Ninth Circuit Finds That Local Rent Control Constitutes a Regulatory Taking

The vexing issue of "regulatory takings" has bubbled up again in a provocative ruling by the Ninth Circuit. In Guggenheim v. City of Goleta, 2009 DJDAR 14205(September 28, 2009), the Ninth Circuit reversed the District Court and struck down the City of Goleta's Rent Control Ordinance ("RCO") as an improper regulatory taking under the Fifth and Fourteenth Amendments of the U.S. Constitution. The RCO imposed limitations on the rent increases mobile home park owners could charge for mobile home spaces. The Court based its decision on an earlier regulatory takings case, Penn Central Transp. Co. v. NewYork City, 438 U.S. 104 (1978).

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