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Attachment F <br />e) Amount of Administrative Fees collected from landlords <br />City staff shall post the report for the preceding calendar year on the <br />City’s website by April 1. A copy of the report will be available on flle with <br />the City Clerk. <br />5 I live in the Central Neighborhood surrounded by multi-family <br />housing that was built well over three decades ago, and it's <br />showing. My neighbors complain of single pane windows, poor <br />insulation, weak heating or non-existing HVAC to cool them <br />during heat waves. These are all creature comforts all of us <br />desire and increase the quality of life in Redwood City. My <br />concern is that the proposed TPO's relocation and right to return <br />to a remodeled rental at the same rate as before renovation will <br />signiflcantly deter any investment or improvement of the old <br />housing stock in my neighborhood. The material costs and labor <br />to improve rental units are substantial, and without a pathway to <br />recoup those costs our old units will continue to deteriorate, <br />grow mold, wear and tear until they become a health hazard. I <br />understand there is a limited write-in process to try to recoup <br />some of the remodel costs, but the fees, time and risks <br />associated with denial (non-appealable) would likely dissuade <br />landlords from initiating substantial improvements in the flrst <br />place. The certainty is just not there. The intent of this section of <br />TPO is noble, to prevent bad actors from using phantom <br />remodels to unlawfully evict long time tenants. However, the <br />perverse effect is to deny the same vulnerable population the <br />comforts, health and safety afforded by improved quality rental <br />stock, and thus lower the quality of life of our rental population <br />over time. Please consider adjusting this section to balance the <br />two competing public interests. <br />During the development of the TPO, the City conducted an analysis of <br />how the right to return requirement would impact landlord’s return on <br />investment for undertaking a substantial remodel. The key flndings from <br />the report show that this policy does not appear to be a flnancial <br />disincentive to most landlords seeking to reinvest in their properties and <br />that typical remodel projects remain flnancially viable and provide a fair <br />return on investment. <br /> <br />The City’s FRR appeal process is intended to address outlier cases, <br />such as older or historic buildings, where rents are well below median <br />but have signiflcant remodel needs and costs. In those cases, landlords <br />may not be able to obtain a fair rate of return and could flle an appeal. <br /> <br />6 Chapter 1 FRR Guidelines - Redwood City’s Tenant Protection <br />Ordinance (Section 42.5(B)(2)(d)(iv)) requires that landlords who <br />are terminating a tenancy for a substantial remodel must offer <br />This would require amending the TPO and amendments to the TPO are <br />not being considered at this time. Therefore, no changes are included in <br />the Administrative Regulations and FRR Appeal Guidelines. Additionally, <br />8.A. - Page 70 of 85 <br />328