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Price Gouging Complaints / Rental Housing Market / Statewide Emergency / 2025 Windstorm and Wildfire Recovery

Council File 25-0006-S77

In progress — the City Attorney is pursuing enforcement against landlords and short-term rental companies for illegal rent increases following the 2025 disaster, with one major settlement secured and lawsuits pending. A proposed state law to strengthen price-gouging protections is moving through the Assembly.

Introduced
2025-05-02
Last changed
2026-06-23
Status
open
Expires
2028-06-22
Committee
Ad Hoc Committee for LA Recovery
Mover
HUGO SOTO­-MARTÍNEZ
Second
KATY YAROSLAVSKY
References
Related Council File: 25-0006-S22City Attorney Report: R25-0627; R26-0037; R26-0097; R26-0220; R26-0288; R26-0351

Brief

Councilmember Hugo Soto-Martínez moved to investigate price gouging complaints in LA's rental housing market during the statewide emergency declared after the 2025 windstorm and wildfire recovery period. The motion was adopted by Council 13-0 in August 2025 and referred to both the Ad Hoc Committee for LA Recovery and Housing and Homelessness Committee. The City Attorney has submitted multiple reports since December 2025, most recently in June 2026, tracking complaints and market conditions. The file remains pending in both committees.

Full summary

In May 2025, following the statewide emergency declaration related to the 2025 windstorm and wildfire recovery, Councilmember Hugo Soto-Martínez introduced a motion to examine price gouging complaints and practices in Los Angeles's rental housing market. The concern was that landlords and property owners were exploiting the disaster recovery period by illegally raising rents, making it harder for displaced residents to find stable housing. The Council adopted the motion 13-0 on August 13, 2025, directing the City Attorney to submit monthly reports on enforcement efforts. The file was referred jointly to the Ad Hoc Committee for LA Recovery and the Housing and Homelessness Committee. The City Attorney's office has pursued enforcement on multiple fronts. On the civil side, the office obtained a judgment and five-year permanent injunction against Blueground US, Inc., a furnished-rental company, requiring it to pay $1.2 million in civil penalties — $1 million of which goes to the City — and provide restitution to all overcharged customers. Lawsuits against Airbnb, 911 Housing Solutions, and a group of individuals connected to home-sharing violations remain pending. The office also secured a $131,079.30 refund for a single tenant in the 90094 zip code following an investigation into a price-gouged single-family residence. Criminal charges have been filed in several cases, including against operators who gouged animal boarding services and fire protection materials; courts have in some instances granted judicial diversion over the City Attorney's objections. The City Attorney's office also drafted a proposed amendment to California Penal Code Section 396 — the state's price-gouging statute — to clarify and strengthen its provisions. That bill has cleared the state Senate Judiciary and Senate Public Safety committees and, as of the June 2026 report, passed the Assembly Judiciary Committee. It now awaits a hearing before the Assembly Public Safety Committee. A notable jurisdictional development: the Los Angeles County Board of Supervisors let its own price-gouging protections expire on May 28, 2026, after a series of monthly extensions dating back to June 2025. Price-gouging protections within the City of Los Angeles remain in effect, however, because the City has continued its local emergency declaration. The City Attorney's June 2026 report was referred to both committees on June 23, 2026, and the file remains active and open.

Activity (26)

  • 2026-06-23 City Attorney document(s) referred to Ad Hoc Committee for LA Recovery; Housing and Homelessness Committee.
  • 2026-06-22 Document submitted by City Attorney, dated June 22, 2026.
  • 2026-05-13 City Attorney document(s) referred to Ad Hoc Committee for LA Recovery; Housing and Homelessness Committee.
  • 2026-05-13 Document submitted by City Attorney, dated May 13, 2026.
  • 2026-04-10 City Attorney document(s) referred to Ad Hoc Committee for LA Recovery; Housing and Homelessness Committee.
  • 2026-04-10 Document submitted by City Attorney, dated April 10, 2026.
  • 2026-03-13 City Attorney document(s) referred to Ad Hoc Committee for LA Recovery; Housing and Homelessness Committee.
  • 2026-03-12 Document submitted by City Attorney, dated March 12, 2026.
  • 2026-02-13 City Attorney document(s) referred to Ad Hoc Committee for LA Recovery; Housing and Homelessness Committee.
  • 2026-02-11 Document submitted by City Attorney, dated February 11, 2026.
  • 2026-01-20 City Attorney document(s) referred to Ad Hoc Committee for LA Recovery; Housing and Homelessness Committee.
  • 2026-01-20 Corrected Referral per City Clerk to include Ad Hoc Committee for LA Recovery; Housing and Homelessness Committee.
  • 2026-01-15 Document submitted by City Attorney, dated January 15, 2026.
  • 2025-12-10 City Attorney document(s) referred to Housing and Homelessness Committee.
  • 2025-12-10 Document submitted by City Attorney, dated December 10, 2025.
  • 2025-08-31 Community Impact Statement submitted by Los Feliz Neighborhood Council.
  • 2025-08-15 Council action final.
  • 2025-08-13 Council adopted Motion (Jurado - Raman) and Housing and Homelessness Committee Report, subject to reconsideration, pursuant to Council Rule 51.
  • 2025-08-08 City Clerk scheduled item for Council on August 13, 2025.
  • 2025-07-30 Housing and Homelessness Committee approved as amended .
  • 2025-07-25 Housing and Homelessness Committee scheduled item for committee meeting on July 30, 2025.
  • 2025-07-18 Community Impact Statement submitted by Sherman Oaks Neighborhood Council.
  • 2025-06-23 Ad Hoc Committee for LA Recovery transmitted Council File to Housing and Homelessness Committee.
  • 2025-06-23 Ad Hoc Committee for LA Recovery approved item(s) .
  • 2025-06-20 Ad Hoc Committee for LA Recovery scheduled item for committee meeting on June 23, 2025.
  • 2025-05-02 Motion referred to Ad Hoc Committee for LA Recovery; Housing and Homelessness Committee.

Documents (35)

Council votes (1)

  • 2025-08-13 Vote — 13-0-2 · Regular

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