RUBIN, J. —
The City of Carson appeals from the judgment in this mandate action directing it to approve Carson Harbor Village, Ltd.'s application to convert its mobilehome park from a rental facility to a subdivision of resident-owned lots. We reverse because substantial evidence supports the City's findings that allowing the conversion would be inconsistent with the open space element of its general plan by placing at risk a state and federally regulated wetlands area within the confines of the mobilehome park.
Cities must have general plans governing development, including the protection of open space, and must also deny proposed subdivisions that are inconsistent with their general plans. (Gov. Code, §§ 65300, 65302, 66474, subd. (b), 66498.6, 65567.)
Previous Courts of Appeal held that the scope of hearing provision barred local agencies from imposing additional conditions related to the bona fide conversion issue. In reliance on those decisions, we held in our earlier decision in this case that the scope of hearing provision also prevented local agencies from denying a proposed mobilehome park conversion if it was inconsistent with elements of a city's general plan. (Carson Harbor Village, Ltd. v. City of Carson (Mar. 30, 2010, B211777) [nonpub. opn.] (Carson Harbor I).) Our Supreme Court's later decision in Pacific Palisades Bowl Mobile Estates, LLC v. City of Los Angeles (2012) 55 Cal.4th 783 [149 Cal.Rptr.3d 383, 288 P.3d 717] (Pacific Palisades) has led us to reconsider that part of our decision in Carson Harbor I and conclude that at least under the facts of this case, they now can.
Carson Harbor Village, Ltd. (the park), is a mobilehome park in the City of Carson (City). It consists of 420 rental spaces on 70 acres of land, 17 acres of
A 2008 mandate action by the park led to a trial court judgment against the City. The trial court found that (1) even though a 2005 tenant survey had been inadequate, a 2007 survey by the park had been properly conducted; (2) in any event, the application could not be rejected based on a lack of tenant support; and (3) the City could not deny the application for inconsistency with its general plan. The City appealed and we reversed in part and affirmed in part in Carson Harbor I, supra, B211777.
We held that the City could find the subdivision plan was a sham based on the lack of tenant support and remanded the matter back to the trial court with directions to order the City to reconsider the application in light of the 2007 survey, along with directions to receive additional information that would clarify or supplement the application and the evidence received before. (Carson Harbor I, supra, B211777.) We also held that the City could not reject the application based on its supposed inconsistency with elements of its general plan. (Ibid.)
On remand, the City held new public hearings in 2011 and once more rejected the park's subdivision application. The City found that even though purchase incentives offered by the park had increased tenant support from 11 percent to 24 percent, that level of support was insufficient. The City also found that the proposed conversion was not bona fide because it was unlikely that many of the low-income tenants living in the park would agree to buy their lots, the tenant survey improperly gauged support for the incentives, not the conversion, and the required tenant impact report did not include information requested about the wetlands and the displacement effect on current tenants. The City alternatively denied the application because it was inconsistent with its general plan's affordable housing and open space elements and posed a risk to the wetlands and its wildlife. (§ 66474, subds. (b) & (e).)
We review the City's decision to deny the park's subdivision application under the substantial evidence standard. (218 Properties, LLC v. City of Carson (2014) 226 Cal.App.4th 182, 189 [171 Cal.Rptr.3d 608] (218 Properties).) We do not review and are not bound by the trial court's factual findings or legal conclusions. (Ibid.) Instead, our scope of review is the same as the trial court's: we examine the entire record to determine whether the City's findings were supported by substantial evidence. (Ibid.) However, we begin with the presumption that the findings are supported by substantial evidence. It is the park's burden to prove otherwise. (Carson Harbor Village, Ltd. v. City of Carson Mobilehome Park Rental Review Bd. (1999) 70 Cal.App.4th 281, 287 [82 Cal.Rptr.2d 569].)
The general plan must include seven elements — land use, circulation, conservation, housing, noise, safety, and open space — and must address each in whatever level of detail local conditions require. (DeVita, supra, 9 Cal.4th at
When enacting the open space elements law, the Legislature made several findings. (§ 65561.) The Legislature found that preserving open space land was "necessary not only for the maintenance of the economy of the state, but also for the assurance of the continued availability of land for the production of food and fiber, for the enjoyment of scenic beauty, for recreation and for the use of natural resources." (§ 65561, subd. (a).) The Legislature also found that increasing population "demands that cities, counties, and the state at the earliest possible date make definite plans for the preservation of valuable open-space land and take positive action to carry out such plans by the adoption and strict administration of laws ...." (§ 65561, subd. (c).) Therefore the open space elements law was "necessary for the promotion of the general welfare and for the protection of the public interest in open-space land." (§ 65561, subd. (e).)
