Garden Grove man arrested after attacking woman with knife in her apartment, police say

• July 13, 2023

A Garden Grove man was arrested on suspicion of attempted murder after police said he broke into the apartment of a woman he knew and attacked her with a knife.

Garden Grove police said in a statement that a 27-year-old man “let himself into” the woman’s apartment in the 12500 block of Lorna Street in the early afternoon of Wednesday, July 12.

He encountered the woman and they began to argue and he pulled out a knife and threaten her, police said.

As the woman tried to flee, he grabbed her, “placed his arm around the victim’s neck and began to repeatedly lunge the knife toward her.”

He eventually let the woman go as he left the Garden Grove apartment. The woman had knife wounds to her body and face, police said.

Garden Grove detectives later found the suspect in Westminster and arrested him. They said they found a knife on him matching the one the victim said was used in the attack. Police did not say how they were able to find him.

Police haven’t said why the man allegedly attacked the woman. He was booked into an Orange County jail on $500,000 bail.

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Buying a new construction home? Beware the fine print in upgrades

• July 13, 2023

Armed with an excellent job as a purchasing manager, mother of two Ilene Soto decided it was time-time to find a home to buy.

As a school district employee who works remotely from home, Soto had the advantage of shopping for a more affordable, new home somewhere over the Grapevine, north of Los Angeles.

Last October she signed an 83-page purchase contract for a new $510,500 home in Tehachapi. I issued a mortgage pre-approval letter to the builder. Soto’s house was expected to be completed in April 2023.

SEE MORE: Will homeowners’ insurance crisis upend home sales in California?

Well into spring and with the original tract sales agent long gone, the sales manager engaged Soto about options and upgrades. Through phone calls and text messages, they discussed upgrades for the home for roughly 15% of the base price, totaling $76,995.

Soto is adamant she never agreed to anything in the back-and-forth. Plus, Soto could not afford the increased payment, much less qualify for the payment jump.

A standoff ensued. The builder insisted Soto had agreed to and must pay $76,995 for the upgrades if she wanted the home.

READ MORE: Home sellers can finance their low-rate mortgage and generate income

The sales manager told me via email that the original tract agent “missed a signature” on the previously agreed money that was added to the sales contract.

The contract I received indicated a $510,500 sales price plus a $5,000 lot premium but nothing more. That contract was the basis of the pre-approval letter my brokerage issued.

The builder insisted it could keep Soto’s $5,000 earnest money deposit or send the fight to arbitration, which likely would have cost Soto more in legal and arbitration fees.

Regardless of the communication issues between the sales manager and Soto, the options and upgrades construction could have been delayed or avoided entirely had the sales manager asked me to issue an updated pre-approval letter plugging in the increased sales price and new mortgage amount. And never mind factoring in soaring mortgage rates between last fall and this spring. Soto could no longer afford the home or the new mortgage rate.

In my experience closing hundreds of builder loans, if the sales price increases more than, say, a few thousand dollars, the builder seeks an updated pre-approval letter reflecting the increases before home customization begins.

To the homebuilder’s credit, but only after I asked attorney Mike Hensley to review the documents and contact the developer on Soto’s behalf, did they agree to refund the $5,000 earnest money deposit.

The home eventually closed on June 23 for $573,000 to another buyer, according to Lawyers Title.

Just about everyone lost, except for the replacement buyers. Ilene Soto lost the home she wanted. The builder lost $19,495 because their total sales price with Soto would have been $592,495.

The homebuilder declined to respond to several requests for comment.

So, what about the law?

“The statute of fraud exists to make sure key terms like purchase price are contained in a written document,” said attorney Mike Hensley via email. “The developer’s own documents show that an additional written contract had to be done for add-on improvements, which was never done,”

“That means that the original purchase price was the one which governed,” Hensley said.

The whole experience shows us that a broker needs to be involved with developer contracts, especially when it’s 83 pages long. An agent can help a buyer understand deadlines, liquidated damages and arbitration issues.

However, the buyer has no chance in “take it or leave it” provisions, so using a knowledgeable agent to negotiate the contract can work more favorably for the borrower, Hensley said.

