State Reaches Settlement with Redding Property Company Over Housing Law Violations

The $800,000 settlement resolves allegations of 'egregious' rent hikes, improper evictions, and discrimination against Section 8 tenants.

Published on Feb. 28, 2026

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California's attorney general announced a settlement with Redding-based property management company Property Upsurge over allegations of numerous violations of state housing laws, including improperly issuing eviction notices, raising rents above legal limits, and charging higher rates to tenants with Section 8 vouchers. The settlement requires the company to pay $550,000 to harmed tenants, provide $200,000 in debt relief, and pay $50,000 in civil penalties.

Why it matters

The case highlights the ongoing challenges of affordable housing and tenant protections in California, especially in smaller cities like Redding where a single large property owner can have an outsized impact. The settlement aims to hold the company accountable and provide relief to impacted tenants, while also requiring the company to implement new policies to prevent future violations.

The details

According to the state, the investigation found that Property Upsurge violated multiple California housing laws, including the Tenant Protection Act, Fair Employment and Housing Act, and Unfair Competition Law. The company allegedly issued improper eviction notices, raised rents beyond legal limits, and charged higher rates to Section 8 voucher holders, among other 'egregious conduct'.

  • The investigation was launched in 2023.
  • The settlement was announced on February 28, 2026.

The players

Property Upsurge

A major property owner and manager in Redding, California, owned by Yaniv Benaroya.

Rob Bonta

The California Attorney General who announced the settlement.

Legal Services of Northern California

A nonprofit that provides legal assistance to low-income individuals, seniors, and vulnerable populations across 23 Northern California counties, including Shasta.

Sarah Fielding

The managing attorney for the Shasta Regional Office of Legal Services of Northern California.

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What they’re saying

“Forcing families out of their homes, charging illegal rent, and targeting vulnerable tenants is not just unjust, it's unlawful. Every Californian, in every corner of our state, deserves housing that is safe, stable, and reliable.”

— Rob Bonta, California Attorney General (Press release)

“In our experience these laws are vital to keeping housing affordable as rent continues to increase, often above the total income of many of our clients. When tenants are priced out of available housing, they wind up living out of their cars or on the streets.”

— Sarah Fielding, Managing Attorney, Shasta Regional Office of Legal Services of Northern California (Email)

What’s next

The settlement requires Property Upsurge to design and implement new policies and procedures regarding rent increases, notice fees, and tenant complaints.

The takeaway

This case underscores the ongoing challenges of affordable housing and tenant protections, even in smaller cities, and the importance of robust enforcement of housing laws to prevent displacement and homelessness.