Does the Ellis Act prevent a city from passing an ordinance that would have restricted the right of landlords and homeowners to go out of the business of renting?

California, United States of America


The following excerpt is from Tom v. City and County of San Francisco, 120 Cal.App.4th 674, 16 Cal.Rptr.3d 13 (Cal. App. 2004):

local jurisdictions, such as the City, from passing ordinances that are intended to limit the right of landlords and homeowners to go out of the business of renting. (Channing Properties v. City of Berkeley (1992) 11 Cal.App.4th 88, 94-101, 14 Cal.Rptr.2d 32 [Ellis Act preempted a Berkeley city ordinance seeking to discourage and limit evictions of tenants by homeowners, despite the laudability of the goals of the ordinance.].) Consequently, the City has no strong countervailing interest in enacting and enforcing its ordinance, which was designed to carry out what is arguably a good purpose, but by a means legally forbidden to the City under state law. (See ibid.)

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