Rancho De Calistoga v. City of Calistoga , 800 F.3d 1083 ( 2015 )


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  •                                                                          FILED
    FOR PUBLICATION                             SEP 03 2015
    MOLLY C. DWYER, CLERK
    UNITED STATES COURT OF APPEALS                      U.S. COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    RANCHO DE CALISTOGA, a California              No. 12-17749
    General Partnership,
    D.C. No. 3:11-cv-05015-JSW
    Petitioner - Appellant,
    v.                                           OPINION
    CITY OF CALISTOGA; W. SCOTT
    SNOWDEN, Hearing Officer, The City of
    Calistoga,
    Respondents - Appellees.
    Appeal from the United States District Court
    for the Northern District of California
    Jeffrey S. White, District Judge, Presiding
    Argued and Submitted February 13, 2015
    San Francisco, California
    Before: McKEOWN, W. FLETCHER, and CLIFTON, Circuit Judges.
    Opinion by Judge McKEOWN, Circuit Judge:
    Fifth Amendment takings challenges to mobile home rent control laws are
    ubiquitous in this and other circuits. Quoting Yogi Berra, we have previously
    1
    characterized these claims as “deja vu all over again.” MHC Fin. Ltd. P’ship v.
    City of San Rafael, 
    714 F.3d 1118
    , 1122 (9th Cir. 2013). Each time a court closes
    one legal avenue to mobile home park owners seeking to escape rent control
    regimes, the owners, undaunted, attempt to forge a new path via another novel
    legal theory. This time, it is in the form of an “as-applied private takings claim” as
    a claim separate and independent from the owner’s regulatory takings claim. Alas,
    it is also deja vu again with respect to the result; we decline to open the door to
    using this so-called “private takings claim” as an end-run around established
    regulatory-takings jurisprudence. We hold that no regulatory taking occurred here
    and that Rancho de Calistoga’s self-styled “private takings claim” is not a
    separately cognizable claim. Similarly, we are not persuaded by the related due
    process and equal protection claims. We affirm the district court’s dismissal of the
    case.
    BACKGROUND
    Rancho de Calistoga (“the Park”) is a mobile home park located in
    Calistoga, California. The Park, which encompasses 26.5 acres, was originally
    developed by Hal C. Aguirre and R. C. Roberts. When the Roberts and Aguirre
    partnership dissolved in the mid-1970’s, one of the parcels was transferred to
    2
    Aguirre, who formed Rancho de Calistoga (“Rancho”), the California general
    partnership that now owns and operates the Park of the same name. Rancho
    describes the Park as having been developed as “an alternative form of housing for
    those who desired and could afford that alternative form of housing,” and not as
    “low cost or low income housing.” Zoning for the Park was approved in October
    1970.
    The City of Calistoga (“the City”) had no form of mobile home rent control
    until 1984, when the City adopted an ordinance that enabled mobile home park
    tenants to challenge rent increases. The ordinance was amended several times, and
    in 2007, the City adopted Ordinance No. 644, entitled “Mobile Home Park Rent
    Stabilization.” Calistoga, Cal., Municipal Code ch. 2.22 (2007) (“Ordinance
    644”). The purpose of the ordinance is to “stabilize mobile home park space rents”
    to, among other things, “[p]revent exploitation of the shortage of vacant mobile
    home park spaces,” “[p]revent excessive and unreasonable . . . rent increases,” and
    “[r]ectify the disparity of bargaining power” between park owners and mobile
    home owners. 
    Id. § 2.22.010.D.
    The City based the ordinance in part on the findings that: (1) “[r]esidents of
    mobile home parks, unlike apartment tenants or residents of other rental properties,
    3
    are in a unique position in that they have made a substantial investment in a
    residence for which space is rented or leased”; (2) “relocation of a mobile home
    from a park space is generally accomplished at substantial cost” and comes with
    risk of damaging the home; and (3) rent increases could “cause a hardship to a
    substantial number” of mobile home park residents, “most of whom are elderly, on
    fixed incomes, or persons of low income.” 
