Santa Monica Landlords Ordered To Pay $35K For Price Gouging

SANTA MONICA, CA — A judge ordered Santa Monica landlords to pay $35,000 to homeless outreach and tenant protection organizations to dismiss rental price gouging charges, the city announced Tuesday.

The landlords of 1433 Euclid Street face misdemeanor criminal charges of rental housing price gouging related to raising a tenant's rent from $865 to $3,000 — over 10 percent — and charging the increased rent in February, March and April of 2020, according to the city of Santa Monica.

The state prohibits rent increases over 10 percent during a declared state of emergency, and both California and Santa Monica remain under a COVID-19 state of emergency.

To have the charges dismissed, two representatives of the property's management will have to complete a 12-month diversion program that includes a $20,000 payment to The People Concern, a local homeless services organization and an additional $15,000 to the city of Santa Monica for tenant protection services.

Should the representatives fail to comply with the diversion program, the court will continue with its criminal proceedings.