Landlord in fire zone charged in gouging case
The 4,600-square-foot home in Novato had been on the market for months. The owner offered it furnished, utilities included, for $5,000 a month, according to Zillow.
Then, in October, about 30 miles to the north, the Tubbs Fire sparked. It destroyed 5,636 houses, businesses and other structures, most of them in Santa Rosa, causing demand for housing to surge in the region.
According to state prosecutors, the rent for the Novato house jumped to $9,000 monthly. On Monday they charged the owner, Melissa “Missy” Echeverria, with three misdemeanor counts of price gouging.
Echeverria illegally raised the rental price of the home by more than 10 percent, California Attorney General Xavier Becerra said in a statement. Echeverria did not immediately respond to calls for comment.
“There are some unscrupulous
individuals who engage in price gouging, taking advantage of those who are already suffering,” Becerra said. “It’s wrong, it’s unconscionable, and it’s illegal.”
The Sonoma County district attorney’s office has investigated more than 220 complaints of price gouging since the devastating firestorm, officials said.
Authorities do not know exactly how widespread the problem is across areas impacted by the fires, including Sonoma, Mendocino, Lake and Napa counties. Historically, price gouging has been difficult to prove, in part because renters fear retribution by landlords.
“I am hearing that it is an issue and does remain an issue,” said Sue Gallagher, city attorney for Santa Rosa.
Raising rental rates — or sales prices — by more than 10 percent within 30 days of an emergency or state-declared disaster is illegal in California.
On Monday, Gov. Jerry Brown extended the disaster protections through Dec. 4, 2018, meaning rents and home prices cannot be increased more than 10 percent from what they were before October’s wildfires. Brown’s previous extension was set to expire Wednesday.
“There’s the best of humanity coming out in this fire, and there’s also some of the worst of it,” said Sonoma County Supervisor Shirlee Zane. “You see greed. Shame on people that price-gouge. They’re trying to make a buck on the back of people who have suffered severely. I hope the D.A. goes after every single one of them.”
Those convicted of violations face up to a year in jail and fines up to $10,000. The law also prohibits landlords from evicting residents in order to raise rent and doesn’t allow retaliation if a resident reports an illegal price increase.
Still, Sonoma County officials said some residents are afraid to come forward, especially undocumented immigrants.
“People need to be reminded that they shouldn’t be afraid to come forward and talk to us because if they don’t report the problems, we can’t help them,” said Ronit Rubinoff, executive director of the nonprofit group Legal Aid of Sonoma County, which is helping residents with price gouging issues. “If someone is asserting a legal right, and they are retaliated against, the law protects them. You are actually safer if you complain to an agency than if you don’t say anything.”