    Id. § 2.22.010.B.
    The City also found
    it “necessary to protect mobile home homeowners . . . from unreasonable rent
    increases and at the same time recognize the rights of mobile home park owners to
    maintain their property and to receive just and reasonable return on their
    investments.” 
    Id. § 2.22.010.B.
    4.
    The ordinance authorizes a yearly rent increase equal to the lesser of 100%
    of the percent change in the Consumer Price Index or 6% of the base rent. 
    Id. § 2.22.070.A.
    It also establishes an administrative mechanism for park owners to
    seek to increase rent above this amount. 
    Id. § 2.22.080.
    This process exists to
    “insur[e] mobile home park owners a fair, just, and reasonable rate of return on
    their parks in cases where the annual space rent increase provided by [the
    ordinance] proves insufficient.” 
    Id. § 2.22.010.D.
    5.
    4
    In September 2010, Rancho asked the City Council to establish a public
    subsidy program to provide mobile home park tenants with a monthly stipend
    equal to the difference between the market rate and the rent control rate, regardless
    of need. The City Council did not act on the request.
    In 2010, Rancho decided to notice a rent increase from $471.39 to $625 per
    month, which an economist retained by Rancho deemed to be “not excessive but . .
    . slightly below market.” An administrative hearing officer, W. Scott Snowden,
    conducted evidentiary hearings. In July 2011, Snowden issued a decision in which
    he rejected Rancho’s request and instead allowed a rent increase to a total of
    $537.59 per space per month. Snowden declined to rule on Rancho’s
    constitutional claims, noting that “it would be premature to consider an ‘as-
    applied’ constitutional challenge to the ordinance as such an inquiry would be best
    left to the courts.”
    Following the ruling, Rancho filed a Petition for Writ of Administrative
    Mandamus in the Napa County Superior Court. That same day, it filed suit in
    federal court against the City of Calistoga and Snowden (collectively referred to as
    “The City”), asserting claims for, among other things, violations of the Takings,
    Due Process, and Equal Protection Clauses of the United States Constitution. It
    5
    also filed with the district court a notice regarding the pendency of the state
    petition. The City successfully moved to dismiss. The district court found that any
    facial challenge to Ordinance 644 was time barred, that Rancho failed to state
    claims for private takings, due process, and equal protection violations, and that the
    regulatory takings claim was not ripe. The court granted Rancho leave to amend
    its as-applied claims.
    Rancho then filed a First Amended Petition that included the same due
    process and equal protection claims and a revised private takings claim. Rancho
    did not challenge the court’s conclusions with respect to the facial challenges or
    regulatory taking claim, but reserved “any right it may have to seek reconsideration
    and/or appellate review of any” of the court’s rulings. The district court granted a
    second motion to dismiss and entered judgment for the City. The court again
    found that Rancho failed to state a private takings claim, and that the due process
    and equal protection claims were “subsumed by the purported takings claim.”
    In the related state litigation, the California Court of Appeal affirmed the
    trial court’s denial of Rancho’s petition in July 2015. Rancho de Calistoga v. City
    of Calistoga, No. A138301, 
    2015 WL 4099027
    (Cal. Ct. App. July 7, 2015).
    6
    Rancho then appealed to the California Supreme Court, where the case remains
    pending.
    ANALYSIS
    I.    TAKINGS CLAIM
    The Takings Clause of the Fifth Amendment, made applicable to the states
    through the Fourteenth Amendment, Lingle v. Chevron U.S.A. Inc., 
    544 U.S. 528
    ,
    536 (2005), provides that “private property [shall not] be taken for public use,
    without just compensation.” U.S. Const. amend. V.
    The law on condemnations and physical takings, which the Supreme Court
    has described as “as old as the Republic,” is governed by the simple rule that
    “[w]hen the government physically takes possession of an interest in property for
    some public purpose, it has a categorical duty to compensate the former owner.”
