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REDWOOD CITY 9212 <br /> <br />Economic & Planning Systems, Inc. 16 Redwood City Housing Impacts <br />Ordinance. Given the relatively small scale of ADUs within the broader rental <br />housing stock, the overall impact is anticipated to be limited. <br />Affordable Housing <br />As shown in Table 5, Redwood City has nearly 1,400 deed-restricted affordable <br />housing units, as well as approximately 400 affordable units in the pipeline 23 . Of <br />the 1,400 deed-restricted affordable housing units, approximately 625 units or 45 <br />percent were constructed before 1995. While these units are already subject to <br />regulatory rent restrictions, the proposed Ordinance does not explicitly exempt <br />deed-restricted affordable housing, which is atypical compared to many <br />jurisdictions with rent stabilization policies. This may create some direct conflicts <br />between regulatory frameworks, especially for the approximately 625 deed <br />restricted units built before 1995 and thus subject to rent control under the <br />proposed Ordinance. <br />Table 5. Redwood City Affordable Housing Stock <br /> <br />Source: ACS, 2024 5-Year estimate, DOF, 2025, Redwood City, Economic & Planning Systems <br />Because the TPA generally exempts deed-restricted affordable units, the <br />proposed Ordinance could apply rent caps to some affordable units that are not <br />currently subject to statewide rent control (i.e., those built before 1995). Most <br />State and federal affordable housing programs tie allowable rents to Area Median <br />Income (AMI), an amount that can change over time at rates substantially <br />different from both inflation and the rent caps permitted under the proposed <br />Ordinance. Figure 1 illustrates the potential compounding effect of these <br />differences: an apartment that rented for $1,000 per month in 2015 would rent <br />for about $1,650 in 2025 if increased based on AMI (65 percent increase), $1,356 <br />if increased by rate of inflation (36 percent increase), and $1,215 if increased by <br />rate allowed by the proposed Ordinance (21 percent increase). Annual increases <br />in AMI and CPI are shown in Appendix A Table A-2. It should also be noted that <br />unless an affordable unit is federally funded, both the State and City have “hold- <br />harmless” requirements, meaning they won’t decrease AMI levels even if the <br /> <br />23 Pipeline projects include projects that have submitted a planning application with the City or have received entitlement approvals <br />but haven’t pulled building permits yet <br />Affordable Housing Count <br />% of Rental <br />Housing <br />% of Affordable <br />Housing <br />Total Rental Units 16,168 100% <br />Affordable units 1,387 9%100% <br />Units Built After 1995 762 5%55% <br />Units Built Before 1995 625 4%45% <br />8.A. - Page 144 of 168 <br />154