REAL ESTATE
Rental Homes

worth gouging after disasters like the LA fires is illegal. Here’s what you require to recognize.

Portrait of Andrea Riquier Andrea Riquier

USA TODAY

With tens of thousands of homes destroyed by fire and many communities completely inaccessible, housing is rapidly becoming one of the most critical issues facing residents of greater Los Angeles.

In the aftermath of the fires, “what we view is some people taking this as an chance to make additional money,” said Natalie Maxwell, managing attorney at the National Housing Law assignment (NHLP). “That is not distinctive to this disaster. We view that over and over again.”

So it’s significant that anyone currently renting a home or out trying to discover someplace to live knows their rights. It is absolutely illegal to gouge housing prices in the aftermath of a disaster, packed stop. Here’s what that means and what California residents require to recognize.

A structure burns on Jan. 11, 2025, on the hillside above Mandeville Canyon Road in Brentwood from the Palisades Fire that started on Jan. 7.

The LA fires are officially a disaster

In general, a “disaster” is a circumstance that has been declared so by the governor, the president, or even a local official. The “Los Angeles County Fires and Windstorm occurrence” qualify. The State of California maintains a list of areas designated as disasters, where worth gouging is currently illegal. In California, Penal Code 396 is the statute that makes worth gouging illegal.

What is worth gouging?

“Gouging” is defined as raising the rent — or worth of other goods and services — more than 10% from the last marketed worth. If you’re a current tenant, you recognize what your rent is, but someone looking for recent housing may have a harder period figuring that out, said Lila Gitesatani, a staff attorney with NHLP.

“Really exorbitant” rental amounts may be a red flag, she said, or you might be able to do some basic research to view if you can discover the last worth the home was rented for, or what other comparable properties are listed for.

What can you do if you discover worth gouging?

You can update it to the attorney general’s office, Gitesatani said. Local legal advocates might also be able to assist. Local areas may have even stricter rules against worth gouging, or tougher protections for tenants and consumers, than what’s established by the state. Neighborhood Legal Services of Los Angeles County is one entity you might contact; Legal Aid Foundation of Los Angeles is another.

More:The ‘MacGyver Housing economy?’ Americans cobble together solutions to discover a home

Is this a excellent period for an eviction moratorium?

Penal Code 396 specifically prohibits evicting tenants in order to propose the property to someone else at a higher worth, but legislators might desire to consider even stronger protections against evictions, Maxwell said.

In the aftermath of a disaster, things are so unsettled that pausing evictions “gives folks an chance to figure out what the next step is,” she said. “It’s an significant legal protection to just benevolent of maintain the position quo so that government and throng resources have a chance to arrive in, assess the circumstance, provide assistance to folks, and to reduce the likelihood that people who are currently housed are forced into the already overtaxed housing economy that’s resulting from the destruction of people’s homes.”

That’s particularly significant considering that many LA-area residents may encounter lost returns for some period to arrive.

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