DATE:
Tuesday, April 30th, 2024
35
TO:
Board of Supervisors
SUBJECT
Title
INITIATE EXPLORATION OF OPTIONS ADDRESSING PREDATORY REAL-ESTATE LENDING AND EXPLOITATIVE CONSUMER PRACTICES AFTER THE DECLARATION OF AN EMERGENCY (DISTRICTS: ALL)
Body
OVERVIEW
On January 22, 2024, San Diego County faced unprecedented rainstorms that led to widespread flooding and a proclamation of a State of Emergency by the Governor for San Diego County on January 23, 2024. An additional State of Emergency was proclaimed on February 4, 2024. The floods caused immense property damage and devastation throughout the county, including many District 4 communities. The damage was extensive, resulting in over 1,200 displaced San Diegans, and ultimately led to a Major Disaster Declaration by the Biden Administration February 19, 2024. This created an environment that left our residents vulnerable to predatory real estate practices and lending schemes as flood survivors were left with limited options to provide for the well-being of themselves and their families.
When natural disasters occur, those impacted are often left with inadequate supports and the support that is provided is often not provided in a timely manner. Following a natural disaster, predatory lenders and investors often prey on vulnerable individuals and communities grappling with the aftermath. Exploitative investors and lenders may target those in urgent need of financial assistance for rebuilding, repairs, and/or basic necessities. They may also offer high-interest loans with hidden fees and unfavorable terms or engage in price gouging, supply hoarding, or other fraudulent business practices. Such practices can trap victims in cycles of debt, exacerbating the financial strain already imposed by the natural disaster, or can result in a family losing their property entirely. It is crucial that the county act to protect these residents from exploitation in their time of vulnerability.
RECOMMENDATION(S)
SUPERVISOR ...
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