In response to a surge in rental prices following the devastating January fires in Los Angeles, the L.A. County Board of Supervisors has taken significant action to combat price gouging by landlords.
The board voted unanimously to create a policy enabling staff to impose daily fines on landlords and real estate agents who exceed price gouging limits established after the fires.
Supervisors Lindsey Horvath and Kathryn Barger introduced the motion, emphasizing the need for a stronger deterrent against price gouging, pointing out that a perceived lack of enforcement undermines public confidence in the county’s ability to protect vulnerable residents.
The board’s decision, which passed with a 5-0 vote, instructs county staff to draft an ordinance within 30 days that would grant the Department of Consumer and Business Affairs authority to fine violators of price gouging regulations.
Once approved through another vote, the new policy would allow for administrative fines of up to $1,000 per day.
Additionally, fines of up to $500 could be levied on individuals who fail to cooperate with investigations.
Tenant advocates are optimistic about the new fines and see them as a potential deterrent against ongoing price gouging in the rental market.
Chelsea Kirk, founder of the Rent Brigade, a group that has tracked a staggering 12,800 online listings potentially violating post-fire price gouging limits, stated the necessity of such measures.
Kirk highlighted the inaction from the district attorney’s office regarding criminal charges, commenting, “The district attorney is not doing anything.”
Although the district attorney’s spokesman refrained from discussing pending investigations, they expressed support for the county’s initiative to enhance enforcement of price gouging protections.
Despite the ongoing issues, the Rent Brigade continues to identify nearly 400 listings per week that appear to unlawfully inflate rental prices.
So far, less than a dozen price-gouging cases have been prosecuted by authorities, raising concerns among tenant advocates about the effectiveness of the current enforcement mechanisms.
Kirk conveyed hope that these fines could serve as a clear message to landlords engaging in price gouging practices.
“To be effective, [county staff] must use this tool diligently,” she said.
“It will be an effective deterrent if fines are imposed aggressively and in proportion to the harm experienced by renters.”
The rules concerning price gouging were established after Governor Gavin Newsom declared a state of emergency following the fires that ignited on January 7.
Under this declaration, landlords could not increase rental prices by more than 10%, a restriction designed to protect families displaced from their homes.
Since the activation of these rules, L.A. County has received over 3,800 complaints regarding price gouging.
Many families who lost their homes in the fires were thrust into a competitive rental market with some landlords nearly doubling their previous rents.
While some civil and criminal cases have emerged from various prosecutors, including California Attorney General Rob Bonta and L.A. City Attorney Hydee Feldstein Soto, the Board of Supervisors had previously voted to extend local price-gouging protections, which were set to lapse on July 1.
This latest move by the Board reflects a growing urgency to ensure fair housing practices in the wake of the recent disasters.
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