
Multifamily leaders are banding together in response to the devastating wildfires that have destroyed as many as 12,000 structures and displaced tens of thousands of people.
Fifteen leading multifamily firms and commercial real estate industry groups—Benedict Canyon Equities, California Apartment Association, Camden, Christina Real Estate Investors, Cityview, CREDE Group, Hanes Properties, LaTerra Development, Lincoln Property Co., Marcus & Millichap, Mata Construction, NAIOP SoCal, North Palisade Partners, Paragon Commercial Group, and TruAmerica Multifamily—have created a grassroots initiative, LA Wildfires CRE Pledge for Action, to focus on households’ immediate needs and setting the foundation for the long-term recovery. A key focus of the initiative will be to fight price gouging on rentals.
“We are doing whatever we can do to help people through these difficult times,” says Sean Burton, CEO of Los Angeles-based Cityview. “We have talked with other managers also, and we are committed to not price gouging. No one I know wants to take advantage of this situation.”
Burton says Cityview is responding in a number of ways.
“We are checking on our residents first and foremost,” he tells Multifamily Executive, adding that a number of its buildings were close to evacuation zones as well as residents dealing with the poor air quality.
The multifamily owner and manager also is trying to take in as many victims as possible, waiving some fees, offering short-term leases, exploring furniture rentals to furnish units, and even providing toiletries when they arrive.
In addition, its team of approximately 200 people and their families also have been impacted by the fires. Cityview has made a donation and are matching donations from its team members to the Los Angeles Fire Department Foundation and the California Fire Foundation.
TruAmerica Multifamily is another Los Angeles-based owner and operator focused on helping the community. “TruAmerica is working with its third-party management teams to ensure that lists of available units are distributed as widely as possible to those impacted by the fires and reducing qualifications like application fees and credit checks, expedited move-ins, and reduced deposits in order to get impacted families housed as quickly as possible,” says president and CEO Bob Hart, who hosted a group of leaders on his podcast earlier this week. “I’m calling on other California landlords to commit to doing the same and to pledge against price gouging as our community heals.”
Camden, one of the nation’s largest publicly traded multifamily companies, also is temporarily waiving application fees, offering flexible lease terms, and freezing new lease rates at its communities in the area. In addition, chairman and CEO Richard J. Campo says it is mobilizing Camden Cares across the state to collect essential items for those affected by the wildfires.
“Our top priority during times like this is focusing on the health and safety of our residents and team members and helping our neighbors who have been impacted by this devastating event,” he says. “We are committed to doing our part and offering assistance to those seeking alternate housing options, as we have done in the aftermath of hurricanes, storms, and other disasters in the regions where we operate.”
Gov. Gavin Newsom issued an executive order Thursday to assist displaced residents’ with their housing needs.
“As thousands of Los Angeles residents have been faced with sudden displacement, the state is taking decisive action to help provide housing and assistance as quickly as possible,” he said in a statement. “Today, we are expediting the creation of new temporary housing by removing roadblocks and strengthening new protections against exploitation.”
As part of the order, price gouging prohibitions on rental housing, motels, and hotels in Los Angeles County will be extended through March 8. State departments also will be directed to support local governments as they develop temporary housing plans to help provide necessary shelter for those immediately impacted by the firestorms.
Looking ahead to the recovery process, Burton emphasizes Los Angeles had already been facing a housing crisis.
California’s Regional Housing Needs Assessment finds the city must add approximately 456,643 units from 2021 to 2029, which is a major jump from the 83,865 units produced from 2010 to 2019. In its winter outlook, Yardi Matrix forecasts Los Angeles to add 13,200 multifamily units, or 2.7% of its stock, in 2025.
“We are in real trouble. We have a lot of work to do as a city and a region to address this issue,” he explains. “There’s a robust discussion about how we rebuild and recover in Pacific Palisades and Altadena. That will be a multiyear effort with all hands on deck.”
He adds there will be huge competition for everything from labor, architects, plumbers, and engineers to lumber, appliances, and other building supplies. “We need to look at this as a regional problem. As the region looks to solve this, perhaps we can buy material in bulk and get some discounts. We’re very early in that process.”
Burton adds it will be critical to be a partner with the city. “As they start to figure out the recovery, we want them to call on us. We have expertise and will donate our time, effort, and thinking to be part of the solution going forward,” he says.