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County extends price gouging protections for wildfire victims

County extends price gouging protections for wildfire victims
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The Los Angeles County Board of Supervisors on Tuesday extended housing price gouging protections for residents displaced by January's devastating wildfires through Aug. 30, continuing safeguards that limit rent increases and prevent evictions during the ongoing recovery.

The board approved a motion by Supervisors Lindsey P. Horvath and Kathryn Barger to renew protections under state and local law that cap rent and hotel rate increases during declared emergencies and prohibit landlords from evicting tenants to re-rent units at higher prices.

"Seven months in, our residents still need protection from predatory practices that make housing even more unaffordable and unattainable in these times of crisis," Horvath said. "By extending these protections, we're helping ensure that every family has the chance to rebuild without fear of being priced out."

The extension comes as tens of thousands of residents remain displaced from the January wildfires, with some families facing potential rent increases of 50% or more as short-term leases signed immediately after the fires expire. A recent Los Angeles Times analysis found rent prices in areas adjacent to the fires are climbing faster than in the rest of the county.

The price gouging protections first activated Jan. 7, 2025, when the board declared a local emergency following the wildfires. State law allows local governments to renew the protections every 30 days when necessary to protect life, property or public welfare.

Since the emergency declaration, the county's Department of Consumer and Business Affairs has received more than 3,800 consumer complaints alleging price gouging, with the vast majority related to housing. The department has sent more than 1,800 cease-and-desist letters to businesses, property owners, landlords and real estate professionals, and made over 230 referrals to a Price Gouging Task Force for further investigation.

The board has taken increasingly aggressive action to combat price gouging since January. Supervisors unanimously raised maximum civil penalties from $10,000 to $50,000 per violation — five times the standard state penalty — targeting landlords exploiting displaced residents who faced rent hikes of 50% to 100% above pre-fire rates.

The board also enacted comprehensive eviction protections, initially shielding tenants who sheltered fire evacuees from eviction for housing "unauthorized occupants." Supervisors approved a countywide eviction moratorium through July 31 for renters experiencing wildfire-related financial hardship, paired with a $10 million emergency rent relief fund.

To assist displaced residents directly, the board established the Los Angeles County Fire Recovery Fund with $32.2 million in federal rescue funds, providing cash assistance grants of up to $18,000 to help cover housing costs and essential expenses.

The county also moved to reduce rebuilding costs by waiving all county permitting and inspection fees for wildfire survivors reconstructing destroyed homes, potentially saving homeowners tens of thousands of dollars.

Earlier this month, the board moved to strengthen enforcement by advancing an urgency ordinance that would expand the county's ability to hold violators accountable. The proposed ordinance would empower the Department of Consumer and Business Affairs to issue administrative fines, secure restitution for victims and apply more meaningful penalties to prevent illegal price hikes.

The price-gouging protections extend beyond rentals to cover hotels, construction services and building materials, with violations carrying criminal penalties under California Penal Code Section 396.

Gov. Gavin Newsom has also provided statewide protections for wildfire survivors. His executive orders extended price gouging protections on rental housing, hotels and motel rates while retaining exemptions for large homes in high-value zip codes that haven't recently been on the rental market and newly constructed housing to help increase supply.

Newsom's orders also suspended laws that would classify hotel and motel occupants as tenants after 30 days, giving displaced residents more time to find alternative housing, and prioritized fire survivors experiencing homelessness on waiting lists for state-funded housing programs to help them secure housing faster.

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