In a show of solidarity following the devastating wildfires that swept through Los Angeles starting January 7, 2025, over two dozen leading multifamily companies and real estate industry groups have joined forces to support affected communities. This initiative, called the LA Wildfires CRE Pledge for Action, focuses on immediate aid and long-term recovery while addressing critical issues like price gouging in rental housing.
A Call to Action: Combating Price Gouging
The coalition, led by the California Apartment Association (CAA), has taken a strong stance against price gouging by apartment owners. Recognizing that some landlords might unintentionally violate price-gouging laws due to a lack of awareness, CAA has launched an educational campaign. This effort includes publishing a full-page ad in the Los Angeles Times to clarify legal responsibilities for landlords.
“Some small independent owners are simply unaware of the law,” said Tom Bannon, Executive Director of the CAA. “While there are isolated cases of misconduct, most landlords want to do the right thing. However, many are hesitant to lower rents due to fears of regulatory restrictions that might prevent them from restoring pre-wildfire rent levels in the future.”
Industry Leaders Step Up
Prominent real estate leaders have emphasized the importance of addressing housing needs without exploiting vulnerable families. Robert Hart, President and CEO of TruAmerica Multifamily, highlighted his company’s commitment to compliance and community support.
“We’re hearing reports of price gouging, which adds stress to families already displaced,” Hart said. “At TruAmerica, we’re offering short-term housing at reduced rates across 26 Los Angeles County properties and another in Ontario, California.”
To further ease the burden, TruAmerica is:
- Waiving application fees.
- Reducing security deposits.
- Expediting move-ins to provide immediate relief.
Hart urged other landlords to join the initiative, saying, “As a community, we must work together to help those affected rebuild their lives.”
Additional Measures for Recovery
Other participating firms in the LA Wildfires CRE Pledge for Action include major names like Camden, Lincoln Property Co., Marcus & Millichap, and NAIOP SoCal. Together, they are exploring innovative solutions to aid recovery, such as offering fully furnished units and collaborating with nonprofits to provide temporary housing and essential supplies.
Recommended Actions for the Real Estate Industry
To support the recovery effort, experts suggest several steps for real estate professionals:
- Flexible Leasing Terms: Offer waived fees, rent freezes, and shorter lease commitments to make housing accessible to displaced families.
- Collaborative Efforts: Partner with local nonprofits, businesses, and government agencies to provide essential resources and rebuilding support.
- Innovative Solutions: Provide fully furnished units, waive credit checks, and help families access amenities like Wi-Fi and business centers to ease transitions.
- Streamlined Regulations: Work with policymakers to simplify permitting and approval processes for rebuilding.
- Pledge Against Price Gouging: Encourage landlords to actively support fair housing practices during recovery.
The Path Forward
The collective efforts of California’s real estate industry highlight the importance of unity in times of crisis. By addressing immediate housing needs and fostering long-term restoration, these organizations are setting an example for other regions to follow.
As the fires continue to affect Southern California, the LA Wildfires CRE Pledge for Action underscores a critical truth: rebuilding communities requires both compassion and collaboration.
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