Owner Needs Valid Reason to Evict Resident

Facts: An owner sued to evict a low-income resident from a unit that was part of a privately operated site developed on city-owned land with assistance from a local redevelopment agency. Her annual lease had been twice renewed and her rent subsidy approved through the end of the fiscal year.

The subsidies set aside under the development agreement had consistently been paid. The management company served the resident with an eviction notice that provided no reason for the termination of her tenancy at the conclusion of her lease. The resident argued that, without a good cause for eviction, she had a due process right to renew her lease.

The trial court denied her request to dismiss the eviction action, ruling that she had “failed to prove or show she has an enforceable right [to the subsidy]” and that the owner is “not required to provide good cause notice for terminating a month to month tenancy.” The case proceeded to trial, and the jury found in favor of the owner. The resident appealed.

Ruling: A California appeals court reversed the lower court's decision.

Reasoning: The court ruled that the owner's action constituted state action that deprived the resident of a protected property interest. The city encouraged participation in the low-income housing activities of the site and, therefore, the resident had a legitimate entitlement to the renewal of her lease, as well as the accompanying rent subsidies. The court ruled that she could not be evicted without good cause.

• Anchor Pacifica Management Company v. Green, April 2012