Looting, scamming and outrageous rent hikes in Los Angeles following the fires
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Economic Exploitation Following LA Wildfires: In the aftermath of the recent Los Angeles wildfires, which have destroyed over 10,000 homes and structures, and killed at least 28 people, authorities are warning about economic exploitation targeting affected residents.
Reports have emerged of opportunistic buyers making lowball offers on damaged properties and landlords imposing exorbitant rent increases on displaced individuals seeking temporary housing. California Attorney General Rob Bonta emphasized that such actions re-victimize those already suffering, stating, "They make the affected victims anew by trying to exploit their vulnerable position."
In response, California law prohibits price increases exceeding 10% during emergencies. However, instances of significant rent hikes have been reported, with some properties listed at rates equivalent to approximately $30,000 USD. Consequently, several investigations have been initiated to address these violations. Attorney General Bonta affirmed, "Whether it's fraud or looting—you can be sure that we will hold you accountable."
Additionally, many residents lacked insurance coverage, and some insurers have withdrawn from areas deemed high-risk for wildfires. This situation has left property owners vulnerable to opportunistic buyers offering unreasonably low prices for their fire-damaged homes.
Jacqui Irwin, a member of California's State Assembly, cautioned residents against accepting such offers, advising, "Do not sell your homes for pennies."
Law enforcement agencies have also reported arrests related to looting in the affected areas. The FBI has issued warnings to the public about fraudulent charities soliciting donations purportedly for wildfire victims.
In light of these developments, the Joint Regional Fire Crimes Task Force (JRFCTF) has been established to investigate and prosecute individuals exploiting the wildfire crisis. This collaborative effort includes federal and local law enforcement agencies dedicated to addressing fire-related crimes during Los Angeles County's recovery.
The wildfires have also exacerbated Los Angeles's existing housing shortage, with over 15,800 homes threatened and an estimated $40 billion in residential real estate at risk. This increased demand for housing is likely to further strain the rental market, potentially leading to higher rents and making it more challenging for displaced residents to find affordable accommodations.
Authorities are urging residents to remain vigilant against fraudulent activities and to report any suspected scams to law enforcement.
For more information, please see the following sources:
U.S. Department of Homeland Security
What the Fires Revealed About Los Angeles Culture
LA wildfires have put over $40B of residential real estate value at risk