Two people have been charged in Sonoma County for raising the price of their rental property more than 10 percent after wildfires swept through the area destroying numerous homes. Cases of similar price gouging are being reported in California counties affected by the historic fires. With home rebuilding expected to take several months, homeowners are frantically searching for rental properties in the interim.
As a result of the price gouging Governor Jerry Brown has imposed a six-month moratorium on rent increases in excess of 10 percent. The protections under the law do not specifically restrict the price controls to just areas impacted by the fires suggesting they may be applicable throughout the state.
Landlords found to be in volition of the ban on rent increases face up to a year in county prison, a fine of up to $10,000 and other civil penalties.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates are near 3.375 percent.
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