Summary

This exhibit documents a letter from the California Department of Real Estate (DRE) dated June 12, 2024, referencing complaint DRE #1-24-0513-010. The case was assigned to Real Estate Special Investigator Tom Nguyen for review regarding allegations of misconduct by Anna Ly and Hanson Le of Berkshire Hathaway HomeServices. The subsequent findings—interpreted by the parties involved—suggested that the DRE determined that no written notice was required for a rent increase exceeding 20%, which was later relied upon by Berkshire Hathaway to justify the owner’s conduct.

Key Points

• The complaint was initially filed by Yulia Gasio concerning an unauthorized rent increase over 20% and a fraudulent credit inquiry initiated by Anna Ly.
• Investigator Tom Nguyen was assigned to the case by the DRE Los Angeles Enforcement Office.
• Subsequent communications allegedly resulted in the DRE informing Berkshire Hathaway representatives that no customer notice was required for the increase—contradicting California Civil Code §827(b).
• Berkshire Hathaway later relied on this interpretation to defend its inaction regarding Anna Ly’s conduct and to justify the rent increase notice timing.
• This event represents a potential regulatory misinterpretation that emboldened the landlord and agents to proceed with eviction actions under false legal premises.

Applicable California Law

• Civil Code §827(b)(1)-(3): Any rent increase exceeding 10% within 12 months requires written notice served personally or by certified mail, at least 90 days before the effective date.
• Civil Code §1942.5: Prohibits retaliatory eviction against a tenant for exercising rights or reporting violations to state agencies.
• Government Code §12955(f): Forbids retaliation or discrimination against tenants who make official complaints concerning housing violations.
• Business & Professions Code §10176: Authorizes discipline of real estate licensees who engage in dishonest or negligent acts that harm consumers.

Legal Interpretation

This letter marks a pivotal point in the case, as the DRE’s handling—specifically Investigator Tom Nguyen’s apparent greenlight of the 20% rent increase without notice—was later cited by Berkshire Hathaway as regulatory justification. However, under California law, such an increase without proper notice remains unlawful, and the agency’s informal position does not supersede statutory tenant protections. The sequence demonstrates procedural breakdown at the enforcement level, later used to validate retaliatory actions against the tenants.

Cross-References

Timeline Node: June 2024 — DRE Investigator Tom Nguyen assigned; finding relied on by Berkshire Hathaway to justify rent increase without notice.

Folder Path: /Exhibits/State_Agency_Findings/1018.html

Tags: DRE investigation, rent increase without notice, Berkshire Hathaway, Tom Nguyen, Anna Ly, Hanson Le, Civil Code §827 violation