Here are some new home facts, according to John Burns Research & Consulting:

—New home builds represent 12% of all residential sales nationwide

—New home inventory in the region: 347 in San Diego County, 1488 in Inland Empire, 170 in Orange County, 359 in Los Angeles County

—4,800 new builds are available for sale statewide (excluding Imperial County and portions of northern/central California due to limited data)

—Median new home prices: San Diego County $850,000, Inland Empire $584,400, Orange County $1,140,000, Los Angeles County $1,111,500

—422,000 new builds are available nationwide (US Census Bureau)

Pros of new builds

—Clean slate, customizable upgrades and options, including the hardscape and landscape.

—Except for 55 and over communities, new builds tend to attract young families, which is important if you friends with whom your children can play.

Cons of new builds

—Prices for options and upgrades can be inflated at builder design centers compared with independently shopping for and engaging with contractors

—Builders do not allow buyers to finance upgrades into the mortgage if using outside contractors

—New builds may come with higher property taxes on top of the 1% established under Proposition 13 such as Mello-Roos taxes, property assessments, parcel taxes and additional taxes to pay for voter-approved debt. (Buyers might occasionally find additional taxes on resale homes, too.)

—Builders often pressure buyers into using their affiliated mortgage lender by offering credits toward rate buydowns and closing costs. But note, their rates and prices are typically inflated compared with what buyers can find on the broader market

Buyer best practices when shopping new homes

Do your new home searching ahead of time with an independent, licensed real estate agent. Ask the agent to arrange the new home tours and thoroughly read and negotiate the contract and manage the process. Always have your agent register with the builder at the get-go so they get paid.

“Almost all builders offer some level of broker compensation,” said Scott Wild, a senior vice president at John Burns. “It could be $10,000 or 1%. The Great Park in Irvine is paying 3-5%.”

If you need further legal assistance for contract review but can’t afford to pay, contact the California State Bar at calbar.ca.gov or the Legal Aid Association of California at lawhelpca.org, according to Rick Lopes, assistant commissioner of Communications and Publications at the California Department of Real Estate

Check out builders with standing inventory. There might be “deals” similar to the discount the buyers snagged at the back end of Soto’s failed purchase.

Carrying costs are profit killers for builders. “On average, it takes anywhere from 7-12 months from contract signature to delivery, if there are no hiccups,” said Morgan Morales, the political affairs and community manager at the California Building Industry Association.

Compare and contrast design center upgrade and option charges (and credits) against your own contractors.

If you want to finance your upgrades, consider the Fannie Mae Homestyle Renovation mortgage through an outside mortgage lender. It runs roughly one-half percent higher in rate than a standard 30-year fixed from Fannie Mae. With a few limitations, this financing instrument allows borrowers to finance the upgrades post-closing instead of having to pay cash for them. And, you have up to one year from closing to complete the work.

Shop and compare title companies. Every California builder uses a title insurance company to both insure and act as a settlement agent. Sometimes builders add contract language requiring the buyer to pay both halves of the title and settlement fees. The Southern California practice is usually the buyer pays half and the seller pays half.

Pick the lowest-priced title insurance company you can find. Put it in the contract. It is your right, according to the Consumer Financial Protection Bureau.

“The seller cannot require you to buy a title insurance policy from a particular title company,” said Tia Elbaum, spokesperson at the Office of Public Affairs for the CFPB. If the builder refuses your settlement services request, share this article. If the builder still refuses, file a complaint with the CFPB.

Freddie Mac rate news

The 30-year fixed rate averaged 6.96%, 15 basis points higher than last week. The 15-year fixed rate averaged 6.3%, 6 basis points higher than last week.

The Mortgage Bankers Association reported a .9% mortgage application increase compared to last week.

Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $726,200 loan, last year’s payment was $684 less than this week’s payment of $4,812.

What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages with one point: A 30-year FHA at 6%, a 15-year conventional at 5.75%, a 30-year conventional at 6.375%, a 15-year conventional high balance at 6.5% ($726,201 to $1,089,300), a 30-year high balance conventional at 7% and a jumbo 30-year fixed at 6.625%.

Note: The 30-year FHA conforming loan is limited to loans of $644,000 in the Inland Empire and $726,200 in LA and Orange counties.