The Legislature also declared its intent in adopting the open space element law: "(a) To assure that cities and counties recognize that open-space land is a limited and valuable resource which must be conserved wherever possible. [¶] (b) To assure that every city and county will prepare and carry out open-space plans which, along with state and regional open-space plans, will accomplish the objectives of a comprehensive open-space program." (§ 65562.) Therefore, "[n]o building permit may be issued, no subdivision map approved, and no open-space zoning ordinance adopted, unless the proposed construction, subdivision or ordinance is consistent with the local open-space plan." (§ 65567.)
In 1984, the Legislature passed the Mobilehome Park Resident Ownership Program (Health & Saf. Code, § 50780 et seq.; MPROP), because mobilehome parks — a significant source of affordable housing — were threatened by cost increases, physical deterioration, and pressures to convert them to other uses. (Pacific Palisades, supra, 55 Cal.4th at pp. 803-804.) MPROP was designed to encourage and facilitate the conversion of mobilehome park ownership by residents, local public entities, or qualified nonprofit housing sponsors. To that end, MPROP provides for public financing assistance for mobilehome park conversions. (Id. at p. 804.)
The process culminates in a hearing before the applicable local agency with authority to approve or disapprove the proposed subdivision. (§ 66427.5, subd. (e).) The troublesome issue here arises from the remainder of that subdivision, which states that "[t]he scope of the hearing shall be limited to the issue of compliance with this section." (Ibid.) We next consider how that subdivision has been construed.
When section 66427.5 was enacted in 1991, it applied only to mobilehome subdivision conversions using public financing under MPROP. (Stats. 1991,
The court in Donohue v. Santa Paula West Mobile Home Park (1996) 47 Cal.App.4th 1168 [55 Cal.Rptr.2d 282] held that local rent control ordinances remained in effect after a subdivision was approved, but only until the first lot was sold. (Id. at p. 1175.) Worried that mobilehome park owners might take advantage of that holding and obtain relief from rent control once a single lot had been sold, the City of Palm Springs passed an ordinance requiring a showing that the proposed conversion was bona fide. This included a delay in lifting rent control until escrow closed on one-third of the lots. The court in El Dorado Palm Springs, Ltd. v. City of Palm Springs (2002) 96 Cal.App.4th 1153 [118 Cal.Rptr.2d 15] (El Dorado) held that the ordinance violated section 66427.5 because the 1995 amendments strictly limited local agencies from imposing conditions beyond those required by the statute. (El Dorado, at pp. 1165-1166.)
The Legislature amended section 66427.5 in response to El Dorado by moving the compliance hearing requirement to subdivision (e) and adding a new subdivision (d) that required the subdivider to obtain and provide a survey of the tenants in order to determine their support for the proposed conversion. (§ 66427.5, subd. (d), added by Stats. 2002, ch. 1143, § 1, pp. 7398, 7399; Pacific Palisades, supra, 55 Cal.4th at p. 809.) The Legislature also enacted, but did not include in the codified amendments, a statement that it intended to address El Dorado and ensure that mobilehome park conversions under section 66427.5 were bona fide. (Stats. 2002, ch. 1143, § 2, pp. 7399-7400.) However, the Legislature rejected a proposed amendment that would have given local agencies the authority to impose additional conditions they found "`necessary to preserve affordability or to protect nonpurchasing residents from economic displacement.'" (Sen. Amend. to Assem. Bill No. 930 (2001-2002 Reg. Sess.) June 26, 2002, § 1, p. 3, italics omitted; Pacific Palisades, at p. 809.)
