TG Oceanside, L.P. v. City of Oceanside
Opinion
Opinion
O'Rourke, J.
The City of Oceanside (City) and the City of Oceanside Manufactured Home Fair Practices Commission (the Commission) appeal from a judgment issuing a petition for peremptory writ of administrative mandamus (Code Civ. Proc., § 1094.5) in favor of TG Oceanside, L.P. (Owner), a mobilehome park owner who had filed the petition challenging the decision by City and the Commission to deny it a rent increase. On Owner’s administrative appeal of City and the Commission’s decision, the administrative hearing officer affirmed the Commission’s denial of a rent increase, concluding the evidence and City’s expert demonstrated Owner was already earning a fair return and Owner had not overcome a presumption that the mobilehome park’s base year rate of return was just and reasonable. The hearing officer nevertheless awarded Owner a $10.07 increase in monthly rents per space. On Owner’s writ petition, the trial court set aside that decision and remanded the matter to the Commission to apply a return on investment approach that accounted for the effect of inflation on Owner’s original and subsequent capital investment, and commanding City not to depreciate the investments. City contends (1)…