Governor Newsom expands protections against rent gouging

Gov. Gavin Newsom on Thursday expanded protections against price gouging in rental housing, while the state's top law enforcement official vowed to crack down on those who flout the rules and jack up rents in the wake of devastating fires in Los Angeles County landlord.

Under California law, price gouging protections are in effect during the state of emergency and generally prohibit landlords, hotels and motels from charging more than 10% more than what was charged or advertised before the crisis.

Those protections were originally scheduled to expire in February, but Newsom issued an executive order Thursday extending protections in Los Angeles County until March 8.

The state attorney general said if fires create additional housing needs outside the county, these protective measures will be taken elsewhere.

Since fires broke out last week, a wave of landlords in Los Angeles County have raised rents on their properties far beyond what rules allow, including increases of more than 50%, according to online listings.

The listings have been widely shared on social media and prompted calls from tenants' groups and even some landlord groups for authorities to prosecute.

“The actions of a few bad actors have tainted our entire industry and taken advantage of vulnerable families struggling to rebuild,” California Apartment Association CEO Tom Bannon said in a statement Wednesday. “We support the addition of Increase penalties for offenders and encourage strict law enforcement.”

At a news conference Thursday, California attorneys. Gen. Rob Bonta said his office is actively investigating multiple price gouging complaints, noting that violators could face up to a year in prison and $10,000 in criminal fines per violation.

Bonta cited a Los Angeles Times report on Wednesday that quoted a broker saying their client had raised rents above 10 percent, in part because the client believed authorities would not prosecute.

“That client couldn’t have been more wrong,” Bonta said.

"We will prosecute violations," he said. "Don't call our bluff and try to call the bet. You will regret it."

In addition to extending protections against price gouging, Newsom's executive order seeks to speed up housing construction in the wake of the fires, building on what he has already announced. The new rules include streamlining the process for building ADUs on fire-damaged properties and expediting the approval process for temporary housing.

"With thousands of Los Angeles residents suddenly displaced, our state will do everything we can to help provide housing and assistance as quickly as possible," Newsom said in a statement. "Today, we are expediting efforts by removing roadblocks and strengthening measures to prevent exploitation. Build new temporary housing.”