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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

§ 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

Other Sections in This Document (232)

Full Text

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factor, the 3 percent interest regulations, as applied, are contrary to the landlords’ reasonable investment-backed expectations. Landlords might have expected that, some day, they would have to pay security deposit interest to their tenants (see Santa Monica Charter, § 1803(s)), but they surely did not expect that the payments would exceed the interest paid by banks. Nevertheless, since January 1999, landlords have paid roughly $770,000 per year to cover the difference between the mandatory 3 percent rate and the banks’ rate.