Eye catcher loan program of the week: A 30-year conventional fixed rate at 5.875% with 2 points cost.

Jeff Lazerson is a mortgage broker. He can be reached at 949-334-2424 or jlazerson@mortgagegrader.com.

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Boxing champ Devin Haney arrested in Los Angeles on felony weapons charge

• July 13, 2023

LOS ANGELES — Undisputed lightweight champion Devin Haney was arrested on a felony weapons charge Thursday in Los Angeles, according to police.

Haney, 24, was charged with carrying a concealed weapon in a vehicle and released on $35,000 bond. An Aug. 3 municipal court date was set, online court records showed.

Haney was in the back seat when police conducted a traffic stop, Bill Haney, the boxer’s father, trainer and manager, told ESPN.

The elder Haney said the charge is “a misunderstanding that will be solved when Devin goes to court. It’s unfortunate that he was arrested with his armed licensed security, and I’m confident things are going to be worked out.”

Haney retained his titles and improved to 30-0 in May with a unanimous decision over Vasiliy Lomachenko at 135 pounds in Las Vegas.

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Dodgers, outfielder Jake Marisnick reportedly agree to terms

• July 13, 2023

Dodgers fans have not welcomed the Houston Astros to Dodger Stadium since the controversial 2017 World Series. But a member of that Astros team will be suiting up in Dodger blue.

The Dodgers have reportedly reached an agreement on a major-league contract with outfielder Jake Marisnick. The 32-year-old Riverside Poly High graduate was designated for assignment by the Detroit Tigers on Sunday, cleared waivers and became a free agent.

The Dodgers will have to clear a 40-man roster spot before the move can become official. They moved right-hander Daniel Hudson to the 60-day injured list on Wednesday to add right-hander Tyson Miller to the 40-man.

Marisnick is known as an above-average defensive outfielder. His best offensive season came in 2017 when he hit .243 with 16 home runs and an .815 OPS in 106 games. His season ended in September when he suffered a fractured thumb. He did not play in the postseason that culminated with the Astros beating the Dodgers.

The Astros were later exposed as having used an elaborate sign-stealing system during the 2017 season.

Marisnick has bounced around in recent years, playing for six teams in the past four seasons. He hit .232 with two home runs in 33 games for the Tigers this year.

He has been better against left-handed pitching throughout his career – a .235 average and .707 OPS compared to .224 and .639 against right-handers. He could get playing time that would have gone to two other right-handed hitters – Trayce Thompson (out with an oblique injury) and Chris Taylor (likely to play a lot of second base when he returns from a knee injury now that Miguel Vargas has been demoted).

Dodgers catcher Austin Barnes and Marisnick attended Riverside Poly and were one year apart.

2024 SCHEDULE

MLB unveiled the 2024 schedule on Thursday, with the domestic Opening Day on Thursday, March 28. The Dodgers will be home that day to begin a four-game series against the St. Louis Cardinals at Dodger Stadium, but the Dodgers and San Diego Padres will already have opened the season with two games in Seoul, the first major league regular-season games ever played in South Korea.

Each team will be the home team for one game in Seoul, with the Padres designated as the home team on March 20 and the Dodgers the next day.

After the two games in South Korea, the Dodgers’ opening homestand is seven games, with three games against the San Francisco Giants (April 1-3) following the series against the Cardinals.

They have two nine-game homestands – April 12-21 against the Padres, Nationals, and New York Mets; and Aug. 19-29 hosting the Seattle Mariners, Tampa Rays, and Baltimore Orioles.

The Dodgers’ longest road trip is a nine-gamer against the Washington Nationals, Toronto Blue Jays, and Arizona Diamondbacks from April 23-May 1.

The regular-season Freeway Series games against the Angels next year will be June 21-22 (with a Sunday off for both teams) at Dodger Stadium and Sept. 3-4 at Angel Stadium.

The Dodgers make their first trip to Yankee Stadium since 2016 for a three-game series on June 7-9.

The Dodgers host the Nationals on Jackie Robinson Day (Monday, April 15).

The Dodgers conclude the 2024 regular season with a three-game series against the Colorado Rockies on Sept. 27-29  in Denver.

