Judge Beth Larson Freeman ruled that the temporary ordinance violated three state laws and held that Certificates of Maximum Legal Rent issued by the City to Page Mill and other housing providers are enforceable. The Judge rejected the City’s claim that it was merely clarifying the existing rent control program, and said that substantive changes to the program have to be approved by a popular vote.

“The Court’s decision will allow us to proceed with investing in the community by providing homes and employment opportunities for the people of East Palo Alto,” said David Taran, Page Mill’s Chief Executive Officer. “Most of our employees live in East Palo Alto, and we are actively hiring more local residents to help us realize our goals of improving the safety and livability of this working-class community.”

Page Mill had tried to negotiate a settlement with members of the City Council, but the Council broke off negotiations earlier this month.

The City’s Certificates of Maximum Legal Rent, which establish maximum allowable rents on apartments subject to the rent control program, give Page Mill the legal right to increase rent by 37%. Instead, however, Page Mill has notified residents that it plans to raise rent by an average of 9.0%.

Page Mill has voluntarily lowered rent increases for residents who have demonstrated special needs, and will continue to evaluate additional requests for such decreases.

Page Mill will use the rent increases to offset a small portion of the $11 million it is investing in improving living conditions and public safety at its properties in East Palo Alto.

Some of the many improvements to the properties so far include:
new roofs on 23 buildings;
seismic upgrades;
repairing existing or installing new fences around swimming pools to enhance child safety;
repairing dry rot and unsafe balconies and hand-rails; and
an aggressive program to rid the neighborhood of rodents and other pests.

Page Mill has also hired two security companies and is installing video surveillance systems connected to a dispatch center. The neighborhood in which Page Mill’s properties are located, Beat 4, has the lowest overall crime rate in East Palo Alto, according to the latest available police statistics.

The City claimed that the temporary ordinance was needed because “hundreds or thousands” of tenants would have to vacate their apartments as a result of the rent increases. In fact, tenants in only 13 out of approximately 1,600 Page Mill units that are subject to the City’s rent control program have notified the company that they intend to leave their units because of the rent increases