Pasadena asks Supreme Court to review CAA win on relocation payments

Pasadena officials and tenant advocates have petitioned the California Supreme Court to reconsider a key appellate win secured by the California Apartment Association that shields housing providers from relocation payments tied to large rent increases.

The City of Pasadena and tenant groups that intervened to defend Measure H have filed separate petitions for review.

In December, the Court of Appeal ruled that Pasadena cannot require housing providers to pay relocation assistance when tenants move out after a large rent increase on units exempt from local rent control, a significant win for CAA. The court concluded that the relocation payment requirement was preempted by state law because it penalized landlords for exercising their right to set rents on those exempt units.

The stakes extend beyond Pasadena. The cities of Los Angeles, Santa Monica and San Francisco, along with the Santa Monica Rent Control Board, filed a letter urging the Supreme Court to grant review, arguing that the appellate decision improperly applied "purpose preemption" principles and created tension between the Costa-Hawkins Rental Housing Act and the Tenant Protection Act of 2019. Los Angeles is currently defending its own relocation fee ordinance in a pending appeal, and the Pasadena ruling could directly affect that case.

CAA will file its opposition to the petitions for review later this month. Once briefing is complete, the high court will have 90 days to decide whether to grant review. If it declines, the appellate ruling will remain binding precedent and could be used to challenge similar relocation mandates statewide.