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6.E. - Page 5 of 12 Diane Howard, Mayor Shelly Masur, Vice Mayor Alicia C. Aguirre, Council Member Ian Bain, Council Member Janet Borgens, Council Member Giselle Hale, Council Member Diana Reddy, Council Member April 27, 2020 The Honorable Kevin Mullin Assembly District 22 State Capitol Room 3160 Sacramento, CA 95814 Redwood CityI California Founded 1867 RE: AB 2852 (Mullin) Workforce Housing —Support (Sponsor) Dear Assembly Member Mullin: 1017 Middlefield Road Redwood City, CA 94063 (650) 780-7301 Fax(650)780-7225 The City of Redwood City is proud to sponsor your Assembly Bill (AB) 2852, which would clarify in law the ability for cities, counties, state agencies, school districts, community college districts, and special districts to work collaboratively to build rental housing for members of their workforce. Additionally, AB 2852 would exempt all city, county, state and special district employees from possessory interest tax when living in workforce rental housing provided by a school district, community college district, the city, county, or state whether owned by one public entity or a combination of public entities. Furthermore, it authorizes a school district to collaborate and allow employees of other government entities, including charter cities and counties, to occupy housing developed under a program established and implemented pursuant to the Teacher Housing Act of 2016. It also clarifies additional collaboration that would also authorize cities, counties, cities and counties, whether general law or chartered, and special districts to establish and implement programs that address the needs of local public employees who face challenges in securing affordable housing. Redwood City prides itself as a leader in facing our regions housing crisis head on. In partnership with community non -profits, faith - based organizations and regional developers—Redwood City is working tirelessly to meet the housing needs of our residents. However, there is always more that can and should be done. The cost of market rate housing in Redwood City continues to climb. While salaries and benefits for our municipal employees are competitive, the price of rental housing has outpaced revenue growth—leaving employees who are unable to afford rent in the City in which they serve. Our city supports legislative and funding mechanisms that promote affordable and regional housing projects that meet the unique populations of City residents—including the development of workforce housing. AB 2852 provides the clarity needed for local agencies to move forward on projects to address workforce housing needs. Moreover, by allowing city, county, school districts and special districts the ability to provide preference to each other's workforce, this measure promotes regional cooperation between local agencies. AB 2852 is not a mandate, but rather provides more tools to allow local agencies the ability to find creative solutions to address local and regional housing needs. For these reasons we are proud to sponsor your measure and look forward to working with your office, and all stakeholders to ensure its passage. Thank you for your leadership on this important issue. Should you have any questions regarding Redwood City's position on this measure please do not hesitate to contact our legislative consultant Dane Hutchings with the Renne Public Policy Group at 916-974- 9270. DianeHoward Mayor, Redwood City CC: The Honorable Jerry Hill, Senate District 13 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 93