With tens of thousands of homes lost to fires and many neighborhoods now inaccessible, finding housing has become a pressing concern for residents in the greater Los Angeles area.

In the wake of these fires, Natalie Maxwell, managing attorney at the National Housing Law Project (NHLP), pointed out that “some individuals are exploiting this situation for financial gain.” “This isn’t something new; it’s a trend we observe repeatedly,” she added.

Therefore, it’s essential for anyone who is renting or looking for housing to be aware of their rights. Price gouging in the wake of a disaster is unequivocally illegal. Here’s what it entails and what people in California need to understand.

The LA fires are officially classified as a disaster

A “disaster” generally refers to an event recognized as such by state, federal, or local officials. The “Los Angeles County Fires and Windstorm Event” fits this classification. California keeps an updated list of areas deemed disasters where price gouging is illegal. This is governed by Penal Code 396 in California.

Defining price gouging

“Gouging” means increasing rent — or the cost of other goods and services — by more than 10% from the previous price. If you’re currently renting, you’re likely aware of your rent, but those searching for new homes may find it difficult to gauge the previous costs, noted Lila Gitesatani, a staff attorney at NHLP.

She mentioned that “extremely high” rental prices might signal gouging, and you could conduct basic research to discover either the last rental price or to compare it with similar properties.

What to do if you encounter price gouging

You can file a complaint with the attorney general’s office, advised Gitesatani. Local legal organizations may offer support as well. Some regions may have even stricter anti-gouging laws or provide enhanced tenant and consumer protections beyond state regulations. You might reach out to Neighborhood Legal Services of Los Angeles County or the Legal Aid Foundation of Los Angeles for assistance.

Should there be an eviction moratorium now?

Penal Code 396 explicitly forbids evicting tenants to rent the property to someone else at a higher rate. However, legislators could consider implementing stronger eviction protections, according to Maxwell.

She emphasized that during the chaos following a disaster, halting evictions allows residents time to assess their next steps. “It’s a crucial legal safeguard that helps maintain the current situation, enabling government and community resources to come in, evaluate conditions, assist those affected, and minimize the chance that currently housed individuals are pushed into an already overwhelmed housing market caused by the loss of homes.”

This is particularly vital since many residents in the LA area may face ongoing income loss for an extended period.