Los Angeles City Attorney Hydee Feldstein Soto has filed a lawsuit against Blueground US Inc. for allegedly violating state emergency regulations by price gouging rental prices following the recent fires. Under California law during a state of emergency, landlords cannot raise rents by more than 10% above pre-emergency pricing. The lawsuit cites over 10 instances of Blueground increasing rents, including a notable case where rent spiked from $4,140 to $5,400. This lawsuit reflects a growing concern about illegal rental practices during crisis situations, with other legal actions having been taken against real estate agents as well.
Under California law during a state of emergency, landlords cannot raise rent more than 10% of pre-emergency levels, aiming to protect vulnerable renters.
Los Angeles City Attorney Hydee Feldstein Soto claims Blueground engaged in price gouging, raising rents significantly after the city's fires, violating state regulations.
The lawsuit against Blueground highlights broader concerns over illegal price gouging in the housing market after the fires, prompting legal actions against other offenders.
Feldstein Soto described Blueground's actions as unconscionable and illegal, seeking to halt what appears to be exploitation of vulnerable Angelenos during a crisis.
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