California’s AB 246 is a new piece of legislation aimed at protecting tenants and controlling rental price hikes during states of emergency. As of today (1.20.25), it is currently making its way through the CA state legislature.
The bill introduces temporary restrictions on rent increases for residential properties in Los Angeles County, effective during the ongoing emergency declared by the Governor due to the Palisades Fire and windstorm conditions, starting January 7, 2025. Here’s a summary of the key points:
Rent Increase Restrictions
- AB 246 prohibits landlords in Los Angeles County from increasing rental rates above what was charged on January 7, 2025, for properties impacted by the emergency.
- This restriction applies to all residential properties and remains in place for 12 months after the emergency is declared over. Violations of this rule can lead to civil penalties of up to $10,000, enforced by the district attorney.
Price Gouging and Enforcement
- The bill also addresses price gouging by prohibiting substantial price increases for essential goods and services during a state of emergency.
- Similar to other disaster-related price control laws, it limits price hikes to 10% above pre-emergency prices for items like food, medical supplies, and housing. The district attorney will have the authority to prosecute violations.
Eviction Protections
- Additionally, AB 246 strengthens eviction protections during a state of emergency. It is unlawful to evict tenants for rent increases that exceed the limitations set by the bill or if the evicted unit is re-rented at a higher rate.
- The legislation is designed to prevent landlords from using emergencies as an excuse to unfairly raise rents or evict tenants, taking advantage of vulnerable residents.
Sunset Clause
- AB 246 is a temporary measure. It will remain in effect until 12 months after the emergency ends, at which point the law will be repealed. However, it provides significant protections to tenants during a time of crisis, preventing exploitation while the region recovers.
This bill is part of broader efforts to regulate rental practices during times of crisis, ensuring that emergency situations do not lead to unfair economic burdens on residents. Landlords in Los Angeles should be aware of these new restrictions and consult with legal professionals to ensure compliance. To read the full bill, please click here.