That was before Hurricane Katrina.
Less than two weeks after the storm, the apartment's management asked Teacle if she was interested in terminating her lease early. Her lease expires Oct. 17. "I said, 'Why would I do that? I'd have no place to live,'" Teacle recalls. "Everybody in town was on waiting lists."
Two days later, Teacle got a letter from the complex informing her that her $850 per month rent would increase to $1,100 if she signed another six-month lease. If she decided to go month to month, it would rise to $1,245. The letter, dated Sept. 9, also informed her of the required 30-day notice of her intentions. In the past, rent also covered each tenant's water usage, but that would no longer be the case, she was informed.
Teacle was devastated. "I think we're being victimized because of the hurricane," she says. "We're secondary victims."
On Saturday, Sept. 10, the morning she received the letter, Teacle called the Louisiana Attorney General's price gouging hotline. "They don't consider that price gouging," she says.
Calls like Teacle's are inundating the A.G.'s office, which is still trying to sort through the deluge of complaints, most of which are coming from Lafayette and Baton Rouge, the two Louisiana cities that haven taken in most evacuees.
This latest round of controversy over Katrina even has some conservatives siding with trial lawyers. In recent weeks, the normally divided sides have each come out against what they perceive as gouging in the housing market post-Katrina.
"I'm a right-wing, Republican capitalist," says Tom Cook, Baton Rouge appraiser. "I believe in the market, but what is going on in a lot of cases is just wrong. You are taking advantage of someone's misery."
"We don't find any difference between people on Canal Street taking radios and what sellers are doing in the housing market. We call it suburban looting," says Baton Rouge trial laywer E. Eric Guirard, who has filed a lawsuit to stop the practice.
When his New Orleans office evacuated to Baton Rouge after the storm, Guirard wanted to buy a house in Plaquemine to temporarily shelter nine New Orleans attorneys, but the seller wanted to raise the price after the personal injury lawyer had signed the deal. That prompted Guirard to sue the prospective seller and the real estate firm for gouging. "We are hoping to make a point," he says, "and damages will be whatever the judge and jury find as appropriate."
To River Ranch developer Robert Daigle, it's an issue of fairness. If anyone who bought a home in River Ranch paid more after Hurricane Katrina than the list price before the storm, he wants to hear about it. Daigle sees a distinction between price increases resulting from the rise in building material costs, long-term supply and demand and what happened in Guirard's case. "I think there's a difference between reasonable price escalation and an unconscionable overnight increase in price," he says.
Knowing Lafayette's residential market would be strained immediately after the storm, Daigle, who is also an attorney, e-mailed his builders and warned them against any attempts at overnight windfalls.
But many claim that's just the market at work. In the wake of the doubling of gasoline prices this year, Washington, D.C.-based the Cato Institute, a non-profit public policy research foundation, recently issued a defense of soaring prices. The group says all businesses attempt to set their prices at the highest possible level the market will bear each day.
Louisiana economist Dr. Loren Scott says there is no such thing as price gouging. "I think that's just the market working," Scott says.
Price controls, he notes, cause a drop in supply. No gasoline manufacturer will sell products at prices below the cost of production, for instance. Price controls on gasoline have failed under Republican Richard Nixon and Democrat Jimmy Carter, the economist says. "Price controls always have perverse results. You always have shortages."
Plus, economically, it's difficult to define gouging.
Reports of sellers raising prices after the houses were already on the market are rampant. In Lafayette, however, the problem has turned out to be more rumor than reality, says Coldwell Banker Pelican Real Estate Chief Operating Officer Steven Hebert. "While I have certainly heard of some isolated instances, I have been pleasantly surprised by how little that has gone on," he says. Hebert ran stats the week after the storm and found that only 38 of more than 1,100 Multiple Listing Service properties had increased their asking price after the storm. On average, the increases were 8 percent.
Guirard's firm, on the other hand, wants to know just how bad the problem is across the state and is running ads to sign up clients who believe they've been gouged. More than 40 people have responded so far, and the law firm is sifting through the information before signing clients.
Louisiana's gouging statute is still too new to have been tested. Essentially, it's against state law to raise prevailing prices on "goods and services" during a declared emergency, such as Katrina. The attorney general, district attorney or parish attorney can prosecute violators. People convicted of gouging can be imprisoned for six months or $500, or both.
But the law does not specifically say that either real estate or lease contracts are covered, says Lafayette Consolidated Government attorney Pat Ottinger. "I could not give an opinion on whether it is a violation of the law," he says.
Guirard, however, sees the house defined as a "good" and the real estate transaction as a "service" under the law. He acknowledges there is no case law in Louisiana over price gouging in the real estate market. He says only homeowners who already had their homes on the market before the hurricane and raised their prices after the storm are likely liable under the law.
Baton Rouge attorney Stephen Babcock takes the opposing side. "In response to several inquiries from Realtors and brokers, we have studied the statute and believe the Legislature never intended real estate transactions to fall within the definition of goods and services," Babcock says. Goods are items consumed or bought for personal uses, family use or household purposes, which includes food and clothing, according to Babcock. "Services," meanwhile, are professional services, such as those provided by a doctor or lawyer.
