September 2, 2014 > Milpitas prevails in mobile home rent control case
Milpitas prevails in mobile home rent control case
Submitted By Susan Barrett
The Federal Court has entered Judgment in favor of the City and has dismissed all claims by Friendly Village Mobile Home Park. Friendly Village sued the City of Milpitas when the mobile home park tried to raise rents above that allowed by the Milpitas Mobile Home Rent Control Ordinance. Friendly Village claimed that rent control constitutes a taking of property without fair compensation.
Ordinances similar to that of Milpitas have been repeatedly upheld by the Courts. This Court affirmed the prior decisions holding that our Rent Control Ordinance is legal and is not a taking since the owners receive a fair return on their investment and that rent control serves a legitimate public purpose. City Attorney Michael Ogaz stated, ÒWe are pleased with the decision. Our mobile home parks represent a significant portion of the affordable housing that exists in the community. Without the ordinance, affordability will be reduced or eliminated.Ó