(LOS ANGELES) – City Attorney Hydee Feldstein Soto announced that her office filed a civil lawsuit against 911 Housing Solutions (“911 Housing”), Hrant Petrosyan (“Petrosyan”), and unnamed defendants for allegedly violating anti-gouging (California Penal Code section 396; LAMC section 47.12) and unfair competition laws. The lawsuit alleges that the temporary rental housing provider illegally offered, advertised, and charged gouged rates for rental housing following the unprecedented Los Angeles wildfires in January 2025. This action follows City Attorney Hydee Feldstein Soto’s previous efforts to enforce anti-gouging and unfair competition laws in Los Angeles.
“It’s unconscionable that, despite multiple opportunities to comply with the law, defendants allegedly continued to take advantage of individuals who have already lost so much,” said Hydee Feldstein Soto, Los Angeles City Attorney. “This lawsuit sends a clear message that my office will continue to enforce our price gouging laws, hold accountable those who violate the law, and protect Angelenos from predatory behavior.”
The Los Angeles wildfires of January 2025 created a need for local, short-term rental housing for individuals who lost or were forced to vacate their homes. 911 Housing provides temporary rental housing to individuals who rely on their homeowners’ insurance to cover these costs.
On January 7, 2025, Governor Gavin Newsom issued a declaration of emergency, which made it illegal to increase the price of rental offerings by more than 10 percent in Los Angeles County. Governor Newsom and the Los Angeles County Board of Supervisors have repeatedly extended the emergency declaration, thereby continuing the price gouging prohibitions under state and local law. Despite these prohibitions, defendants allegedly illegally offered, advertised, and charged gouged rates for many rental housing properties, including a home in Glendale they sublet to the insured for 126% over the pre-emergency rental rate.
911 Housing’s alleged price-gouging harms insurance companies and insureds by contributing to higher insurance costs and causing homeowners to more rapidly deplete their insurance benefits. Defendants’ alleged price-gouging also harms consumers by disrupting and distorting the market for temporary rental housing.
The City is seeking an injunction to put a stop to these practices, restitution for individuals or entities who have allegedly been charged illegally high rents, and to impose statutory penalties to punish defendants for their alleged misconduct. It also aims to deter others from engaging in similar unlawful, unfair, and fraudulent price-gouging practices.
Since the January 7, 2025 wildfires, City Attorney Feldstein Soto has made it a top priority of her office to combat the unlawful price gouging of rental properties, deter criminals and predators, and bring bad actors to justice. She has filed against individuals, short-term rental platforms and entities who are alleged to have increased their prices in violation of price gouging and unfair competition laws. City Attorney Feldstein Soto is also sponsoring legislation before the California State Legislature to close the loopholes in Penal Code Section 396 that allowed property owners to increase rental prices far beyond the 10% cap.
This litigation is managed by the City Attorney’s Public Rights Branch.
LASC Civil case #26STCV01422
The People of the State of California v. 911 Housing Solutions, Hrant Petrosyan, and Does 1 through 100.
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Hydee Feldstein Soto is the 43rd Los Angeles City Attorney, elected in November 2022 and sworn into office in December 2022. Her team of nearly 1,000 legal professionals, including 500+ attorneys, carries out legal work for the City of Los Angeles at her direction and under her supervision. She is the first female City Attorney in L.A. history.