Price gouging: state of emergency.
By imposing these restrictions, AB 1919 seeks to minimize the financial strain on tenants in situations where rental markets could exploit individuals amid emergencies like natural disasters or public safety crises. The legislation extends the protection of these rental price caps for any duration the emergency declaration is active, which aims at curtailing potential abuses that could arise as a result of increased demand for housing during emergencies.
Assembly Bill 1919 addresses the issue of price gouging in California during declared states of emergency. Specifically, it adds Section 8588.8 to the Government Code and amends Section 396 of the Penal Code to make it a misdemeanor for individuals, businesses, or entities to increase rental prices for housing by more than 10% during such emergencies. The bill encompasses housing rental prices, specifically preventing landlords from charging evicted tenants higher than what their previous tenants paid, thereby protecting vulnerable populations during times of crisis when housing stability is crucial.
The sentiment surrounding AB 1919 appears to be generally supportive among consumer advocacy groups and tenant rights organizations, who view the bill as a necessary step towards the protection of renters. However, there are concerns from some landlords and real estate organizations about the implications for property owners, particularly regarding their ability to make a profit and manage their rental properties effectively in times of increased cost or supply chain disruption.
Notable points of contention revolve around the balance between consumer protection and property rights. Critics argue that strict controls on rental price increases could discourage rental investments and improvements, potentially leading to a decrease in housing supply in the long run. Additionally, the bill does not reimbursement provisions for local agencies implementing this law, which could lead to financial ambiguities regarding enforcement and operational costs related to enforcing these new misdemeanors.