Rent-hike ban to protect fire victims ends despite gouging concerns
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A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.The executive order that blocked rent increases was issued by Gov.
Gavin Newsom amid the devastating wildfires last year.Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes.Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said.
“Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule.There are already stricter rent increase caps for many residences, depending on the location, type and age of the building.
Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed.
But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
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