Fleeing the flames, tens of thousands of people were forced to evacuate their homes, forced to find refuge with relatives, in hotels or in rented apartments. But some establishments displayed prices much higher than those before the disaster.
Hotels and owners who house fire victims in Los Angeles are being reminded of the law. Some, accused of taking advantage of the situation by charging predatory prices, will soon receive a letter from California Attorney General Rob Bonta. The latter announced in a press release published on January 17 that it had sent more than 200 warning letters. At the same time, the California Department of Justice indicated that it was opening “criminal investigations into price gouging”with the aim of “fight against this illegal and unscrupulous conduct”.
“The price gouging we see and hear must stop immediately”demanded Rob Bonta who warned that his office “won’t stop” as long as abusive prices are still practiced. “We are doing everything we can to protect Californians who are looking for a safe place to evacuate, recover and care for their terrified children and families in the most basic ways”assured the attorney general in office since 2021.
50% increase
At least 27 people died in the flames which destroyed more than 16,000 hectares, the equivalent of an area as large as the capital Washington. Tens of thousands of people were forced to evacuate their homes, forcing them to find refuge with relatives, in hotels or in rented apartments. Faced with the urgency of the situation, some have been forced to pay considerable sums to find new accommodation.
As disaster victims flood in, hotels and accommodation owners are in fact accused of taking advantage of the disaster to enrich themselves. According to the Los Angeles Times online ads recently showed a price increase “50% or more compared to pre-fire rents”, “well beyond the 10% increases authorized by law”. Outraged, victims gathered to put pressure on local authorities and demand protection measures.
-Prison sentence
This increase in rents and hotel room prices is nevertheless prescribed by law. The establishment of the state of emergency by Governor Gavin Newsom on January 7 made it possible to activate article 396 of the Penal Code which provides protection against price increases for rental housing for one year. “These protections generally prohibit increasing the price of rental housing by more than 10% of the previously charged price after the declaration of an emergency”specifies the text.
“When a dwelling or unit was not rented prior to the emergency declaration, the rental price cannot exceed 160% of the fair market value of the rental unit as determined by the U.S. Department of Housing and Development urban”the document continues.
This same article of law also prohibits the eviction of tenants in order to “re-rent the property at a rate that the owner would not have been authorized to charge the evicted tenant”. Violators risk criminal prosecution which may result in “a prison sentence of one year and/or a fine of up to $10,000”.
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