LOS ANGELES — The Los Angeles City Council Wednesday gave preliminary approval for an ordinance to bar excessive price increases for housing and lodging as residents recover from the January wildfires.
In a unanimous vote, council members voted to crack down on price gouging. Under the ordinance, landlords would be prohibited from raising rent by a significant amount during a declared emergency and charging fees for rent-related services such as gardening, parking or utilities that were not previously charged under the prior rental agreement.
Hotel and motel owners would be barred from raising rates by more than 10%.
Additionally, the city is expected to increase penalties for violators of the law.
Under the current policy, violations are punishable by a fine of up to $1,000 or by imprisonment in county jail for up to six months.
The ordinance would create a new private right of action for victims of price gouging to pursue a civil lawsuit. If the victim wins the case, they could be awarded up to $30,000 per violation depending on the severity, tenant relocation costs and other appropriate relief.
Councilwoman Traci Park, who represents the Pacific Palisades, along with several of her colleagues introduced a motion in January calling for such protections.
On Tuesday, the LA County Board of Supervisors approved a motion to increase the penalty for price gouging to a maximum of $50,000 per violation.
State law allows for up to one year in jail and a $10,000 fine for price gouging, which occurs when landlords or merchants charge more than 10% above what they were charging before a disaster occurs.
The county’s stricter penalties are expected to remain in effect for the duration of their declaration of a local emergency.