Gov. Newsom Extends Rental Price Gouging Protections
Extension of Protections
California law prohibits price gouging during a state of emergency, limiting rent increases to 10% more than what was charged or advertised before the crisis. The protections were set to expire in February, but Gov. Gavin Newsom issued an executive order extending them in Los Angeles County until March 8.
Why the Extension?
The extension comes as a response to the devastating fires in Los Angeles County, which have led to a surge in rental prices. Since the fires broke out, many landlords have raised rent on their properties by more than 50%, far exceeding the 10% threshold allowed by law.
Investigations and Prosecutions
The California Attorney General’s office is actively investigating numerous price gouging complaints and has vowed to prosecute violators. According to the Attorney General, violators can face up to a year in jail and criminal fines of $10,000 per violation. In a press conference, the Attorney General stated, “We will prosecute where laws have been broken. Don’t think we are bluffing and try to call it. You will regret it.”
Industry Support
Even some landlord groups have called for authorities to prosecute price gouging violators. Tom Bannon, CEO of the California Apartment Association, stated, “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.”
New Housing Construction
In addition to the extension of price gouging protections, Gov. Newsom’s executive order seeks to speed construction of housing after the fires. The new rules include streamlining the building of Accessory Dwelling Units (ADUs) on properties destroyed by fires and expediting the permitting process for temporary housing. The Governor stated, “As thousands of Los Angeles residents have been faced with sudden displacement, our state will do everything it can to help provide housing and assistance as quickly as possible.”
Conclusion
Gov. Newsom’s extension of price gouging protections and his efforts to speed construction of housing after the fires demonstrate the state’s commitment to protecting vulnerable families and providing assistance during times of crisis.
FAQs
What is the current rent increase limit during a state of emergency?
The current rent increase limit is 10% more than what was charged or advertised before the crisis.
What is the punishment for price gouging violators?
Violators can face up to a year in jail and criminal fines of $10,000 per violation.
What is the purpose of the extension of price gouging protections?
The extension aims to prevent further exploitation of vulnerable families who have been displaced by the fires and are in need of affordable housing options.
What is being done to speed construction of housing after the fires?
The state is streamlining the building of ADUs on properties destroyed by fires and expediting the permitting process for temporary housing to provide additional housing options for those affected by the fires.