Two sets of statutes, not directly involved in the current appeal, were at issue in Pacific Palisades: the Coastal Act and the Mello Act. The California Coastal Act of 1976 (Pub. Resources Code, § 30000 et seq.; Coastal Act) empowers local agencies to regulate development within the state's entire coastal zone (Pub. Resources Code, § 30001). The Mello Act (Gov. Code, §§ 65590, 65590.1) supplements the housing element provisions of the Government Code's general plan scheme by establishing minimum requirements for affordable housing within the coastal zone. (§ 65590, subds. (b) & (k); Pacific Palisades, supra, 55 Cal.4th at p. 798.) The Pacific Palisades court considered whether a proposed mobilehome park subdivision in the coastal zone was subject to those provisions, or whether Government Code section 66427.5 occupied the field and barred their use by local agencies when considering a conversion application.
The park owner in Pacific Palisades brought a mandate action against the City of Los Angeles after the city refused to accept its subdivision application without also providing applications for a coastal development permit and for Mello Act approval. The trial court found for the owner, concluding that section 66427.5 set forth the exclusive requirements for subdivision approval, thus exempting the Coastal Act and the Mello Act from the subdivision application process. The Court of Appeal reversed, holding that the policy considerations behind the Coastal Act and Mello Act were more extensive than, and therefore took precedence over, those embodied in section 66427.5.
The Supreme Court affirmed, rejecting the park owner's contentions that, in line with El Dorado, Sequoia Park, and Colony Cove, Government Code section 66427.5 prevented local agencies from straying outside the requirements imposed by that section when passing on proposed mobilehome park
As for the Mello Act, the court looked to the housing element provisions of the general plan statutes, as to which the Legislature declared: "[t]he availability of housing is of vital statewide importance" and "decent housing and a suitable living environment for every Californian ... is a priority of the highest order." (§ 65580, subd. (a).) The Mello Act supplements these provisions in the coastal zone, the court held. (Pacific Palisades, supra, 55 Cal.4th at p. 798.)
These "[s]ignificant state policies favor an interpretation of ... section 66427.5" that does not strip away Coastal Act and Mello Act jurisdiction over land use within the coastal zone. (Pacific Palisades, supra, 55 Cal.4th at p. 803.) The Pacific Palisades court rejected the park owner's reliance on MPROP as a superseding legislative policy that favored mobilehome park conversions by simplifying the approval process for those conversions. "[N]othing in ... section 66427.5 ... suggests a belief by the Legislature that this policy is of more importance than and overrides the `paramount' and `vital' concerns of the Coastal Act and the Mello Act." (Id. at p. 805.)
This conclusion was supported by other factors: (1) section 66498.6, subdivision (b) of the Map Act states that nothing in that act affects a subdivider's or local agency's obligations to comply with applicable state and federal laws, regulations or policies; (2) the other interests at stake; and (3) the absence of language in section 66427.5 that expressly excepts mobilehome park conversions from those laws, regulations, or policies. (Pacific Palisades, supra, 55 Cal.4th at p. 805.) These factors "strongly suggest [that section 66427.5], like the other provisions of the Subdivision Map Act, is intended to operate in conjunction with other state laws." (Ibid.)
The Pacific Palisades court also relied on rules of statutory construction requiring the courts to harmonize and reconcile inconsistencies between
Finally, the Supreme Court rejected the park owner's reliance on El Dorado, Sequoia Park, and Colony Cove, including the Legislature's decision to forego an amendment that would have given local agencies additional regulatory authority. At issue in those decisions was a local agency's attempt to add further conditions to section 66427.5 in order to avoid economic displacement of the park's tenants. None considered "the specific issues presented by this case: whether the section exempts conversions from other state laws, such as the Coastal Act and the Mello Act, or bars local agencies from exercising the authority delegated to them by the Coastal Act and the Mello Act to require compliance with those acts and to reject or deny applications that do not establish compliance." (Pacific Palisades, supra, 55 Cal.4th at pp. 809-810.)
The City contends that Pacific Palisades's reasoning applies to its reliance on the open space element of its general plan as an alternative ground for denying the park's conversion application. We agree.
The policy concerns that underlie the open space element are strikingly similar to those of the Coastal Act that the Pacific Palisades court found so persuasive. In the Coastal Act, the Legislature declared that the coastal zone was a "paramount concern" whose protection was "necessary" to protect a valuable resource that was "essential" to the economic and social well-being of Californians. (Pub. Resources Code, § 30001, subds. (b)-(d); see Pacific Palisades, supra, 55 Cal.4th at pp. 794, 804.) Likewise, the Legislature found
Although the park relies on the availability of MPROP public financing to show that its proposed subdivision will not displace tenants, that program requires compliance with local plans and zoning laws as a prerequisite to funding.
