Housing

Attorney General Bonta and Newsom Administration file amicus briefs siding with Newport Beach in lawsuits attacking City’s general plan

OAKLAND — California Attorney General Rob Bonta and California Department of Housing and Community Development (HCD) Director Gustavo Velasquez today announced that the Orange County Superior Court has granted their application to file amicus briefs in support of the City of Newport Beach’s efforts to comply with state housing law. Last year, two local organizations sued the City for taking steps to update and implement its housing element, or housing plan, as required under the state’s Housing Element Law. Specifically, the City amended its land use element to allow residential development in more of the City, adopted new overlay zoning districts to create more residential development capacity in six focus areas, adopted a set of objective development standards, and amended the City’s Local Coastal Program to be consistent with the City’s housing element. The local organizations suing the City contend that these changes must be approved by voters before they are effective because of a provision in the City’s charter. In their amicus briefs, Attorney General Bonta and the Newsom Administration agree with the City’s position that the City’s charter provision cannot be used to obstruct the state’s Housing Element Law.

“Too often, my office finds itself needing to hold local governments accountable for failing to follow our state’s housing laws. Right now, Newport Beach is attempting to do the right – and legal – thing, and I want to commend them for it,” said Attorney General Bonta. “In partnership with the Newsom Administration, we sought, and have received, court permission to file amicus briefs supporting the City’s efforts to build its fair share of housing. California is continuing to deal with a housing crisis of epic proportions. Now is the time for leaders at every level of government to say yes to cooperation and yes to more homes.”

“Newport Beach has done the work needed to adopt a compliant housing element, which is foundational to ensuring we meet state housing need for all income levels,” said HCD Director Gustavo Velasquez. “HCD is proud to stand with the City against efforts to stall implementation of its housing plan, and to help ensure the City remains compliant with Housing Element Law.”

The state’s Housing Element Law creates a comprehensive framework for statewide and regional coordination to ensure that each local government accommodates its fair share of new housing. Local governments must adopt general plans, and those general plans must include housing elements that substantially comply with the state’s Housing Element Law. Those housing elements must accommodate the housing “needs of all economic segments of the community.” At issue is Section 423, a provision in the City’s charter that subjects any major amendment to its general plan for voter approval before it can take effect. Critically, Section 423 also states that it “shall not apply if state or federal law precludes a vote of the voters on the amendment.”  

In their amicus briefs, Attorney General Bonta and the Newsom Administration underscore that: 

• In California, state law may preempt local law by implication if the local law contradicts or is inimical to the state law. Here, the City was legally required to complete rezoning to implement its housing element by February 12, 2025. Conditioning implementation of its housing element on the outcome of a Section 423 vote would render compliance with the Housing Element Law infeasible. 
• Vacating the City’s general plan amendment and zoning update with no legally sufficient alternative in place would violate the City’s housing element, which would in turn violate the state’s Housing Element Law. The City could face substantial legal consequences, including losing its permitting, subdivision, and rezoning authority. 
• If the City vacates the changes, it will no longer substantially comply with the state’s Housing Element Law, and the Builder’s Remedy will take effect. The Builder’s Remedy prevents local governments without compliant housing elements from using their local land use laws to deny certain types of new affordable housing developments. 
• The Builder’s Remedy is constitutional. One of the lawsuits argues that the Builder’s Remedy would not apply if the City was ordered to vacate the changes because the Builder’s Remedy violates the City’s home rule authority under the California Constitution. But the Builder’s Remedy is narrowly tailored to address the housing crisis, which is an issue of statewide concern.

A copy of the amicus briefs can be found here and here. A merits hearing is scheduled for June 17, 2025. 

OAKLAND — California Attorney General Rob Bonta today announced co-leading a coalition of 21 attorneys general in filing an amicus brief in support of non-profit housing organizations harmed by the Trump Administration’s unlawful cancellation of Fair Housing Initiatives Program (FHIP) grants. Congress established FHIP in 1988, requiring the U.S. Department of Housing and Urban Development (HUD) to provide funds to non-profit housing organizations that carry out investigatory, enforcement, education, and outreach activities aimed at rooting out discrimination in the provision of housing. Congress has specifically appropriated funds to HUD for this purpose every year since FHIP’s inception. 