    Tahoe-Sierra Pres. Council, Inc. v. Tahoe Reg’l Planning Agency, 
    535 U.S. 302
    ,
    322 (2002). Thus, in physical takings cases, the analysis inevitably focuses on the
    public use and just compensation requirements.
    In contrast to a physical taking, a regulatory taking occurs where
    “government regulation of private property [is] so onerous that its effect is
    tantamount to a direct appropriation or ouster.” 
    Lingle, 544 U.S. at 537
    .
    7
    Regulatory takings claims, such as the one here, are “of more recent vintage.”1
    
    Tahoe-Sierra, 535 U.S. at 322
    . These claims are “characterized by essentially ad
    hoc, factual inquiries, designed to allow careful examination and weighing of all
    the relevant circumstances” to determine whether a taking has occurred in the first
    place. 
    Id. (citations and
    internal quotation marks omitted). The factors to be
    considered in this type of factual inquiry are laid out in Penn Central
    Transportation Company v. City of New York, 
    438 U.S. 104
    , 124 (1978). Only
    after it has been determined that a taking has occurred do the issues of public use
    and just compensation become relevant. We therefore begin our analysis with this
    first step—whether a regulatory taking has occurred—and conclude that it has not.
    A.     Regulatory Takings Analysis
    At the outset, we consider whether Rancho’s claims are ripe. The Supreme
    Court has articulated “two independent prudential hurdles” that apply to federal
    regulatory takings claims. Suitum v. Tahoe Regional Planning Agency, 
    520 U.S. 725
    , 733-34 (1997). First, there is a finality requirement—a claim “is not ripe until
    1
    The Supreme Court laid to rest any argument that a mobile home rent
    control ordinance constitutes a physical taking in Yee v. City of Escondido, Cal.,
    
    503 U.S. 519
    , 532 (1992) (holding that such a rent control ordinance “is a
    regulation of petitioners’ use of their property” and not “an unwanted physical
    occupation of [the] property”) (emphasis omitted).
    8
    the government entity charged with implementing the regulations has reached a
    final decision regarding the application of the regulations to the property at issue.”
    Williamson Cnty. Reg’l Planning Comm’n v. Hamilton Bank of Johnson City, 
    473 U.S. 172
    , 186 (1985). The hearing examiner’s decision satisfies the requisite
    finality.
    Exhaustion is the second requirement—“the owner [must have]
    unsuccessfully attempted to obtain just compensation through the procedures
    provided by the State for obtaining such compensation.” 
    Id. at 195.
    Rancho
    appropriately proceeded in state court to obtain just compensation, but lost at both
    the trial and intermediate appellate stages.2 The California Court of Appeal’s
    opinion includes extensive analysis, including a rejection of the takings claim
    under the Penn Central factors: “We reject Rancho’s claim under the takings
    clause, which, like the due process clause, protects a property owner’s right to earn
    a fair return on its investment.” Rancho de Calistoga, 
    2015 WL 4099027
    , at *5.
    Rancho’s petition to the California Supreme Court remains pending.
    2
    We note that this court has determined that California’s compensation
    procedures are constitutionally adequate. Equity Lifestyle Props., Inc. v. Cnty. of
    San Luis Obispo, 
    548 F.3d 1184
    , 1192 (9th Cir. 2008).
    9
    Echoing the Court’s decision in Suitum, we previously determined that the
    Williamson ripeness requirements are prudential rather than jurisdictional, meaning
    that they are formulated by the court rather than stemming from Article III. See
    Guggenheim v. City of Goleta, 
    638 F.3d 1111
    , 1117 (9th Cir. 2010) (en banc).
    Here, Rancho sufficiently “utilized” the available judicial procedures laid out in
    
    Williamson. 473 U.S. at 197
    . As a consequence, “it would be a waste of the
    parties’ and the courts’ resources to bounce the case through more rounds of
    litigation.” 
    Guggenheim, 638 F.3d at 1117
    .
