Parsons v. City of Indian Wells

Filed 8/31/26 CERTIFIED FOR PUBLICATION IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA FOURTH APPELLATE DISTRICT DIVISION TWO MATTHEW PARSONS et al., Plaintiffs and Appellants, E082591 v. (Super.Ct.No. PSC2002777) CITY OF INDIAN WELLS et al., OPINION Defendants and Appellants. APPEAL from the Superior Court of Riverside County. Eric A. Keen, Judge. Reversed. Best Best & Krieger, Gregg W. Kettles, Christopher M. Moffitt, Bao A. Pham and Zachary Scalzo, for Defendants and Appellants. Lewis Brisbois Bisgaard & Smith, Wendy S. Dowse; Procopio Cory Hargreaves Savitch, L. John Nelson and Matthew L. Abbott, for Plaintiffs and Appellants. As part of its ongoing efforts to abate public nuisances related to the operation of short-term rentals (STR) in residential properties, the City of Indian Wells (the City) 1 declared STR’s to be a public nuisance and enacted a 29-night minimum stay requirement for residential rentals that effectively banned STR’s. However, in response to comments from owners of property in common interest developments (CID) who wished to operate STR’s, the City adopted Ordinance No. 732, which amended the City of Indian Wells Municipal Code (IWMC) to allow members of a CID to opt out of the generally applicable minimum stay requirement and to permit the operation of STR’s in their community for a shorter minimum period as proposed by their governing board. Matthew and Rebecca Parsons (the Parsons), owners of property in a CID located in the City, filed a petition for traditional writ of mandate against the City seeking injunctive and declaratory relief when the City denied their request for a permit to use their property as an STR. Among other claims, the Parsons allege the opt-out provision of IWMC section 5.20.210 conflicts with Civil Code 1 section 4740, part of the Davis- Stirling Common Interest Development Act (§ 4000 et seq) (hereafter “the Act” or “Act”), and therefore the opt-out is preempted. Section 4740 exempts members of a CID from any provision contained in the CID’s governing documents that prohibits the renting or leasing of property if that prohibition was adopted after the members acquired title to their property. In addition, the Parsons argue the opt-out provision is an unconstitutional delegation to private parties of the City’s legislative authority. The trial court agreed with those arguments and ruled IWMC section 5.20.210 is invalid, and entered judgment 1 All undesignated statutory references are to the Civil Code. 2 granting a writ of mandate to direct the City to issue an unrestricted STR permit to the Parsons. The trial court subsequently granted the Parsons’ motion for attorney fees. On appeal, the City argues: (1) section 4740 is inapplicable and does not preempt IWMC section 5.20.210 because a successful opt-out vote does not require members of a CID to amend their governing documents to permit the operation of STR’s; (2) granting local property owners in a CID the ability to decide whether to exempt themselves from the generally applicable minimum stay requirement is a limited and permissible delegation of authority and does not violate the due process rights of homeowners; and (3) the trial court erred by awarding the Parsons their attorney fees. We agree with the City and reverse the judgment. I. FACTS AND PROCEDURAL BACKGROUND A. The City’s Regulation of Short-Term Rentals. This lawsuit arose amid the City’s decade-long effort to regulate STR’s. After years of receiving complaints from residents about the negative effects STR’s were having on their neighborhoods, and efforts made by the City to abate nuisances caused by operation of STR’s, in 2014 the City issued a temporary moratorium on all STR’s. After further study of the issue, in 2015 the City adopted Ordinance No. 689, which provided for the grandfathering of existing STR’s with a seven-night minimum stay requirement for owners who applied within 30 days, and a 29-night minimum stay for applications received after 30 days. 3  Ordinance No. 689 proved to be ineffective and STR’s continued to pose problems in the community. A staff report submitted to the city council indicated some homeowners advertised and operated STR’s for shorter minimum stays than permitted and failed to pay transient-occupancy taxes, and guests of STR’s continued to cause noise and other nuisances in neighborhoods. In response, in March 2018 the City adopted Ordinance No. 710 to declare the operation of STR’s to be a public nuisance and to effectively sunset them. Beginning January 1, 2020, IWMC section 5.20.140 provided