On February 27, HUD cancelled 78 preexisting FHIP grants — totaling approximately $30 million — effective immediately and with no prior warning. HUD offered no rationale for its action beyond a blanket assertion that the decision was made at the direction of President Trump and the Department of Government Efficiency because the grants purportedly “no longer effectuate…the program goals or agency priorities.” Three non-profit housing organizations that receive FHIP grants subsequently filed a class-action lawsuit — Massachusetts Fair Housing Center v. HUD — against the Trump Administration on behalf of all similarly situated organizations that had FHIP grants terminated on February 27. California is home to at least 7 fair housing organizations whose FHIP funds would be terminated. 

“As I’ve said over and over again, the Trump Administration is not above the law. My fellow attorneys general and I are proud to be supporting non-profit organizations that Congress tasked to root out housing discrimination in our communities. The termination of these grants was illegal, and they must be reinstated,” said Attorney General Bonta. “The stakes are high — many of these non-profit organizations would be forced to close their doors without the grants and our states would suffer severe harms in tackling housing discrimination.” 

On March 26, 2025, the class of non-profit housing organizations secured a temporary restraining order from the U.S. District Court for the District of Massachusetts requiring the Trump Administration to continue providing the FHIP grants. The court, however, later dissolved the temporary restraining order and the non-profit housing organizations are currently asking that it be reinstated.  

In the amicus brief, which was filed in the U.S. Court of Appeals for the First Circuit, the attorneys general argue that: 

• If allowed to take effect, HUD’s sudden and unlawful action will immediately and severely upend the important work of these FHIP organizations, resulting in more housing discrimination being left undetected and unredressed in their states. 
• In several crucial ways, the work done by the non-profit housing organizations complements the efforts of their states to provide safe, fair, and affordable housing to their residents while easing administrative burdens on their states. For example, a FHIP organization in California brought significant evidence to the California Civil Rights Department demonstrating that a property-management company in the San Francisco Bay Area had adopted overly restrictive rules that effectively barred rental applications from families with young children. Based on that evidence, the Department filed a lawsuit, which yielded a consent decree in 2023 prohibiting these rules and requiring restitutionary payments to affected families. 
• The non-profit housing organizations are likely to succeed on the merits of their claims. HUD’s determination to void 78 preexisting FHIP grants, with no explanation or consideration of the consequences to their states and their residents and communities, was arbitrary and capricious in violation of the Administrative Procedure Act. 

Joining Attorney General Bonta in co-leading today’s amicus brief are New York Attorney General Leticia James and Massachusetts Attorney General Andrea Campbell. They are joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, and Washington. 

A copy of the amicus brief can be found here.

OAKLAND — California Attorney General Rob Bonta today issued the following statement in response to the decision by the U.S. Court of Appeals for the Ninth Circuit to deny the City of Huntington Beach’s petition for rehearing en banc in its federal lawsuit challenging the constitutionality of certain California housing laws. On October 30, 2024, a three-judge panel of the Ninth Circuit unanimously affirmed the district court’s dismissal of Huntington Beach’s federal lawsuit. The City subsequently petitioned for rehearing en banc, so that the full Ninth Circuit could hear its federal lawsuit. Today’s order notes that “[t]he matter failed to receive a majority of the votes of the nonrecused active judges in favor of en banc consideration.” This leaves in place the Ninth Circuit’s October 30, 2024 decision.  

“We are pleased that Huntington Beach’s latest attempt to exempt itself from our state’s housing laws has failed. All along, Governor Newsom and I have asserted that the City’s federal lawsuit is meritless and a waste of the public’s money,” said Attorney General Bonta. “Like every other city in California, Huntington Beach has a legal obligation to build its fair share of housing. We will be closely monitoring what the City decides to do next. Our state lawsuit against Huntington Beach is also on appeal. We remain confident we will prevail there, too.” 

A copy of the decision can be found here.

HomeOptions must terminate all liens and contracts in California and pay over $570,000 in penalties and restitution to homeowners 

OAKLAND — California Attorney General Rob Bonta today announced reaching a settlement with HomeOptions, a realty company based in Oakland that engaged in a predatory real estate scheme impacting over 500 California homeowners, and its Chief Executive Officer. In partnership with Napa County District Attorney Allison Haley and Santa Barbara County District Attorney John T. Savrnoch, Attorney General Bonta launched an investigation into HomeOptions that found the company lured financially vulnerable homeowners with an immediate payment of a couple hundred to a couple thousand dollars in exchange for the exclusive right to be the homeowner’s real estate listing agent for the next 20 years, entered into unlawful contracts with those homeowners, deceptively recorded liens against the homeowners’ homes, and forced homeowners to pay tens of thousands of dollars in illegal fees to remove those liens so that they could transfer title or obtain home loans. HomeOptions misrepresented the nature of its agreements, included unlawful breach and early termination penalty terms in its contracts, and violated California’s Real Estate Law, state and federal telemarketing laws, and federal lending laws. As part of the settlement, HomeOptions has agreed to terminate all liens and contracts in California, pay full restitution to victims, and pay civil penalties. 

