LLC Owners To Abide by Rent Control in California

Following up on an article we published March 2, the Los Angeles Examiner reports the U.S. Supreme Court has confirmed the December 2010 Ninth Court of Appeals ruling that rent control in California’s Land Lease Communities is constitutional.  In Guggenheim versus City of Goleta, Guggenheim argued that rent control constitutes “a taking,” and violates the Fifth Amendment law, which prohibits private property being used for public use without just compensation.  The Ninth Circuit Appellate court had ruled in Guggenheim’s favor in April 2010.  Said Andrew Schwartz, attorney representing Goleta, “This case goes to the heart of a government’s ability to regulate economic activity on behalf of the public good.”  The ruling will provide security to lower and modest income residents of LLCs all across the state, many of whom are elderly and disabled. Goleta City Attorney Tim Giles said,  “The Court’s decision affirms the important role rent control regulations play in providing stability for this vulnerable population.”

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