Know Your Rights: Protecting Yourself from Price Gouging During LA Wildfire Recovery

Written By Keara Peeples

After the devastating wildfires that have swept through Los Angeles, many of us are left grappling with uncertainty—whether it’s about our homes, our families, or the future. California is a state of resilience — the unique and sacred land, as well as the people who call California home. Unfortunately, in times of crisis, some may try to take advantage of the increased demand for housing by hiking prices unfairly. One of the most important things to remember is that you have rights when it comes to housing in California. It's crucial to understand your legal protections so you can avoid being exploited and ensure that your next steps are taken with confidence. This article is here to help you understand your rights, whether you’re renting, buying, or rebuilding, so that you can make informed, fair decisions during this challenging time.

Here are some important legislative insights to keep in mind during this time…

1. Price Gouging Laws:

  • California's Price Gouging Law (California Penal Code Section 396): During a declared state of emergency (like a wildfire disaster), it is illegal for sellers (including landlords and real estate agents) to increase the price of goods, services, or housing by more than 10% above the pre-emergency price. This law applies to rentals, home sales, construction, and other services related to rebuilding.

    • For rentals, landlords cannot increase rent by more than 10% in areas affected by a declared emergency for up to 30 days after the state of emergency ends.

    • Similarly, sellers or agents cannot raise the prices of homes or rental units above fair market value in a way that takes advantage of the emergency situation.

2. Tenant Protections:

  • Temporary Rent Freeze Measures: In some cases, local governments may issue emergency orders to freeze rent prices for tenants who have been displaced by wildfires. This can prevent landlords from raising rents or evicting tenants during the crisis.

  • Protection Against Unlawful Evictions: In the event of a natural disaster, tenants are often protected from eviction or harassment from landlords. The law gives tenants a reasonable amount of time to return to their properties after a disaster before eviction notices can be issued. Additionally, tenants who were affected by the fire should not be forced to pay for any period they were displaced if their property was damaged or uninhabitable.

    • To check if your neighborhood has a rent freeze or other protections in response to recent wildfires, you can consult the following resources:

    • 1. Los Angeles County and City Websites

      • City of Los Angeles: If you live in Los Angeles, check the Los Angeles Housing and Community Investment Department (HCIDLA) website. They often publish emergency declarations and housing-related policies, including rent freezes and eviction moratoriums.

      • Los Angeles County: If you're in an unincorporated area or other parts of the county, check the Los Angeles County Department of Consumer and Business Affairs for county-wide information about rent freezes or emergency housing measures.

      2. California Department of Consumer Affairs

      • State-Level Information: The California Department of Consumer Affairs provides general guidelines on tenant protections, including during emergencies such as wildfires. They may offer updates or direct you to local agencies that have enacted rent freezes or other protections.

      3. Local City Government Websites

      • If you live in a specific city (like Malibu, Pasadena, or Santa Monica), visit the city's official website or check with their housing department for information on local rent freezes. Many cities implement their own measures in response to emergencies.

3. Rental Assistance Programs:

  • State and Federal Assistance: Both state and federal agencies, like FEMA (Federal Emergency Management Agency), may provide rental assistance or financial support to those displaced by a wildfire. These programs help cover the cost of temporary housing, ensuring that individuals or families who are forced to relocate aren’t at the mercy of inflated rental prices.

    • Make sure to apply for these programs early, as they can help cover the cost of temporary housing or deposits, especially in a market where rental prices may rise due to increased demand.

      • Temporary Housing Assistance (Rental Assistance)

        • Amount: FEMA may provide up to 18 months of rental assistance (or longer if needed) to help families find temporary housing while their homes are being repaired or rebuilt.

        • Payment Range: Rental assistance is generally based on the fair market rent for the area, which can vary by location. For instance, the rent assistance for Los Angeles County may range from $1,200 to $3,500 per month, depending on the size and location of the rental property.

        • Additional Aid: In some cases, FEMA can provide funds for temporary lodging, such as a hotel or motel room, for a short period if there is no immediate rental housing available.

4. Real Estate Market Transparency:

  • Real Estate Transactions and Disclosures: As previously mentioned, real estate laws in California require full transparency in the sale and rental of homes. This means that if a home was impacted by a wildfire, it must be disclosed, and price hikes should be reasonable based on the property’s condition. Buyers and renters should be informed about the property’s history and whether it has been repaired or rebuilt after fire damage.

  • Comparable Market Analysis (CMA): If you're looking to buy or rent in areas impacted by wildfires, ask your real estate agent to provide a CMA, which compares similar properties in the area. This helps ensure the price is in line with the market and not inflated due to demand.

5. Local Government Oversight:

  • Emergency Measures by Local Governments: Some cities may enact temporary rent control measures or other restrictions to prevent price gouging or unjust increases during recovery. It’s worth checking with local authorities or community organizations to see if any such measures are in place in your area.

6. Legal Resources:

  • Consumer Protection Resources: If you suspect that you’re being taken advantage of with unfair price increases or deceptive real estate practices, you can file a complaint with the California Department of Consumer Affairs or the California Department of Real Estate. They can investigate and take action against businesses or individuals engaging in unfair practices.

    • Report the Violation

      • California Department of Consumer Affairs (DCA): The DCA handles consumer complaints related to housing and real estate practices. You can file a complaint online or contact them for advice.

      • California Department of Real Estate (DRE): If the issue involves a real estate agent who is not following ethical practices or breaking the law, you can file a complaint with the DRE.

      • Local Rent Control Boards: If you’re in a rent-controlled area (such as Los Angeles), you can report price gouging or unfair practices to the local rent control board. Los Angeles, for example, has the Rent Stabilization Ordinance (RSO), which can provide additional protections.

      • Attorney General’s Office: The California Attorney General’s office can help with consumer protection issues related to price gouging, illegal fees, or unlawful evictions. They often intervene in cases where the law has been violated during a declared emergency.

Wishing for healing and safety for all of our residents who have been impacted. California will rebuild, reshape, and be greater than ever - as we navigate this recent climate, please stay informed on your rights and protections as a resident of the Golden State.

Keara Peeples https://kearapeeples.com
Previous

Renting or Buying? Which is right for you?