“HomeOptions’ business practices can be summed up in one word: predatory. This settlement holds the company accountable and provides immediate relief to California homeowners,” said Attorney General Bonta. “Homeowners will regain full control over their homes, without having to worry about a HomeOptions lien ever again. And homeowners who have already paid early termination penalties to HomeOptions will get all of their money returned. Let there be no doubt that, in California, we will enforce the law against unscrupulous businesses that exploit vulnerable consumers.”

“Napa will not stand mute to the predation of those who victimize our citizenry,” said Napa County District Attorney Allison Haley. “I am gratified that by our action, all the exclusive listing agreements with California consumers are rendered void and unenforceable.”

“Homeowners are entitled to be safe in their homes and not fall prey to scams intended to extract their home equity,” said Santa Barbara County District Attorney John Savrnoch. “This settlement rightly provides full restitution to all victims and prevents HomeOptions and its CEO from engaging in these practices again.” 

The settlement announced today requires HomeOptions to: 

• Terminate all liens that it recorded on California homeowners’ homes. Because these liens clouded title, homeowners often could not transfer title or obtain home loans without paying HomeOptions to terminate those liens. By requiring termination of all liens, the settlement will likely save impacted homeowners tens of thousands of dollars each.
• Void all contracts that it entered into with California homeowners. These contracts required homeowners to pay steep fees if they did not use HomeOptions real estate agents. By voiding these contracts and requiring HomeOptions to stop any enforcement or collection efforts on these contracts, the settlement allows homeowners to list their homes with any real estate agent of their choosing and releases them from all obligations and payments to HomeOptions.
• Pay full restitution, totaling over $400,000, to homeowners who previously paid HomeOptions illegal fees, including to remove their liens.
• Pay approximately $170,000 in civil penalties.

California has passed legislation to prohibit predatory schemes like the one HomeOptions engaged in. On October 8, 2023, Governor Gavin Newsom signed into law AB 1345, which was authored by Assemblymember Gregg Hart (D-Santa Barbara), sponsored by Attorney General Bonta, and went into effect on January 1, 2024. AB 1345 imposes a two-year limit on residential exclusive listing agreements and prohibits the filing of those agreements with a county recorder. HomeOptions ceased entering into California homeowner agreements in 2024. 

A copy of the complaint can be found here. A copy of the stipulated judgment can be found here.

AB 1248 seeks to protect tenants from unfair and unpredictable fees  

OAKLAND — California Attorney General Rob Bonta, Assemblymember Matt Haney (D-San Francisco), and a prominent coalition of organizations today unveiled Assembly Bill 1248 (AB 1248), legislation that seeks to protect tenants from unpredictable and costly housing fees. In recent years, some landlords have adopted the practice of charging separate piecemeal fees in addition to the rent, which can cost tenants hundreds of dollars more each month on top of the base rent. This practice hinders tenants’ financial stability and ability to budget for housing and other needs — and hurts landlords who do not charge these fees by putting them at a competitive disadvantage and creating an unfair marketplace. The practice of charging separate piecemeal fees has become even more rampant since the enactment of California’s Tenant Protection Act (TPA), which provides statewide rent-increase protections. AB 1248 aims to prevent landlords from unbundling housing services — many of which have traditionally been covered by rent — and then charging additional, often mandatory, fees for those services. AB 1248 makes clear that landlords cannot play games with state rent caps by charging fees that amount to shadow rent increases or advertise a deceptively low rent. By prohibiting added fees, AB 1248 will help ensure that tenants’ housing payments remain stable and predictable, and that people can compare true costs when searching for housing within their budget. 

“When landlords tack on fees on top of rent it makes it almost impossible for families to compare housing costs or plan for monthly expenses. As it stands, the scarcity and high cost of housing means California's 17 million renters spend a significant portion of their paychecks on rent, with an estimated 150,000 people at risk of eviction any given month,” said Attorney General Rob Bonta. “The price of housing should be clear to California tenants in the same way that the cost of a concert ticket or a hotel is clear to California consumers. I thank Assemblymember Haney for introducing legislation to ensure California tenants receive the full protection afforded to them by the Tenant Protection Act. AB 1248 will help Californians’ housing payments remain straightforward, stable, and predictable.”

