Editorial News Alert: Los Angeles County Drastically Increases Penalties During Emergencies
Editorial News Alert
Los Angeles County Drastically Increases Penalties During Emergencies
Janet M. Gagnon, Esq.
Chief Corporate Affairs Officer & SVP, Government Affairs
On February 11th, the Los Angeles County Board of Supervisors voted 5-to-0 on a motion from Supervisor Lindsey Horvath and Board Chair Kathryn Barger to increase existing penalties by 500% to a maximum of $50,000 for violating the County’s ordinance against increasing prices above 10% for housing and other goods and services during times of declared emergencies. These increased penalties specifically relate to the “January 2025 Windstorm and Critical Fire Events”, including Palisades fire, Eaton fire, Hurst fire, and Kennth fire. The increased penalties are effective immediately.
Unfortunately, this resolution was a knee-jerk reaction to false rumors in the media alleging price gouging and unsubstantiated data offered by a biased group called Rent Brigade. No analysis as to the accuracy of Rent Brigade’s data was conducted by the County’s Department of Consumer and Business Affairs (DCBA) prior to this resolution nor was any such analysis even requested by any of the Supervisors. Instead, DCBA merely claimed that they had received more than 900 “complaints.” Again, no specifics were given on whether any of these complaints had been investigated and verified by DCBA as accurate. Instead, DCBA sent hundreds of extremely threatening letters to property owners based on nothing more than unsubstantiated conjecture by self-interested renters wanting to get their rental housing providers into trouble. It is outrageous that the County is buying into this lynch mob mentality against private property owners on mere anecdotal stories and no substantial research or actual proof of intentional violations.
In contrast, DCBA did testify that when they spoke to rental housing providers, many of whom are first time providers offering single family homes to increase the supply of available housing to wildfire victims, these owners were completely unaware of the County ordinance or state law that is in effect when there is a declared emergency. While DCBA claims to have made some outreach attempts, they have clearly failed in this regard. This resolution shows that the Supervisors again fail to recognize the core problem of lack of knowledge and, as such, these increased penalties will have little to no real impact. The simple truth is that rental housing providers cannot comply with laws that they are completely unaware of.
The fact that the Board of Supervisors passed this resolution without any new outreach and education campaign clearly shows that the Supervisors start from a place of extreme prejudice against rental housing providers. They forget that without such providers, families and individuals that cannot afford to purchase their own homes would have nowhere to live. It is our independent, small owners that are doing the Supervisors jobs of providing needed housing. Rental housing providers are the unsung heroes of this crisis, not the villains that radical tenant activists portray them as being and as treated by the Supervisors.
This article is for informational purposes only. If you have any questions regarding your property or specific leasing issues and the requirements of any legal changes described herein, please consult with an attorney.