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DOWDALL LAW OFFICES A PROFESSIONAL CORPORATION ATTO R N EYS AT LAW City Council of the City of Santa Ana City of Santa Ana September 16, 2021 Page 10 upkeep and future enjoyment of residential lifestyle that the Rent Board will unwittingly but absolutely control. The agency determines whether the future of housing quality rises or falls. 11 ... rent regulators must generally permit profits to be adjusted over time for inflation so that the real value of that profit does not shrink toward the vanishing point." The Courts? As for the courts, at the present, they will not disturb the finding of substantial evidence, which places the final decision of the administrator within a zone of reasonableness. The courts have sustained the diminution of property rights as a necessary incident of the operation of the police powers The inevitable conclusion to long-term regulation is eventual obsolescence of the property and then closure in the absence of monies to renovate and rebuild infrastructure which under rent controls will be forestalled and delayed to the point of closure and cessation of use. This is a guaranteed state right, and more and more park owners are taking advantage in order to avoid the confiscatory effects of rent control. The City acknowledges just one mobile home park (Green Lantern in the city of Westminster) which is no longer at risk of closure. For those price -regulated investments that fall above the constitutional minimum, but are nonetheless disappointing to investor expectations, the solution is not constitutional litigation but, as with non -regulated investments, the liquidation of the investments and the transfer of capital to more lucrative enterprises. The fact is, that everyone acknowledges that ignoring and disallowing all inflation will produce eventual confiscation. ("shrink toward the vanishing point" — Galland v. City of Clovis, 24 Cal. 4th 1003, 1026, 103 Cal. Rptr. 2d 711, 728, 16 P.3d 130, 146 (2001)). 11 ... as the Board determined, a purpose of the City rent control system is to maintain, not destroy, the NOI of landlords in real terms. It would surely be strange if this system purportedly designed to maintain the real value of NOI were used instead concededly to erode it. City of Berkeley v. City of Berkeley Rent Stabilization Bd., 27 Cal. App. 4th 951, 975, 33 Cal. Rptr. 2d 317, 332 (1994). (emphasis supplied). Any procedure that fails to reward a full adjustment for inflationary changes in operating costs and only partial indexing of landlord NOI will result in erosion of the real value of NOI to the point of confiscation. "... rent regulators must generally permit profits to be adjusted over time for inflation so that the real value of that profit does not shrink toward the vanishing point." Galland v. City of Clovis, 24 Cal. 4th 1003, 1026, 103 Cal. Rptr. 2d 711, 729, 16 P.3d 130,146 (2001) -i0-