“Housing costs in California are already high, and added fees only make it harder for renters to budget and stay financially stable. These unfair and unpredictable costs are nothing more than a scam that drives up housing expenses and leaves tenants paying far more than they expected,” said Assemblymember Matt Haney (D-San Francisco). “AB 1248 ensures fairness by making sure the rent tenants agree to is the rent they actually pay. This bill will help protect Californians from misleading pricing practices and create a more honest and predictable rental market."

"Unfair fees in the rental housing market have exploded in recent years — far too many consumers feel the crushing burden of all these unpredictable fees on a monthly basis," said Robert Herrell, Executive Director of the Consumer Federation of California. "This bill by Assemblymember Haney will dramatically improve consumer protections so renters don't get taken advantage of. We are proud to co-sponsor this bill with Attorney General Bonta and other leading consumer housing advocates."

“Low-income renters need certainty in their monthly rent payments. Most of these tenants are already severely rent-burdened and struggling to retain their housing. The exploitive practice of adding on fees after a lease has already been signed or charging for services that had previously been included in rent makes it even harder for people to stay housed,” said Brian Augusta, Legislative Advocate, California Rural Legal Assistance Foundation. “We are proud to co-sponsor this measure with the Attorney General and the Consumer Federation and thank Assemblymember Haney for authoring it.” 

Co-authored by Attorney General Bonta during his time as a state assemblymember, the Tenant Protection Act (TPA) was signed into law by Governor Gavin Newsom in 2019. It created significant statewide protections for most tenants, including by limiting rent increases and prohibiting landlords from evicting tenants without just cause. Under the TPA, landlords cannot raise the gross rental rate more than 10% total or 5% plus the percentage change in the cost of living – whichever is lower – over a 12-month period.

Particularly since enactment of the TPA, an increasing number of landlords, including large corporate landlords, are charging tenants a proliferation of separate fees, including for services that should be and have historically been covered by the rent. For example, some landlords charge monthly fees for pest control, “trash concierge” services, and Ratio Utility Billing System (RUBS) fees where tenants are charged for a portion of the building’s utilities, like water and sewer, based on a complex formula with little transparency and that landlords can often change at any time, resulting in charges that can vary widely from month to month. These fees can add up to hundreds of dollars each month on top of rent.

By engaging in this practice, these landlords place significant burdens on tenants, including uncertainty about monthly housing costs due to variable or increasing fees, and create an unfair and confusing marketplace for prospective tenants and honest landlords — particularly small “mom and pop” landlords — who don’t engage in this deceptive pricing practice. If the combination of rent increases and new fees exceed the TPA’s rent cap, these landlords are also violating California law. 

With the number of various fee and fee increases, it may be difficult for tenants to keep track of their monthly payments. When a landlord applies a tenant’s payment to late fees or other obligations before applying it to the rent and then charges a late fee because they consider the rent to not be fully paid, it can create a spiral of rent debt for the tenant, which increases the risk of eviction for nonpayment of rent.

 AB 1248 would: 

• Require landlords to include all costs in the rent rather than charging separate fees.
• Create more predictable housing costs for existing tenants by preventing landlords from adding new fees during a tenancy.
• Require landlords to apply a tenant’s rent payment to their rent first, which will help prevent landlords from creating a debt spiral for tenants.

Text of this legislation can be found here.

In addition, DOJ has sent more than 700 price gouging warning letters to hotels and landlords

LOS ANGELES — California Attorney General Rob Bonta today announced the filing of charges against a Southern California real estate agent and a landlord for price gouging a victim who was evacuated due to the Eaton Fire. This investigation began when a complaint was filed with the California Department of Justice (DOJ) after the victim took steps to rent a Hermosa Beach home after the Governor’s Emergency Order, which protects against price gouging, went into effect. The investigation revealed that after the Emergency Order was in place, the defendants increased the rental price by 36%, which exceeded the 10% limit laid out in Penal Code section 396. The charge carries a potential penalty of a $10,000 maximum fine and the possibility of 12 months in jail. 

