Complaint for Injunction and Writ of Mandamus 1 2 3 Pauline Abbott, Esq. (95309) LAW OFFICES OF PAULINE ABBOTT 1234 Scenic Avenue, Suite 1206 Vista View, California 94555 510-555-1234 4 5 6 Attorney for Plaintiff/Petitioner Rental Housing Association of Seaview County 7 8 SUPERIOR COURT OF CALIFORNIA, 9 COUNTY OF SEAVIEW 10 11 12 RENTAL HOUSING ASSOCIATION OF SEAVIEW COUNTY, a California Corporation, 13 14 Plaintiff/Petitioner, 15 16 v. 17 18 19 20 21 22 23 CITY OF SEAVIEW, CITY SEAVIEW CITY COUNCIL, CITY OF SEAVIEW RESIDENTIAL RENT AND RELOCATION BOARD, ) ) ) ) ) ) ) ) ) ) ) ) ) ) No. COMPLAINT FOR TEMPORARY RESTRAINING ORDER, PRELIMINARY AND PERMANENT INJUNCTIONS, DECLARATORY RELIEF, AND PETITION FOR ALTERNATIVE WRIT AND WRIT OF MANDATE ) ) ) ) Defendants/Respondents. ) ___________________________________________/ Plaintiff/petitioner alleges: ALLEGATIONS APPLICABLE TO ALL CAUSES OF ACTION 24 25 1. Plaintiff/petitioner Rental Housing Association of Seaview County (“RHASC” and “plaintiff”) is a California corporation doing business in Seaview, California. It has been ____________________________ Lester v. Butler Cross-Complaint 1 Complaint for Injunction and Writ of Mandamus 1 in operation for about 60 years. RHASC is a trade association, made up of residential 2 rental property owners. It currently has almost 1550 members, the vast majority of whom 3 own rental property in Seaview. RHASC is a regional association affiliated with the 4 California Apartment Association (“CAA”). The profile of a typical RHASC member is 5 an older woman whose one to four rental units comprise a sole or major source of 6 income. There are approximately 84,000 rental units in Seaview; RHASC members 7 represent about 10,000 of those units. 8 9 10 2. RHASC members that own Seaview rental property banked increases throughout the 1990s, since the housing market, vacancy rates and stagnant economy did not permit 11 annual rent increases. The average landlord banked seven years of increases during the 12 1990s. Most landlords in Seaview banked significant amounts of rent increases within 13 the past 10 years, and many have banked increases for 10 years that they have not yet 14 taken. 15 16 17 3. As a result, a large majority of Seaview landlords deferred maintenance and cut expenses, or merely subsidized tenants to assure continuing occupancy. Within the past two years the vacancy rate has diminished, and the economy has improved, such that rents can be 18 increased. Landlords were and are relying on banked increases to increase rents to make 19 up for the lack of increases in the past ten years or more. Landlords are also relying on 20 their ability to obtain rent increases for increased debt service, capital improvements and 21 22 other expenses as they purchase, improve, and re-rent their units. 23 4. At all times relevant herein, respondents have been and are the City of Seaview, and its 24 governing body, the City of Seaview City Council, and the City of Seaview Housing 25 Residential Rents and Relocation Board (aka Residential Rent Arbitration Board, ____________________________ Lester v. Butler Cross-Complaint 2 Complaint for Injunction and Writ of Mandamus 1 hereinafter “Board”), which is the agency charged with administering the provisions of 2 the City of Seaview Residential Rent Arbitration Ordinance. 3 4 5 5. Virtually all of the Seaview units owned by RHASC members are subject to the City of Seaview Residential Rent Arbitration Ordinance. 6. On March 25, 2004 defendants City of Seaview and City Council amended the (rent law 6 name), ordinance number 12273. A copy of ordinance number 12273 is attached hereto 7 by reference and incorporated as if set forth in full. The ordinance purports to have gone 8 9 10 11 12 into effect on May 1, 2004. The Ordinance is in part self-enforcing since lack of compliance is a defense to unlawful detainers against tenants to whom such notices have been served. 7. Ordinance # 12273 requires landlords of Seaview properties to file all notices given 13 pursuant to CC section 1946 with defendant HRRRB within 10 days of service on the 14 tenant. It prohibits landlords who do so from resetting the rents on vacancy, and of 15 increasing the rents of annual rent adjustments and banked increases for two years. It 16 17 permits landlords to petition for increases for capital improvements, uninsured repair costs, increased debt service and other reasons set forth in section 65.9 of the Ordinance. 