Gov. Gavin Newsom has extended California’s rent-gouging protections in response to the firestorms in Los Angeles County. The governor’s latest executive order, issued Thursday, Jan. 16, 2025, prohibits rent increases of more than 10% in Los Angeles County through March 8, 2025. These restrictions apply to existing tenants and new leases during the emergency period.
Under Penal Code Section 396, rent increases of more than 10% are prohibited in jurisdictions named in the emergency proclamation and in areas experiencing heightened housing demand resulting from the emergency. Violators could face up to a year in county jail, fines up to $10,000, or both, along with civil penalties.
Protections extended beyond rent
Recent reports of egregious rent-gouging violations, such as rent hikes of up to 60% in Venice and more than 100% in Santa Monica, have underscored the need for strict enforcement of these protections.
To deter violators, Los Angeles City Councilwoman Traci Park has proposed increasing fines for rent-gouging violations from $10,000 to $30,000. This proposal highlights ongoing efforts to hold bad actors accountable and protect displaced families from exploitation.
“Raising rents beyond legal limits during a declared state of emergency is illegal and unconscionable,” said Tom Bannon, chief executive officer of the California Apartment Association. “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.”
Attorney General Rob Bonta also emphasized the importance of these protections.
“Folks across the region are being preyed upon by greedy businesses and landlords, scam artists, and predatory buyers looking to make a quick buck off their pain,” Bonta said. “My office is here to say this is not only wrong, it is illegal. Let there be no doubt that short-term rentals are a crucial housing resource, not a get-rich-quick scheme.”
Praise for leadership and recovery actions
CAA has commended Gov. Gavin Newsom and Los Angeles Mayor Karen Bass for their leadership in expediting recovery efforts. Newsom’s executive order streamlines permitting and reconstruction processes, while Bass’s emergency measures have already made 1,400 housing units available by expediting temporary certificates of occupancy. In addition to capping rent increases, the executive order also suspends fees for mobile home parks under multiple acts and simplifies the placement of temporary housing, such as trailers, on properties affected by fire damage.
“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.”
Other limits on rent increases
Landlords should note that much of Los Angeles County’s housing stock is already subject to rent caps under local rent control laws or the statewide Tenant Protection Act (AB 1482), which generally limit annual rent increases to less than the 10% cap established under the state’s price-gouging law for emergencies. For example, cities such as Los Angeles, Santa Monica, and West Hollywood have stringent rent control ordinances that typically apply to multi-family housing built before a certain date (e.g., Oct. 1, 1978, in Los Angeles). These laws often exclude single-family homes, condos, and newly constructed housing, leaving them subject to price-gouging restrictions during emergencies.