“The California Department of Justice remains focused on putting a stop to price gouging,” said Attorney General Bonta. “Following the devastating fires in Southern California, I have been urging the public to report price gouging to local authorities, or to my office at oag.ca.gov/report or by reaching out to our hotline at (800) 952-5225. Today, we’ve announced price gouging charges against both a real estate agent and a landlord for price gouging in the wake of the Eaton Fire. DOJ will continue relentlessly pursuing those who are trying to capitalize off of the chaos and pain of Southern California’s natural disaster.”  

As part of Attorney General Bonta's work to protect Californians following the Southern California wildfires, DOJ has also sent more than 700 warning letters – and counting – to hotels and landlords who have been accused of price gouging. In addition, the office has more active criminal investigations into price gouging underway.
 
Working alongside our District Attorneys, City Attorneys, and other law enforcement partners, DOJ has opened active investigations into price gouging as it continues to ramp up deployment of resources to Los Angeles County to investigate and prosecute price gouging, fraud, scams, and unsolicited low-ball offers on property during the state of emergency. DOJ has been working diligently to tackle this unlawful and unscrupulous conduct since a state of emergency was declared on January 7, 2025, and to further those efforts, the launch of a website dedicated to its response: oag.ca.gov/LAFires.
 
California law – specifically, Penal Code section 396 – generally prohibits charging a price that exceeds, by more than 10%, the price a seller charged for an item before a state or local declaration of emergency. For items a seller only began selling after an emergency declaration, the law generally prohibits charging a price that exceeds the seller's cost of the item by more than 50%. This law applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline. The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and long- and short-term rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business. 

Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local prosecutors can enforce the statute.

TIPS FOR REPORTING PRICE GOUGING, SCAMS, FRAUD AND OTHER CRIMES:

1. Visit oag.ca.gov/LAfires or call our hotline at: (800) 952-5225.
2. Include screenshots of all correspondence including conversations, text messages, direct messages (DMs), and voicemails
3. Provide anything that shows what prices you were offered, when, and by whom.
4. If you’re on a site like Zillow, you can also send screenshots of the price history and a link to the listing. 
5. Include first and last names of the realtors, listing agents, or business owners you spoke to. Be sure to include phone numbers, email addresses, home and business addresses, websites, social media accounts.
6. Don't leave out any information that can help us find and contact the business or landlord.

Californians who believe they have been the victim of price gouging should report it to their local authorities or to the Attorney General at oag.ca.gov/LAfires. To view a list of all price gouging restrictions currently in effect as a result of proclamations by the Governor, please see here.

A copy of the complaint can be found here. 

OAKLAND — California Attorney General Rob Bonta today, alongside the U.S. Department of Justice and a bipartisan coalition of 10 attorneys general, filed an amended complaint against RealPage and the nation’s largest property management companies for maintaining an unlawful pricing alignment scheme that artificially raised rents and increased rent revenue across the board. Today’s amended complaint names five of the previously unnamed property management companies as defendants — including Camden, Cushman & Wakefield/Pinnacle, LivCor, Willow Bridge and Greystar — and seeks claims under California’s Unfair Competition Law against all defendants. Last August, the Attorney General filed a lawsuit against RealPage, alleging that its unlawful pricing alignment scheme and illegal sharing of confidential pricing and supply information harmed consumers by decreasing competition among landlords, limiting price negotiation, and increasing prices in the rental housing industry. This price alignment scheme affected rental housing throughout the country including in California —especially in multifamily buildings in Southern California including in Orange County, Anaheim, Santa Ana, Irvine, Los Angeles, Long Beach, Glendale, Riverside, San Bernardino, Ontario, Corona, Rancho Cucamonga, Upland, Temecula, Murrieta, San Diego, Coronado, and Carlsbad.

“When it comes reducing the cost of living for Californians, the California Department of Justice is all in. Today’s amended complaint against RealPage and some of the largest property management companies in the country, alleges that the companies artificially inflated rent prices and illegally maintained a minimum pricing floor against market trends, and that not only RealPage, but the landlords that profited from this scheme must be held accountable,” said Attorney General Bonta. “If you are in the renting business you are responsible for knowing and abiding by California laws. The housing affordability crisis hurts renters and those with the lowest incomes the hardest; the profits from these illegal schemes come out of the pockets of the people that can least afford it. California is stronger when we protect tenants and a competitive economy."

