Bacon

The City of Palo Alto enacted the Rental Housing Stabilization Ordinance (Ordinance), which provides that a landlord is required to offer a one-year lease to a prospective tenant. The sole issue on appeal is whether state law preempts the Ordinance. We conclude that it does not and reverse the judgment.

Statement of Facts

When the city council adopted the Ordinance in 1980, it made the following findings: “It is found and declared that there is a growing shortage of, but increasing demand for, housing in the City of Palo Alto. Such shortage and increased demand, coupled with increasing inflation, have placed substantial pressure on those residents of Palo Alto seeking rental housing. This Council finds that tenants are entitled to a contractual relationship with a landlord that offers some assurance of stability under the terms of a written lease so as to minimize displacement of tenants into a rental housing market which affords them few and expensive options.” (Palo Alto Mun. Code, § 9.68.010.)

The Ordinance requires that a landlord offer new and renewing tenants a “written lease which has a minimum term of one year.” (§ 9.68.030, subd. (a).) It also requires that…