STR’s that had been previously grandfathered to allow a seven-night minimum stay were now subject to the 29-night minimum stay requirement. However, in response to comments from homeowners who wished to operate STR’s inside CID’s, 2 IWMC section 5.20.210 provided a procedure whereby members could vote to opt out of the 29-night minimum stay requirement. An accompanying staff report stated, “The rationale for this provision was that the City believed that, if a particular neighborhood felt that shorter durations were acceptable within that neighborhood, that neighborhood should be able to make that decision for itself.” From 2018 to 2020, the City found its goal of effectively regulating STR’s had been frustrated by homeowners attempting to circumvent applicable rules. When some CID’s decided not to opt out of the City’s general ban on STR’s, some homeowners began creating smaller CID’s, sometimes consisting of only two residences, to take 2 As of 2014, 40 of the City’s 56 homeowner’s associations (HOA’s), representing 3,590 residential units, restricted the rental of properties to a 30-day minimum stay. As of 2018, over 100 permitted STR’s in the City were located inside CID’s. 4 advantage of the opt-out provision prescribed by Ordinance No. 710. Staff reported “such a new, bare-minimum common interest development would circumvent the intent of the larger neighborhood, and thus circumvent[] the intent of the City’s exception for common interest developments to opt out.” In 2020, the City adopted Ordinance No. 725 to address those concerns. Ordinance No. 725 amended IWMC section 5.20.210 to add a minimum number of separate interests (four or more interests excluding common areas) for a CID to be entitled to conduct a vote to opt out of the City’s minimum stay requirement established by Ordinance No. 710. The amendment also prohibited a smaller CID created within a larger CID from operating an STR unless the larger CID had voted to allow such operation. The same year, the City adopted Ordinance No. 731 to enhance its enforcement tools over STR’s. Finally, in 2022 the City enacted Ordinance No. 732. Ordinance No. 732 retains the minimum-interest requirement and the requirement that a smaller CID may only opt out if the larger CID in which it resides has also voted to opt out. As amended by Ordinance No. 732, IWMC section 5.20.210(a)(6) now requires that a CID’s member- properties satisfy a contiguity requirement for the CID to be entitled to opt out. For the CID to opt out, IWMC section 5.20.210 requires the governing board to propose a formal vote of all owners within the CID on the question of whether to permit the operation of STR’s for a minimum number of consecutive nights as determined by the governing board. The proposal must be adopted by at least a majority of voting members. Once the 5 results are filed with the City, STR’s may be operated within the CID for the minimum stay adopted by the members. If the proposal is not adopted or no opt-vote is conducted, rentals within the CID will be subject to the minimum stay requirement under Ordinance No. 710. Finally, a CID may vote to repeal its prior opt-out vote by conducting a new vote by its members, using the same voting procedures for the opt out, after which rentals will once more be subject to the generally applicable 29-night minimum stay requirement under Ordinance No. 710. B. This Lawsuit The Parsons own residential property within the Eldorado Barranca Property Owner’s Association (Barranca POA), a CID located in the City. Barranca POA’s governing documents authorize rentals of any duration. The Parsons alleged that between July 2015 and July 2017, they invested $1.5 million in their property with the intention of operating an STR. In 2015, the Parsons obtained a permit from the City to rent their property as a grandfathered STR under Ordinance No. 689. The Parsons were among those who voiced their concerns in 2018 when the City introduced Ordinance No. 710 to further restrict STR’s. As noted, the City addressed those concerns in Ordinance No. 732 by providing a version of the opt-out procedure originally introduced by Ordinance No. 710. Alleging Barranca POA refused to support their claimed right to operate an STR under the governing documents, the Parsons sued the governing board in 2018. In 2021, the board confirmed to the Parsons that its governing documents allowed members to rent 6 their individual property with no minimum stay requirement. However, the board had not certified a successful opt-out vote by the time the Parsons filed the instant writ proceeding