Attorney General Bonta Announces Settlement with Invitation Homes Over Unlawful Rent Increases

OAKLAND — California Attorney General Rob Bonta today announced a settlement with Invitation Homes to resolve allegations that the company violated the California Tenant Protection Act (TPA) and California’s price-gouging law by unlawfully increasing rents on approximately 1,900 homes. As part of the settlement, Invitation Homes will pay $2.04 million in civil penalties and is required to take specific actions to ensure compliance with California law. Invitation Homes also refunded or credited tenants the amount it collected in excess of state rent caps, plus 5% interest, totaling over $1.68 million.

“Californians are facing a housing crisis of epic proportion. California has laws in place to protect tenants from sudden, large rent increases, and landlords need to be diligent in ensuring that they abide by those laws,” said Attorney General Bonta. “The settlement announced today should serve as a reminder to landlords in California to familiarize themselves with the law and protections put in place to keep homes accessible to Californians.”  

The California Department of Justice's (DOJ) investigation found that a limited percentage of the rent increases that Invitation Homes imposed from late 2019 through 2022 violated the TPA and California’s price-gouging law. Invitation Homes, which owns and manages approximately 12,000 rental homes across California, had identified some of these issues through its own reviews. The company promptly provided remediation to affected tenants. 

Co-authored by Attorney General Bonta during his time as a state Assemblymember, the TPA was signed into law by Governor Gavin Newsom in 2019. It created significant new protections for most tenants, including limiting rent increases and prohibiting landlords from evicting tenants without just cause. The TPA prohibits landlords from raising rent annually for most tenants more than 5% plus the percentage change in the annual cost of living, or 10% total, whichever is lower, over a 12-month period. California’s price-gouging law, Penal Code section 396, prohibits landlords from increasing the price of rental housing by more than 10% during and in the aftermath of a state of emergency or local emergency. Cities and counties may have more stringent rent caps that landlords must follow.

Under the proposed settlement, Invitation Homes is required to: 

• Restore lawful rental rates for all of its California tenants.
• Evaluate the compliance of any proposed rent increase or any new base rental rate with all state and local laws. 
• Perform quarterly audits on all processes and systems designed to ensure that rental increases comply with state and local law.
• Monitor all California statewide and local states of emergencies on a weekly basis to ensure that base rental rates and rent increases do not violate state or local laws governing rent setting.
• Refrain from collecting, or claiming in a legal action, any rent not lawfully owed by a tenant.
• Ensure that any information it provides to credit reporting agencies on late rental payments or nonpayment by tenants is correct or corrected.
• Provide an annual compliance report to DOJ for the next five years regarding rent increases, steps taken to ensure compliance with state and local laws, any potential violations, and any remediation.

Attorney General Bonta is committed to protecting California renters and using the tools of DOJ to address California's housing crisis. In November 2021, he announced the creation the Housing Justice Team within DOJ. In June 2023, the Housing Justice Team entered into a settlement against Green Valley Corporation, a San Jose-based housing developer and property manager, over violations of the TPA. In May 2023, the team filed a lawsuit against the City of Elk Grove, challenging the city’s denial of a proposed supportive housing project in the city’s Old Town Special Planning Area. In March 2023, they filed a lawsuit against the City of Huntington Beach for violating state housing laws. 

Members of the public are encouraged to visit DOJ’s Housing Portal and  HCD’s website for more resources and information aimed at supporting access to housing. If you believe your landlord has violated the law, you can file a report online at www.oag.ca.gov/report. 

Tenants who need legal help are encouraged to visit www.lawhelpca.org to find legal aid resources in their communities. 

A copy of the complaint and stipulated judgment are available here.