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Southern California district attorneys ask Newsom to extend price gouging declaration

District attorneys from Orange, Riverside, San Bernardino and Santa Barbara counties are calling on Gov. Gavin Newsom to expand an emergency declaration on price gouging related to the Palisades and Eaton fires.

In a letter sent to the governor on Tuesday, Jan. 28, the DAs emphasized the need for the expansion so their offices could go after those seeking to profit from the fires.

“People are seizing on these tragedies as an opportunity to profit through price gouging,” the letter reads. “Thousands of families have been displaced from their homes by these devastating fires and with the dismal and very real prospect of months if not years to rebuild their homes, many of these victims are fleeing to neighboring counties to escape the disaster zone as they begin to piece their lives – and their properties – back together.”

The letter was signed by Todd Spitzer in Orange County, Mike Hestrin in Riverside, Jason Anderson in San Bernardino and John Savrnoch in Santa Barbara

Also see: LA County wildfires create fierce competition for homes in Newport Beach, South Bay

Newsom’s office, in an email to the Southern California News Group, did not comment on the letter, only saying “we’ll let you know if we have something to share.”

Newsom declared a state of emergency for Los Angeles and Ventura counties on Jan. 7 after wind-driven fires burned through several coastal and hillside communities. California law, under Penal Code 396, limits rent increases after an emergency declaration to 10% above pre-emergency prices.

Violators can face a fine of up to $10,000 and/or up to a year in jail.

While landlords are subject to rent caps impacted by other emergencies, protections tied to the fires are exclusive to the disaster zone through March 8. Another statewide emergency declaration tied to the bird flu virus expired Jan. 17.

That means rents in the areas outside of Los Angeles and Ventura counties are not subject to the 10% rent cap.

Also see:  Demand for temporary housing likely to push up rent prices

“As the district attorneys of neighboring counties to Los Angeles and Ventura counties, in which you have declared an emergency as a result of the fires, we are respectfully requesting that you issue an additional declaration of emergency with regard to housing in Orange, San Bernardino , Riverside and Santa Barbara counties, stating that the declaration if for the purpose of the housing emergency created by the Eaton and Palisades fire,” the letter reads. “Extending the declaration of the emergency to our counties would allow us to aggressively prosecute those who seek to profit from victims who have lost everything in these unprecedented fires.”

The letter ends by thanking the governor “in holding these individuals accountable and supporting our fellow Californians in the darkest hours of their darkest days.

“Together,” it continues, “we will be able to rise out of the ashes stronger.”

 

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