RealPage is in the business of generating rent increases and growing revenue for landlords by using algorithmic models to recommend price increases to subscribers. It does so by amassing competitively sensitive data from competing landlords through its pricing algorithms and sharing this data among subscribers. Landlords understand that their nonpublic data will be used to recommend prices not just for their own units, but also for competitors who use the programs, and agree to provide this information because they understand they will benefit from the information of their rivals. In other words, RealPage knows what competing landlords are charging and can increase profits for landlords by using that information to recommend landlords set or raise their prices uniformly, thereby eliminating competition, and leaving renters no choice but to pay artificially high prices.

Over the last four decades, housing needs have significantly outpaced housing production in California. Housing costs have skyrocketed, making it harder for Californians to keep a roof over their heads. California's 17 million renters spend a significant portion of their paychecks on rent, with an estimated 700,000 Californians at risk of eviction.    

The amended lawsuit filed today alleges that RealPage, Camden, Cushman & Wakefield/Pinnacle, LivCor, Willow Bridge and Greystar’s conduct violates both federal antitrust laws and California’s Unfair Competition Law. 

In filing the amended lawsuit, Attorney General Bonta joins the U.S. Department of Justice and the attorneys general of Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee, and Washington.

The amended complaint can be found here. 

OAKLAND — California Attorney General Rob Bonta today announced settlements with tenant screening company, RealPage, and property developer and manager, Holland (formally known as Holland Residential (California)), for violations of the COVID-19 Tenant Relief Act (Tenant Relief Act). The complaints allege that RealPage provided screening reports to housing providers, including Holland, which identified rental debt accrued due to the COVID-19 pandemic as a negative factor in violation of the Tenant Relief Act, and that many applicants were denied housing as a result. As part of the proposed settlements, RealPage must pay $625,000 in penalties and restitution, and both RealPage and Holland must comply with strong injunctive terms.

“As California navigates an unprecedented housing crisis, it’s critical that those most at risk of losing their homes are afforded the rental protections they deserve. COVID-19 rental debt cannot be used against tenants when they apply for housing,” said Attorney General Bonta. “Our settlements against RealPage and Holland underscore the responsibility that screening agencies and landlords hold in making sure they fully comply with California law. As the People’s Attorney, I am committed to using the full force of my office to ensure more Californians have access to safe and secure housing.”

In response to the pandemic, California enacted a series of emergency bills, collectively known as the COVID-19 Tenant Relief Act, to stabilize the housing market. These provided significant eviction protections to tenants, including creating restrictions on credit reporting and use of COVID-19 rental debt in rental screening. The Tenant Relief Act prohibits any housing provider, tenant screening company, or other entity that evaluates tenants on behalf of a housing provider from using COVID-19 rental debt as a negative factor in assessing a residential tenant application. 

RealPage violated the Tenant Relief Act by considering COVID-19 rental debt as a negative factor when screening over 2,500 tenant applicants in California, including several that were performed for Holland. As a result of the investigation by the California Department of Justice, RealPage and Holland have now modified their screening processes to ensure that they filter out COVID-19 rental debt. 

Under the settlements today, RealPage must pay $625,000 in penalties and restitution, and both RealPage and Holland must comply with strong injunctive terms, including, but not limited, to:  

• Regularly confirming the existence of proper filters for COVID-19 rental data with their data sources or filtering the data themselves, before using it in any tenant screening process.
• Tracking consumer disputes and reporting systemic issues to the Office of the Attorney General.
• Taking steps to investigate claims that a screening report may have contained COVID-19 rental debt and to ensure eligible tenants are not denied housing.
• Providing annual training to their employees regarding requirements under the Tenant Relief Act and related consumer reporting laws.
• Complying with the provisions of the Tenant Relief Act.

Attorney General Bonta is committed to ensuring tenants are treated fairly in accordance with the law and understand their rights. In October 2024, Attorney General Bonta issued consumer alerts regarding the maximum annual rent increase permitted under state law and summarizing several local rent control or rent stabilization laws throughout California. Alerts are available in various languages and can be found here.  

In August 2024, Attorney General Bonta, alongside the U.S. Department of Justice, filed a lawsuit against RealPage, alleging the company enabled landlords to artificially raise rents by participating in a pricing alignment scheme that increased prices in the rental housing industry. This lawsuit is ongoing and is unrelated to today’s settlement. 