Second, we acknowledge that the Pacific Palisades court limited its holding to the applicability of the Coastal Act and the Mello Act to mobilehome park subdivisions. (Pacific Palisades, supra, 55 Cal.4th at p. 803.) That was the issue presented to the court. The park contends that the court did more than that, reiterating the holdings of El Dorado, Sequoia Park, and Colony Cove that "section 66427.5 precludes local regulation of mobilehome park conversions to resident ownership ...." (Id. at p. 810.) The park omits both the context and the court's qualifying language, which distinguished those decisions despite their seemingly broad statements precluding local regulation of mobilehome park conversions because none addressed "the specific issues presented by this case: whether the section exempts conversions from other state laws, such as the Coastal Act and the Mello Act, or bars local agencies from exercising the authority delegated to them by [those acts] to require compliance with those acts ...." (Ibid., italics added.)
Finally, the park contends that section 66474, part of the Map Act, was not applicable under section 66427.2, which states: "Unless applicable general and specific plans contain definite objectives and policies, specifically directed to the conversion of existing buildings into condominium projects or stock cooperatives, ... [section 66474 and others not relevant here] shall not apply to condominium projects or stock cooperatives, which consist of the subdivision of airspace in an existing structure, unless new units are to be constructed or added."
This contention was raised without discussion or analysis of how it might apply here. For instance, the park simply assumes, without citation to authority, that section 66427.2 applies to mobilehome parks. We acknowledge that a mobilehome park might qualify under Civil Code section 4125, subdivision (b), which defines a condominium project as an undivided interest in the common area of real property, along with a separate interest in space called a unit, whose boundaries are included in a recorded final map. Even so, the park does not address why or whether the park's proposed subdivision "consist[s] of the subdivision of airspace in an existing structure...." (§ 66427.2.) Nor does it explain why or whether the City's open space element fails to include the requisite definite objectives and policies. (§ 66427.2.) We therefore deem the issue waived. (Santillan v. Roman Catholic Bishop of Fresno (2012) 202 Cal.App.4th 708, 732 [136 Cal.Rptr.3d 197].)
We alternatively affirm on the merits of this issue. First, the City's open space element defines the wetlands as the only open space area that required preservation as a habitat for plant and animal life. In light of the City's findings concerning the environmental risks posed by the proposed conversion (see Discussion, pt. 6.1, post), the open space element's stated need to preserve the only available open space is a specific enough directive as it arises exclusively in the context of the mobilehome grounds. The park does not suggest, and we do not believe, that anything more need be said, at least on the facts of this case.
Second, applying section 66427.2 on these facts would conflict with several other provisions. These include section 66474, subdivision (e), which requires the disapproval of a proposed subdivision that poses a sufficient risk
The abridged version of the City's open space findings goes like this: the wetlands, which are the City's only open space, would be at risk from the proposed conversion to a common interest ownership because the residents would become unwilling and unsuitable stewards of that natural resource.
This conclusion was based on several factors. The open space element of the City's general plan identifies the wetlands as the City's only open space area that required preservation as a habitat for plant and animal life. Abandoned oil wells were located within the wetlands, and leakage from one caused contamination, leading to extensive litigation over the cleanup costs in
On appeal, the City relies on Dunex, Inc. v. City of Oceanside (2013) 218 Cal.App.4th 1158 [160 Cal.Rptr.3d 670] (Dunex) to support these contentions. The Dunex court considered the appeal of a mobilehome park owner from Oceanside's denial of its application to convert to residential ownership. The mobilehome park was located within the coastal zone and therefore subject to the Coastal Act. The owner declined to provide an environmental report because the proposed subdivision would result in no physical changes to the property. The mobilehome park was located in a floodplain and one reason that Oceanside denied the application was its inconsistency with the city's local coastal plan.
