City of Berkeley v. City of Berkeley Rent Stabilization Board
California Court of Appeal
33 Cal. Rptr. 2d 317 (1994)
The City of Berkeley (city) (plaintiff) enacted a rent-control ordinance in 1980. The rent-control ordinance reduced the value of properties purchased after 1979, such that the landlords paid reduced prices. In implementing the rent-control ordinance, the City of Berkeley Rent Stabilization Board (board) (defendant) adopted a number of regulations, such as Regulation 1100. Regulation 1100 allowed rents to be adjusted upward each year in order to account for inflation. The yearly rent increases were known as annual general adjustments (AGA). In calculating AGA, the board relied on the rate of increase reflected in the consumer price index. Regulation 1100 authorized rent increases by all landlords, regardless of when they purchased their properties. Indeed, the board had never distinguished between landlords based on the dates of property acquisition. The city brought suit to challenge the regulations adopted by the board, including Regulation 1100. The trial court largely upheld Regulation 1100 but ruled that it did not apply to landlords who had purchased their properties after 1979. The city and the board both appealed.
Rule of Law
Holding and Reasoning (Peterson, J.)
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