Next year’s All-Star Game is Tuesday, July 16, at Globe Life Field in Arlington, Texas.

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What you need to know about the SAG-AFTRA strike that will upend Hollywood

• July 13, 2023

Jami Ganz | (TNS) New York Daily News

NEW YORK — Lights, camera, pause. Hollywood is officially on hiatus as the union representing on-screen talent has joined screenwriters in striking against the studios, amid stalled contract negotiations.

SAG-AFTRA officially announced its strike would commence at midnight PST Friday, after the union’s contract expired late Wednesday and negotiations with the Alliance of Motion Picture and Television Producers (AMPTP) fell apart. Union leadership noted that while the strike was “an instrument of last resort,” settling for an unfair deal wouldn’t just “destroy each of us, but the industry at large.”

Here’s a breakdown of what the strike means for screens big, small and beyond.

Why is SAG-AFTRA striking?

The union, representing roughly 160,000 actors, broadcast journalists, hosts and more, is seeking more than an increase in pay and improvement in working conditions.

SAG wants to ensure their livelihoods are protected amid the emergence of evolving technologies, such as streaming services and artificial intelligence, concerns shared by the Writers Guild of America, who began their strike in May.

Oscar winners like Meryl Streep, Jennifer Lawrence, and Ariana DeBose last month were among the hundreds of SAG members who signed a letter in which they laid out their demands to prevent a strike.

“We feel that our wages, our craft, our creative freedom, and the power of our union have all been undermined in the last decade. We need to reverse those trajectories.”

What are the ramifications of a SAG-AFTRA strike for Hollywood?

Members of the union will be ordered to stop performing, forcing sets that have yet to shut down amid the writers strike to do so — in turn likely delaying a whole host of release dates. They’ll also be prohibited from promoting upcoming work. Excited to see Leonardo DiCaprio and Robert DeNiro on the Oscars campaign trail for Martin Scorsese’s long-awaited, “Killers of the Flower Moon?” That all depends on when this strike ends. In the meantime, press junkets, interviews, or any posting of promotional content are all on hold.

”Oppenheimer” star Emily Blunt, for instance, confirmed to Deadline Thursday that, were the strike to break out during the premiere of Christopher Nolan’s much-anticipated docudrama, the star-studded cast would “be leaving together as cast in unity with everyone.”

The strike might also put a damper on this year’s San Diego Comic-Con. In addition to promotional panels being on the list of big no-no’s for represented actors, many studio staples like Marvel, Sony and HBO already reportedly pulled out of presentations or panels as a result of the writers strike.

Is all acting work prohibited under the strike?

Most on-screen theatrical work — such as TV, film, and streaming — isn’t allowed for members during the strike. However actors are expected to be permitted to appear in music videos, commercials, corporate or educational videos, and on broadcast news. It’s expected that non-SAG-AFTRA podcast and audiobook gigs will also be allowed. Voice-over work which has been negotiated by SAG is expected to be OK, but will require the union’s approval, sources tell Vanity Fair.

Morning and talk shows, as well as reality or game shows and the like are handled by the Network Television Code and should remain unaffected by the strike.

Is Broadway on strike, too?

While many SAG members also do live theater, live theatrical performance falls under a separate union: Actor’s Equity. As such, live theater such as Broadway plays and musicals, are not affected by the strike, an Actor’s Equity representative confirmed to The Daily News, adding: “Audiences can still feel good about buying tickets to Broadway and other live theatre!”

Who might you see on the picket line?

Because of the breadth of those represented by SAG-AFTRA, there’s a good chance onlookers will spot plenty of familiar faces picketing for professional protection.

That star-studded letter seen by Rolling Stone, notes that “what might be considered a good deal in any other years is simply not enough,” due to the “unprecedented inflection point in our industry,” was also signed by the likes of Julia Louis-Dreyfus, Ben Stiller, Neil Patrick Harris, Eva Longoria, Riley Keough and Ziwe.

©2023 New York Daily News. Visit nydailynews.com. Distributed by Tribune Content Agency, LLC.

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Former Irvine official is vying for a state Senate seat

• July 13, 2023

The open 37th Senate district race in Orange County just got more crowded.

