In response to reports of rent gouging following the devastating fires in the Los Angeles region, the California Apartment Association has called for strict enforcement of California’s anti-price-gouging law and reiterated its commitment to ethical rental practices during emergencies.
“Raising rents beyond legal limits during a declared state of emergency is illegal and unconscionable,” said Tom Bannon, chief executive officer of CAA. “The actions of a few bad actors tarnish our entire industry and exploit vulnerable families struggling to rebuild. We support efforts to strengthen penalties for violators and encourage strict enforcement of the law.”
Recent reports of egregious violations, such as rent hikes of up to 60% in Venice and more than 100% in Santa Monica, were highlighted in a Los Angeles Times article today. Under California’s Penal Code Section 396, rent increases are capped at 10% above pre-emergency levels. Violators currently face fines of up to $10,000 and up to one year in jail. These penalties, however, could increase under a proposal by Los Angeles City Councilmember Traci Park, who has suggested raising fines to $30,000, according to the Los Angeles Times.
Praise for leadership and swift recovery actions
CAA commends Gov. Gavin Newsom and Los Angeles Mayor Karen Bass for their leadership in expediting recovery efforts. A recent executive order from Newsom streamlines permitting and reconstruction processes, while Bass’s emergency measures have already made 1,400 housing units available by expediting temporary certificates of occupancy.
“These actions exemplify the leadership needed to address this crisis,” Bannon said. “We encourage further collaboration to rebuild our communities and ensure displaced families have access to safe, affordable housing.”
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