Golden State Ventures, LLC v. City of Oakland Rent
This appeal involves the interpretation of an exception to the Costa-Hawkins Rental Housing Act (Civ. Code, § 1954.50 et seq. (Costa-Hawkins)), a statute that, among other things, generally exempts condominiums from local rent control. The exemption, however, does not apply to apartments that have undergone condominium conversion until such time as the units have “been sold separately by the subdivider to a bona fide purchaser for value.” (§ 1954.52, subd. (a)(3)(B)(ii).) Here, in a single day, plaintiff Golden State Ventures, LLC purchased each of the four condominiums contained in a recently converted apartment building, utilizing four individual sales contracts. The building’s existing tenants were then subjected to a 125 percent rent increase.
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