Substantial compliance with a statute is dependent on the meaning and purpose of the statute.
This appeal arises under the Mobilehome Residency Law (MRL), Civil Code section 798 et seq. Defendant, a mobilehome park, appeals a judgment
Section 798.21, subdivision (a) states that a mobilehome space is exempt from a local rent control ordinance if the space is not the principal residence of the homeowner. Subdivision (f) of the section provides for exceptions. The trial court found the homeowner qualified under two exceptions: the park prohibits subletting and the homeowner is actively marketing her mobilehome for sale. We affirm.
Vista de Santa Barbara Associates, LP (Vista), owns a mobilehome park in the City of Carpinteria. Vista rents spaces in its park to mobilehome owners. The park is subject to the city's rent control ordinance.
Jessica Freeman leases space 93 in the park for her mobilehome. The mobilehome is not her principal residence. She entered into her lease on November 10, 2003. Her lease and the park rules expressly prohibited subletting her space.
On January 8, 2009, Vista sent written notice to all park residents, including Freeman. The notice stated that all residents had been sent a copy of new rules and regulations for the park. It gave notice of a "meet and consult" meeting with management and the residents regarding the "proposed amendments" to the rules. The notice stated that the residents were not required to attend.
The proposed rules consisted of 19 pages. Among the proposed rule changes is a provision allowing mobilehome owners to sublet with the prior written consent of Vista. The rule sets forth a multistep process for obtaining Vista's consent, including the sublessee's submission of a credit report.
Freeman received a copy of the proposed rules and notice of the "meet and consult" meeting. Freeman did not attend the meeting. Nor did she consent to the proposed rules.
As a result of the "meet and consult" meeting, some of the proposed rules were modified. The proposed new rule allowing subleasing, however, was not modified. Vista adopted the new proposed rules. But Vista failed to send Freeman notice that the proposed rules had been adopted.
On June 10, 2008, Freeman, through her attorney, gave Vista written notice that she was placing her home on the market for sale. Around June 10, 2008, she put a "for sale" sign in the window of her mobilehome under the limitations imposed by park rules. The management office placed a sticker over her space on a map, indicating her mobilehome was for sale. Shortly thereafter, management removed the map. Freeman fielded at least 35 telephone calls from interested people. Juan and Kimberly Kim submitted a written offer with a deposit, but the transaction was not consummated. Five real estate agents who specialized in mobilehomes walked through her property.
In the meantime, Freeman had been tendering $604.82 per month, the rent controlled rate. On October 23, 2008, Vista served Freeman with a three-day notice to pay rent or quit. The notice demanded rent at the noncontrolled rate of $910. Freeman paid the $910 per month under protest.
Freeman filed the instant complaint for declaratory relief, injunction and damages. After a bench trial, the court found that the Carpinteria rent control ordinance applied to Freeman's lease of space 93. The court ordered Vista to pay damages measured by the difference between the controlled rent and the amount Freeman paid.
Section 798.21, subdivision (a) provides in part: "[I]f a mobilehome space within a mobilehome park is not the principal residence of the homeowner..., it shall be exempt from any ordinance ... by any city, ... which establishes a maximum amount that the landlord may charge a tenant for rent."
Subdivision (f)(1) and (2) of section 798.21 provide in part: "This section does not apply under any of the following conditions: [¶] (1) The homeowner is unable to rent or lease the mobilehome because the owner or management of the mobilehome park in which the mobilehome is located does not permit, or the rental agreement limits or prohibits, the assignment of the mobilehome or the subletting of the park space. [¶] (2) The mobilehome is being actively held available for sale by the homeowner .... A homeowner ... attempting
It is undisputed that Freeman's mobilehome was never her principal residence. Thus the question is whether either of the exceptions contained in section 798.21, subdivision (f)(1) and (2) apply. The trial court found they did.
Vista contends Freeman does not qualify for the subleasing exception.
Freeman's original lease prohibits subletting without exception. The new rule allows subletting with the prior written consent of the landlord. But because park management failed to give the required notice, the new rule does not apply to Freeman.