    We now turn to the merits of the as-applied regulatory takings claim. In
    essence, Rancho claims that even if the taking is for a public purpose, the rent
    subsidy should be paid by the government if the rent is neither excessive nor the
    result of monopoly power. This characterization of the claim—taken directly from
    Rancho’s brief—is just another formulation of a facial attack on the ordinance. In
    other words, Rancho is saying that the rent adjustment scheme is invalid on its face
    if it does not accommodate these principles. Of course, the district court
    foreclosed a facial challenge as time barred.
    Even if the claim were cognizable through an as-applied attack, it fails. The
    Supreme Court “has consistently affirmed that States have broad power to regulate
    10
    housing conditions in general and the landlord-tenant relationship in particular
    without paying compensation for all economic injuries that such regulation
    entails.” Yee v. City of Escondido, 
    503 U.S. 519
    , 528-29 (1992) (internal quotation
    mark omitted). “However, under Penn Central . . . a regulatory taking may
    occur—and just compensation is required—when ‘regulatory actions [occur] that
    are functionally equivalent to the classic taking in which government directly
    appropriates private property or ousts the owner’ with the inquiry ‘focus[ing]
    directly upon the severity of the burden that government imposes upon private
    property rights.’” 
    MHC, 714 F.3d at 1127
    (quoting 
    Lingle, 544 U.S. at 539
    )
    (alteration in original).
    Penn Central “identif[ies] several factors, not a set formula,” to determine
    whether this functional equivalence exists. 
    Guggenheim, 638 F.3d at 1120
    . Chief
    among the factors to be considered are “[t]he economic impact of the regulation on
    the claimant and, particularly, the extent to which the regulation has interfered with
    distinct investment-backed expectations” and “the character of the governmental
    action—for instance whether it amounts to a physical invasion or instead merely
    affects property interests through some public program adjusting the benefits and
    burdens of economic life to promote the common good.” 
    Lingle, 544 U.S. at 11
    538-39 (citing Penn 
    Cent., 438 U.S. at 124
    ) (internal quotation marks omitted)
    (alteration in original). Applied here, these factors counsel in favor of the City.
    The economic impact factor favors the City because Supreme Court cases
    “have long established that mere diminution in the value of property, however
    serious, is insufficient to demonstrate a taking.” Concrete Pipe & Products of
    California, Inc. v. Constr. Laborers Pension Trust for S. California, 
    508 U.S. 602
    ,
    645 (1993) (citing Village of Euclid v. Ambler Realty Co., 
    272 U.S. 365
    , 384
    (1926) (approximately 75% diminution in value); Hadacheck v. Sebastian, 
    239 U.S. 394
    , 405 (1915) (92.5% diminution)); see also 
    MHC, 714 F.3d at 1127
    -28
    (81% diminution). Rancho claims diminution in market value (from $16,580,000
    to $11,850,000 under rent control, or 28.53%), as well as lost income. This
    economic impact is an inevitable consequence of the rent-control scheme but not
    an unconstitutional one.
    We pay particular attention to Rancho’s distinct investment-backed
    expectations. This principle “implies reasonable probability, like expecting rent to
    be paid, not starry eyed hope of winning the jackpot.” 
    Guggenheim, 638 F.3d at 1120
    . Because Rancho cannot reasonably expect that its property will be
    12
    continually unencumbered by government regulation, this factor also favors the
    City.
    Rancho argues that because, unlike in 
    Guggenheim, 638 F.3d at 1120
    -21,
    and 
    MHC, 714 F.3d at 1128
    , it has owned the Park since before the City imposed a
    rent control ordinance, it had an investment-backed expectation to be free from
    rent control. This temporal difference does not give Rancho a valid investment-
    backed expectation of owning a mobile home park unencumbered by government
    regulation. Simply put, when buying a piece of property, one cannot reasonably
    expect that property to be free of government regulation such as zoning, tax
    assessments, or, as here, rent control. Rancho’s argument is tantamount to saying
    that a homeowner can reasonably expect that the tax assessment or rate of taxation
    on her home will not increase from the time of purchase. Just as “[t]hose who do
    business in [a] regulated field cannot object if the legislative scheme is buttressed
    by subsequent amendments to achieve the legislative end,” those who buy into a
    regulated field such as the mobile home park industry cannot object when
    regulation is later imposed. Concrete 
    Pipe, 508 U.S. at 645
    (alteration in original).
