Gov. Newsom extends rental price gouging protections; A.G. vows to prosecute violators
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Gov. Gavin Newsom extended price gouging protections on rental housing Thursday, while the state’s top law enforcement official vowed to crack down on landlords who are ignoring the rules, jacking up rent in the wake of Los Angeles County’s devastating fires.
Under California law, price gouging protections kick in during a state of emergency and generally bar landlords, hotel and motels from charging more than 10% more than what they were charging or advertising before the crisis.
The protections were set to expire in February, but Newsom issued an executive order Thursday that extends them in L.A. County until March 8.
According to the state attorney general, those protections will be in place elsewhere as well if the fires create additional housing demand outside the county.
Since flames broke out last week, a wave of L.A. County landlords have raised rent on their properties well beyond what the rules allow, including increases of more than 50%, according to online listings.
The listings have been widely shared on social media and have sparked calls from tenant organizations and even some landlord groups for authorities to prosecute.
“The actions of a few bad actors tarnish our entire industry and exploit vulnerable families struggling to rebuild,” Tom Bannon, chief executive officer of the California Apartment Assn., said in a statement Wednesday. “We support efforts to strengthen penalties for violators and encourage strict enforcement of the law.”
Coverage of the firefighters’ battle against Eaton and Palisades fires, including stories about the dangerous weather and victim frustration.
In a press conference Thursday, California Atty. General Rob Bonta said his office is actively investigating numerous price gouging complaints and noted violators can face up to a year in jail and criminal fines of $10,000 per violation.
Bonta cited a Los Angeles Times story from Wednesday that quoted an agent saying their client raised rent beyond the 10% threshold, in part because the client didn’t think authorities would prosecute.
“That client is so very wrong,” Bonta said.
“We will prosecute where laws have been broken,” he said. “Don’t think we are bluffing and try to call it. You will regret it.”
In addition to an extension of price gouging protections, Newsom’s executive order seeks to speed construction of housing after the fires, taking additional steps to those he’s already announced. The new rules include streamlining the building of ADUs on properties destroyed by fires and expediting the permitting process for temporary housing.
“As thousands of Los Angeles residents have been faced with sudden displacement, our state will do everything it can to help provide housing and assistance as quickly as possible,” Newsom said in a statement. “Today, we are expediting the creation of new temporary housing by removing roadblocks and strengthening protections against exploitation.”
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