against the City. On September 10, 2019, while their lawsuit against Barranca POA was still pending, the Parsons and other Barranco POA property owners formed the Fairway Tennis Maintenance Association (Tennis HOA). The Tennis HOA purports to be a CID consisting of three separate, non-contiguous interests located within Barranca POA. Three weeks later, the Tennis HOA certified it had successfully conducted an opt-out vote to allow the operation of STR’s. The Parsons then requested the City issue an unrestricted STR permit, which the City promptly denied. On June 1, 2020, the Parsons filed their verified petition for writ of mandate alleging the City 3 had a ministerial duty to issue a permit for the operation of an STR once the Tennis HOA had certified a successful opt-out vote. After several rounds of amended pleadings and partially successful demurrers, on October 13, 2022, the Parsons filed the operative fourth amended petition for injunctive and declaratory relief. The Parsons alleged, inter alia, the CID opt-out procedure under Ordinance No. 732 constitutes an unconstitutional delegation of authority to private parties or entities, and it is preempted by section 4740. Relevant here, in their trial brief the Parsons argued Ordinance No. 732 is preempted by section 4740 and the ordinance’s voting procedure conflicts with sections 3 The Parsons also named as respondents the City’s mayor, mayor pro tempore, three members of the city council, and the City’s director of community development. 7 4270 and 4275, which require a majority vote of all eligible CID owners to amend the CID’s declaration and not merely a majority of members voting. In addition, the Parsons argued Ordinance No. 732 improperly delegated the City’s legislative authority to CID’s to decide whether to permit the operation of rentals for less than the generally applicable minimum stay requirement. Finally, the Parsons argued the City harassed and targeted them, and acted in an arbitrary and capricious manner when it enacted Ordinance No. 732. In its responsive trial brief, the City argued the opt-out procedure established by Ordinance No. 732 is not preempted by section 4740 because it does not require a CID to amend its governing documents, the ordinance does not unconstitutionally delegate authority because the City had established a clear legislative policy regarding the operation of STR’s and the ordinance established procedural guidelines and safeguards for opt-out votes, and it did not act arbitrarily or capriciously when it enacted Ordinance No. 732. After conducting a hearing, the trial court granted the petition. Initially, the trial court rejected the City’s arguments that the Parsons lacked standing to sue and failed to join necessary parties. On the merits, the trial court ruled the opt-out procedure established by Municipal Code section 5.20.210, as amended by Ordinance No. 732, does not require a quorum of CID members and, therefore, conflicts with sections 4270 and 4275. Further, the trial court determined IWMC section 5.20.210 allows a CID to conduct a vote that would have the effect of restricting homeowners from operating 8 STR’s even if they previously had that right. Relying on this court’s decision in Brown v. Montage at Mission Hills, Inc. (2021) 68 Cal.App.5th 124 (Brown) and the legislative history of sections 4740 and 4741, the trial court ruled IWMC section 5.20.210 is preempted by the Act. The trial court also found that, although the City’s delegation of the decision whether to allow STR’s in a CID is not in and of itself offensive, the court was troubled the opt out takes the issue of whether to permit STR’s entirely out of the City’s control. The court further surmised that any vote would necessarily result in an outcome that conflicts with the Act and, thus, Ordinance No. 732 is preempted. Finally, the court found the Parsons had not met their “high burden” of establishing the City acted arbitrarily and capriciously when it enacted Ordinance No. 732. The court noted “the City enacted various ordinances over several years concerning STRs,” and the Parsons submitted no evidence that Ordinance No. 732 had been enacted to harass, intimidate, or otherwise deprive them of the right to rent their property. Having concluded IWMC section 5.20.210 is invalid, the trial court ruled the City had a ministerial duty to issue a permit to the Parsons for the operation of an STR. The trial court entered judgment for the Parsons. The court subsequently denied the City’s motion to set aside the judgment, issued a writ of mandate directing the City to issue an STR permit to the Parsons, and granted the Parsons’s motion for attorney fees. The City timely appealed. 