Los Angeles County has recently experienced a series of wildfires and powerful windstorms that have disrupted daily life across the region. In addition to property damage and power outages, these events have raised concerns around housing stability, rebuilding efforts, and consumer protections.

Fire and Windstorm Impact

The Palisades and Eaton Fires, among others, have destroyed structures and prompted evacuations. These incidents were made worse by strong winds that toppled trees and power lines, making emergency response efforts more challenging. The National Weather Service issued critical fire risk alerts due to the heightened fire weather conditions across Southern California.

Smoke and particulate matter have also led to degraded air quality across parts of the county. Residents are advised to monitor public health updates and limit outdoor exposure when possible.

Emergency Declaration and Consumer Protections

On January 7, 2025, Governor Newsom declared a State of Emergency for Los Angeles and Ventura Counties. This activated California Penal Code Section 396, which prohibits price gouging in essential goods and services—including food, fuel, medical supplies, and housing.

Two executive orders have extended these protections:

As part of California’s ongoing emergency response, two executive orders continue to safeguard survivors and stabilize costs in the hardest-hit areas of Los Angeles County:

Price gouging protections remain in place for building materials, construction services, storage units, and other essential goods and services. This extension ensures that the cost of rebuilding—whether you’re hiring contractors, replacing tools, or securing temporary storage—remains fair and consistent with pre-emergency pricing. These protections are designed to prevent exploitation during a time when residents and business owners are most vulnerable.

The 10% cap on rent increases continues to apply to residential rental properties across Los Angeles County, both for current tenants and new leases. Originally set to expire in March, the rent cap now runs through July 1, 2025, under Penal Code Section 396. The order also prohibits evictions intended to allow landlords to re-list units at higher prices, reinforcing protections against displacement.

There are a few rental housing rules updates worth noting:

• New construction exemptions: Properties with a certificate of occupancy issued after January 1, 2025, are exempt from the rent cap—an effort to encourage new development and boost available housing during the recovery.
• High-value home exemptions: Large single-family homes (four or more bedrooms) in designated high-rent ZIP codes remain exempt from price caps if they hadn’t been rented in the year prior to the firestorms.
• Daily rentals: Short-term listings like Airbnb and VRBO are also subject to the 10% cap, and can’t be reclassified as monthly rentals at significantly higher rates unless within 160% of HUD-established fair market value.

“In the face of natural disaster, we should be coming together to help our neighbors, not attempting to profit off of their pain,” said Attorney General Rob Bonta. “I urge the public to report any such incidents to local authorities, or to my office at oag.ca.gov/report or by reaching out to our hotline at (800) 952-5225. May this announcement serve as a stern warning to those who would seek to further victimize people who have lost everything in the face of Southern California’s wildfires: We won’t stop until the price gouging does.”

What are the penalties?

• Up to one year in county jail
• Fines up to $10,000
• Civil penalties of $2,500 per violation, plus injunctive relief and mandatory restitution

What are the Rental Housing Price Gouging Rules?

• New and Existing Rentals: Rental prices can’t be increased more than 10% above the rate in place before the emergency. If the unit wasn’t previously rented or advertised, the price cannot exceed 160% of HUD’s Fair Market Value.
• Short-Term Rentals: Airbnb and VRBO listings are also covered. Daily rates can’t rise more than 10%, and if those properties convert to monthly rentals, the same 160% HUD limit applies.
• Unlawful Price Justifications: Landlords can’t raise prices by adding services like utilities or cleaning, nor can they charge more just because an insurance company is paying. Evicting a tenant only to re-rent at a higher rate is also considered a violation.

What are the Additional Emergency Relief and Recovery Measures?

• Faster Rebuilding: Governor Newsom signed an executive order streamlining the reconstruction of homes and businesses, suspending CEQA and California Coastal Act review processes in affected areas.
• Tax Relief:
  • The state postponed the individual tax filing deadline to October 15 for Los Angeles County.
  • Sales and use tax deadlines have been extended until April 30, 2025.
  • Late property tax penalties and interest have been suspended for one year.
• Temporary Housing and Eviction Protections: Executive orders support faster placement of mobile homes, accessory dwelling units (ADUs), and temporary housing. Protections are also in place to prevent landlords from evicting tenants who host displaced fire survivors.
• Mortgage Relief: California is coordinating with banks and lenders to offer relief to homeowners, including forbearance and flexible repayment options.
• Cleanup and Prevention: Debris removal is being expedited to reduce risks of mudslides and flooding. Federal hazmat crews are authorized to begin property cleanup efforts.
• Real Estate Protection: To guard against land speculation, an executive order prohibits aggressive cash offers to purchase fire-damaged property.
• Education Support: Displaced students are receiving emergency support to rejoin their schools and maintain access to academic resources.
• Centralized Resources: California has launched CA.gov/LAfires as an information hub for affected residents, supported by in-person Disaster Recovery Centers.

How Can You Stay Informed and Protected?

• Monitor updates from the state and county on safety and recovery programs
• Keep records of any price increases they encounter
• Report suspicious pricing to the Attorney General or DCBA