In February 2024, Attorney General Bonta announced a settlement with two separate local Bakersfield landlords and their property management company, Clemmer & Company, for multiple violations of the Tenant Protection Act and for violation of the Fair Employment and Housing Act. Also in February 2024, Attorney General Bonta issued five consumer alerts advising California tenants of their rights and protections under state law and alerting property managers and landlords of their obligations to tenants. In January 2024, Attorney General Bonta announced a settlement with Invitation Homes resolving its alleged violations of the Tenant Protection Act and California’s anti-price gouging law, affecting approximately 1,900 households.

A copy of the complaints and final judgments against RealPage and Holland Residential (California) can be found here, here, here, and here, respectively.  

SAN FRANCISCO — California Attorney General Rob Bonta today delivered remarks on California Department of Justice’s preparations to protect California’s values, people, and natural resources ahead of a second Trump Administration. To view a recording of the press conference, please visit here. 

Attorney General Bonta's Remarks as Prepared for Delivery:

As the reality of a second Trump Administration takes hold, I know there is a great deal of fear, sadness, anxiety, and panic. 

I understand. 

I’m here today to reassure you that in California, progress will prevail. 

No matter who is in the White House, no matter who holds control of Congress, in California we will keep moving forward. 

In California, we will choose calm over chaos. 

Fact over fiction.

Belonging over blame.

Unity over division. 

“Us and we” over “I and me.” 

It’s why we’re the 5th largest economy in the world. Not in spite of our commitment to workers, consumers, and the environment, because of it. 

Because we’re the largest and most diverse state in the nation.

Because we believe in the power of inclusivity.

Because we believe in truth over lies. Hope over hate. Light over dark.

Because  we believe in looking forward.

It’s who we are in the Golden State. It’s in our DNA. Nothing and no one can change that. 

As Attorney General, I’ll continue to use the full force of the law and authority of this office to address injustice. 

To stand up for all people, especially those who have long been overlooked and undervalued.

To safeguard reproductive rights. 

And advocate for more housing — especially more affordable housing for lower and middle-income families just trying to get by.

I’ll continue to take on greedy corporate giants and fight for more affordable gas, groceries, and everything in between.  

I’ll continue to defend our world-renowned natural resources and protect them for generations to come. 

Continue to fight for clean water to drink and clean air to breathe.

Continue to crack down on illicit guns on our streets and get fentanyl out of our neighborhoods. 

Continue to fight for workers.

I’ll continue to protect, defend, and serve every single Californian. No matter your politics. 

I’m here to ensure every person — no matter how they look, how much money they make, where they’re from, who they love, how they identify, or how they pray — can pursue their version of the California Dream. 

A fair wage and good benefits.  

A safe and affordable place to live.  

Affordable and accessible health care. 

Good schools to send our kids to. 

Safe neighborhoods to raise our families. 

That’s my promise to you, no matter who is in the White House.  

We’ve been here before.

We lived through Trump 1.0. 

We know what he’s capable of. 

We know what plans he has in store. 

The silver lining is just that: we know. 

We know to take Trump at his word when he says he’ll roll back environmental protections, go after our immigrant and LGBTQ+ communities, attack our civil rights, and restrict access to essential reproductive care.

Which means, we won’t be flat-footed come January.

You can be sure that as California Attorney General, if Trump attacks your rights: I’ll be there. 

If Trump comes after your freedoms: I’ll be there. 

If Trump jeopardizes your safety and well-being: I’ll be there.

California DOJ did it before and we’ll do it again.  

During the last Trump Administration, California DOJ fought to stop illegal rollbacks and proposals that would’ve harmed the well-being, health, safety, and civil rights of our people and of people across the country. 

That would have caused irrevocable damage to our environment.

No matter who is in charge of the federal government…

No matter what the incoming Administration has in store… California will remain the steadfast beacon of progress it has long been.  

A constant, unwavering, immoveable force to be reckoned with.  

We’ll continue to be a check on overreach and push back on abuse of power. 

Be the antidote to dangerous, extremist, hateful vitriol.

Be the blueprint of progress for the nation to look to.

Remember: in moments of chaos in D.C., you can always look to California for calm resolve. 

California leaders across the state are ready to stand arm-in-arm. 

Governor Newsom and every single Constitutional Officer;  

Senator Padilla and Senator-elect Schiff;  

Democratic members of Congress; 

Pro Tem McGuire, Speaker Rivas, and the California Legislature; 

Mayors, supervisors, and city councilmembers from San Francisco to San Diego are ready to fight for our California values. 

For our people. For our environment.

For progress and justice.

And as necessary, we’re ready to take on the challenges of a second Trump Administration — together.

