25/01/2025
Gavin Newsom today Liam Dillon at the LA Times reported on a very real problem with housing we in Los Angeles County are experiencing.
As you know, the devastating wildfires in our area have affected families in a very wide range of household income levels. These families, regardless of how much money they have, are experiencing the same difficulties securing housing. There is just very little available housing for the extreme demand and unfortunately, though predictably, it is government (both state and federal) policy that is exacerbating the problem, not helping it.
Currently, under the State of Emergency price gouging regulations, any new property brought to market for lease (a home that does not have any full-time rental history in the previous year) must abide by HUD’s rental price guidelines as outlined in a very strict zip code based list of rent caps. How these rental rates are calculated is - as one would expect - very opaque and not at all seemingly based on the reality of the zip codes they represent.
I have a client who owns a 3,200 sf 4 Bdrm, 5 Bathrm historically registered fully furnished home in the foothills of Glendale with a huge beautiful courtyard, a pool and downtown Los Angeles views that is a perfect opportunity for a displaced family to occupy for as many years as they may need but because this home has not been a full-time rental before now my client can only bring this house to market at a rate of $4,480 per month when its true market value (not an inflated, price gouged value) is $17,000-$20,000 per month.
I know that that is a lot of money every month, I certainly couldn’t afford it myself, but there are people who can and these people who, despite having a lot of money, have also been completely stripped of everything they own and are as desperate for housing as those who live at a different income level.
We want to help our neighbors and our neighbors want to be helped! The current price gouging laws, while well intentioned, should not be one size fits all. As they exist now, they are only hampering what is already very slow progress for many families.
We urge you to take action NOW to correct this glaring flaw with the current State of Emergency regulations. Stop threatening honest well intentioned property owners with jail time and fines for trying to be a part of the solution. There is only so much goodwill you can ask people to put forth.
Thank You LA Times for bringing clarity to what has had many of us confused and concerned about these past weeks.
Regards,
Chris Cragnotti
Broker/Owner
G&C Properties
Glendale, CA
But in the wake of this month’s devastating wildfires in Pacific Palisades and Altadena, new listings above that amount are in effect barred by state law, just as a crush of wealthy, displaced families are looking for places to go.
