SoCal Multifamily Unites Against Price Gouging
California owners, developers and industry groups are coming together to help those impacted by historic wildfires.
In the wake of the devastating wildfires that torched Los Angeles the week of January 7th and continue on, a coalition of more than two dozen leading multifamily companies and commercial real estate industry groups have united to support those affected.
The LA Wildfires CRE Pledge for Action is a grassroots initiative intended to meet the immediate needs of people in impacted Southern California communities. The initiative is also designed to create a foundation for longer-term restoration. A central focus is combatting price gouging by apartment owners, a mission spearheaded by the California Apartment Association.
“The big issue, or at least our read on it, is that a lot of your small independent owners don’t understand the price gouging law,” Tom Bannon, executive director of the Sacramento-based California Apartment Association, told Multi-Housing News.

“We’ve gone out and tried to alert them to that. We put out a full-page ad in the Los Angeles Times Sunday to alert them to what they can and cannot do. But we believe it’s simply naivety on their parts. I’m sure there are some bad apples out there, but they are few and far between.”
There are also fears about temporarily lowering rents at a time when the legislative climate in Greater Los Angeles could make it difficult to reinstate pre-fires rent levels.
“You have a number of owners in the L.A. region who in their hearts want to do whatever they can for those people displaced by the fires,” Bannon said. “But they are guarded given the regulatory environment. I’ve had owners tell me, ‘I wouldn’t mind reducing my rents, but Tom, I can’t do that because I can’t have the city come back and tell me later I can’t restore my rents to where they were before.’ So I would just say concerns about the regulatory and local legislative environment are a big challenge.”
Must adhere
According to Bob Hart, president and CEO of Los Angeles-based TruAmerica Multifamily, battling price gouging is a straightforward mandate. “We know that tens of thousands of Los Angeles residents have been displaced following the fires in the Pacific Palisades, Altadena and throughout the Los Angeles region,” he told Multi-Housing News.

“We are hearing reports of price gouging on rentals for apartment units and single-family homes. And that naturally is creating concern among those seeking short-term housing. TruAmerica is committed to following the law, and even beyond that doing what we can to help people who were affected by the wildfires find a place to live so they can rebuild their lives.”
Hart added that his company is offering short-term rental housing options to the displaced individuals and families at all of its Los Angeles-based apartment communities. Those options are offered at 26 properties across Los Angeles County and another in Ontario, Calif.
“TruAmerica is working with our third-party management teams to ensure lists of available units are distributed as widely as possible to those impacted by the fires and reducing qualifications like application fees and credit checks,” Hart said.
The company is also expediting move-ins and reducing deposits to enable displaced families to find housing as soon as possible.
“I’m calling on other California landlords to commit to find solutions within their portfolio or operations, and to pledge against price gouging as our community heals,” Hart added.
The other firms that have joined the LA Wildfires CRE Pledge for Action are: Benedict Canyon Equities; Camden; Christina Real Estate Investors; Cityview; CREDE Group; Hanes Properties; LaTerra Development; Lincoln Property Co.; Marcus & Millichap; Mata Construction; North Palisade Partners; Paragon Commercial Group; and NAIOP SoCal.
Recommended next steps
Hart advises that the real estate industry to undertake the following steps to support recovery:
- Offer flexible leasing terms, waved fees and rent freezes to assist displaced families in finding housing quickly and affordably.
- Create collaborations with local nonprofits, government agencies and businesses to offer essential supplies, temporary housing and long-term rebuilding support.
- Identify innovative solutions, such as providing fully furnished units and helping families access Wi-Fi and business centers to make transition easier.
- Address the urgent need for streamlined regulatory processes and coordinated recovery efforts to reconstruct housing and infrastructure efficiently.
- Combat price gouging.
- Pledge to work with third-party property management firms to help ensure housing is made available to displaced families, without barriers to entry.
For those looking to help outside of these initiatives, MHN complied a list of resources for those seeking housing, rideshare services, emergency fire updates and donation opportunities.