Opinion
I. Introduction
The City of Los Angeles (city) appeals from a judgment declaring Los Angeles Municipal Code former section 91.0303(a)5.
1
unconstitutional as applied to plaintiffs, Los Angeles Lincoln Place Investors, Ltd. (Lincoln)
II. Background
The mandate petition, which was filed on October 19, 1995, sought: a declaration that former section 91.0303(a)5, was invalid; an injunction prohibiting the city from enforcing former section 91.0303(a)5; and a writ of mandate compelling the city to issue a demolition permit to plaintiffs for a two-story, seventeen-unit apartment building, a laundry room and two detached garages, on lot 7 of tract 15124, commonly known as 960 Elkland Place. The petition alleged Lincoln was the beneficial owner of the property while Elk held the legal title. Plaintiffs sought to exercise their rights to demolish the building pursuant to Gоvernment Code section 7060 et seq., commonly known as the Ellis Act. Acting through their demolition contractor, Sovereign Contractor, Inc., plaintiffs attempted to obtain a permit to demolish the building beginning in August 1995. Sovereign filed and sought to process a standard demolition permit application with the city’s department of building and safety (department). Former section 91.0303(a) provides the department shall issue a demolition permit once it has determined the plans are in conformity with relevant city codes and ordinances. Plaintiffs complied or offered to comply with the codes and ordinances. The department refused to further process the permit based on former section 91.0303(a)5. That provision of law provides that a demolition permit shall be withheld until any plans to construct a condominium, stock cooperative or community apartment project are approved by the city. Also, former section 91.0303(a)5.B provided a demolition permit could be withheld if the owner waived “the right to construct on the subject lot, a condominium, stock cooperative or community apartment project for a period of ten years from the date of the demolition. . . The city answered the petition and asserted a number of affirmative defenses including plaintiffs’ alleged failure to exhaust administrative remedies.
Plaintiffs filed a motion for judgment on the pleadings on the claims for declaratory relief and writ of mandate on December 20,1995. They asserted
After taking the matter under submission, the trial court granted the writ of mandate and declared that former section 91.0303(a)5 was invalid as applied to plaintiffs’ demolition permit applications in that it conflicted with the Ellis Act. The trial court concluded the ordinance improperly sought to restrain plaintiffs from obtaining demolition permits by requiring future land use approvals and by imposing penalties for the lack of such approval. The trial court further determined that plaintiffs had exhausted their administrative remedies. The trial court ordered the city to issue the demolition permits. The trial court entered judgment on April 4, 1996. The city filed a timely appeal. Plaintiffs filed a timely cross-appeal from that portion of the judgment declaring the ordinance unconstitutional as applied to them seeking clarification that the ordinance was invalid on its face.
III. Discussion
A. The Standard of Review
The city argues the trial judge erred in declaring former section 91.0303(a)5 unconstitutional and issuing a writ of mandate compelling the city to issue the demolition permits pursuant to Code of Civil Procedure section 1085. The Supreme Court has held: “Generally, a writ will lie when there is no plain, speedy, and adequate alternative remedy; the respondent has a duty to perform; and the petitioner has a clear and beneficial right
B. The Preemption of the Ordinance
The city does not argue that plaintiffs were not qualified to receive the demolition permit. Rather, the city contends the trial court erroneously concluded it was required to issue the demolition permit because former section 91.0303(a)5. was preempted by the Ellis Act. Article XI, section 7 of the California Constitution provides:
“A
county or city may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws.” Where a local ordinance or regulation conflicts with general laws, the municipal law is void.
(Morehart
v.
County of Santa Barbara
(1994)
Here, the city claims the Ellis Act did not preempt former section 91.0303(a)5. as applied to plaintiffs. In 1985, the Legislature enacted the Ellis Act in response to the Supreme Court’s decision of
Nash
v.
