California Attorney General Rob Bonta has initiated legal action against real estate agent Iman Shaghyan, accusing her of significantly increasing rental prices—over 30%—in Beverly Hills shortly after the January 7 fires. This lawsuit marks the fourth such case Bonta has pursued since implementing price-gouging regulations that limit post-disaster rent hikes to 10%. Amid a slew of complaints from residents, city officials have vowed to intensify enforcement against price gougers.
Critics, however, argue that the response has been inadequate given the volume of reported incidents. Activist Chelsea Kirk, co-founder of the Rent Brigade, highlighted a lack of transparency in the enforcement process, asserting that current measures don’t sufficiently address the complaints. In an effort to enhance oversight, Kirk’s organization has collaborated with L.A. City Councilmember Hugo Soto-Martínez to draft a motion mandating monthly reports on price-gouging complaints, although the proposal has yet to make it to the council agenda.
Bonta’s actions follow a series of similar charges against other real estate professionals, with penalties potentially including a year in prison and fines up to $10,000. The state has also issued over 750 warning letters to landlords and hotels suspected of price gouging, while efforts are being made to investigate broader fraud and scams related to properties affected by the fires.
With the existing price-gouging regulations set to expire on July 1, the effectiveness of these enforcement measures remains uncertain. This situation underscores ongoing tensions in California regarding housing affordability and regulatory responses in the wake of natural disasters. As investigations continue, the outcome could profoundly influence both public trust in government enforcement and the future of housing policy in a state grappling with its persistent rental crisis.
via www.latimes.com