9  II. DISCUSSION As explained, post, we hold the opt-out provision of IWMC section 5.20.210 is not preempted by section 4740 and the Act’s voting requirements for the simple reason that a vote to opt out of the minimum stay requirement does not result in an amendment to a CID’s governing documents. Likewise, we hold the City did not unconstitutionally delegate its legislative authority to private parties. The City adopted a generally applicable policy on the question of STR’s by declaring them to be a public nuisance and imposing a minimum stay requirement for residential rentals, but properly delegated to CID members the ability to decide for themselves whether to waive that protection. Last, we conclude the trial court correctly ruled the City did not act arbitrarily or capriciously when it enacted Ordinance No. 732. Therefore, we reverse the judgment and the postjudgment order awarding the Parsons their attorney fees. A. Standard of Review The superior court may issue a writ of mandate “to any inferior tribunal, corporation, board, or person, to compel the performance of an act which the law specially enjoins, as a duty resulting from an office, trust, or station . . . .” (Code Civ. Proc., § 1085, subd. (a).) “Mandamus is . . . appropriate for challenging the constitutionality or validity of statutes or official acts.” (Jolicoeur v. Mihaly (1971) 5 Cal.3d 565, 570, fn. 2; see Wenke v. Hitchcock (1972) 6 Cal.3d 746, 751.) Relevant here, the courts have recognized traditional mandate as an appropriate means to challenge the 10 constitutionality of a city zoning ordinance. (Wal-Mart Stores, Inc. v. City of Turlock (2006) 138 Cal.App.4th 273, 299-300, disapproved on another ground in Hernandez v. City of Hanford (2007) 41 Cal.4th 279, 297.) “‘To obtain writ relief under Code of Civil Procedure section 1085, the petitioner must show there is no other plain, speedy, and adequate remedy; the respondent has a clear, present, and ministerial duty to act in a particular way; and the petitioner has a clear, present and beneficial right to performance of that duty. [Citation.] A ministerial duty is one that is required to be performed in a prescribed manner under the mandate of legal authority without the exercise of discretion or judgment.’” (Zubarau v. City of Palmdale (2011) 192 Cal.App.4th 289, 305.) The trial court must determine whether the official action “‘“was arbitrary, capricious, or entirely lacking in evidentiary support, contrary to established public policy, unlawful [or] procedurally unfair . . . . [Citations.] ‘Although mandate will not lie to control a public agency’s discretion, that is to say, force the exercise of discretion in a particular manner, it will lie to correct abuses of discretion. [Citation.]’” [Citation.]’” (Citizens for Amending Proposition L v. City of Pomona (2018) 28 Cal.App.5th 1159, 1173.) “‘“In reviewing a judgment granting a writ of mandate, we apply the substantial evidence standard of review to the court’s factual findings, but independently review its findings on legal issues. [Citation.]” [Citation.] “Where, as here, the facts are undisputed and the issue involves statutory interpretation, we exercise our independent 11 judgment and review the matter de novo.”’” (California Privacy Protection Agency v. Superior Court (2024) 99 Cal.App.5th 705, 721-722.) B. Ordinance No. 732 Is Not Preempted By Section 4740. 1. Forfeiture. As an initial matter, the Parsons contend the City forfeited its arguments on appeal based on the “home rule” doctrine by not pleading that doctrine as an affirmative defense in its answer and by not arguing application of the doctrine in its trial briefs. The City responds it sufficiently raised the “home rule” argument in its response to the fourth amended petition, and, to the extent it forfeited the argument, we should nonetheless consider it. Generally, affirmative defenses are forfeited if they are not properly pleaded in an answer or asserted in a general demurrer. (See Quigley v. Garden Valley Fire Protection Dist. (2019) 7 Cal.5th 798, 807; PGA West Residential Assn., Inc. v. Hulven Internat., Inc. (2017) 14 Cal.App.5th 156, 176.) But the Parsons cite no authority for the proposition that the “home rule” doctrine applicable to charter cities is an affirmative defense that must be pleaded, and we have found none. There is authority for the proposition that failure to argue application of the “home rule” doctrine in the trial court forfeits the argument on appeal. (See