Statutory Intervention in the Landlord Tenant Relationship

Question 1

Rent Control

Answer 1

• Originates as matter of public police around WWI
• Constitutionally challenged under SDP (Block v. Hersh) – S. Ct. rules that there was no taking
o LL were still making profit
o Ct. noted emergency situation (influx of residents in Washington DC)
• Rent Control traditionally applied only when tenant remained the same; change in tenant allows increase in rent
• LL must earn fair return; can recoup costs of capital improvements
• Some Rent Control legislation has also added protections for tenants (prohibit eviction except for just cause; regulate/restrict demolition of rent-controlled units)

Question 2

• Yee v. City of Escondido – S. Ct. (1992)

Answer 2

“Mobile Homes”
o F: P own mobile home pads in CA; claim that local rent control ordinance amounts to a physical occupation that requires compensation; says cannot evict or use the land for anything else
 Invokes Loretto continuous presence (building = “pad” underneath; wire = the mobile home)  Ct. rejects
o H: For D; this was not a compelled physical invasion; property owners chose to rent their land
 Right to exclude is still intact – can evict mobile home owner using 6-12 month notice mechanism (without this, then might amount to a taking
o Ct. says transfer of wealth is not automatically unconstitutional (see also, zoning)