Former Irvine Councilmember Anthony Kuo this week announced his candidacy for the seat, which includes Huntington Beach, Laguna Niguel, Costa Mesa, Orange and Irvine.

Kuo, who was first elected to the City Council in 2018 but lost a reelection bid in 2022, said he is running because he believes “leaders in Sacramento have taken our state in the wrong direction,” including the rising cost of living. Inflation, he said, has made it too hard for Californians to become homeowners, start small businesses and raise families.

“I understand the struggles we face because Orange County is my home. We risk losing what has made living here so great,” Kuo said. “And it’s no longer anecdotal. We know friends and neighbors who are choosing to leave California because it’s just gotten too hard.”

“That’s just top of mind for everybody,” Kuo said of inflation. “The state can do its part, too — whether that’s issues like the suspension or the lack of suspension of the most recent gas tax increase to just making it easier for families to live and businesses to thrive.”

Kuo, who serves as a manager in the Orange County Auditor-Controller’s office, said he will push for residents to receive their “money’s worth” for the taxes they pay.

Another issue for him is public safety, which Kuo said is personal to him as a native of Irvine, often touted as one of America’s safest cities.

“This is what we used to say in Irvine a lot: If you live in a safe community, and you feel like you’re safe, nothing else really can matter,” he said. “But if you don’t feel comfortable walking to school and having your kids walk to school, it doesn’t matter how good the schools are.”

Kuo said some of his friends, neighbors and even family members have left the state “largely as a result of California’s implementing of certain policies or its inaction on others.” He pointed to legislation that initially stalled this week in Sacramento that would make sex trafficking of minors a serious felony. (The bill did see some movement on Thursday.)

“It shouldn’t be this hard for the legislature to do the right thing,” Kuo said.

Kuo has already served a significant portion of the district and says his ties throughout the community run deep. Before he was elected to the City Council, Kuo spent nearly eight years on the Planning Commission and sat on the Orange County Fire Authority Board. Now, he serves in various leadership roles in the community.

“As an urban councilmember, I think that my experience on the Irvine City Council sets me a little bit apart because of the breadth of issues that came before me,” Kuo said.

The 37th Senate district is represented by Democratic Sen. Dave Min who earlier this year launched a bid for California’s 47th congressional district.

Kuo, in addition to Sen. Josh Newman, former Assemblymember Steven Choi, Villa Park councilmember Crystal Miles, Santa Ana College professor Ali Kowsari and another Irvine native Alex Mohajer, have all launched campaigns hoping to replace Min in the legislature.

Newman and Mohajer are the only Democratic candidates. Kuo, Choi, Miles and Kowsari are running as Republicans.

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Santa Anita track announcer’s voice carries to Saratoga

• July 13, 2023

It’s been quite a summer for Santa Anita track announcer Frank Mirahmadi, who can best be described as not only a solid race caller but also one of the best impersonators I’ve ever heard and a guy who could easily have chosen stand-up comedy as a career.

How many people are fortunate enough to have a horse named after them? Frank did, when the 2-year-old colt Mirahmadi debuted at Santa Anita on June 17. The son of Into Mischief finished second as the 3-5 favorite in the Fasig-Tipton Futurity and will most likely return sometime during the Del Mar meet.

As if that wasn’t thrilling enough, Mirahmadi debuted as Saratoga’s full-time track announcer Thursday, taking over for John Imbriale. It was a dream come true for Mirahmadi when he landed the Santa Anita gig, but the Saratoga job is right up there when you’re looking for a prestigious racing venue.

“When Saratoga calls, there’s only one answer. It’s actually, ‘Yes and thank you’,” Mirahmadi told me in June as Santa Anita’s winter and spring meets were wrapping up. “Those are the three words that come out.”

When it comes to historic race tracks, Santa Anita, Del Mar, Saratoga, Belmont and Churchill Downs stand out. They’re the cream of the crop. The number of great race horses that have run at those five venues would more than fill a dream scrapbook for any racing afficiando.

Mirahmadi applied for the Santa Anita job in 2016, was turned down, and then months later was diagnosed with stage 3 colon cancer. He underwent emergency surgery, a follow-up procedure and chemotherapy treatments. So it’s understandable how he takes greater appreciation for each accolade sent his way, how he looks at each day as something special.

