Newsom Waives Rental Price Caps in Affluent Areas Around LA
Executive Order Lifts Caps on New Rental Listings in Wealthy Zip Codes
Gov. Gavin Newsom has waived price-gouging rules for rentals in more than two dozen wealthy zip codes in Los Angeles in response to concerns the rules choked off available housing for the thousands of homeless refugees from last month’s wildfires.
Targeted Relief for Victims of Wildfires
Under an executive order, Newsom lifted the rental caps on the new rental listings for single-family-homes of four bedrooms or more in Bel-Air, Brentwood, Beverly Hills and two dozen other zip codes, the Los Angeles Times reported.
“This executive order provides targeted relief from regulations that impact victims and would otherwise slow this community’s quick recovery,” Newsom said in a release.
Price-Gouging Laws in Effect
State price-gouging laws, enacted in response to the Eaton and Pacific Palisades fires, effectively limited monthly home rental prices on Los Angeles County properties to $9,554 a month.
That sum was below pre-fire rates for larger houses in rich neighborhoods.
Real Estate Analysts Weigh In
Real estate analysts have told The Times the price cap could keep thousands of potential rentals off the market. More than 11,500 homes were destroyed in last month’s fires.
Other Provisions Remain in Effect
Other provisions of the price-gouging law remain in effect, including one that prohibits landlords with properties offered for rent within the past year from increasing rent by more than 10 percent. Newsom’s order on Monday also expanded those protections.
Extension of Price-Gouging Laws
The price-gouging laws, as written, apply to leases of one year or less. Because of reports that landlords were skirting the rules by having tenants sign 366-day leases, Newsom’s order extends the rules to rental agreements of any length, according to the Times.
Read More
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Blueground charged with price-gauging LA short-term rentals
SoCal agent hit with price gouging charge as law limits rents
Conclusion
The waiver of rental price caps in affluent areas around LA is a targeted effort to provide relief to victims of the recent wildfires. While other provisions of the price-gouging law remain in effect, this move aims to increase the availability of housing for those affected by the disaster.
FAQs
Q: What areas are affected by the waiver of rental price caps?
A: The waiver applies to more than two dozen wealthy zip codes in Los Angeles, including Bel-Air, Brentwood, and Beverly Hills.
Q: What is the new rental price cap for single-family-homes of four bedrooms or more in these areas?
A: The price cap has been lifted, allowing landlords to set their own rental prices.
Q: What other provisions of the price-gouging law remain in effect?
A: Provisions that prohibit landlords from increasing rent by more than 10 percent and apply to leases of one year or less remain in effect.
