Editor’s note: An item in our newsletter titled “CAA files appellate court brief against Pasadena rent control measure“ incorrectly links to this page. For the Pasadena article, please click here.
Gov. Newsom in recent days has issued a series of emergency declarations for a total of 12 California counties in response to severe winter storms impacting a vast portion of the state with high winds, heavy rain, and snowfall.
The most recent proclamation, announced Sunday, Feb. 4, 2024, encompasses eight Southern California counties battered by powerful storms that began on Feb. 3. These counties include Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, and Ventura. This declaration comes as the state anticipates further life-threatening flooding, debris flows, heavy snow, and damaging winds.
This follows an earlier declaration made on Feb. 2, extending emergency support to Humboldt, Imperial, San Mateo, Santa Cruz, and Monterey counties. These areas are reeling from winter storms that occurred in late December and January.
Both declarations trigger the state’s anti-price gouging law, Penal Code Section 396. This legislation prohibits increasing the price of numerous consumer goods and services, including rental housing, by more than 10% above pre-emergency levels. The restrictions apply to existing tenants and rent increases at unit turnover.
Notably, the Feb. 2 proclamation uniquely suspends price-gouging restrictions under Penal Code Section 396 for Monterey County only.
The protections against price gouging for the eight counties declared on Feb. 4 are set to expire on March 5, 2024, while the restrictions for the four counties declared on Feb. 2 are slated to lapse on March 3, 2024. The governor’s emergency declaration for San Diego and Ventura counties, announced earlier on Jan. 23, is scheduled to expire on Feb. 22, 2024. However, all declarations may be extended if necessary.
Violations of the statewide anti-price-gouging law can result in severe penalties, including a year in county jail, fines up to $10,000, or both, in addition to potential civil penalties. Local ordinances might impose further penalties.
The California Apartment Association reminds that it does not track emergency declarations by local officials. For local emergencies declared by cities and counties, landlords should consult with the relevant local authorities regarding the implications of Penal Code Section 396.