    Like the California Court of Appeal, “[w]e decline to hold that a landlord whose
    building or park existed before the enactment of rent control necessarily suffers a
    13
    taking when rent control is implemented.” Rancho de Calistoga, 
    2015 WL 4099027
    , at *5.
    Rancho’s argument that it has an investment-backed expectation to earn a
    “fair return” fares no better. In fact, this argument proves the City’s point.
    Ordinance 644 authorizes a specified yearly rent increase and establishes an
    administrative mechanism for park owners to seek to increase rent above this
    amount. Ordinance 644 §§ 2.22.070.A, 2.22.080. Under the ordinance, “[a] park
    owner may seek an adjustment to the initial base rent” so that the owner is assured
    of “receiving a fair and reasonable return.” 
    Id. § 2.22.040.B.
    Rancho did just that
    and obtained a $50 upward adjustment in 1995. Rancho de Calistoga, 
    2015 WL 4099027
    , at *5. Then, the Ordinance provides for automatic annual increases that
    Rancho in fact received. 
    Id. § 2.22.070.
    And, finally, the ordinance permits the
    owner to propose an additional rent increase, as Rancho did here. 
    Id. § 2.22.080.
    We assume for purposes of Rancho’s argument that its proposed rent
    increase is neither excessive (in some undefined sense) nor monopolistic.
    Significantly, as the California Court of Appeal observed, “Rancho’s true quarrel
    appears to be with the whole idea of rent control, not with how [the] City
    14
    administered its duly enacted rent control ordinance in this case.” Rancho de
    Calistoga, 
    2015 WL 4099027
    , at *5.
    The City has designed a system aimed at giving park owners a fair return
    while still furthering the goals of rent control. Rancho may disagree with the
    specific rent prices authorized by the ordinance, but this disagreement does not
    give rise to a constitutional taking nor is a mobile home park owner entitled to
    unilaterally impose its own formulation of “excessive” or “monopolistic” as the
    standard necessary for a taking.
    We last address the character of the governmental action. We have
    consistently given our imprimatur to the underlying public purpose of mobile home
    rent control ordinances and have characterized them as “much more an
    ‘adjust[ment of] the benefits and burdens of economic life to promote the common
    good’ than . . . a physical invasion of property.” 
    MHC, 714 F.3d at 1128
    (quoting
    Penn 
    Cent., 438 U.S. at 124
    ) (alteration in original). The same holds true of
    Ordinance 644 and its application to Rancho. Accordingly, there has been no
    regulatory taking.
    B.     Self-Styled “Private Takings Claim”
    15
    Perhaps seeing the writing on the wall with respect to its regulatory takings
    claim, Rancho devotes the majority of its briefing to what it presents as a separate
    “private takings claim,” arguing that the application of Ordinance 644 to rent
    increases constitutes an unconstitutional private taking because any purported
    “public use” is pretextual. Two years ago, in MHC, we noted that we were “aware
    of no court that has ever recognized a regulatory private taking,” but because we
    concluded that the claim failed on the merits, we “assume[d] without deciding that
    such a claim is 
    possible.” 714 F.3d at 1129
    n.5. Today we pick up where MHC
    left off, holding that under the circumstances here, Rancho’s so-called “private
    takings claim” cannot serve as an independent means to challenge an alleged
    regulatory taking. Rather, such a public-use challenge must function as part of the
    larger regulatory takings claim. As explained below, viewed in this context,
    Rancho’s claim fails for multiple reasons.
    Putting the “private as-applied takings” moniker on Rancho’s claim is both
    confusing and misleading. A short history of the terminology is in order. True
    private takings—those effected by non-governmental actors—such as the power
    granted to the railroads to take private lands to expand the rails “have a long and
    distinguished pedigree in our legal system.” Abraham Bell, Private Takings, 76 U.