“Since that time, I have been incredibly fortunate to get my dream job at Santa Anita and now this opportunity,” he said. “I understand what a miracle it all is. I enjoy every day. It’s good to be on the right side of the soil.”

In addition to Santa Anita and Saratoga, Mirahmadi was the regular track announcer the past eight years at Monmouth Park. He’s also called races at Hialeah, Turf Paradise, Oaklawn Park, Louisiana Downs, Golden Gate Fields and Aqueduct since beginning his career full-time in 1996. He’d called a few races at Saratoga when Imbriale would take time off.  Imbriale played a big role in Mirahmadi landing the full-time job when he decided to cut back and concentrate on Belmont.

“That’s what kind of guy I’m replacing at Saratoga,” Mirahmadi said. “He set me up for success there in a big way, and I’m very grateful for that. It’s always good when the person who is leaving the job is on your side. He told me before he told New York (NYRA) that he was going to retire. He wanted me to think about where I stood as far as possibly wanting to go to New York full-time.”

Mirahmadi would never leave for New York full-time. He loves Santa Anita too much, but spending the summers at Saratoga is not a shabby vacation spot when you’re waiting for Santa Anita’s fall meet.

“Saratoga, although it’s such an amazing place and venue and a big party, for the race caller it’s a daunting task for 40 days of world-class racing, full fields, high expectations and a very difficult vantage point to watch the races from. It’s going to be a very tough assignment, but a very fulfilling one,” he said.

“Johnny didn’t need that pressure any more. He’s a great man and he’s become a very close  friend. I know he’s happy (at Belmont) and I know how much he helped me get here. I appreciate that. When people set you up for success, that’s all it can be.”

Of course, it’s not enough to be given the job. A track announcer also has to deliver, and Mirahmadi has done a great job when given the opportunity.

“With these jobs as an announcer, as we know there’s only one person that gets the job,” he said. “To get it from these two jobs, I’m now going on 27 years … 27 years of traveling around the country hoping for opportunities like this. The main meet (for me) will always be Santa Anita, my home track and my favorite track. I’ve always said it’s my favorite place in the world. So for me, I have fulfilled all my career dreams and to call the Breeders’ Cup those two days (in 2019), it was (only) on track and not for NBC, but I still really enjoyed that.”

Racing fans from coast to coast are enjoying Mirahmadi’s calls and that’s all that matters to him.

Follow Art Wilson on Twitter @Sham73

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Got Sriracha? The price for a bottle of Huy Fong’s iconic hot sauce gets spicy with supplies short

• July 13, 2023

By WYATTE GRANTHAM-PHILIPS | AP Business Writer

NEW YORK — It’s not just you. Sriracha is hard to come by these days — at least for one popular brand.

The shortage of Huy Fong Foods’ Sriracha, the beloved red hot sauce packaged in those green-capped bottles, isn’t new — with the company pointing to a scarcity of chile pepper supply for several years now. And as frustrated fans continue to face store shelves missing the Huy Fong name, third-party resellers are punching up prices.

Huy Fong Sriracha, which used to go for under $5 or $10 a bottle, is now selling for shocking amounts in some listings posted to sites with vast third-party marketplaces — including Amazon, eBay and Walmart. Many are simply sold out.

For those still in stock, prices range depending where you look. As of Thursday morning, for example, ads for a single 17-ounce bottle on eBay stretched from around $20 to a whopping $150 — contrasting significantly from the price tags of other hot sauce brands, who don’t appear to have the same level of supply troubles.

Huy Fong told The Associated Press this week that it continues to be beset by shortages of raw materials, echoing a similar scarcity last year when the company temporarily suspended sales of Sriracha and other popular products like Chili Garlic and Sambal Oelek.

Huy Fong’s troubles: Irwindale maker of Sriracha chili sauce settles labor lawsuit for $525,000, attorney says

Huy Fong said Wednesday that “limited production” resumed recently, although the California company didn’t specify by how much or provide an estimate of when it believes suppliers will be able to deliver an adequate number of peppers.

“Because we do not sell directly to retail/market levels, we cannot determine when the product will hit shelves again and/or who currently has the product in stock,” Huy Fong said in a prepared statement. “We are grateful for your continued patience and understanding during this unprecedented inventory shortage.”

