In response to reports of landlords taking advantage of the wildfires in Los Angeles by raising rents, the California Apartment Association (CAA) is calling for strict enforcement of California’s anti-price-gouging law. The organization also reaffirmed its commitment to ethical rental practices during emergencies.
According to CAA CEO Tom Bannon, it is illegal and unethical for landlords to increase rent beyond legal limits during a state of emergency. He stated that these actions not only tarnish the entire industry but also exploit vulnerable families who are struggling to rebuild after the wildfires. The CAA supports efforts to strengthen penalties for violators and urges authorities to strictly enforce the law.
Recent media coverage from outlets such as Los Angeles Times and New York Times has shed light on egregious violations, including rent hikes up 60% in Venice and over 100% in Santa Monica. Under California’s Penal Code Section 396, rent increases are limited at a maximum of 10% above pre-emergency levels. Violators can face fines up $10,000 or even jail time for one year. However, there is a proposal from Los Angeles City Councilmember Traci Park that could increase these penalties further.
The CAA praised Governor Gavin Newsom and Mayor Karen Bass for their leadership in expediting recovery efforts following the wildfires’ devastation. A recent executive order issued by Newsom streamlines permitting processes while Bass’s emergency measures have already made an additional 1,400 housing units available through temporary certificates of occupancy.
Bannon commended these actions as examples of necessary leadership needed during this crisis situation.” He encouraged continued collaboration between all parties involved towards rebuilding communities affected by fires while ensuring displaced families have access safe affordable housing options.”
