Montclair Parkowners Ass'n v. City of Montclair

Plaintiffs Montclair Parkowners Association and Hacienda Mobile Home Association (hereafter, Park Owners) seek to invalidate ordinance No. 98-777, enacted by the City of Montclair (hereafter, City), on the grounds that it is unconstitutional on its face. Ordinance No. 98-777 was enacted to amend the existing rent control ordinance. Park Owners contend that enactment of the ordinance resulted in a regulatory taking of their property without just compensation in violation of article I, section 19, of the California Constitution. The trial court sustained City’s demurrer on the ground that ordinance No. 98-777 was facially constitutional and dismissed the entire case against City.

In the published portion of the opinion (pt. I), we conclude that ordinance No. 98-777 on its face is not an unconstitutional regulatory taking. In our view, the relevant inquiry into the constitutionality of ordinance No. 98-777 under article I, section 19 of the California Constitution is whether the ordinance is an arbitrary regulation of Park Owners’ property rights. Since City could have reasonably concluded that the limitation on Park Owners’ ability to raise the rent upon sale of…