Los Angeles City Atty. Hydee Feldstein Soto continued the giant of the BlueGround US Inc. apartment, alleging that the furnished rental supplier engaged in multiple cases of price price following fires in the region.
Under a state of emergency, the owners and their representatives are generally prohibited from lifting the rent of more than 10% above what they were billed or announced before the fires broke out on January 7. The restrictions expire on March 8 unless they are extended.
In his trial, announced on TuesdayThe city prosecutor's office cited more than 10 cases in which it alleged that BlueGROUND is committed to prices, including in an apartment in downtown Los Angeles, where the company lifted the rent by more than 30%, from $ 4140 per month to $ 5,400.
BlueGROUND denied that the company breaks the anti-Gou law and that most of the announcements cited by the city's prosecutor were for future dates which were not subject to prices restrictions.
“We have a heart broken by devastation caused by recent forest fires in Los Angeles and the surrounding area,” said BlueGround spokesperson Jamie Goldstein in a statement. “We are working closely with the city's prosecutor's office to provide additional information and clarify all concerns, and will continue to review our price model to the housing crisis in Los Angeles.”
BlueGROUND is not a typical apartments company, and its offers can be ideal for people who have lost their homes in fires and do not want to buy a new sofa and a new bed. BlueGROUND rents owners' units, provides apartments, then rents units to tenants and businesses who need long -term housing for their workers.
His website indicates that BlueGROUND works around the world, although it is not clear if the entity that the city's lawyer has continued, BlueGROUND US Inc., is only an American subsidiary.
“It is not only unacceptable that BlueGround takes advantage of Angelenos when they are the most vulnerable, it is illegal and must stop immediately,” said Feldstein Soto in a statement.
The action announced on Tuesday is that the latest authorities have been carried out since generalized prices have become known after fires.
The California prosecutor's office has deposited at least two criminal affairs Against real estate agents of the Los Angeles region. Some real estate lists such as Zillow have also decided to withdraw the lists in which the rent was increased beyond the 10%threshold.
In addition to the civil affair deposited against BlueGround, the city prosecutor's office also announced on Tuesday that it had filed criminal accusations against an owner and his real estate agent for the alleged price.
The real estate agent and his lawyer declared that the registration in question had been deleted once the agent learned the rules of prices and that it was never rented at this price.
