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ACTION APARTMENT v. SANTA MONICA RENT CONTROL

No. B146227.

114 Cal.Rptr.2d 412 (2001)

94 Cal.App.4th 587

ACTION APARTMENT ASSOCIATION et al., Plaintiffs and Appellants, v. SANTA MONICA RENT CONTROL BOARD, Defendant and Respondent.

Court of Appeals of California, Second District, Division One.

As Modified January 3, 2002.

Review Denied March 20, 2002.

Attorney(s) appearing for the Case

Law Offices of Rosario Perry, Rosario Perry, Santa Monica, and Marie E. Berglund, for Plaintiffs and Appellants.

Doris M. Ganga, General Counsel, and Joel Martin Levy, Staff Attorney, for Defendant and Respondent.

Certified for Partial Publication.*

MALLANO, J.

The City of Santa Monica requires landlords of residential rental property to place tenants' security deposits in interest-bearing accounts at federally insured financial institutions. Since January 1, 1999, the city has required landlords to pay tenants 3 percent interest per year on security deposits.

A group of landlords filed this action, alleging that, due to market conditions...

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