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REDWOOD CITY 9212 <br /> <br />Economic & Planning Systems, Inc. 12 Rent Control Literature Review <br />low-income households but an equal if not greater decline in units available to <br />higher income brackets, particularly those making more than 120 percent of area <br />medium income).16 <br />Impacts on Property Values <br />Rent control potentially impacts property values by limiting the income earning <br />potential of rental properties. The unanticipated elimination of rent control in <br />Massachusetts in 1995 provided economists with an opportunity to study the <br />price effects on decontrolled properties. MIT researchers analyzed the elimination <br />of rent control in Cambridge and found that previously rent-controlled properties <br />rose in assessed value by approximately 13-25 percent over the 10 years <br />following rent decontrol. <br />Rent decontrol also had a significant positive indirect effect on the valuation of <br />properties that had been exempt from rent control but were “exposed” or in close <br />proximity to rent controlled units. These properties experienced a 16 percent <br />increase in value from 1994 to 2004 following the repeal of rent control in <br />Massachusetts.17 The authors concluded that there is a negative indirect impact <br />on desirability of housing in rent-control intensive locations. As previously noted, <br />depressing the value of rental properties can have some income redistribution <br />effects. However, there may be negative fiscal implications of decreased property <br />values as well. <br />Impacts on Building Quality <br />Research on rent control and building quality is ambiguous. In Boston, rent control <br />regulations were found to lead to building quality deterioration, primarily for <br />smaller items of physical damage.18 Under rent control there may be a financial <br />disincentive for landlords to make cosmetic upgrades including investing in <br />building amenities designed to command higher rents. <br />However, when coupled with strong just-cause protections, rent control has been <br />found to provide leverage to tenants to advocate for improved conditions. A study in <br />Washington DC found that the share of physically deficient units decreased after <br />rent stabilization when most tenants said they were more willing to insist on <br />repairs.19 <br /> <br /> <br />16Stacey, et. Al., Op Cite. <br />17 2012227 661..727 (mit.edu) <br />18 2007 Sims MA rent control study - DocumentCloud <br />19 OurHomesOurFuture_Web_08-02-19.pdf <br />8.A. - Page 140 of 168 <br />150