Governor Extends Protections Against Rent-Gouging Tied to L.A. Firestorms
In response to the devastating firestorms affecting Los Angeles County, Governor Gavin Newsom has extended California’s rent-gouging protections through an executive order issued on January 16, 2025. This move underscores the state’s commitment to shielding vulnerable residents from predatory rental practices during emergencies.
These protections, in effect through March 8, 2025, prohibit landlords from raising rents by more than 10% in Los Angeles County. The order applies to both existing tenants and new leases within areas impacted by the declared state of emergency.
Understanding Rent-Gouging Protections
California’s Penal Code Section 396 prohibits rent increases above 10% in jurisdictions named in an emergency proclamation. This law aims to address heightened housing demand caused by crises like natural disasters. Landlords violating these restrictions face serious consequences, including:
- Up to one year in county jail.
- Fines of up to $10,000 or more (proposals are underway to increase penalties).
- Potential civil penalties for exploitative practices.
This measure is essential for ensuring that displaced families can access stable housing without being subjected to unreasonable rent hikes.
Addressing Violations and Strengthening Enforcement
Recent reports of egregious rent increases, including hikes of up to 60% in Venice and over 100% in Santa Monica, have spotlighted the need for strict enforcement. Local leaders are working to deter violators with proposals to increase fines and hold bad actors accountable.
Additionally, Attorney General Rob Bonta has reiterated that exploiting families during emergencies is both illegal and unethical. Enforcement of rent-gouging laws remains a top priority, ensuring protections for residents across affected regions.
Support for Recovery Efforts
Governor Newsom’s executive order goes beyond rent-gouging protections. It includes measures to expedite recovery efforts and streamline housing solutions for displaced families. Key actions include:
- Simplifying permitting and reconstruction processes.
- Waiving fees for mobile home parks under multiple acts.
- Facilitating the placement of temporary housing units, such as trailers, on properties damaged by fires.
- Expediting temporary certificates of occupancy to make housing available quickly.
These proactive measures are helping families rebuild their lives while maintaining access to safe and affordable housing.
What Landlords Need to Know
Landlords in Los Angeles County should take note of overlapping rent restrictions:
- Price-Gouging Laws: During emergencies, rent increases cannot exceed 10%.
- Local Rent Control Laws: Cities like Los Angeles, Santa Monica, and West Hollywood have their own rent control ordinances, which often cap increases below 10% for multi-family housing built before specific dates.
- Tenant Protection Act (AB 1482): This statewide legislation limits annual rent increases for most rental units to 5% plus inflation, or 10%, whichever is lower.
Property owners must remain vigilant about compliance with these laws to avoid penalties and ensure they contribute positively to the recovery efforts.
Looking Ahead
As Los Angeles continues its recovery from the firestorms, collaboration among landlords, tenants, and government officials remains crucial. By adhering to rent-gouging laws and proactively supporting recovery efforts, landlords can play a vital role in rebuilding communities while fostering trust and stability within the rental market.
If you’re a property owner looking to navigate California’s rental laws or ensure compliance with changing regulations, contact Real Property Management Select. Our team of experts is here to guide you through every step, from understanding rent restrictions to managing your property efficiently and ethically.
Learn more about how we can help you manage your rental property with confidence.
Contact us today.