Section 798.25, subdivision (b) provides in part: "[F]ollowing the meeting and consultation with the homeowners, the noticed amendment to the park's rules and regulations may be implemented, as to any homeowner, with the consent of that homeowner, or without the homeowner's consent upon written notice of not less than six months ...." Here it is undisputed Freeman did not consent to the new rules, and Vista did not give her written notice under subdivision (b).
Vista argues that it substantially complied with the notice requirement. Section 798.25, subdivision (a) provides in part: "[W]hen the management proposes an amendment to the park's rules and regulations, the management shall meet and consult with the homeowners in the park, their representatives, or both, after written notice has been given to all the homeowners in the park 10 days or more before the meeting."
Vista argues no notice pursuant to section 798.25, subdivision (b) was necessary because the rule change expanded her rights by allowing her to sublease. Vista relies on Rancho Santa Paula Mobilehome Park, Ltd. v. Evans (1994) 26 Cal.App.4th 1139, 1146-1147 [32 Cal.Rptr.2d 464]. There we held that a retroactive application of a rule prohibiting subleasing violated the MRL's purpose of preventing actual or constructive eviction. Vista asserts that a rule change allowing Freeman to sublease does not put her in danger of eviction, particularly because she has stated she has no desire to sublease.
Moreover, Vista's argument ignores its claim that the effect of the rule change is not limited to expanding Freeman's right to sublease. Vista claims the change in the rules frees Freeman's space from rent control, allowing it to increase her rent. The ability of Vista to raise the rent can hardly be described as an expansion of Freeman's rights that will not place her in danger of eviction.
Vista argues the 90-day notice requirement of section 798.21, subdivision (e) controls over the notice requirement of section 798.25, subdivision (b).
Section 798.21, subdivision (e) gives the homeowner 90 days to respond to notice from park management that a search of public records shows the mobilehome is not the owner's principal residence. It does not conflict with or control over section 798.25, subdivision (b). In fact, it has nothing to do with the notice required under section 798.25, subdivision (b) on a change in the park rules.
Section 798.21, subdivision (f)(1) applies here. Freeman's space is not exempt from rent control.
In any event, Freeman qualifies for protection of the rent control ordinance under section 798.21, subdivision (f)(2). That subdivision requires a homeowner to "actively market and advertise the mobilehome for sale in good faith to bona fide purchasers for value in order to remain exempt pursuant to this subdivision."
Vista's argument is based on the language of section 798.21, subdivision (f)(2) that the mobilehome must be actively marketed "in order to remain exempt pursuant to this subdivision." (Italics added.) Vista claims a homeowner cannot "remain" exempt once the notice is given.
The most reasonable construction of the requirement that the homeowner must actively market the mobilehome "in order to remain exempt pursuant to this subdivision" is that the exemption remains only as long as the mobilehome is actively marketed. (§ 798.21, subd. (f)(2).) It does not require the marketing to begin prior to notice that the mobilehome is not a principal residence, or at any other particular time.
Vista contends there is no substantial evidence to support the trial court's finding that the marketing exemption of section 798.21, subdivision (f)(2) applies.
In viewing the evidence, we look only to the evidence supporting the prevailing party. (GHK Associates v. Mayer Group, Inc. (1990) 224 Cal.App.3d 856,
Vista's contention is based on the statutory requirement that the homeowner actively market the mobilehome to bona fide purchasers. Vista argues there is no evidence from any prospective purchaser that he or she might be a bona fide purchaser.
Here Freeman has made such a showing. She placed a "for sale" sign in the window of her mobilehome as allowed by park rules; she fielded at least 35 telephone calls from interested people; she received an offer with a deposit; and five real estate agents, who specialize in mobilehomes, walked through her property. There is more than ample evidence to support the trial court's finding that Freeman qualifies under the marketing exemption.
The judgment is affirmed. Costs are awarded to respondent.
Yegan, J., and Perren, J., concurred.