Gardena : Arbitration for Rent Hikes

Despite opposition from mobile home park owners, the City Council voted 3-2 to establish binding arbitration in disputes over residential rent increases.

The ordinance, which takes effect in 30 days, will replace the city’s current mandatory but non-binding mediation procedure through its rent mediation board.

Under the current process, a tenant can challenge a rent increase by filing a petition with the board. The board holds a hearing that both tenant and landlord are required to attend. If they can not reach an agreement, the landlord is free to raise the rent.

Under the new ordinance, disputes between tenants and landlords will be submitted to an arbitrator whose decision will be binding. In addition, landlords will be required to give tenants 60 days notice of a pending increase.

Bill Mecham of Western Mobilehome Assn., which represents 13 of the 27 mobile home parks in the city, told the council that there were “no grounds” for the ordinance. “The rent mediation board’s record is excellent,” he said.

Councilman Mas Fukai and Councilwoman Gwen Duffy also voiced satisfaction with the board, and Fukai said the ordinance was prompted by a petition drive seeking rent control in the city.

But Councilman James Cragin, who introduced the ordinance two weeks ago, was supported by Mayor Don Dear and Councilman Paul Tsukahara.

“Binding arbitration is very mild compared to rent control,” Cragin said. He described the measure as an “escape valve” to avoid rent control, which he said could “discourage development in the city.”