According to dailybreeze, owner James Goldstein, the largest MHC owner in Carson, has battled with the city over rent increases since the 1980s, but this time the court said the city had no right to deny rent increases at 404-home site Colony Cove. He had sought $10 million. His attorney said he will seek a larger amount, as MHProNews understands.
Goldstein’s complaint stated the city set rents unreasonably low after he purchased the property in 2006 for $23 million with a $5 million down payment and a loan for the remainder. He then passed off debt service costs to his renters but the city said that is not permissible because the purchase price is not supported by the rents allowed.
Goldstein claims the city revised its rent-control policy after he acquired Colony Cove, undercutting his profits, and forcing the company to operate at a loss for over five years.
City attorney Sunny Soltani said the question at hand is constitutional in nature, and should be decided by a court, not a jury, and she is appealing the decision to the Ninth Circuit U. S. Court of Appeals.
Colony Cove’s complaint states Carson’s rent-control restrictions do not permit the company to make a reasonable profit. “Far from it. The city has essentially forced Colony Cove to shoulder an affordable housing burden that should be borne by the city taxpayers as a whole,” says the complaint. ##
(Photo credit: dailybreeeze–Colony Cove manufactured home community)
