On Wednesday, December 18, Governor Newsom proclaimed a statewide state of emergency with a related cap on rent increases to streamline and expedite the state’s response to Avian Influenza A (commonly known as “Bird Flu”).  The proclamation was issued because cases of Bird Flu were detected in dairy cows in Southern California, signaling the need to further expand monitoring and build on the coordinated statewide approach to contain and mitigate the spread of the virus.

The governor’s emergency proclamation automatically triggers Penal Code Section 396, the state’s anti-price gouging law, thereby capping rent increases at no more than 10% above pre-emergency levels. These protections apply to existing tenants and at unit turnover. Violations of the law can result in penalties, including a fine of up to $10,000, imprisonment for up to a year, or both, along with potential civil liabilities.

To date, no person-to-person spread of Bird Flu has been detected in California and nearly all infected individuals had exposure to infected cattle.  Although California has already established the largest testing and monitoring system in the nation to respond to the outbreak, the proclamation will provide state and local agencies with additional flexibility around staffing, contracting, and other rules to strengthen the state’s ongoing response.

This state of emergency and the accompanying protections against price gouging are set to expire on January 17, 2025, but can be extended. 

Landlords are encouraged to review their rent policies to ensure compliance with the law. Landlords should also consult with local authorities regarding additional price-gouging protections that may apply under local emergency declarations, as the California Apartment Association does not track such declarations. 

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