18 8. The denial of annual adjustments violates the constitutions of the State of California and 19 the United States in that it prevents landlords from receiving a fair return, and annual 20 increases as required by law. 21 22 23 24 25 9. The denial of annual adjustments violates state law, which specifies the limits of local jurisdictions to impose penalties for service of section 1946 notices. 10. Plaintiff/petitioner is informed therefore alleges that defendant/respondent HRRRB has a backlog of decisions which have not yet been issued for hearings held in and decided on ____________________________ Lester v. Butler Cross-Complaint 3 Complaint for Injunction and Writ of Mandamus 1 the record in September 2003, and that any landlord filing a petition in May 2004 will 2 not have a hearing on that petition for at least a year, such that no decision would be 3 issued for another year, at which time a landlord or tenant could appeal the decision to 4 5 the HRRRB. Plaintiff/petitioner is informed that the ordinance will greatly increase the numbers of petitions filed with the HRRRB, causing yet further delay. Such delay is a 6 violation of the rights of landlords to their annual adjustments and other increases. It also 7 interferes with the rights of landlords to contract, since landlords will have to choose 8 9 10 between petitioning the HRRRB for increases and re-renting their units as illegally depressed rents. 11 11. The Ordinance also cannot be applied since the HRRRB has failed to develop the forms 12 necessary for landlord compliance. Until such notices have been developed for landlord 13 use, landlords are prevented from complying with the Ordinance, and effectively 14 precluded from prosecuting unlawful detainer actions. Landlords are also precluded from 15 compliance because the HRRRB has failed to adopt rules to protect tenant privacy as 16 17 required by the Ordinance, leaving landlords vulnerable to tenant claims of invasion of privacy as landlords comply with the Ordinance, such as distributing notices of 18 termination to prospective tenants, posting them in units, and filing them in public files in 19 the rent board. 20 12. The denial of annual adjustments to all landlords filing section 1946 notices is ambiguous 21 22 23 since its language is contrary to the explicitly stated legislative intent of the Council members who voted to adopt the amendment. 24 25 ____________________________ Lester v. Butler Cross-Complaint 4 Complaint for Injunction and Writ of Mandamus 1 FIRST CAUSE OF ACTION 2 Temporary Restraining Order, Preliminary and Permanent Injunctions 3 4 5 13. Plaintiff/petitioner demanded that the defendants/respondents City of Seaview and City Council reject the Ordinance, but they refused. It has since requested of each Councilmember that the Ordinance be amended to delete these illegal and void 6 provisions, but the Councilmembers have refused. The measure was ostensibly in effect 7 seven days after passage. 8 9 10 11 14. It is essential that the Court grant the relief requested to protect plaintiff/petitioner’s members and all Seaview landlords from the enforcement of this Ordinance. 15. Defendants/respondents' wrongful conduct, unless and until enjoined and restrained by 12 order of this Court, is causing and will cause great and irreparable injury to 13 plaintiff/petitioner’s members and all Seaview landlords in that it is and will illegally 14 deprive them of rent increases to which they are otherwise entitled, permanently deprive 15 them of the ability to take prior rent increases that have been banked, deprive them of 16 17 18 their rights under California law to increase rents to subsequent tenants for two years all without notice as required by law. 16. Plaintiff/petitioner and plaintiff/petitioner’s members and all Seaview landlords have no 19 adequate remedy at law for the injuries currently being suffered in that the amendment is 20 ostensibly law and is being enforced and self-enforced. 