California Apartment Association Blasts Rent-Gouging Amid LA Wildfires

Following reports of rent gouging amid the wildfires in the Los Angeles region, the California Apartment Association (CAA) has called for strict enforcement of California’s anti-price-gouging law and reiterated its commitment to ethical rental practices during emergencies. 

“Raising rents beyond legal limits during a declared state of emergency is illegal and unconscionable,” said Tom Bannon, CEO of CAA. “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.” 

Recent reports of egregious violations, such as rent hikes of up to 60% in Venice and more than 100% in Santa Monica, have gotten coverage in the Los Angeles Times and New York Times. Under California’s Penal Code Section 396, rent increases are capped at 10% above pre-emergency levels. Violators face fines of up to $10,000 and up to one year in jail. However, the penalties could increase under a proposal from Los Angeles City Councilmember Traci Park.

The CAA commended Gov. Gavin Newsom and Los Angeles Mayor Karen Bass for leadership in expediting recovery efforts. A recent executive order from Newsom streamlines permitting and reconstruction processes, while Bass’s emergency measures have already made 1,400 housing units available by expediting temporary certificates of occupancy. 

“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.”