Property Owners Assoc. Responds to Chico's New Camp Fire Rent Ordinance

The North Valley Property Owners Association has provided a statement to clarify their position on Chico's new rent ordinance relating to the Camp Fire. The emergency ordinance passed on Friday to help deter price gouging due to the Camp Fire.

Posted: Nov. 18, 2018 11:30 AM
Updated: Nov. 18, 2018 10:48 PM

UPDATE Sunday, Nov. 18, 2018 - The North Valley Property Owners Association has asked Action News Now to publish the statement they sent to the Chico City Council to clarify their concerns about Chico's new emergency rental price ordinance.

"I am representing the membership (750 members) of the North Valley Property Owners Association. We appreciate and encourage you to take steps to protect our community during this devastating time.

We support the passage of the emergency price gouging ordinance. However, we are requesting two changes to improve the language to protect those displaced as well as housing providers by the time the next 30 day renewal of said ordinance is scheduled. Our organization would appreciate being involved in future discussions as additional rental housing challenges in this disaster become apparent.

Our concerns that need to be addressed are; 1) there is no provision for how landlords are to price properties coming onto the rental market for the first time. 2) the other concern is for similar units such as 3 bedrooms in a 4 plex. If 3 out of 4 units are rented at $1,200 and another unit is turning over that was previously rented for $900 the new rental value should also be $1200.

In addition we would like to participate on any review committee that is looking at actual price gouging cases that involve rental housing. Our experience and knowledge would be indispensable concerning market rents in our community.

Thank you for your time and all you are doing for our community and Paradise residents."

- Adam Pearce, President of North Valley Property Owners Association


CHICO, Calif. - The Chico City Council had an emergency meeting because of the Camp Fire on Friday and voted to approve a temporary 10 percent cap on rate increases for rental properties.

Rentals costs can be up to 160 percent of the HUD established market value.

Representatives from the North Valley Property Owners Association say they are concerned that any sort of rent control will degrade property values and the local economy long term.

The ordinance also applies to short term rentals and hotels.

Chico City Manager Mark Orme said, "One of the things that we've been doing as a city is evaluating where issues have occurred."

"Whenever there's devastating impacts to a community, people try to take advantage of that and raise costs," he continued.

Orme said it does not only happen with housing, but also with gas, food and other services as well.

"That's just inappropriate during those times," the Chico City Manager said.

The Chico City Council also passed another emergency ordinance on Friday allowing the Paradise Town Council to use the old municipal building for their future meetings.

Both ordinances take effect immediately.

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