Based on Pacific Palisades, supra, 55 Cal.4th 783, the Dunex court held that the application could be denied for inconsistency with Oceanside's local coastal plan. (Dunex, supra, 218 Cal.App.4th at pp. 1168-1169.) The court held that the city was warranted in finding that the proposed subdivision was inconsistent with its local coastal plan, which required minimization of risks to life and property in high flood areas. Even though the change in ownership would not add lots or create any physical changes to the property, "the city could reasonably conclude that individual ownership would be an unacceptable increase in the risk to life and property because it would move the flood risk to individuals far less able to either respond to or bear that risk than a single [mobilehome park] owner." (Id. at p. 1169, italics added, fn. omitted.)
The City contends that the Dunex rationale applies with equal force here because the evidence shows an unacceptable increase in the risk to the open space habitat if the individual residents became responsible for the wetlands, including its maintenance and any future contamination liability. The park does not discuss this issue and we therefore deem it waived. (Taylor v. Nabors Drilling USA, LP (2014) 222 Cal.App.4th 1228, 1247-1248 [166 Cal.Rptr.3d 676].)
We alternatively conclude on the merits that the Dunex rationale applies here. First, this notion finds support in MPROP, where the Legislature
A November 2003 environmental assessment report prepared at the request of the park's lawyers identified three oil wells in and around the wetlands that were active until they were abandoned and plugged in accordance with state law in 2002. Lab tests showed that residual hydrocarbon contamination above regulated levels was still present at one of those wells.
The report said that oil drilling and related activities began in 1938, with photographs showing "several oil derricks, mud pits, stock tanks and production equipment in the central and northern portions of the site." That basic configuration continued into the 1980's, when the property was converted into a mobilehome park. Three or more oil wells and associated drilling and production equipment were on the site from 1938 through 2002, and it was possible that unreported "wildcat" wells could be on or near the site.
The park's environmental report determined that the site's oil production history was a recognized environmental concern under standard testing methods. That "means the presence or likely presence of hazardous substances or petroleum products on a property under conditions that indicate an existing release, a past release, or a material threat of a release of any
The City's 2011 resolution denying the park's application relied in part on Carson Harbor Village, Ltd. v. Unocal Corp. (9th Cir. 2001) 270 F.3d 863 to verify that the park had sued the well's operators because of oil well contamination in the wetlands. According to the Ninth Circuit, the park sued the former well operators in federal court to recover approximately $285,000 in costs incurred from cleaning up lead and petroleum that covered an area measuring 75 feet wide, 170 feet long, and 5 feet deep. (Id. at pp. 868-869.) Andrew Vasquez, the secretary of the tenants' homeowners association, testified at a 2011 public hearing that the park settled that action and agreed to "accept responsibility for liability for contamination of the park." That testimony was never rebutted.
Documents prepared by the park show that the wetlands are regulated by both the state and federal governments and is home to protected wildlife. A Department of Fish and Game questionnaire filled out by the park in order to obtain permission to perform routine trash removal in the wetlands affirmed that the wetlands had been designated as "wild and scenic" under either state or federal law. An August 7, 2006, letter from the park's lawyers to the City states that streambed maintenance was performed in late June or early July "to avoid disturbing the breeding season of protected wildlife." The letter confirmed that the Department of Fish and Game "has primary oversight over the annual cleanup."
The draft covenants, codes & restrictions (CCRs) that the park prepared as part of the ongoing subdivision approval process states that the wetlands were federally protected and that the homeowners association to be formed upon subdivision "may be obligated, from time to time, to perform certain special maintenance of the Wetlands, which includes, but is not limited to, trash removal, repair of flood control gates, removal of damaged trees and replacement of French drains. The Association hereby affirms those obligations and intends that the City shall be a third party beneficiary of said obligations."
During a 2007 hearing, city planning staff member Sheri Repp-Loadsman reported that the park owner had the marsh tested about 10 years earlier due to fears of possible contaminants entering from upstream. Although the Regional Water Quality Control Board found no contamination, Repp-Loadsman believed that the possibility remained because the wetlands accepted flow from other sources.
Several park residents testified in 2011 about their reluctance to take on the responsibility of maintaining the wetlands. In addition to homeowners association secretary Vasquez's testimony that the park settled its earlier oil contamination lawsuit by agreeing to accept responsibility for contamination, he also testified that "[n]o resident has the skill or specialized training to maintain a state-protected wetlands." Vasquez wondered whether it was reasonable to "expect that mobile home park residents can manage a complex and enormous wetlands" without the financial resources that the park had. Vasquez added that he could not afford the liability that might come from any future oil contamination.
