A prohibition set to expire against price-gouging in the rental markets for those displaced by the January fires was extended for 30 days as a result of an action taken by the Los Angeles County Board of Supervisors.
The board voted 4-0 on Tuesday, June 24, to extend current limits on rent increases for motels, hotels, apartments, condos and single-family houses in the county, in order to protect tens of thousands of tenants still living in temporary housing almost six months after the fires destroyed or damaged their homes.
“The fires may have been six months ago, but for too many, recovery is still ongoing — and unfortunately, that’s exactly when bad actors try to strike,” said Supervisor Lindsey P. Horvath, a co-author of the motion.
“Price gouging protections are essential to making sure our communities can rebuild without being exploited. In Los Angeles County, we must not stand by while vulnerable residents are taken advantage of,” Horvath added.
Since the Jan. 7-Jan. 8 fires in the Palisades and in Pasadena and Altadena destroyed more than 16,000 structures, a declaration of a state of emergency set in motion price-gouging protections via both state and local laws. These laws allow rental housing price increases only up to 10% from pre-fire rates.
As tens of thousands who are living in temporary housing approach the six-month anniversary of the fires, many who signed six-month short-term leases will see these leases expire around the same time these protections were scheduled to go away, July 1.
Without the extension, price-gouging protections would also expire and these families “could now face drastic price increases of 50% or more without further price-gouging protection, as they will continue to need alternate accommodations as they rebuild their homes and their lives,” the approved motion reads.
A county report said that the extension will “continue to protect residents from unscrupulous and excessive housing price increases during this ongoing emergency.”
The price-gouging protections will last through July 31. State law only allows extensions of 30 days per each action.
“The county has the authority to extend them only for 30 days at a time,” explained Horvath before the vote. “It is my intention to extend beyond 30 days.” Exactly when an additional extension could be approved was not clear.
Even with the price gouging protections, rent prices in areas adjacent to the fires are climbing faster than in the rest of LA County, according to a recent Los Angeles Times article.
Those searching for housing after losing their homes were thrust into an already tight housing market. This was aggravated by the loss of rental units in both fires.
A 12-unit apartment at 725 East Pine Street in Altadena is part of 9,500 rental units damaged or destroyed in the Eaton and Palisades fires. (Photo by Sarah Reingewirtz, Los Angeles Daily News/SCNG)A group that tracks rental prices on online sites such as Zillow, said they’ve counted 10,000 incidents of rent gouging in L.A. County since the fires.
“Only 11 charges have been filed,” said Emily Filkin, who is with The Rent Brigade. “We want the District Attorney to file charges against rent gougers.”
In the first week after the fires, The Rent Brigade’s data showed a 5,065% surge in rent gouging. Some listings by landlords charged $12,000 to $20,000 a month to rent a house. The group’s dashboard includes a house in Malibu that went from $5,000 a month to $15,000 a month — a 200% increase.
Media reports said the number of outrageous rental price listings has gone down since the first few weeks after the fires. However, the founder of The Rent Brigade, Chelsea Kirk, said rental increases are still happening nearly six months later.
“People are still taking advantage of the wildfire crisis,” she told the board. “And there has been no enforcement.” She asked for the county’s Department of Consumer & Business Affairs to make public the number of complaints it has received.
Horvath agreed that anyone who has seen or paid higher rents in the last month or longer can call the county.
“If you suspect price gouging, report it to our Department of Consumer and Business Affairs so we can hold these bad actors accountable,” Horvath said.
To contact the DCBA, call: 1-800-593-8222.
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