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The California Association of REALTORS® (CAR) is ensuring homeowners affected by the Los Angeles wildfires know that its members are there to help victims move forward. CAR has placed an open letter in more than 45 newspapers across the state, warning displaced homeowners about potential scams and sharing resources to help them recover.
The L.A. wildfires are estimated to have caused more than $250 billion in losses, making them the most expensive natural disasters in U.S. history. About 16,000 homes and buildings were damaged or destroyed in the fires, exacerbating an ongoing insurance crisis in the state. A severe housing shortage in California also is hurting displaced homeowners who are searching for emergency housing.
CAR’s Support for Wildfire Victims: Financial Aid and Fraud Protection
The CAR letter warns homeowners to beware of price gouging, fraudulent activities and unsolicited, undervalued offers to purchase their home. It also highlights how to apply for financial assistance through CAR. “The immediate housing needs for those who have lost their homes create new vulnerabilities that some may seek to exploit,” the letter cautions.
CAR warns homeowners to be aware of some of the following illegal activities:
- Price gouging: When an emergency is declared, California law prohibits rent increases of more than 10% compared to pre-disaster pricing. Even if tenants are willing to pay more, landlords also are prevented from accepting higher rents. For more information, visit oag.ca.gov or call 1-800-952-5225.
- Unsolicited, undervalued offers: Through the state’s governor’s Executive Order, wildfire victims are protected from being targeted by “opportunistic land speculators.” They should not receive uninvited texts, calls or emails with under market value offers for their home. If they do, they can report incidents to the California Department of Real Estate.
- Fraud: CAR warns that scammers could try to exploit disaster victims with “fake rental listings, bogus crowdfunding campaigns or impersonations of government officials and contractors.” Homeowners are encouraged to verify credentials through the Contractors State License Board and request verification from individuals claiming to represent agencies like the Federal Emergency Management Agency.
The REALTORS® Relief Foundation (RRF) recently approved a $1 million donation to CAR, which the state association will distribute to recovering residents. CAR’s letter explains how victims can apply for up to $1,000 in financial relief through RRF (victims apply for relief through CAR), and also urges homeowners who lost their home to take advantage of the state’s Proposition 19 for property tax relief. Proposition 19 allows homeowners to transfer the taxable value of their damaged home to a new property.
California Wildfires: NAR Steps Up With $1M for Relief Aid
Since the fires broke out on Jan. 7, real estate professionals from across the country have banded together to provide a variety of support to victims, from organizing collection drives to raising money.
“Agents who are REALTORS® deeply understand that in times of crisis, we step up to help our communities remain resilient and united, even in the face of devastation like what we’re witnessing in Southern California,” RRF President Greg Hrabcak said when announcing the $1 million donation to CAR. RRF works through NAR’s network of state and local REALTOR® associations to help distribute funding in communities affected by natural disasters. It's an example of how the three levels of the REALTOR® organization work together to positively impact communities around the country.
“The devastation caused by the recent wildfires in Southern California is beyond words,” CAR President Heather Ozur writes in the letter to California residents. “Our hearts are heavy for those lives that have been upended. The next several months will bring untold challenges for many. As professionals whose core values are tethered to the building of communities and to the meaning that ‘home’ occupies in our lives, we not only stand committed to helping rebuild what has been lost but also aim to protect you however we can.”
