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Two additional categories are exempt only from rent stabilization (Secs. 42.4.A–B): • Units exempt under the Costa-Hawkins Rental Housing Act (generally, single-family homes and condos, and units first occupied after February 1, 1995); and • Units fully owned, operated, and managed by a San Mateo County government unit, agency, or authority — and only where applicable federal or state law independently requires the exemption. None of these exemptions applies to privately-owned affordable housing developments governed by LIHTC regulatory agreements, HOME regulatory agreements, deed restrictions, or similar long-term affordability covenants. Such properties are subject to the full Ordinance. IV. SPECIFIC IMPACTS ON AFFORDABLE HOUSING DEVELOPMENTS A. Rent Stabilization — Sec. 42.6 The Ordinance caps annual rent increases at 60% of CPI (between 0% and 5%), rolling back all rents to October 29, 2025, levels as a base. Affordable housing rents are already set below market and adjusted annually pursuant to regulatory agreements and HUD income limits — not market conditions. The Ordinance's rent stabilization layer creates a potentially conflicting second set of rent restrictions. Owners must determine which limitation controls in any given year and risk liability for excess rent charges if they misapply the rule. B. Just Cause Eviction — Sec. 42.7–42.9 The Ordinance restricts termination of tenancy to enumerated at-fault and no-fault causes. Affordable housing developments already operate under regulatory agreements and HUD/IRS compliance requirements that govern lease terminations. The Ordinance imposes additional procedural steps (written warnings, specific notice content, filing with the Program within 3 days of serving a termination notice) that are not required under existing affordable housing compliance frameworks. C. Relocation Payments for No-Fault Evictions — Sec. 42.9(C) For no-fault evictions (owner move-in, demolition/withdrawal, substantial renovation), the Ordinance requires relocation payments equal to the greater of four times the HUD fair market rent for the unit size or $12,000 per tenant household, with an additional $6,000 for households with members aged 62 or older, disabled, or terminally ill. Affordable housing developers performing required capital improvements or complying with agency- mandated rehabilitation scopes would be subject to these substantial relocation payment obligations, significantly increasing project costs.