Following entry of judgment in favor of Rental Housing Owners Association of Southern Alameda County, Inc. (RHOA), on its petition for writ of mandate, the trial court issued a peremptory writ of mandate enjoining the City of Hayward (City) from enforcing the "Mandatory Inspection Program" (MIP) incorporated in its Residential Rental Inspection Ordinance (ordinance). The trial court concluded the ordinance was unconstitutional on its face because it forced landlords to grant City inspectors access to occupied units without the consent of the tenant, in violation of Civil Code section 1954 and the Fourth Amendment of the United States Constitution. Accordingly, the trial court enjoined enforcement of Hayward Municipal Code sections 9-5.306 (Entry) and 9-5.401 (Fees/Penalty Charges), and commanded the City to repeal or cure the constitutional and statutory defects in these sections.
In response to the writ, the City amended the ordinance and filed a return to writ of mandate.
The City initiated its comprehensive rental housing inspection program in 1982 and first implemented the ordinance at issue here in 1989.
The ordinance authorizes two types of inspection by City officials of rental housing units, viz., (1) the MIP (§ 9-5.302), which targets all rental housing units in specified areas, and (2) a "for cause" inspection (under § 9-5.303) of a particular rental unit at the request of a tenant who reports a housing code violation at the property. Only the MIP concerns us here.
The MIP, as described in section 9-5.302 of the ordinance, is a part of the City's "effort to encourage conservation of existing rental housing units, motels, and hotels" by requiring owners of these types of structures "to bring these units to Housing and Building Code standards." (§ 9-5.302.) Section 9-5.302 also provides, "Owners and managers shall allow for the inspection of these units. If an Owner or manager refuses to permit an inspection, the Enforcement Official is authorized to procure an inspection warrant." (§ 9-5.302, italics added.)
The ordinance also delineates the method of entry into units for inspection purposes. Section 9-5.306 provides: "Upon presentation of proper credentials,
Finally, in regard to fees and penalty charges, the ordinance provides: "The annual fee and fees or penalty charges for any inspection or re-inspection performed pursuant to the provisions of this code shall be established from time to time by resolution of the City Council. Payment of such fees shall be made by Owner of the rental housing unit . . . upon demand by the City." (§ 9-5.401.) The City may recover fees and penalty charges from an owner by way of a special assessment levied against the property on the tax roll after the enforcement officer prepares a report, the owner is notified of a hearing on the report, and a hearing is held. (§§ 9-5.501 to 9-5.503.) At the hearing, "the City Council shall hear and pass upon the report of the Enforcement Official together with any objections or protests thereto" and may correct or revise the report or the fees charged "as it may deem just." (§ 9-5.503.)
RHOA filed its petition for writ of mandate in February 2009. In its petition, RHOA states that it is pursuing the action on behalf of its 200 plus members who own and operate approximately 12,500 dwelling units in the City, representing some 60 percent of the City's rental housing stock.
RHOA challenged the language of the MIP on several grounds. First, RHOA asserted that the portion of the MIP (§ 9-5.302) that states "Owners and managers shall allow for the inspection of these units" is preempted by Civil Code section 1954 (section 1954). Section 1954 describes circumstances under which a landlord may enter a tenant's unit, and as relevant here, it allows a landlord entry for inspection purposes only at the request of a tenant upon termination of the lease.
The City opposed RHOA's writ petition. The City argued that RHOA's facial challenge to the MIP fails because the express language of section 9-5.302 does not require landlords to facilitate illegal entry into a tenant's dwelling. Rather, the language of the MIP, in conjunction with section 9-5.306 (Entry), makes clear that enforcement officials must obtain the consent of the owner or occupant prior to entry. If consent is refused, the City must obtain an inspection warrant.
In reply, RHOA argued that the City's reliance upon the consent required under the "entry" provision of section 9-5.306 was misplaced. According to RHOA, "[t]he conjunction `or' placed between the nouns `owner' and `occupant'" provides alternative means to obtain entry into tenant units. Therefore entry into residential units could be accomplished upon consent of the owner.
The trial court held a hearing on RHOA's writ petition and thereafter issued a statement of decision (SOD) on July 1, 2009. In its SOD, the trial court held that the ordinance was facially invalid. The court determined that sections 9-5.302 and 9-5.306 violate Civil Code section 1954 and the Fourth Amendment of the United States Constitution because they compel the landlord to provide access to residential units without tenant consent. The trial court further ruled that the penalty provision of the ordinance violates landlords' substantive due process rights because it "prescribes a monetary sanction against the landlord even in these instances where the landlord may not be an obstruction to an inspection without a warrant." The court entered judgment in favor of RHOA granting the petition for writ of mandate, enjoined the City from enforcing sections 9-5.306 and 9-5.401 of the ordinance, and issued a peremptory writ of mandate on August 4, 2009, commanding the City to "repeal or cure the Constitutional and statutory defects" identified in the ordinance.
In November 2009, the city attorney and Director of Development Services submitted a report to the mayor and city council proposing amendments to
After consideration of the report, the city council adopted the proposed amendments. As amended, section 9-5.306 is entitled "Notice and Entry," and provides that the City shall mail notice of an inspection to owners and rental units at least 14 days prior to the date of inspection. It further provides: "It shall be the responsibility of the Owner . . . to make a good faith effort to obtain the consent of the tenants to inspect the subject rental housing units or otherwise obtain legal access to the units." (Italics added.)
Thereafter, the City filed its final return to writ of mandate, notifying the court that the amendment to section 9-5.306 of the ordinance would become effective on December 31, 2009. The City asserted that by enacting the amendment "it has fully complied with the writ" and requested the writ be discharged.
