Gov. Gavin Newsom on Thursday extended price-gouging protections for rental housing, while the state's top law enforcement official vowed to crack down on landlords who raise rents and ignore the rules in the wake of Los Angeles County. Catastrophe fire.
Under California law, price gouging protections kick in during a crisis and generally prevent landlords, hotels and motels from charging 10% more than they charged or advertised before the crisis.
The protections were set to expire in February, but Newsom issued an executive order Thursday that extended them until March 8 in L.A. County.
According to the state attorney general, if wildfires create additional housing demand outside the county, those protections also exist elsewhere.
Because of the fire last week, Wave of LA County Landlords According to online listings, they have raised the rents of their properties beyond what the rules allow, including increases of more than 50%.
The lists were widely shared on social media, prompting calls from tenant organizations and even some landlord groups for authorities to prosecute.
“The actions of a few bad actors tarnish our entire industry and exploit vulnerable families struggling to rebuild,” Tom Bannon, CEO of the California Apartment Assn., said in a statement Wednesday. “We support efforts to strengthen penalties for violators and encourage stricter enforcement of the law.”
At a press conference Thursday, California Atty. Gen. Rob Ponta said his office actively investigates many price-gouging complaints, and violators face up to a year in jail and a $10,000 fine per violation.
Quoted by Bonda Los Angeles Times story As of Wednesday, an agent said their client raised the rent beyond the 10% limit, in part because the client didn't think the authorities would prosecute.
“That customer was very wrong,” Bonda said.
“We will prosecute wherever laws are violated,” he said. “Don't think we're messing around, try calling it. You'll regret it.
In addition to the extension of inflation protection, Newsom's executive order seeks to build homes faster after the fire. He has already declared. The new rules include regulating the construction of ADUs on fire-ravaged properties and speeding up the permitting process for temporary housing.
“As thousands of Los Angeles residents face sudden displacement, our state will do everything it can to provide housing and assistance as quickly as possible,” Newsom said in a statement. “Today, we are speeding up the creation of new temporary housing by removing roadblocks and strengthening protection against exploitation.”