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LOFTIN I BEDELL P.C. <br />Honorable Mayor and Councilmembers <br />City of Santa Ana <br />October 13, 2022 <br />Page 3 of 5 <br />Government Code section 65863.7, ostensibly in response to the conflict of law and preemption <br />detailed in the pending litigation. However, the failure to remove the provision in its entirety merely <br />works an abandonment of one improper basis (the expansion of state legislation in contrary to its <br />express terns), to another improper basisa local police power adoption that causes a conflict with <br />the Mobilehome Residency Law, and a regulatory taking (on multiple grounds), among other <br />violations of the constitutional rights of mobilehome park owners. <br />The Mobilehome Residency Law contains provisions governing notice to residents of the intent to <br />sell and protections upon a change of use.'- The requirement that a Park Owner, the Seller, prepare <br />a "Tenant Impact Report" on the sale of the Park to a third party at least 60 days prior to a sale <br />requires the Park to determine either prior to offering the Park for sale or prior to the close of an <br />escrow the plans a third party has for the Park, which may change over time, among other practical <br />application issues. In summary, the selling Park owner must now guarantee the "intent" of the <br />purchasing Park owner and financially, or otherwise, mitigate that "intent" prior to selling. <br />The adoption of the "tenant impact report" requirement, for any sale, also works as a regulatory <br />taking. The City has granted mobilehome parks the vested right to operate, as part of their land use <br />regulations and application process, and conditions set out at the time of approval and construction. <br />Now, however, the City proposes to abridge or revoke those rights —effectively injecting a new <br />condition of approval —that the mobilehome park owner may be required to return to the City in the <br />event of sale, and without any allegation of a traditional land use basis like a change in use. This <br />proposal amounts to a regulatory taking, insofar as it effectively causes the forfeiture of the vested <br />right to continue operating a lawfully permitted property —from a mere transfer and without a <br />proposed change in use. <br />However, this forfeiture of vested right also constitutes a regulatory taking in that it forces a <br />mobilehome park owner to endure the burden and cost of preparation of a tenant impact report, the <br />cost and delay of a noticed, discretionary public hearing, and the related impacts effectively clouding <br />the ability to sell their property without public approval —premised solely on a regulatory nexus of <br />preventing displacement of tenants, which displacement cam -lot occur solely as the result of a <br />transaction. Moreover, any condition imposed at such a hearing would also constitute a regulatory <br />taking, as it would lack rough proportionality with the nexus of a mere transfer of property.' <br />As a threshold matter, it seems doubtful that this proposed readoption would even support the finding <br />of a rational basis, in potentially requiring a public hearing and impact report, from the sale of a <br />property, for any legitimate government interest surrounding tenant displacement. A sale, in and of <br />itself, cannot cause tenant displacement such that the City could reasonably condition the sale. <br />B. Section 8-3121 Notice of Termination of Tenancy. as applied to mobilehome park tenancies, this <br />section creates an internal conflict leading to mobilehome park owners' inability to comply with <br />these provisions, but simultaneously creating the obligation to so comply. Section should be amended <br />a CA Civ. Code § § 798.80, 798.56(g), <br />3 In fact, this provision —once adopted —would work a veritable resolution of necessity against all mobilehome park owners <br />and cause them to suffer damages in the nature of Klopping v. City of Whittier, 8 Cal. 3d 39, 54 (1972). <br />