Gov. Gavin Newsom has waived price-gouging rules for rentals in more than two dozen wealthy zip codes in Los Angeles in response to concerns the rules choked off available housing for the thousands of homeless refugees from last month’s wildfires.
Under an executive order, Newsom lifted the rental caps on the new rental listings for single-family-homes of four bedrooms or more in Bel-Air, Brentwood, Beverly Hills and two dozen other zip codes, the Los Angeles Times reported.
“This executive order provides targeted relief from regulations that impact victims and would otherwise slow this community’s quick recovery,” Newsom said in a release.
State price-gouging laws, enacted in response to the Eaton and Pacific Palisades fires, effectively limited monthly home rental prices on Los Angeles County properties to $9,554 a month.
That sum was below pre-fire rates for larger houses in rich neighborhoods.
Real estate analysts have told The Times the price cap could keep thousands of potential rentals off the market. More than 11,500 homes were destroyed in last month’s fires.
Other provisions of the price-gouging law remain in effect, including one that prohibits landlords with properties offered for rent within the past year from increasing rent by more than 10 percent. Newsom’s order on Monday also expanded those protections.
The price-gouging laws, as written, apply to leases of one year or less. Because of reports that landlords were skirting the rules by having tenants sign 366-day leases, Newsom’s order extends the rules to rental agreements of any length, according to the Times.
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