An Orange County Superior Court judge ruled against Huntington Beach and sided with a mobile home park owner looking to convert the land from rentals to for-sale.
Pacific Mobile Home Park, at Huntington Street and Atlanta Avenue, filed a lawsuit in August claiming the city broke the law when it turned down the park owner's request to convert the land and offer renters the opportunity to purchase the parcels under their coaches.
The court's decision, issued June 28, set aside the City Council's previous vote and requires the city to reconsider the application.
"Based on the way the court ruled, the city doesn't really have any choice but to approve the subdivision," said Pacific Mobile attorney Mark Alpert.
In June of last year, the council denied Pacific Mobile's application because the conversion would have further encroached on city property.
Over the years, some of Pacific Mobile's coaches or their accessories had gradually moved toward the street, taking part of the city's land.
However, Judge Luis Rodriguez said the city did not have the authority to deny the application based on whether or not the coaches were encroaching on city property.
Huntington Beach has filed a request to evict or relocate residents whose coaches have encroached on city land. But a court decision on that request has not been made yet, Alpert said.
City Attorney Jennifer McGrath could not be reached for comment.