    16
    CHI. L. REV. 517, 585 (2009). Another variation, as Bell notes, is the
    “government-mediated private taking[]” in which the government “simply acts as a
    middleman who transfers the property from one set of private hands to another.”
    
    Id. at 520.
    And finally, when used as the basis of a takings claim such as
    Rancho’s, “the term ‘private takings’ more narrowly refer[s] to public takings
    motivated by a ‘private purpose.’” 
    Id. at 519
    n.6.
    This third approach, as Rancho is attempting to use it here, is simply a
    renaming of the regulatory takings claim, which seeks to determine whether a
    property regulation is “functionally equivalent to the classic taking in which
    government directly appropriates private property or ousts the owner from his
    domain.” 
    Lingle, 544 U.S. at 539
    . Of course, the Constitution requires that the
    government’s taking must be for a public use.
    Tellingly, in making its private takings argument, Rancho relies
    predominantly on condemnation cases, running afoul of the Supreme Court’s
    teaching that the “longstanding distinction between acquisitions of property for
    public use, on the one hand, and regulations prohibiting private uses, on the other,
    makes it inappropriate to treat cases involving physical takings as controlling
    precedents for the evaluation of a claim that there has been a ‘regulatory taking,’
    17
    and vice versa.” 
    Tahoe-Sierra, 535 U.S. at 323
    (footnote omitted). Accordingly,
    as a general matter, “we do not apply our precedent from the physical takings
    context to regulatory takings claims.” 
    Id. at 323-24.
    Yet Rancho’s private takings argument is rooted in the Supreme Court’s
    statement in the condemnation case Kelo that the state may not “take property
    under the mere pretext of a public purpose, when its actual purpose [is] to bestow a
    private benefit.” Kelo v. City of New London, 
    545 U.S. 469
    , 478 (2005). The crux
    of Rancho’s argument is that because none of the purposes enumerated in
    Ordinance 644 apply here, its application is pretextual. According to Rancho, the
    real purpose behind the application of Ordinance 644 here is to “provide each and
    every one of the 184 tenants with a significant monthly subsidy, whether they need
    it or not.” This “subsidy,” Rancho argues, violates the principle “that the sovereign
    may not take the property of A for the sole purpose of transferring it to another
    private party B.” 
    Kelo, 545 U.S. at 477
    . This argument fails because it is simply a
    reframing of a facial challenge to the ordinance through an attack on the stated
    purposes of the rent-control scheme. Other related arguments fail for the same
    reason. As noted before, the district court dismissed the facial challenge as time
    barred and Rancho did not appeal this issue. Rancho cannot resuscitate this claim
    18
    by re-labeling it and claiming to challenge “the real purpose” of the ordinance
    through an “as-applied” attack on the validity of the ordinance.
    Rancho offers up a number of additional arguments. To the extent those
    arguments seek to challenge the public purpose of the ordinance as applied, they
    merge the cart and the horse. Because we determined that there has been no taking
    in the first place, it is unnecessary to address whether the public use requirement is
    met.
    Rancho raises two final, though unrelated, points. In 2010 Rancho proposed
    legislation to the City Council requiring the City to provide rent subsidies to
    mobile home park tenants “without regard to need, equal to the difference between
    the rent control rate and the fair market rate.” The rent control administrator
    apparently said the proposal was “unreasonable.” This statement, however, proves
    nothing. As Rancho acknowledges, it had no right to have the proposal adopted;
    indeed, no claim is made that the Council acted improperly. Rancho’s theory that
    the reaction of the administrator is evidence of “as-applied” pretext is pure
    speculation and is not tethered to the City’s enforcement of the actual ordinance.
    Finally, Rancho claims that the rent subsidy violates the California
    Constitution’s prohibition against gifts of public funds, while at the same time
    19
    admitting that the City has not made an illegal gift. Cal. Const. art. XVI, § 6 (“The
    Legislature shall have no power . . . to make any gift or authorize the making of
    any gift, of any public money or thing of value to any individual . . . .”). This
    concession is not surprising as the City has not made a transfer or gift of any
    “public money” to any mobile home park tenant, nor can it be said that the
    ordinance amounts to an indirect gift as urged by Rancho.
