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Governor Newsom declared a statewide state of emergency on September 21, 2026 for the incoming 2026-2027 El Niño pattern. Here’s what usually happens next: a state emergency declaration triggers an automatic cap on rent increases under Penal Code 396, California’s anti-price-gouging law. Not this time. Newsom’s proclamation specifically suspended that cap. That’s a big deal for landlords, property managers, and tenants across Los Angeles County, Orange County, San Bernardino County, and Riverside County — including West Covina, Anaheim, San Bernardino, Riverside, Ontario, and Pomona. If you rent property or manage rental housing in these areas, you need to know what applies right now and what doesn’t. Local rules might still be in play, too.
Background: What This Means
Penal Code 396 is California’s price-gouging statute. Once the Governor or a local official declares a state of emergency, this law generally stops landlords from raising rent on existing tenants more than 10 percent above what they charged before the emergency. Why does this rule exist? To stop landlords from squeezing tenants during wildfires, floods, or other disasters. That’s the standard playbook under California Penal Code Section 396, as of September 29, 2026.
Newsom’s September 21, 2026 proclamation breaks from that playbook. It declares an emergency because the strengthening El Niño pattern raises the risk of flooding, mudslides, and storm damage across Southern California this winter. But here’s the twist — the proclamation includes language that expressly suspends the Penal Code 396 rent-gouging restrictions that would normally kick in. Plain and simple: the 10 percent statewide rent-increase cap doesn’t automatically apply because of this particular emergency declaration. At least not for now.
This does not mean there are no rent limits at all. Los Angeles County, the City of Los Angeles, Orange County, and other cities can issue their own local emergency declarations. A local declaration can trigger its own price-gouging rules, sometimes with different rent caps, different start dates, or different coverage areas than the state order. Landlords and tenants must check both the state proclamation and any local emergency orders before assuming what rules apply to a specific rental unit.
How This Affects Landlords and Tenants
For landlords and property managers: Because the statewide 10 percent cap is suspended for this El Niño declaration, you may have more flexibility to adjust rent than you would after other emergencies. But this flexibility is not unlimited. Local rent control ordinances, existing lease terms, and any separate county or city emergency declarations can still limit how much you can raise rent, and how often. Charging an unreasonable increase, even where Penal Code 396 does not apply, can still expose a landlord to claims under other consumer protection laws or local housing codes.
For tenants: You may see rent increase notices that would normally be illegal under the statewide gouging cap. Do not assume every increase is automatically unlawful, and do not assume every increase is automatically lawful either. Check whether Los Angeles County, the City of Los Angeles, Orange County, or your specific city has issued its own emergency proclamation. Many local governments publish these declarations on their official county or city websites. If a local order is in effect, it may restore a rent cap even though the state cap does not currently apply.
For both sides: Confusion is common when state and local rules do not match. Property owners with units in multiple counties, for example a portfolio spanning West Covina, Pomona, and Riverside, may face different rules for each property depending on local action.
What You Should Do Now
- Read the actual proclamation. Do not rely on secondhand summaries. Review the Governor’s September 21, 2026 emergency proclamation language on the suspension of Penal Code 396.
- Check local emergency declarations. Search the Los Angeles County Board of Supervisors website, the City of Los Angeles emergency management page, and the Orange County Board of Supervisors site for any separate proclamations tied to this El Niño event.
- Review your lease terms. A lease may already limit rent increases regardless of any statute, especially in rent-controlled cities.
- Document your rent history. Landlords should keep clear records of rent charged before the emergency proclamation, in case a local cap later applies retroactively.
- Watch for updates. Emergency declarations and suspensions can change quickly during an active weather season. Recheck official sources regularly through the winter of 2026-2027.
- Get a legal review before sending a rent increase notice. This is especially important for multi-unit landlords operating across county lines.
How Tez Law P.C. Can Help
Tez Law P.C. helps landlords, property managers, and tenants in West Covina, Newport Beach, and throughout Southern California review lease agreements, rent increase notices, and local emergency orders for compliance with state and local law. The firm can help clients evaluate whether a specific property is subject to a local price-gouging cap, respond to disputes over rent increases, and prepare documentation to support a landlord’s or tenant’s position. For broader landlord-tenant and eviction matters, including disputes that arise from rent increase disagreements, see the firm’s business litigation and landlord-tenant page, and for questions involving property ownership, leases, or construction issues, see the real estate and construction page.
Frequently Asked Questions
Does the 10% rent cap still apply anywhere in Southern California?
The statewide 10 percent cap under Penal Code 396 does not automatically apply because of the September 21, 2026 El Niño proclamation, since Governor Newsom’s order specifically suspended it. A separate local emergency declaration from a county or city, such as Los Angeles County or Orange County, could still trigger its own rent cap for properties in that area, so local rules must be checked separately.
How do I find out if my city or county has its own emergency declaration?
Check the official website for your county board of supervisors or city council, such as the Los Angeles County Board of Supervisors or the Orange County Board of Supervisors. These sites typically publish current emergency proclamations, including the effective dates and any rent-related restrictions.
Can a landlord raise rent by any amount right now?
Not necessarily. Even though the statewide gouging cap is suspended for this declaration, local rent control ordinances, lease terms, and any separate local emergency orders can still limit rent increases. A landlord should confirm all applicable rules before sending a rent increase notice.
What is Penal Code 396 and why does it matter here?
Penal Code 396 is California’s price-gouging law. It generally limits rent increases to 10 percent above the pre-emergency rate once a state of emergency is declared. It matters here because Governor Newsom’s El Niño proclamation expressly suspended this rule, which is unusual for a statewide emergency declaration.
I am a tenant and received a large rent increase notice. What should I do?
Start by checking whether your city or county has issued its own emergency declaration that might restore a rent cap. Keep a copy of the notice and any prior rent receipts, and consider speaking with an attorney about whether local rent control rules or your lease terms limit the increase.
Rules tied to emergency declarations can change quickly, and state and local orders do not always match. If you are a landlord preparing a rent increase notice, or a tenant who received one, in West Covina, Anaheim, San Bernardino, Riverside, Ontario, Pomona, or anywhere in Los Angeles or Orange County, it may help to have your situation reviewed before you act. Contact Tez Law P.C. to schedule a consultation and discuss your specific lease and property.
This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Laws and agency practices change; contact Tez Law P.C. at 626-678-8677 or [email protected] about your situation. Prior results do not guarantee a similar outcome.