LA Agents Sued for 30% Wildfire Rental Price Gouging
Legal Framework Behind Emergency Rent Control Violations When California Governor Gavin Newsom declared a one-year state of emergency on January 7, 2025, it set off strict anti-rent gouging protections. These measures have become the legal basis for several lawsuits against Los Angeles real estate agents. Under Penal Code Section 396, emergency rent control measures limit rent increases to no more than 10% during the wildfire displacement crisis in Los Angeles County. This legal framework covers both existing tenants and unit turnovers. It applies to all lease agreements signed during the emergency period, offering extensive protection. Governor Newsom further expanded these protections on February 4, 2025, to close loopholes where landlords were offering 366-day leases to bypass restrictions. For newly listed properties, rent hikes cannot surpass 160% of Fair Market Rent set by the U.S. Department of Housing and Urban Development for specific ZIP codes. These protections extend to fu...