City of Santa Monica
(1984)
Government Code section 7060 provides in part: “(a) No public entity, as defined in Section 811.2, shall, by statute, ordinance, or regulation, or by administrative action implementing any statute, ordinance or regulation, compel the owner of any residential real property to offer, or to continue to offer, accommodations in the property for rent оr lease.” Our colleagues in Division Seven of this appellate district stated in
City of Santa Monica
v.
Yarmark
(1988)
Former section 91.0303(a)5 provides in part: “The Department shall have the authority to withhold a demolition or relocation permit for a residential building composed of two or more residential rental units, under the following circumstances: [¶] A. When the applicant states that the purpose for demolition or relocation is to construct a condominium, stock cooperative or community apartment project, permits shall be withheld until all necessary tentative tract or preliminary parcel maps for such new subdivision have been approved by the City. [¶] B. When the applicant states that the demolition or relocation is not for the purpose of constructing a condominium, stock cooperative or community apartment project, permits shall be withheld until the Department receives a sworn affidavit from the real property owner, which has been recorded by the County Recorder, stating that said owner waives the right to construct on the subject lot, a condominium, stock cooperative or community apartment project for a period of ten years from the date of the demolition or relocation, and that such waiver will bind any purchaser, encumbrancer, assignee, devisеe and transferee of said property during said ten-year period. [¶] C. This Exception 5 shall not apply if the building is to be demolished and is: [¶] (i) Constructed of unreinforced masonry construction and was built pursuant to a building permit issued prior to October 1, 1933, or [¶] (ii) To be demolished pursuant to a demolition order issued by the Department under authority set forth in Division 89 of Article 1 of Chapter IX of the Los Angeles Municipal Code. [¶] D. This Exception 5 shall not apply if the applicant demonstrates to the satisfaction оf the Department that the site will be developed with housing for low-to-moderate income households, which housing is be developed, constructed or acquired with federal, state or local government financial assistance. [¶] E. This Exception 5 shall not apply to two-family dwellings or
The city claims its ordinance is not preempted because it does not provide a substantive barrier to a landlord’s right to go out of the rental business but only imposes a procedural requirement that must be met before the application to demolish is granted. According to the city, the ordinance is permissible because: (1) restricting the right to obtain a demolition permit for a dwelling does not necessarily limit the rights of the owner under the Ellis Act; (2) the ordinance only looks toward future use of the property which is рermitted by Government Code section 7060.7, subdivision (1); (3) the ordinance is connected to the granting or denial of subdivisions as permitted by Government Code section 7060.1, subdivision (b); and (4) the Ellis Act was not intended to protect plaintiffs who are seeking to demolish only one 17-unit lot of a 795-unit complex.
Most of the issues raised by the city in this case were considered and rejected by Division Three of this appellate district in the decision of
Javidzad
v.
City of Santa Monica, supra,
204 Cal.App.3d at pages 529-531. In
Javidzad,
our colleagues of Division Three invalidated a Santa Monica rent cоntrol ordinance which conditioned the issuance of a demolition permit on: the landowner securing a removal permit; the permit required as a prerequisite a showing the landowner could not make a fair return on the rental units; in the alternative, the landowner could demonstrate the property was uninhabitable; and finally as an additional alternative, the landowner could promise to develop new units subject to rent control. Our Division Three colleagues concluded the оrdinance conflicted with the Ellis Act because it conditioned the landowner’s right to go out of business on compliance with requirements which were not found in Government Code section 7060 et seq. (
In this case, the city’s ordinance, as applied, restricted plaintiffs’ right to demolish their building by refusing to issue a permit unless they agreed to sign a covenant to restrict the use of the land not only for themselves but for “any purchaser, encumbrancer, assignee, devisee and transferee” for a period of 10 years after the date of demolition. (Former § 91,0303(a)5.B.) Also, the city’s ordinance exempted the restriction on issuing the demolition permit if the plaintiff intended to use the property to develop low income housing. (Former § 91.0303(a)5.D.) Thus, the ordinance in this case, like the one in
Javidzad,
violated the provisions of Government Code section 7060 et seq. because it impermissibly infringed on the owner’s right to simply go out of the rental business in the first instance by refusing to issue a demolition permit based on conditions which are not a part of the Ellis Act. (Gov. Code, §§ 7060, subd. (a), 7060.7.) The practical effect of the ordinance is that the plaintiffs will be compelled to remain in the rental business at that location. Rather than simply allowing them to go out of the rental business the city is attempting to impose “a prohibitive price on the exercise of the right” under the Ellis Act.
