§ 1805

Citation: § 1805
Parent Document: Action Apartment Ass'n v. Santa Monica Rent Control Board, 114 Cal. Rptr. 2d 412 (2002)
Jurisdiction: California (state)
Effective Date: 2002-01-03
Original Source: https://www.courtlistener.com/opinion/2274225/action-apartment-assn-v-santa-m... ↗

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The purpose of the Rent Control Law is to provide an adequate supply of affordable rental housing, especially for the poor, minorities, students, young families, and senior citizens, while allowing landlords to make a fair return on their property. (See Santa Monica Charter, § 1800.) We fail to see how that purpose is served by forcing landlords to pay a higher rate of interest on security deposits than the rate prevailing in the open market. Under the Board’s scheme, a security deposit is a better investment vehicle than a money market account. There is no logic, fairness, or justice in that. When economic conditions cause banks to pay less than 3 percent on deposit accounts, as is the case today, a landlord should not become a tenant’s cash cow.

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