City of Cerritos v. State of California (2015) 239 Cal.App.4th 1020, 1046.) However, “‘the forfeiture doctrine is not absolute.’” (Victor Valley Union High School Dist. v. Superior Court (2023) 91 Cal.App.5th 1121, 1157.) “In general, forfeiture of a claim not raised in the 12 trial court by a party has not precluded review of the claim by an appellate court in the exercise of that court’s discretion. [Citations.] Thus, an appellate court may review a forfeited claim—and ‘[w]hether or not it should do so is entrusted to its discretion.’” (In re Sheena K. (2007) 40 Cal.4th 875, 887, fn. 7.) “The determination of the correct legal standard to be applied [in the trial court] presents a question of law, which we review de novo.” (Department of Water Resources Environmental Impact Cases (2022) 79 Cal.App.5th 556, 574.) Because this appeal addresses an important issue of statutory interpretation and the underlying facts are not in dispute, we exercise our discretion to address the City’s arguments based on the “home rule” doctrine. (See In re S.B. (2004) 32 Cal.4th 1287, 1293 [“[T]he appellate court’s discretion to excuse forfeiture should be exercised rarely and only in cases presenting an important legal issue.”]; Perry v. Stuart (2025) 111 Cal.App.5th 472, 503 [“‘[W]hen an appeal raises a question of law on undisputed facts, the issue has not been forfeited.’”].) 2. Preemption principles application to charter cities. The City is governed by a charter. (City of Indian Wells Charter, art. I, § 100.) 4 “‘“The Government Code classifies cities as either ‘general law cities’ (cities organized under the general law of California) or ‘chartered cities’ (cities organized under a charter).”’” (State Building & Construction Trades Council of California v. City of Vista (2012) 54 Cal.4th 547, 552, fn. 1 (City of Vista); see Gov. Code, §§ 34100, 34101, 4 Available at <https://www.cityofindianwells.org/home/showpublisheddocument/7892/638054138402 888870> (as of Aug. 31, 2026.) 13 34102.) “Both types of cities are governed by article XI, section 7 of the California Constitution, which vests them with the power to ‘make and enforce within [their] limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws.’ Under this provision, cities ‘have plenary authority to govern, subject only to the limitation that they exercise this power within their territorial limits and subordinate to state law.’” (City of Rancho Palos Verdes v. State of California (2025) 114 Cal.App.5th 13, 23, quoting Candid Enterprises, Inc. v. Grossmont Union High School District (1985) 39 Cal.3d 878, 885.) “Article XI, section 5, subdivision (a) of the California Constitution provides that a city governed by charter ‘may make and enforce all ordinances and regulations in respect to municipal affairs, . . . and in respect to other matters they shall be subject to general laws. City charters . . . with respect to municipal affairs shall supersede all laws inconsistent therewith.’” (Anderson v. City of San Jose (2019) 42 Cal.App.5th 683, 698.) “The provision represents an ‘affirmative constitutional grant to charter cities of “all powers appropriate for a municipality to possess . . .” and [includes] the important corollary that “so far as ‘municipal affairs’ are concerned,” charter cities are “supreme and beyond the reach of legislative enactment.”’” (City of Vista, supra, 54 Cal.4th at p. 556.) “The home rule doctrine enshrines charter cities’ sovereignty over ‘municipal affairs.’ (Cal. Const., art. XI, § 5, subd. (a).) The doctrine ‘also implicitly recognizes state legislative supremacy over matters not within the ambit of that phrase [municipal 14 affairs].’” (Anderson, at p. 698, quoting California Fed. Savings & Loan Assn. v. City of Los Angeles (1991) 54 Cal.3d 1, 13 (California Fed. Savings).) “Home rule authority under article XI, section 5 of the California Constitution does not mean charter cities can never be subject to state laws that concern or regulate municipal affairs. ‘[A] charter city’s authority to enact legislation is not unlimited.’” (City of Huntington Beach v. Becerra (2020) 44 Cal.App.5th 243, 254.) “The Legislature may legislate as to matters of statewide concern and, if the statute is not overbroad, then the conflicting charter city law ‘ceases to be a “municipal affair” pro tanto and the Legislature is not prohibited by article XI, section 5(a), from addressing the statewide dimension by its own tailored enactments.’ (California Fed. Savings, supra, 54 Cal.3d at p. 17.) ‘[G]eneral law prevails over local enactments of a chartered city, even in regard to matters which would otherwise be deemed to be strictly municipal affairs, where the subject matter of the general law is of statewide concern.’ (People ex rel. Seal Beach Police Officers Assn. v. City of Seal Beach (1984) 36 Cal.3d 591, 600 . . .)” (Becerra, at pp. 254-255.) “When state law and a charter city’s regulations or ordinances conflict, we apply a four-factor test to determine whether the home rule doctrine permits or bars state law preemption.” (People ex rel. Bonta v. City of Huntington Beach (2025) 115 Cal.App.5th 962, 968.) “First, we analyze ‘whether the city ordinance at issue regulates an activity that can be characterized as a “municipal affair.”’ (City of Vista, supra, 54 Cal.4th at p. 556.) Second, we consider whether the case presents an actual conflict between state 15 and local law. (Ibid.) Third, we ‘decide whether the state law addresses a matter of “statewide concern.”’ (Ibid.) Fourth, we ‘determine whether the law is “reasonably related to . . . resolution” of that concern [citation] and “narrowly tailored” to avoid unnecessary interference in local governance.’ (Ibid.) ‘“If . . . the court is persuaded that the subject of the state statute is one of statewide concern and that the statute is reasonably related to its resolution [and not unduly broad in its sweep], then the conflicting charter city measure ceases to be a ‘municipal affair’ pro tanto and the Legislature is not prohibited by article XI, section 5[, subdivision (a) of the California Constitution], from addressing the statewide dimension by its own tailored enactments.”’” (People ex rel. Bonta, at p. 968.) “[T]he question whether in a particular case the home rule provisions of the California Constitution bar the application of state law to charter cities turns ultimately on the meaning and scope of the state law in question and the relevant state constitutional provisions. Interpreting that law and those provisions presents a legal question, not a factual one. [Citations.] Courts accord great weight to the factual record that the Legislature has compiled [citations], and also to any relevant facts established in trial court proceedings. [Citation.] Factual findings by the Legislature or the trial court, however, are not controlling. [Citation.] The decision as to what areas of governance are municipal concerns and what are statewide concerns is ultimately a legal one.” (City of Vista, supra, 54 Cal.4th at p. 558.) 16  i. Municipal affairs. The Parsons argue Ordinance No. 732 might, in its entirety, address “municipal affairs” but IWMC section 5.20.210—the portion that allegedly “interfere[s] with internal CID operations”—does not. Putting aside for a moment the question of whether the ordinance does or does not interfere with a CID’s internal operations—which relates the question of whether there is an actual conflict—we have no difficulty concluding a local ordinance addressing STR’s regulates a “municipal affair.” “There is no precise, lasting, and inflexible definition of a municipal affair.” (Los Angeles Brewing Co. v. City of Los Angeles (1935) 8 Cal.App.2d 391, 397.) “[T]he task of determining whether a given activity is a ‘municipal affair’ or one of statewide concern is an ad hoc inquiry,” and “the question ‘must be answered in light of the facts and circumstances surrounding each case’ [citation]. ‘No exact definition of the term “municipal affairs” can be formulated and the courts have made no attempt to do so, but instead have indicated that judicial interpretation is necessary to give it meaning in each controverted case.’ [Citation.] But our decisions have also strived to confine the element of judicial interpretation by hedging it with a decisional procedure intended to bring a measure of certainty to the process, narrowing the scope within which a sometimes mercurial discretion operates.” (California Fed. Savings, supra, 54 Cal.3d at p. 16.) The courts have long recognized that local land use and zoning regulations are municipal affairs. (New Commune DTLA LLC v. City of Redondo Beach (2025) 115 Cal.App.5th 111, 126 [“Municipal land use and zoning regulations are municipal 17 affairs”]; City of Los Angeles v. State of California (1982) 138 Cal.App.3d 526, 533 [“[P]lanning and zoning in the conventional sense have traditionally been deemed municipal affairs”].) “‘Land use regulation in California historically has been a function of local government under the grant of police power contained in article XI, section 7. . . . “[The California Supreme Court has] recognized that a city’s or county’s power to control its own land use decisions derives from this inherent police power, not from the delegation of authority by the state.”’ [Citation.] Consistent with this principle, ‘when local government regulates in an area over which it traditionally has exercised control, such as the location of particular land uses, California courts will presume, absent a clear indication of preemptive intent from the Legislature, that such regulation is not preempted by state statute.’” (City of Riverside v. Inland Empire Patients Health & Wellness Center, Inc. (2013) 56 Cal.4th 729, 742-743 (City of Riverside).) In addition, as part of their general police powers and by statute, cities are authorized to regulate local businesses through zoning ordinances and licensing requirements. (Cal. Const., art XI, § 7; Gov. Code, § 3701, subds. (a)-(b); Bus. & Prof. Code, § 1600.) Because IWMC section 5.20.210 clearly addresses a “municipal affair,” we next address whether there is an actual conflict between it and the Act. 18  ii. No actual conflict. The Parsons argue IWMC section 5.20.210 conflicts with state law because the local ordinance requires what the Act prohibits. We disagree and find no inimical conflict. “Charter city law is contradictory to state law when it is inimical thereto. (City of Riverside[, supra,] 56 Cal.4th [at p.] 743.) ‘[N]o inimical conflict will be found where it is reasonably possible to comply with both the state and local laws.’ (Ibid.)” (City of El Centro v. Lanier (2016) 245 Cal.App.4th 1494, 1505.) “If no conflict exists, the analysis is complete and there is no need to go to the next step.” (City of Huntington Beach v. Becerra, supra, 44 Cal.App.5th at p. 255, citing California Fed. Savings, supra, 54 Cal.3d at p. 16.) Whether there is an actual conflict between the Act and IWMC section 5.20.210 is a matter of statutory construction. (City of Vista, supra, 54 Cal.4th at p. 559.) “The principles of statutory construction apply equally to the construction of ordinances.” (Bruni v. The Edward Thomas Hospitality Corp. (2021) 64 Cal.App.5th 247, 254.) “When interpreting a statute, ‘“[w]e first examine the statutory language, giving it a plain and commonsense meaning.” [Citation.] We do not consider statutory language in isolation; instead, we examine the entire statute to construe the words in context. [Citation.] If the language is unambiguous, “then the Legislature is presumed to have meant what it said, and the plain meaning of the language governs.” [Citation.] “If the statutory language permits more than one reasonable interpretation, courts may consider 19 other aids, such as the statute’s purpose, legislative history, and public policy.”’” (Madrigal v. Hyundai Motor America (2025) 17 Cal.5th 592, 602.) The Act governs the creation and operation of CID’s. (Pinnacle Museum Tower Assn. v. Pinnacle Market Development (US), LLC (2012) 55 Cal.4th 223, 236.) CID’s are created by recording a “declaration” that contains, inter alia, a legal description of the development and a statement of restrictions on the use or enjoyment of any part of the common property. (§ 4200, subd. (a); see §§ 4135, 4250, 4255.) The governing documents of the CID include the declaration “and any other documents, such as bylaws, operating rules, articles of incorporation, or articles of association, which govern the operation of the common interest development or association.” (§ 4150.) The declaration may only be amended by a vote of the percentage of members of the common interest development as specified in the declaration. (§§ 4270, 4275.) Section 4740 is found in chapter 5, article 1 of the Act, which “includes provisions that limit the authority of an association or the governing documents to regulate the use of a member’s separate interest.” (§ 4700.) In relevant part, section 4740 provides, “An owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests in that common interest development to a renter, lessee, or tenant unless that governing document, or amendment thereto, was effective prior to the date the owner acquired title to their separate interest.” (§ 4740, subd. (a), italics added.) On its face, section 4740 only applies when the 20 governing documents of a CID prohibit rentals by members who purchased their properties before the prohibition became effective. It simply does not address whether a city may ban, restrict, or otherwise regulate STR’s by ordinance, or whether a CID may vote to opt out of such a restriction on the operation of STR’s in a manner that does not amend the governing documents. Nor does the legislative history of section 4740 indicate the Legislature intended to insulate CID’s from generally applicable zoning restrictions on STR’s, or to prohibit a CID’s members from opting out of those restrictions. Legislative efforts to protect owners’ ability to rent out housing in CID’s began with Senate Bill No. 150 (2011-2012 Reg. Sess.), which enacted former section 1360.2. That statute stated, in relevant part, “[a]n owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests in that common interest development to a renter, lessee, or tenant unless that governing document, or amendment thereto, was effective prior to the date the owner acquired title to his or her separate interest.” (Former § 1360.2, subd. (a), as added by Stats. 