Fifteen leading multifamily and commercial real estate firms, in collaboration with the California Apartment Association and ConnectCRE, have launched the LA Wildfires CRE Pledge for Action to support residents and rebuild communities devastated by wildfires that swept through Los Angeles County earlier this month.
The grassroots initiative focuses on addressing immediate housing needs, combating price gouging, and laying the groundwork for long-term restoration.
Tom Bannon, chief executive officer of CAA, praised the industry’s rapid response.
“This call and pledge for action is a relevant, meaningful and actionable initiative focused on restoring the affected communities across Southern California,” Bannon said. He emphasized the importance of landlords across the region committing to fight price gouging during this critical time. “It is encouraging that so many firms have already joined with us in this community restorative endeavor. We urge more firms across the CRE industry to be a part of this vital cause as we contribute to Los Angeles’ resilience.”
Supporting recovery efforts
With tens of thousands of residents displaced due to fires in areas such as Pacific Palisades and Altadena, the initiative encourages landlords to act swiftly and compassionately. CAA has emphasized compliance with California’s anti-price-gouging law, Penal Code Section 396, which prohibits rent increases exceeding 10% above pre-emergency levels.
Bob Hart, President and CEO of TruAmerica Multifamily, highlighted the importance of reducing barriers for displaced families. “TruAmerica is working with its third-party management teams to ensure that lists of available units are distributed as widely as possible to those impacted by the fires and reducing qualifications like application fees and credit checks,” Hart said. He called on landlords across California to follow suit and pledge against price gouging.
Participating firms are taking additional steps to assist wildfire victims. Hanes Properties, for example, is offering month-to-month leases, waiving security deposits, and freezing rental rates for affected residents. Camden is similarly waiving application fees and freezing new lease rates.
A coordinated industry response
Sean Burton, CEO of Cityview, underscored the scale of the challenge. “The rebuilding and recovery effort will be a massive undertaking, beyond even the Northridge earthquake,” he said, stressing the need for collaboration among businesses, government entities, and local communities.
Chris Tourtellotte, managing director of LaTerra Development, said: “These wildfires have impacted those across all socioeconomic conditions, so housing needs will need to be met at multiple levels. We are offering vacant units at properties for low cost, some for as much as just a dollar to help people bridge to recovery.”
Compliance with anti-price-gouging laws
CAA reminded landlords of the importance of adhering to Penal Code Section 396 during this emergency. Violations can result in severe penalties, including fines of up to $10,000 and potential jail time. To learn more, visit CAA’s website or the LA Wildfires CRE Pledge for Action resource page.
