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<br />Understanding these impacts is particularly important because preserving existing affordable housing is <br />often more cost-effective than replacing units that are lost from the housing inventory. <br />Program Cost and Fiscal Risk <br />The staff report estimates annual program administration costs ranging from approximately $4 million to <br />$10.1 million, in addition to startup costs. The report also notes that the proposed initial fees would not <br />fully cover anticipated program expenses and that a fully operational program could require assessments <br />as high as approximately $545 per unit compared with the initial proposed assessment of $120 per unit. <br />Given the City’s projected multi-year budget challenges, we respectfully request additional analysis <br />regarding how potential funding gaps would be addressed. Specifically: <br />• How would operating shortfalls be managed if fee revenue proves insufficient? <br />• Would General Fund resources be required to subsidize the program? <br />• What risks would the program create for other City priorities and services? <br />• How would future fee increases affect housing providers and tenants? <br />These questions are especially relevant as the Council simultaneously considers long -term budget <br />challenges and fiscal sustainability. <br />Workforce Housing and Employee Mobility <br />The report notes that rent stabilization may help existing renters remain housed but could also reduce <br />housing availability for new residents seeking to move into Redwood City. We encourage the City to <br />further analyze the implications of this dynamic for workforce mobility and labor force recruitment. <br />Employers across multiple sectors including healthcare providers, schools, public agencies, nonprofit <br />organizations, technology companies, hospitality businesses, and other service-sector employers depend <br />on the ability to attract and retain workers from throughout the region. A more detailed analysis should <br />examine how reduced housing turnover and availability may affect employers’ ability to recruit <br />employees and maintain workforce stability. <br />Business Attraction, Retention, and Regional Competitiveness <br />While the report briefly references potential economic impacts, we believe the relationship between <br />housing availability and economic competitiveness warrants more thorough analysis. <br />Housing supply and availability are critical factors in business location decisions, employer expansion <br />plans, and workforce recruitment efforts. Redwood City’s ability to attract and retain employers is <br />closely linked to the availability of housing for current and future employees. A more robust evaluation <br />of potential impacts on economic development, business retention, and regional competitiveness would <br />help provide voters with a more complete understanding of the measure’s implications. <br />Conclusion <br />The proposed rent stabilization measure raises complex questions involving housing stability, <br />affordability, fiscal sustainability, economic competitiveness, workforce recruitment, and long-term <br />housing production. Given the significance of these issues, we believe additional economic analysis