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 see is some people taking this as an opportunity to make additional money,” said Natalie Maxwell, managing attorney at the National Housing Law Project (NHLP). “That is not unique to this disaster. We see that over and over again.”
So it’s important that anyone currently renting a home or out trying to find someplace to live knows their rights. It is absolutely illegal to gouge housing prices in the aftermath of a disaster, full stop. Here’s what that means and what California residents need to know.
The LA fires are officially a disaster
In general, a “disaster” is a situation that has been declared so by the governor, the president, or even a local official. The “Los Angeles County Fires and Windstorm Event” qualify. The State of California maintains a list of areas designated as disasters , where price gouging is currently illegal. In California, Penal Code 396 is the statute that makes price gouging illegal.
What is price gouging?
“Gouging” is defined as raising the rent — or price of other goods and services — more than 10% from the last marketed price. If you’re a current tenant, you know what your rent is, but someone looking for new housing may have a harder time figuring that out, said Lila Gitesatani, a staff attorney with NHLP…