(Javidzad
v.
City of Santa Monica, supra,
We also are not persuaded by the city’s argument its ordinance is simply a means to regulate the future use of the property so that it complies with the city’s general plan which is permitted by Government Code sections 7060.7, subdivision (1) and 7060.1, subdivision (b). Government Code section 7060.7, subdivision (1) provides the Ellis Act is not meant to “[interfere with local governmental authority over land use, including regulation of the conversion of existing housing to condominiums or other subdivided interests.” Government Code seсtion 7060.1, subdivision (b) provides that, except as provided in section 7060.2, the Ellis Act is not meant to diminish or enhance “any power which currently exists or which may hereafter exist in any public entity to grant or deny any entitlement to the use of real property, including, but not limited to, planning, zoning, and subdivision map approvals.” As noted above, because the ordinance conditions the issuance of the demolition permit in the first instance on conditions which are not contained in the Ellis Act, we are required to reject the city’s arguments in this regard. Moreover, we cannot construe this ordinance as simply a means by which the city is exercising its power to determine whether a future use of the
We also reject the city’s theory that plaintiffs are not entitled to the protection of the Ellis Act because they are not seeking to remove all 795 units of the complex based upon Government Code section 7060.7, subdivision (3). Section 7060.7, subdivision (3) states the Ellis Act does not: “Permit an owner to withdraw from rent or lease less than all of the accommodations, as defined by paragraph (1) or (2) of subdivision (b) of Section 7060.” According to the city, in order for the Ellis Act to protect plaintiffs they would have to seek to demolish all 795 units of the complex. We decline to interpret thе statutes to require the plaintiffs to demolish the entire 795-unit complex in order to exercise their right to go out of business with respect to the 17-unit structure under the Ellis Act.
First, Government Code section 7060, subdivision (b) defines accommodations as: “(1) The residential rental units in any detached physical structure containing four or more residential rental units. [¶] (2) With respect to a detached physical structure containing three or fewer residential rental units, the residential rental units in that structure and in any other structure loсated on the same parcel of land, including any detached physical structure specified in paragraph (1).” Thus, a 17-unit structure on lot 7 of tract 15124 is an accommodation within the meaning section 7060, subdivision (b)(1) which entitles plaintiffs to exercise their rights under the Ellis Act. Second, in interpreting statutes a court is required to “select the construction that comports most closely with the apparent intent of the Legislature, with a view to promoting rather than defeating the general purpose of the statute, and avoid an interpretation that would lead to absurd consequences.”
(People
v.
Jenkins
(1995)
C., D. *
IV. Disposition
The judgment is affirmed. Plaintiffs, Los Angeles Lincoln Place Investors, Ltd., and Elkgrove Investors, Ltd., shall recover their costs incurred on appeal from defendant, City of Los Angeles.
Armstrong, J., and Godoy Perez, J., concurred.
A petition for a rehearing was denied April 22, 1997, and the petition of defendants and appellants for review by the Supreme Court was denied July 9, 1997.
Notes
All further statutory references are to the Los Angeles Municipal Code unless otherwise indicated.
Government Code section 7060.7 provides in its entirety: “It is the intent of the Legislature in enacting this chapter to supersede any holding or portion of any holding in Nash v. City of Santa Monica,
See footnote, ante, page 53.
