As tens of thousands of victims flee the fires in Los Angeles, some hotels and owners are accused of taking advantage of the situation. The California prosecutor raises his voice and promises sanctions. The disaster highlights the housing crisis hitting the state…
While fires have raged in Los Angeles for more than a week, forcing tens of thousands of residents to flee their homes, a new scourge is hitting the victims: the surge in rental and hotel prices. Faced with the sudden influx of a population in distress seeking emergency shelter, certain owners and establishments are in fact accused of charging abusive prices, well beyond the increases authorized in a crisis situation.
The California prosecutor raises his voice
Faced with the scale of the phenomenon, Rob Bonta, the Attorney General of California, stepped up to the plate. In a press release published on January 17, he announced that he had sent more than 200 warning letters to hotels and owners, threatening them with criminal investigations and legal proceedings if they persist in these illegal practices. “The price gouging we are seeing must stop immediately”he insists, promising to do everything possible to “protect Californians who are just looking for safe shelter”.
Rents multiplied by two
According to the Los Angeles Times, rental advertisements in recent days showed prices up 50% or more compared to the period before the fires. Well beyond the 10% maximum increase allowed by law in an emergency. On social networks, outraged testimonies from victims forced to pay exorbitant sums for accommodation are pouring in.
This is speculation about our misfortune. We have lost everything and on top of that we have to go into debt to survive.
A disaster victim on Twitter
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Hotels singled out
On the hotel side, abuses are also denounced. According to a source close to the matter, some establishments have doubled or even tripled their usual prices to take advantage of the influx of refugees. A qualified phenomenon “odious” by the prosecutor who promises “the greatest firmness”.
Criminal sanctions incurred
Violators face heavy penalties. Under California Penal Code Section 396, those found guilty of these illicit practices face up to a year in prison and a $10,000 fine. The law also prohibits evicting a tenant to then rent again for more money. A clear message sent by the authorities to try to stem these abuses in the midst of a crisis.
A disaster that highlights the housing crisis
Beyond the actions of a few profiteers, these devastating fires above all highlight the extremely tense situation in the California real estate market. With thousands of people suddenly thrown onto the streets and a notoriously insufficient rental stock, an entire affordable housing crisis is coming to light. As a terrible side effect worsening the human and material toll of an already historic disaster.
Despite the efforts of the authorities and the mobilization of civil society to help the victims, the challenge of emergency accommodation remains immense. And highlights the need to address, beyond the emergency, the root causes of the shortage of accessible housing that is undermining California. A major and complex problem of which these dramatic fires are unfortunately only a painful reveal.
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