an increase…