Park resident Louis Cogut testified that buying into the subdivision came with responsibility for the common areas, including "the foul aroma from that marsh." Park resident Martin Garcia testified that the residents could not afford to buy or borrow money to fund a lot purchase. Longtime park resident Ivan Gulligan testified that the park's decaying infrastructure, including the marsh, made buying his lot undesirable. Park resident David White testified at a 2007 hearing that 65 percent of the park's residents were low income, including seniors on fixed incomes with high medical bills. Of those residents voting on the proposed conversion, 65 percent also opposed it.
Instead of engaging in any meaningful discussion or analysis of the evidence on appeal, the park simply restates some of the trial court's findings from the 2008 and 2013 mandate actions. As noted earlier, we do not review the trial court's findings and our focus is instead on the evidence in the administrative record. We therefore hold that the park has waived the substantial evidence issue. (In re C.R. (2008) 168 Cal.App.4th 1387, 1393 [86 Cal.Rptr.3d 335].) We alternatively hold on the merits that the City's open space risk findings are supported by substantial evidence.
The judgment is reversed and the trial court is directed to enter a new and different judgment in favor of the City of Carson. Appellant shall recover its appellate costs.
Flier, J., concurred.
BIGELOW, P. J., Concurring and Dissenting.
I concur in part and respectfully dissent in part.
I agree with the majority opinion's conclusion that the City of Carson (City) properly considered the issue of whether Carson Harbor Village, Ltd.'s (the park) proposed conversion was inconsistent with the City's general plan. As I indicated in Carson Harbor Village, Ltd. v. City of Carson (Mar. 30,
I depart with the majority opinion in its conclusion that substantial evidence supports the City's determination that the park's proposed conversion is inconsistent with the City's general plan. The "open space" element (see § 65560 et seq.) of the City's general plan is the only contested issue in the current case. As relevant to the current case, the City's "Open Space and Conservation Element" of its general plan reads as follows: "The Government Code requires that open space for the preservation of natural resources be incorporated into the General Plan. Such resources include areas required for the preservation of plant and animal life, areas of ecological and other scientific study value, rivers, streams, bays and estuaries, coastal beaches, and lake shores. The only such area identified within Carson is the lake within the Carson Village Mobilehome Park. This lake, covering approximately 17 acres, provides habitat for a variety of plants and small animals."
In my view, the issue is whether the park's proposed conversion will damage or endanger the lake, with its habitat for a variety of plants and small animals. I see no evidence in the record to support a conclusion that a change in the structure of the ownership of the park — from a landlord, single owner (a limited partnership) to a collective of individual owners with a managing homeowners association — will harm the lake. A mobilehome park with a lake was present before conversion and will still be present after conversion. The change in identity of the owner of the property, which is all that is truly at issue here, has not been shown to pose a danger to the lake.
I acknowledge that Dunex, Inc. v. City of Oceanside (2013) 218 Cal.App.4th 1158 [160 Cal.Rptr.3d 670] (Dunex) supports the majority's opinion, but I am not convinced. Dunex offers no discussion of any evidence supporting its conclusion that a change from a landlord, single owner structure to a homeowners association, multiple-owner structure poses a risk to open space. Dunex seems simply to accept that a city may find that individual owners of a mobilehome park will not be as good citizens as a prior landlord, single owner had been. If Dunex is stating that the individual owners of a mobilehome park will not have the financial resources to respond to problems as the prior landlord, single owner did, its conclusion is based on speculation as to the financial condition of the prior landlord owner. There is no evidence cited in Dunex actually showing the financial ability of anyone to address environmental problems. In the absence of evidence that a homeowners association would be less responsible, and or have less resources in matters of property management than a landlord, single owner of a property, I would affirm.
The only evidence in the record here concerning the management of the lake property is that the current owner undertook cleanup efforts in 2006 and 2007, and that annual maintenance costs are around $50,000. It is undisputed that there are 420 spaces in the park. Thus, the annual maintenance costs divided amongst residents would be approximately $120, or about $10 per month. I would not find the imposition of $10 per month in maintenance costs to support a conclusion that the management of the park will be harmed in the future.