While a great deal of change is on the horizon…

California’s path to progress remains full steam ahead.

It may not always be linear. Progress so rarely is. 

It zigs and zags. Takes frustrating detours. Inches forward and backward and forward again. 

The detours and setbacks don’t define our progress.

Our commitment to forward momentum defines our progress. Defines us. 

It’s what we do next that will define us. 

If you’re feeling despondent today, remember that you’re not alone. 

In California, we’re not looking back. We’re not moving back. 

We’re California! We’ll meet any challenges head on and rise to the occasion.

As is so often said, as California goes, so goes the nation.

In the days and months and years to come, all eyes will look west. 

In California, they’ll see: we’re still moving forward.

Thank you. 

La Habra Heights to update housing plan by July 2025 for development of 244 additional housing units

SACRAMENTO — California Attorney General Rob Bonta, California Governor Gavin Newsom, and California Department of Housing and Community Development (HCD) Director Gustavo Velasquez today announced a settlement that will bring the City of La Habra Heights into compliance with the state’s Housing Element Law. With dedicated technical support from the state, the city will adopt a housing plan no later than July 7, 2025, to allow for the development of 244 housing units, at least 164 of which must be affordable to low- and very low-income households. The agreement, which is in the form of a proposed stipulated judgment and must be approved by the court, is related to California’s sixth “housing element update cycle” for the 2021-2029 time period.   

Under the state’s Housing Element Law, every city and county in California must periodically update its housing plan to meet its Regional Housing Needs Allocation (RHNA), or share of the regional and statewide housing needs. Located in Los Angeles County and home to a total population of 5,682 residents, La Habra Heights was required to update its housing plan by October 15, 2021, to accommodate its 172-unit RHNA target. However, because the city did not identify adequate sites for lower- and moderate-income units during the fifth cycle for the 2013-2021 time period, an additional 72 units were added for a total of 244 units. After receiving a notice of violation from HCD, the city and state conferred in good faith to chart a course for the city to attain compliance.   

“The City of La Habra Heights has done the right thing. Instead of continuing to skirt California’s housing laws, it will finally be complying with its legal obligation to plan for 244 housing units,” said Attorney General Rob Bonta. “My office will not let up: no matter the size of the city or county, we will not rest until every local government in California plans for the future and does its part to tackle our housing crisis.” 

“No more excuses — every community has a responsibility to create housing and to help reduce homelessness,” said Governor Gavin Newsom. “I am pleased that La Habra Heights has come to the table and agreed to meet their housing goals for a community that desperately needs more affordable homes.” 

"This latest agreement is a key example of why it is so important that every city, big and small, is held accountable for doing its fair share to address the statewide housing need,” said HCD Director Gustavo Velasquez. “When La Habra Heights adopts a compliant housing element, it will — for the first time ever — make land available for multifamily and affordable housing, creating a path to opportunity for more families in this high-resource community."

Among other things, a compliant housing element must include an assessment of housing needs, an inventory of resources and constraints relevant to meeting those needs, and a program to implement the policies, goals, and objectives of the housing element. Once the housing element is adopted, it is implemented through zoning ordinances and other actions that put its objectives into effect and facilitate the construction of new homes for Californians at all income levels.  

The housing element is a crucial tool for building housing for moderate-, low-, and very low-income Californians and redressing historical redlining and disinvestment. State income limits for what constitutes moderate-, low-, and very low-income Californians vary by county and can be found here. In Los Angeles County, the median income for a one-person household is $68,750. A one-person household that earns less than $77,700 is defined as low-income, and a one-person household that earns less than $48,550 is defined as very-low income.  

Under the settlement:

• La Habra Heights will take several required actions to adopt a compliant housing element by July 7, 2025. The housing element process is typically lengthy — for example, local governments must meet certain public participation requirements, and HCD must review every local government’s housing element to determine whether it complies with state law and provides written findings back to each local government — but La Habra Heights has agreed to an expedited timeline and ensuring the public’s participation.
• La Habra Heights acknowledges that, until it has adopted a substantially compliant housing element, it may not deny certain low-, very low-, and moderate-income housing development projects based on the city’s current, outdated general plan and zoning code. This is known as the Builder's Remedy. 
• La Habra Heights could be subject to monetary penalties if it remains noncompliant 12 months after the effective date of the stipulated judgment.

A copy of the petition and proposed judgment, which details the settlement terms and remains subject to court approval, can be found here and here, respectively.