The Property Upsurge office located in downtown Redding. Photo by Annelise Pierce

California’s Attorney General announced Wednesday that the state has reached a settlement with a Redding-based property management company known as Property Upsurge.

According to the state, the settlement resolves allegations that the company improperly issued eviction notices, raised rent increases above what state law allows and charged higher rates to tenants receiving Section 8 vouchers to pay for their housing, among other “egregious conduct in violation of California law.”

Property Upsurge did not respond to a request for comment today.

The settlement requires the company to pay $550,000 to tenants harmed by its practices and provide an additional $200,000 in debt relief. The company will also pay $50,000 in civil penalties, half of which will go to the state and half to Shasta County. In addition to financial penalties, Property Upsurge will also be required to design and implement new policies and procedures regarding rent increases, notice fees and tenant complaints. 

“Forcing families out of their homes, charging illegal rent, and targeting vulnerable tenants is not just unjust, it’s unlawful,” said Attorney General Rob Bonta in a press release. “Every Californian, in every corner of our state, deserves housing that is safe, stable, and reliable.”

Bonta thanked the Shasta County District Attorney’s office and Redding’s code enforcement division for efforts that contributed to reaching the settlement. The investigation was launched in 2023, the state said, and revealed that the company had violated a number of laws including the California Tenant Protection Act, California’s Fair Employment and Housing Act, and California’s Unfair Competition Law. 

The press release noted that Property Upsurge is a major property owner and manager in Redding’s lower- to mid-cost market saying the company operates about 1,300 rental units across Northern California. The organization is owned by Yani Benaroya whose address in state filings is listed as Danville, California. According to information provided by the Shasta Assessor’s office, the company owns numerous parcels within Shasta County.

A map created by Shasta Scout shows the locations of properties owned by Property Upsurge, based on information shared by the Shasta Assessor’s Office.

Bonta also thanked the nonprofit Legal Services of Northern California for its work. The organization provides free legal assistance, advocacy, and representation to low-income individuals, seniors, and vulnerable populations across 23 northern California counties, including Shasta. Among other work, the organization assists clients with tenant rights, evictions, foreclosures, and housing quality issues.

Sarah Fielding, the managing attorney for Legal Services of Northern California’s Shasta Regional Office — whose clients include those impacted by Upsurge Properties — said her organization applauds the work of local and state agencies to enforce tenant laws which, she said, are essential to preventing homelessness in Shasta.

“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,” Fielding explained by email. “When tenants are priced out of available housing, they wind up living out of their cars or on the streets.”

Do you have a correction to share? Email us: editor@shastascout.org.