Santa Monica Charges Landlords With Illegal Rent Hikes

SANTA MONICA, CA — Santa Monica is taking aim at landlords in the city who are accused of skirting special protections for renters that have been enacted because of the coronavirus pandemic.

The city announced Friday that it charged the owners of an apartment building at 1433 Euclid St. with illegally increasing the rent of a tenant by more than 10 percent during a state of emergency.

WS Communities LLC and 1433 Euclid Street LLC face three counts of price gouging after being accused of raising the rent of a tenant from $865 a month to $2,336 in February 2020 and then to $3,000 in March and April 2020, according to a city statement. “The tenant paid the increased rental amounts under protests,” the statement said.

The companies are scheduled to be arraigned in court on March 24.

California prohibits landlords from increasing the rental price of a housing unit by 10 percent if the governor, local officials or the president of the United States has declared a state of emergency, city officials said.

Gov. Gavin Newsom declared a state of emergency on March 4, 2020, in response to the COVID-19 outbreak; that remains in place. Former President Donald Trump also declared the pandemic a national emergency in March.

The landlords could face up to a year in county jail if convicted of price gouging, plus a fine of up to $10,000, or both imprisonment and a fine. They also face additional financial penalties if found guilty of engaging in an unlawful business practice.