Here’s what you need to know.

WHY IS THERE A HUY FONG SRIRACHA SHORTAGE?

Experts say that Huy Fong’s shortage is partially a consequence of climate change — pointing to weather shifts and extreme drought in Mexico and the U.S. Southwest, where Huy Fong sources all of its chile peppers.

“The main culprit here is a shortage of their primary ingredient, the red jalapeño chile pepper,” said David Ortega, a food economist and associate professor at Michigan State University. “And that’s due to climate change and the mega drought.”

These peppers are typically grown under irrigation, with a lot of water drawn from the Colorado River — which has reached unprecedented low levels over recent years, Ortega said. The region has suffered insufficient rainfall and reduced run-off from snow pack.

Huy Fong’s troubles with chile supply aren’t new. When the company suspended sales last year, it pointed to a 2020 email warning of a chile pepper shortage, noting that a lack of supply had become more severe due to recent weather conditions.

But while climate change continues to have signifcant impacts on agriculture as a whole, it’s “not whole story” for the current Huy Fong Sriracha shortage, extension vegetable specialist and professor at New Mexico State University Stephanie Walker said. She speculates that Huy Fong may not have enough suppliers with different farmers — and could be looking to build relationships with new growers.

“Last year (Huy Fong) just couldn’t get the jalapeños that they needed,” Walker, who also specializes in chile pepper breeding, said — noting the contrast to other brands’ supply. “It really does come down to relations that individual processors have with their grower base.”

She added that it looks like this year will be a strong season for jalapeño and other chile growth in the region.

PRICES SKYROCKET FROM RESELLERS

The erosion of available supplies has rocked the prices of Huy Fong Sriracha that is still available. In many places, the bottles are simply sold out — giving leverage to resellers listing the now hard-to-find and highly sought-after product.

Another market force at play is consumer behavior, in this case, hording. The panic around potentially losing access to a desired product leads many people to buy more than they would typically need, — much like what was seen with toilet paper at the beginning of the COVID-19 pandemic.

“People just stock up and that exacerbates the situation,” said Ortega, also an expert in consumer decision-making. “You have an increase in demand for the product, on top of these supply shocks. And prices have really nowhere to go but up.”

WHERE DOES HUY FONG GET ITS CHILE PEPPERS?

Huy Fong, which was founded decades ago by David Tran, currently sources its chile peppers from various farms in California, New Mexico and Mexico.

Before sourcing from these farms, California-based Underwood Ranches was Huy Fong’s sole supplier for nearly 30 years. The partnership collapsed in 2017 following a financial dispute. Two years later, a jury determined that Huy Fong breached its contract with Underwood Ranches and also committed fraud — awarding Underwood $23.3 million.

Underwood Ranches, which sells its own Sriracha sauce, has not had trouble getting jalapeños from Mexico, owner Craig Underwood told The New York Times this week — while also pointing to “huge demand for our product from Huy Fong’s former customers.” The Associated Press reached out to Underwood for further comment on Thursday.

ARE OTHER HOT SAUCES FACING SHORTAGES?

There’s a myriad of hot sauces, including other of Sriracha-style products, that remain easy to find at reasonable prices. Tabasco, for example, has created a page dedicated to helping customers find nearby stores that sell its brand of Sriracha.

There’s a few possible explanations for this, experts say. Again, some speculate that Huy Fong may issues with its current chile suppliers. Other brands could also use different pepper variants and source from farms that haven’t been hit as hard. Some might also be in a position to tinker with recipes — but perfecting sauces take a long time, as would finding a new variant, experts say.

“Growing the crop in an area less affected by extreme weather or breeding new variants of the peppers that are more tolerant to heat and require less water, if possible, at all, would take years,” Richard Howells, a supply chain expert at SAP, wrote in a blog post earlier this week.

Experts also underline that climate change will impact produce and food across the board, not just chile peppers.

“We saw the price of lettuce skyrocket earlier this year, again as a result of these extreme temperatures and related factors like the spread of disease (in plants),” Ortega said. “I would not be surprised to learn about other product shortages that are due to failed crops or just a significant decrease in production because of climate change.”

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