RHOA filed timely objections to the return, arguing that the amendments ratified by the city council failed to correct constitutional and state law infirmities identified by the court. The City filed a response to RHOA's objections. Thereafter, the trial court held a hearing on RHOA's objections, entertained argument of counsel, and took the matter under submission. On March 26, 2010, the trial court issued an order sustaining RHOA's objections on two grounds. To facilitate our review of the issues raised by appellant on appeal, we set forth below each objection raised by RHOA to the City's return, and the trial court's rulings.
RHOA argued that the City failed to comply with the writ of mandate by failing to delete the "shall allow" language in section 9-5.302 (which states that landlords "shall allow" for inspection) as that language compels landlords to permit entry into residential units without tenant consent. The trial court overruled this objection, finding that the amended ordinance now clearly requires the consent of both owner and tenant prior to inspection.
Second, RHOA argued that the requirement of landlord presence at inspections was an arbitrary exercise of police power in violation of landlords' right to substantive due process because the requirement was not substantially related to the purpose of the MIP. The trial court overruled this objection,
RHOA's third and fourth objections relate to section 9-5.306, as amended, which requires landlords to make a good faith effort to obtain the consent of the tenant to an inspection. Specifically, RHOA argued that the good faith requirement was constitutionally vague, in violation of due process, because it imposes "an arbitrary obligation without standards" that will result in a "regime of unjust fines." The trial court rejected RHOA's contention, stating that "the concept of `good faith' is not, on its face, a violation of the Constitutional requirement of due process." RHOA also argued that the "good faith" requirement, coupled with the requirement that a landlord be present at the inspection, creates the likelihood of an unlawful landlord inspection in violation of Civil Code section 1954 and also makes the landlord an "involuntary agent" of the City in violation of the California Constitution. The trial court sustained this objection. The court ruled that a landlord "may not be held responsible to obtain the tenant's consent to permit the governmental entry for inspection."
Finally, RHOA objected to the amended ordinance arguing that it allowed the City to arbitrarily impose sanctions on a landlord for costs associated with a tenant's refusal to consent to inspection. The trial court sustained this objection as well. The court ruled that "while it is a policy choice by the City if it chooses to not sanction a tenant for their refusal to consent to the City's inspection, it is not within the City's discretion to sanction the landlord/owner for the tenant's act."
Having sustained RHOA's fourth and fifth objections to the City's return on the writ, the court directed the City to cure the constitutional defects "and make further return on the Writ showing full compliance with the Court's writ within 90 days." The City filed a notice of appeal on April 9, 2010.
The City contends that the trial court erroneously sustained RHOA's objections to the City's return and that its order finding the amended ordinance facially invalid should be reversed. As discussed below, we conclude the trial court erred when it sustained RHOA's facial challenge to the amended ordinance.
The City contends the trial court erred when it sustained RHOA's objection, on agency grounds, to the amended ordinance's "good faith" requirement. On appeal, RHOA more clearly articulates the basis of its agency argument. RHOA argues that by requiring landlords to exercise good faith in attempting to obtain tenant consent to City inspection, section 9-5.306 forces landlords to act as "agents" of the City.
Here, the amended ordinance requires that landlords make good faith efforts to obtain tenant consent to City inspections. However, the "good faith requirement" is not a bilateral agreement between City and landlords, a necessary prerequisite for creation of an agency relationship. Simply put, RHOA's argument rests upon a legally unsupported premise that the imposition of a good faith requirement creates an agency relationship. In sum, we see no conflict, express or implied, between the amended ordinance's good faith requirement and the general law of agency. Accordingly, the amended ordinance is not preempted under article XI, section 7 of the California Constitution. (See Sherwin-Williams Co. v. City of Los Angeles, supra, 4 Cal.4th at p. 897.)
RHOA further asserts that the trial court's ruling sustaining its objection to the good faith requirement violates the Fourth Amendment and section 1954. We address each argument in turn below.
We also reject RHOA's contention that the amended ordinance is preempted by Civil Code section 1954. Section 1954 provides in pertinent part: "(a) A landlord may enter the dwelling unit only in the following cases: [¶] (1) In case of emergency. [¶] (2) To make necessary or agreed repairs, decorations, alterations or improvements, supply necessary or agreed services, or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors or to make an inspection pursuant to subdivision (f) of Section 1950.5.[
The trial court held the amended ordinance facially invalid on substantive due process grounds because the penalty/fee provisions arbitrarily and unreasonably allow the City to sanction a landlord for reinspection costs unconnected to the landlord's conduct (i.e., costs occasioned by a tenant's refusal to permit an inspection). Likewise, RHOA argues here that "substantive due
However, even assuming an inspection ordinance that affirmatively allowed sanctions against a landlord arising from tenant noncompliance would raise substantive due process concerns,
Accordingly, because sections 9-5.401 and 9-5.306 do not sanction the imposition of penalties on owners for any tenant noncompliance, the amended ordinance does not violate principles of substantive due process and therefore cannot be declared facially invalid on that basis under either the "total and fatal conflict" standard (Tobe v. City of Santa Ana, supra, 9 Cal.4th at p. 1102), or the "vast majority of its applications" standard (Alviso, supra, 186 Cal.App.4th at p. 205).
To conclude, having considered the opposing contentions of the parties, and upon de novo review of the language of the amended ordinance, we conclude the trial court erred in sustaining RHOA's objections to the City's return on the writ. Accordingly, we vacate the trial court's order.
The trial court's order sustaining RHOA's objections to the City's return on the writ is vacated and the matter is remanded for the trial court to enter a new and different order consistent with this opinion. Costs are awarded to City.
McGuiness, P. J., and Pollak, J., concurred.