Southern California’s luxury housing market has become even more competitive after a deadly firestorm in the Los Angeles area set more than 12,000 homes and other structures on fire, leaving tens of thousands of people homeless. That’s right.
There have already been reports of rent gouging, and elected leaders have issued stern warnings against this practice, as well as unethical real estate practices that raise rents beyond 10% of the allotted limit. We are appealing to the public to report the owners.
California Attorney General Rob Bonta said in a statement Saturday that it is illegal for landlords to accept rents above the cap, even if someone offers to pay more.
“Plain and simple, you can’t take advantage of victims by jacking up prices,” he said at a news conference.
For example, a modern three-bedroom condo in a downtown Los Angeles high-rise that was listed for $5,500 a month in October resurfaced on Zillow this week with a new asking rent of $8,500. The list was removed on Saturday.
The entire state has struggled with the dual crises of housing and homelessness, but efforts to build more affordable housing have only recently begun.
Is it legal for a landlord to increase the rent?
California law prohibits price gouging after a state of emergency is declared, and individuals and businesses cannot increase the price of goods and services such as gasoline or rentals by more than 10% from before the state of emergency is declared.
Price gouging is a misdemeanor punishable by up to one year in prison and a $10,000 fine for each violation.
Housing-related protection is typically valid for 30 days. But on Thursday, Gov. Gavin Newsom extended the ban on motels, hotels and rental housing until March 8.
Is there any evidence that rents have increased in the Los Angeles area?
Tenants’ rights and landlord associations are calling for a stricter crackdown on rent-grabbing companies as media reports of unreasonably high prices.
People on social media are crowdsourcing examples of egregious increases, even entering the results into shared Google Docs.
For example, a four-bedroom, four-bath home in Encino was offered to renters in December for $12,000 a month and relisted on Jan. 13 for a new price of $14,000. A three-bedroom, four-bath home in Los Angeles that was listed in September for $16,000 a month was relisted this week for $29,000 a month.
Both exceed the upper limit of 10%. By Saturday, both listings had been removed.
What assistance does FEMA provide to people in need of housing?
Displaced residents with homeowners or renters insurance can receive a living allowance to stay in a hotel or rental.
The Federal Emergency Management Agency has several programs in place for evacuees. Used to pay for short-term stays at participating hotels and motels. It also provides cash upfront to buy a home through eviction assistance and rental assistance programs.
FEMA will also reimburse out-of-pocket costs for lodging not covered by insurance.
What about mortgage relief for homeowners?
Newsom’s office announced Saturday that five major banks will offer affected homeowners a 90-day moratorium on mortgage payments, 90-day forgiveness of late fees and 60-90 days of new foreclosures. announced that they have reached an agreement to provide mortgage relief measures, including moratorium. .
The banks are Bank of America, Citi, JPMorgan Chase, US Bank, and Wells Fargo.
Are housing platforms helping to strengthen anti-gouging?
Short-term rental platform Airbnb announced Wednesday that hosts in Los Angeles and Ventura counties who try to increase their rates by more than 10% will instead receive an error message. The company is also reminding hosts that price gouging during the state of emergency is illegal.
Zillow has posted “Important Information for Renters During the State of Emergency” regarding area rentals to make applicants aware of the law.
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