2011, ch. 62, § 2, subd. (a).) This restriction applied only to rules that became effective on or after January 1, 2012 (Stats. 2011, ch. 62, § 2, subd. (f)), and owners remained free to consent to new restrictions on their right to rent their property (Stats. 2011, ch. 62, § 2, subd. (b)). Legislative analyses of Senate Bill No. 150 emphasized owners’ need for flexibility during a period of widespread financial hardship and depressed property 21 values. 5 (See, e.g., Assem. Housing & Community Development Com., Analysis of Senate Bill No. 150 as amended June 9, 2011, p. 3 [“Many people need to rent their units because of job relocation or a personal situation. The ability to rent a unit has become even more important because of the deteriorating housing market.”] 6; Sen. Judiciary Com., Analysis of Senate Bill No. 150 as amended April 25, 2011, p. 4 [“For those homeowners who are facing difficult economic times, renting their home and moving in with a family member is one practical way to generate additional income to pay the mortgage and avoid a foreclosure”] 7.) In 2012, the Legislature repealed former section 1360.2 and enacted the same language as section 4740. (Stats. 2012, ch. 180, §§ 1-2.) The Legislature expanded its regulation of restrictions on rentals in common interest developments with Assembly Bill No. 3182 (2019-2020 Reg. Sess.). Effective January 1, 2021, Assembly Bill No. 3182 removed former section 4740’s exceptions for rules to which owners consented and for those adopted prior to January 1, 2012, and added section 4741. 8 (Stats. 2020, ch. 180, §§ 1-2.) 5 The City’s unopposed request that we take judicial notice of legislative history materials related to Senate Bill No. 150 and Assembly Bill No. 3182 is granted. (Evid Code, §§ 452, 459; Cal. Rules of Court, rule 8.252(a).) 6 Available at <https://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0101- 0150/sb_150_cfa_20110614_082052_asm_comm.html> (as of Aug. 31, 2026). 7 Available at < https://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0101- 0150/sb_150_cfa_20110509_133106_sen_comm.html> (as of Aug. 31, 2026). 8 Section 4741 provides, in relevant part: “An owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits, has the effect of 22  In contrast to Senate Bill No. 150, the legislative history of Assembly Bill No. 3182 focuses less on the need to protect homeowners experiencing financial hardship and more on the need to address the state’s housing shortage. As stated by the bill’s author, “We must marshal all available resources to address the housing and homelessness crisis. There are millions of homes across the state that have the potential to be rented to Californians in need of housing but are prohibited from being leased under outdated HOA rules. AB 3182 prohibits rental bans in HOAs to allow homeowners who want to, [to] rent out their homes.” (Sen. Rules Com., Off. of Sen. Floor Analyses, 3d reading analysis of Assem. Bill No. 3182 as amended July 27, 2020, p. 3, italics added.) 9 The bill’s sponsor, California YIMBY, argued “that HOA prohibitions against tenants act as a prohibition against the production of important types of housing needed to solve California’s housing crisis because if that housing cannot be occupied by a tenant, it is unlikely in many cases to be built.” (Id. at p. 5, italics added.) And, as stated in an Assembly report, the bill “would remove the exemption for pre-2012 rental bans and prevent the governing documents of a CID from banning the rental or leasing of a prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units in that common interest development to a renter, lessee, or tenant.” (§ 4741, subd. (a), italics added.) 9 Available at <https://leginfo.legislature.ca.gov/faces/billAnalysisClient.xhtml?bill_id=201920200AB3 182#> (as of Aug. 31, 2026). 23 separate interest.” (Assem. Housing & Community Development Com., Analysis of Assem.