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<br /> <br />Economic & Planning Systems, Inc. 2 Introduction and Key findings <br />right-to-return provisions, anti-harassment protections, and broader application <br />of just cause eviction requirements. <br />While this Report focuses on direct housing market and fiscal impacts, the <br />proposed Ordinance may also have broader effects on land use, development <br />feasibility, and investment decisions over time. <br />Local rental markets are influenced by a range of external factors, including <br />regional economic conditions, demographic trends, public policy, and capital <br />markets. Accordingly, the precise economic and fiscal impacts of the proposed <br />Ordinance cannot be predicted with certainty. <br />Key Findings <br />• Under current State law, the impact of the proposed Ordinance on City <br />finances and the broader housing market is expected to be relatively modest. <br />Due to state law rent stabilization exemptions for single-family homes, <br />condominiums, and multifamily units built after 1995 contained in the Costa <br />Hawkins Act (California Civil Code 1954.50 et seq.) (Costa-Hawkins), the rent <br />control provisions would apply to a limited portion of the City’s housing stock <br />(approximately 20 percent). As a result, the primary impacts are likely to be <br />distributional, with existing renters benefiting from reduced rent growth and <br />increased housing stability, while property owners may experience reduced <br />income potential. The proposed Ordinance may help limit displacement among <br />lower-income households, who are disproportionately renters. Potential fiscal <br />impacts, such as increased property and transfer tax revenues from conversion <br />of rental units to ownership, are possible but expected to be minor under <br />current conditions. <br />• Redwood City will incur significant one-time and ongoing costs to implement <br />and administer a rent stabilization program. Based on estimates in Table 13, <br />annual program costs are projected to range from approximately $4.0 million <br />to $10.1 million, depending on staffing levels and enforcement approach (plus <br />additional, one-time startup costs). Peer city experience suggests that a <br />minimum of seven full-time staff would be required to implement a basic <br />program, with higher staffing levels needed for more active enforcement. To <br />fully recover annual costs, the required per-unit fee is estimated to range from <br />approximately $246 to $622 per rental unit per year, far exceeding the minimal <br />fee levels specified in the proposed Ordinance 3. <br /> <br /> <br />3 The proposed Ordinance includes initial fees of $84 per unit for partially covered units, and $120 per unit for fully covered units. <br />8.A. - Page 130 of 168 <br />140