    In sum, Rancho’s self-styled “private takings claim” cannot serve as a means
    to evade Penn Central scrutiny. And in any event, as articulated here, such claim
    fails because it is a thinly veiled facial challenge, which is both time barred and
    lacks merit.
    II.      DUE PROCESS AND EQUAL PROTECTION CLAIMS
    Rancho’s due process and equal protection claims rest on the same
    grounds—that Snowden’s rejection of its application was arbitrary.
    Here, Rancho’s theory of its due process claim—that “it is not possible to
    exploit a tenant unless and until the rent is above market”—relates to conduct
    squarely covered by the Takings Clause. Such an overlapping theory dooms the
    substantive due process claim. See Colony Cove Properties, LLC v. City Of
    Carson, 
    640 F.3d 948
    , 960 (9th Cir. 2011) (holding that a due process claim was
    20
    “subsumed by the Takings Clause” where a plaintiff sought a rental rate increase
    that would give it a fair return on its investment). Although Lingle left open the
    possibility of an independent claim where “a [property] regulation that fails to
    serve any legitimate governmental objective may be so arbitrary or irrational that it
    runs afoul of the Due Process 
    Clause,” 544 U.S. at 542
    , we later clarified that “the
    Fifth Amendment . . . preclude[s] a due process challenge . . . if the alleged
    conduct is actually covered by the Takings Clause.” Crown Point Dev., Inc. v. City
    of Sun Valley, 
    506 F.3d 851
    , 855 (9th Cir. 2007). Here, the alleged conduct is
    covered by the Takings Clause.
    We evaluate Rancho’s “equal protection challenge . . . under rational basis
    review because mobile [] home park owners are not a suspect class.” Equity
    Lifestyle Properties, Inc. v. Cnty. of San Luis Obispo, 
    548 F.3d 1184
    , 1195 (9th
    Cir. 2008). Accordingly, “[u]nder rational-basis review, where a group possesses
    distinguishing characteristics relevant to interests the State has the authority to
    implement, a State’s decision to act on the basis of those differences does not give
    rise to a constitutional violation.” 
    Id. Here, as
    in Equity Lifestyle, the ordinance articulates just such distinguishing
    characteristics, including the potential hardship posed by rent increases and the fact
    21
    that mobile home park residents “are in a unique position in that they have made a
    substantial investment in a residence for which space is rented or leased” and the
    associated relocation costs. See Ordinance 644 § 2.22.010.B; 
    Guggenheim, 638 F.3d at 1123
    (noting that this court is “bound by precedent establishing that such
    laws do have a rational basis”). Rancho offers no legitimate claim that Snowden’s
    decision was politically motivated or otherwise arbitrary. We therefore affirm the
    district court’s dismissal of Rancho’s due process and equal protection claims.
    CONCLUSION
    We affirm the district court’s dismissal of Rancho’s claims, albeit on slightly
    different grounds.
    AFFIRMED.
    22
    COUNSEL LISTING
    Anthony C. Rodriguez (argued), Law Office of Anthony C. Rodriguez, Oakland,
    California, for Petitioner-Appellant.
    Amy E. Hoyt (argued), Burke, Williams & Sorenson, Oakland, California;
    Michelle Marchetta Kenyon, City Attorney, Calistoga, California, for
    Respondents-Appellees.
    Michael John von Loewenfeldt, Kerr & Wagstaffe LLP, San Francisco, California,
    for Amicus Curiae League of California Cities.
    R. S. Radford, Pacific Legal Foundation, Sacramento, California, for Amicus
    Curiae Pacific Legal Foundation.
    Robert H. Thomas and Bethany C.K. Ace, Damon Key Leong Kupchak Hastert,
    Honolulu, Hawaii, for Amicus Curiae Western Manufactured Housing
    Communities Association.
    23