West Hollywood Concerned Citizens v. City of West Hollywood

*489 Opinion

—In this case we hold a $48-per-year registration fee imposed on rent controlled units does not necessarily deprive landlords of their constitutionally guaranteed “just and reasonable rate of return.” Accordingly, we affirm the trial court’s rejection of a facial constitutional challenge to that fee.

Statement of Facts and Proceedings Below

In September 1985, the newly created City of West Hollywood (City) enacted a comprehensive rent control program. This program has three key elements.

(1) The program imposed an initial maximum level for each unit which is called the “base rent.” The City set the “base rent” as the amount of rent actually charged under free market conditions on April 30, 1984. (West Hollywood Mun. Code, §§ 6402(A), 1 6408(A)(2).)

(2) The program allows automatic upward adjustments to the “base rent” each year. The formula fixes these adjustments at 75 percent of the annual rise in the consumer price index (CPI). Landlords are free to raise their annual rents by this percentage without making any application to the City’s rent control authorities. (§ 6409.)

(3) The program permits individual landlords to apply to the City’s rent control…