Los Angeles City Attorney Sues Temporary Housing Firm Over Alleged Wildfire Price Gouging

Los Angeles City Attorney Hydee Feldstein Soto announced a civil lawsuit on February 4, 2026, against 911 Housing Solutions, its owner Hrant Petrosyan, and unnamed defendants for allegedly violating California’s anti-gouging laws and unfair competition regulations following the January 2025 Los Angeles wildfires. The suit alleges the company illegally inflated rental rates for temporary housing during the emergency period.

Details of the Lawsuit

The lawsuit, filed in Los Angeles Superior Court (Case #26STCV01422), claims 911 Housing Solutions illegally offered, advertised, and charged excessive rates for rental properties after the wildfires created a surge in demand for temporary housing. The Governor’s emergency declaration, issued January 7, 2025, prohibited rental price increases exceeding 10% in Los Angeles County. This declaration has been repeatedly extended, maintaining the price gouging prohibitions under state and local law.

According to the City Attorney’s office, 911 Housing allegedly violated these regulations, including one instance where a property in Glendale was sublet at 126% above the pre-emergency rental rate. The city seeks an injunction to halt these practices, restitution for those allegedly overcharged, and statutory penalties.

Impact of Alleged Price Gouging

The City Attorney’s office argues that 911 Housing’s alleged actions harmed both insurance companies and policyholders by driving up costs and accelerating the depletion of insurance benefits. The alleged price gouging disrupted the market for temporary rental housing, impacting consumers in need.

City Attorney’s Ongoing Efforts

Hydee Feldstein Soto emphasized her office’s commitment to enforcing price gouging laws and protecting Los Angeles residents. “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,” she stated. “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.”

Since the January 2025 wildfires, Feldstein Soto has prioritized combating unlawful price gouging, filing lawsuits against individuals, short-term rental platforms, and entities allegedly violating price gouging and unfair competition laws. She is also sponsoring legislation in the California State Legislature to address loopholes in Penal Code Section 396 that allowed for rental price increases exceeding the 10% cap.

About 911 Housing Solutions

911 Housing Solutions provides temporary rental housing to individuals relying on their homeowner’s insurance to cover costs following displacement due to events like the January 2025 wildfires. A representative for 911 Housing Solutions has not yet responded to requests for comment.