LOS ANGELES (KABC) -- Los Angeles was already dealing with a housing crisis before last week's wildfires left thousands without a home overnight, and now price gouging is making it harder for fire victims to find a place to stay.
California law enforcement officials announced Thursday they have opened multiple predatory pricing investigations into fraud, assorted price-gouging scams and unsolicited low-ball offers on property during the current state of emergency in Los Angeles County. California Attorney General Rob Bonta said law enforcement has been working to tackle "this unlawful and unscrupulous conduct" since the emergency was declared on Jan. 7.
Bonta also announced the creation of the Disaster Relief Task Force and the launch of a website dedicated to its response: OAG.ca.gov/LAFires.
"Preying on people during such a vulnerable time is not just fundamentally wrong, it is illegal," Bonta said in a statement.
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Price gouging is also impacting those who were already looking for a place to rent, as well as people who are currently renting and struggling to keep up with rental payments in an expensive housing market.
"As the housing market gets smaller and smaller because of the fires, rent prices are going to go up because they can," said Trevor Williams, who lives in L.A.'s Arts District.
The Los Angeles City Council and other city leaders and organizers are now pushing for a citywide moratorium on rent increases and evictions.
"The fires unfortunately have greatly exacerbated our housing and homelessness crisis overnight. We lost so many housing units, people lost their homes," said Rene Moya with the L.A. Tenants Union.
Airbnb.org is also trying to help by partnering with 211 L.A. to provide free housing for up to seven days for people who have been displaced by the fires.
Realtor Dana Coronado says there's so much uncertainty.
Coronado, along with her husband, has been trying to get those who lost their homes into rental units. She became emotional talking about families who are losing out on housing when so many people are applying at once.
"He just had to call one of his clients and let them know they didn't get the house they applied for. They have three kids... it's a really difficult time for a lot of people," she said.
California law generally prohibits charging a price that exceeds by more than 10% the price a seller charged for an item before a state or local declaration of emergency. For items a seller only began selling after an emergency declaration, the law generally prohibits charging a price that exceeds the seller's cost of the item by more than 50%.
The law applies to those who sell food, emergency supplies, medical supplies, building materials and gasoline. It also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and long- and short-term rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods or materials has increased for the business.
"Over the past week, I have encouraged the public to submit complaints to local law enforcement or my office. The response has been overwhelming," Bonta said. "I can confirm that we are actively investigating multiple cases. Let there be no doubt that we will hold those accountable who are attempting to exploit Californians and profit from their pain."
The Disaster Relief Task Force is made up of a team of professionals from state law enforcement and legal divisions including the Division of Law Enforcement, Special Prosecutions Section, Cybercrime Section and the Consumer Protection Section, as well as local law enforcement, Bonta said.
The California Department of Justice also has special agents actively in the field investigating leads that came directly from complaints from victims and witnesses in the impacted areas.
DOJ has sent letters to trade associations and platforms for both short- and long-term rentals regarding price-gouging regulations. The letters emphasized that these companies are expected to oversee their platforms and communicate with their members to ensure all listings adhere to the law. DOJ also sent similar letters to hotel chains, requesting they provide the office with additional information to ensure price gouging is not happening, the agency said.
To report suspected predatory pricing, go to oag.ca.gov/LAfires or call 800-952-5225. Include screenshots of all correspondence including conversations, text messages, direct messages, voicemails and call records. Provide anything that shows what prices you were offered, when and by whom.
City News Service contributed to this report.