21 SECOND CAUSE OF ACTION 22 Declaratory Relief 23 24 25 17. An actual controversy has arisen and now exists between plaintiff/ petitioner and plaintiff/petitioner’s members and all Seaview landlords and defendants/respondents ____________________________ Lester v. Butler Cross-Complaint 5 Complaint for Injunction and Writ of Mandamus 1 concerning their respective rights and duties in that plaintiff/petitioner contends that the 2 enactment of the ordinance was illegal and contrary to legislative intent, that it illegally 3 and unconstitutionally deprives landlords of their rightful annual adjustments and other 4 5 increases, that it imposes an unreasonable and illegal delay on increases to be sought by such landlords. 6 18. Defendants/respondents dispute these contentions and contend that the ordinance is a 7 valid exercise of their legislative and demonstrative authority. 8 9 10 19. Plaintiff/petitioner desires a judicial determination of landlord rights and duties, and a declaration that the ordinance is illegal and unconstitutional. 11 20. A judicial declaration is necessary and appropriate at this time under the circumstances in 12 order that plaintiff/petitioner may ascertain the rights and duties of its members and all 13 Seaview landlords. As long as the matter remains unresolved, all Seaview landlords will 14 be uncertain about their compliance, will be unable to comply and will be deprived of 15 increases to which they are entitled by constitutions and by law. 16 17 THIRD CAUSE OF ACTION 18 Alternative Writ and Writ of Mandamus 19 21. Defendants/respondents are required by the constitutions of the United States and 20 California to provide annual adjustments to landlords whose properties are subject to rent 21 22 23 24 25 controls, and to provide swift remedies and reasonable procedures for landlords who have been deprived their increases, and to comply with state law. 22. Defendants/respondents therefore lack the jurisdiction and authority to impose the provisions of this ordinance on landlords. ____________________________ Lester v. Butler Cross-Complaint 6 Complaint for Injunction and Writ of Mandamus 1 23. Plaintiff/petitioner and plaintiff/petitioner’s members and all Seaview landlords have no 2 plain, speedy, and adequate remedy in the ordinary course of law, other than the relief 3 sought in this petition, in that defendants/respondents have imposed this ordinance and 4 are enforcing it and allowing it to be self-enforced. 5 6 WHEREFORE, plaintiff/petitioner prays: 7 1. That the court issue a peremptory writ in the first instance commanding respondent to 8 9 10 refrain from any enforcement of the ordinance and to invalidate the ordinance; OR 2. That the court, alternatively, first issue an alternative writ commanding respondent to 11 refrain from any enforcement of the ordinance or, in the alternative, show cause why it 12 should not do so, and thereafter issue a peremptory writ commanding respondent to 13 refrain from enforcement of the ordinance, to invalidate the ordinance and to inform 14 landlords that the ordinance is void; 15 16 17 3. For a declaration that the ordinance is invalid, illegal, in excess of the jurisdiction and authority of the defendants/respondents, and is void and of no force or effect; 4. For issuance of a temporary restraining order, preliminary injunction, and permanent 18 injunction restraining and enjoining defendant from enforcing the ordinance and ordering 19 them to invalidate the ordinance; AND/OR 20 5. For an order requiring defendants to show cause, if any they have, why they should not 21 22 23 24 be enjoined as set forth in this complaint, during the pendency of this action; 6. For a temporary restraining order, a preliminary injunction, and a permanent injunction, all enjoining defendants, and each of them, and their agents, servants, and employees, and 25 ____________________________ Lester v. Butler Cross-Complaint 7 Complaint for Injunction and Writ of Mandamus 1 all persons acting under, in concert with, or for them from enforcing the ordinance and 2 requiring them to invalidate the ordinance; 3 4 7. For attorney’s fees and costs of suit herein incurred; 8. For such other and further relief as the court may deem proper. 5 6 April 13, 2004 _________________________________ 7 Pauline Abbott, Esq. Attorney for Plaintiff/Petitioner Rental Housing Association of Seaview County 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ____________________________ Lester v. Butler Cross-Complaint 8