In Eureka, California, people living at Hillsdale Apartments are standing up to what they say are illegal rent increases. The landlord, Anil Dwivedi, raised rents by 40% to 60% for dozens of units in late 2024 and early 2025. Many long-time residents, including seniors on fixed incomes, refused to sign the new lease agreements. They claim the rent hikes break state laws meant to protect tenants.
California’s Rent Cap Law
Under California’s Tenant Protection Act (passed in 2019), landlords can’t raise rent more than a certain amount each year. The maximum allowed increase is either 5% plus the local inflation rate or 10%—whichever is lower. In Humboldt County, where Eureka is located, the legal rent cap for 2025 is 8.8%. The tenants argue that the hikes they were asked to sign—some as high as 82%—go far beyond what’s allowed.
Class-Action Lawsuit Filed
In February 2025, tenants took legal action. They filed a class-action lawsuit accusing Dwivedi and his company, TGP Hillsdale, of violating rent control laws, trying to evict tenants without proper notice, and failing to provide required relocation payments. The lawsuit says some tenants were given eviction notices or were pressured to move out. Others were told they’d need to accept the huge rent increases or leave. The legal team working with the tenants says these actions are unfair and illegal.
Judge Blocks Evictions and Rent Hikes
On February 24, a Humboldt County judge issued a temporary restraining order against Dwivedi. The order stops him from evicting tenants without a valid reason, raising rents beyond legal limits, or avoiding relocation payments if tenants are forced out. The court’s decision gives residents some breathing room while the lawsuit continues. It also sends a message that landlords can’t ignore California’s tenant protection laws without consequences.
Landlord Says Tenants Agreed Voluntarily
Dwivedi denies doing anything wrong. He says the new lease agreements were voluntary and that he even canceled the rent increases after some pushback. He also claims that some of the information shared by tenants and their lawyers isn’t accurate. Dwivedi has publicly said that he feels unfairly targeted and that he’s being treated like a criminal when he was simply trying to make business changes after buying the property. He purchased Hillsdale Apartments in late 2023 for $1.65 million.