Real estate transactions don't fit either category, claims Babcock. "First, real estate ' a house and land ' is not considered a consumable or a good. Second, in most cases the service provided by the real estate broker is on behalf of the seller not the purchaser. Furthermore, the broker's commission is usually paid by the seller, not the buyer."
Attorney Randy Roussel of Baton Rouge last week was drafting what he hopes to push as a state law or local ordinance that would cover real estate price gouging.
LCG does not have a local ordinance that addresses this issue, Ottinger says.
In all likelihood, market forces will sort out the mess, just as they have corrected gouging claims in the past. Appraisers are delivering values for homes that are below the offered prices, a turn that will make it difficult to close deals on homes that are considerably above market price.
For renter Teacle, some relief has come.
Jakob Medve, president of St. Louis-based The Medve Group, which owns The Plantation apartments and the adjacent Grove at Plantation complex, vowed to help Teacle and says he won't put any tenants out who can't afford the increase. "If we have to take care of 100 people, we will take care of them," Medve says.
Medve, however, claims the rent increase is not related to the hurricane. He explains that tenants like Teacle got "special" deals because the apartment market was overbuilt. Those price breaks are no longer being offered because of full occupancy resulting from ' you guessed it ' Hurricane Katrina.
Plantation has offered to raise Teacle's rent by only $50 a month.
Four US cities bidding on Olympics; Guardsmen prevent more Ferguson riots; storm threatens travel and more national and international news for Wednesday, November 26, 2014.
The U.S. rep billed LSU for work allegedly performed on the same days Congress voted on major legislation and held important committee hearings on energy and the ACA.
Abysmally low participation by the public has prompted the council to scuttle the 2014 survey with plans to simplify it and try again next year.
The village now says the ordinance will likely be overturned and authorities will more vigorously enforce existing leash laws.
Bill Cassidy cast an early ballot Tuesday, seeking to draw renewed attention to a race that has fallen off newspaper front pages and away from people's minds as they plan holiday meals and shopping schedules.
Battered all night by Baltimore's relentless pass rush, Drew Brees could feel his protection collapsing and Terrell Suggs getting ahold of him as he urgently unloaded a pass to the right flat toward tight end Jimmy Graham.
After a convincing defeat at the polls on Nov. 4, Earl “Nickey” Picard has decided to let bygones be bygones with his former right-hand man Brian Pope, announcing his support for his former employee’s runoff bid to become Lafayette’s next city marshal.
Saturday the athletic department did everything possible to ensure the 2014 Ragin’ Cajun seniors remembered fondly their last home game. Rain and lightning never arrived but turbulence did in the form of the Appalachian State Mountaineers.
Even stranger than the Republican Party’s decision to hold a “unity rally” earlier this month for Congressman Bill Cassidy in a Baton Rouge bar, Huey’s Bar, was the fact that the establishment was named after Louisiana’s most famous Democrat.
Bar Code is not a gay bar.
After failing to pass a medical marijuana bill last year, state Sen. Fred Mills, R-Parks, is telling supporters he will return in 2015 with legislation that focuses on different applications like oils and pills.
Voters, obviously, are not yet tuned into the 2015 ballot, despite the intriguing races it will host.
By now, the story of how longtime LSU coach Dale Brown discovered Shaquille O'Neal has been told many times: Brown happened upon a massive 13-year-old at an army base in Germany, stayed in touch with him and eventually became like a second father.
Fate simply wasn't ready to give the New Orleans Saints a break from longtime nemesis Steve Smith.
Lafayette Police have had a busy day.
Gov. Bobby Jindal's administration will use $130 million in patchwork financing from a tax amnesty program, insurance settlement, uninsured motorist penalties and other excess funds to close most of the state's midyear budget deficit.
Democratic U.S. Sen. Mary Landrieu said she disagrees with President Barack Obama's actions on immigration, hoping the latest controversy doesn't worsen her campaign difficulties.
Gay-rights advocates challenging Louisiana's same-sex marriage ban announced Thursday that they have asked the U.S. Supreme Court to review their case before it is heard by a federal appeals court.
Thinking himself the “son of God,” the man charged with the 2013 killing of an officer of the Chitimacha Tribal Police will not stand trial following a ruling Thursday on his mental competency.
Either Saints coach Sean Payton doesn't want to tip Baltimore off as to who'll start in New Orleans' secondary on Monday night, or he really doesn't know yet.
The Ethics Board gives the lame duck Youngsville mayor permission to offer a sweet parting gift to the community he’s presided over for three terms.
The money came through a general obligation bond sale Thursday.
A legend in the Acadiana Oil Patch, Comeaux died Monday, Nov. 17.
With a growing number of alleged sexual assault victims coming out against Bill Cosby in recent weeks, upcoming projects have been canned by NBC and Netflix, but that won’t affect the once-loved comedian and actor’s scheduled performance in Lafayette.
The Baltimore Ravens' retooled secondary had no trouble against a rookie quarterback at home. This week, however, their task is far more challenging: stopping Drew Brees on the road in New Orleans.