A federal judge has preliminarily approved a $43 million class action settlement resolving claims that Equity Residential apartment communities unlawfully charged late fees to tenants across California, including in Oakland.

The lawsuit, filed in the U.S. District Court for the Northern District of California, challenged the company’s long-standing policy of imposing a 5% late fee — $50 in this case — alleging that it did not reasonably reflect actual collection costs as required under state law.

This settlement could have profound implications for mobilehome park communities. WMA urges members who impose late fees to consult with their attorneys to ensure these charges are properly structured and able to withstand increasing scrutiny and potential legal challenges. Given the rising risk and cost of litigation in California, some parkowners have chosen to discontinue charging late fees altogether.