Agda Pkt 2026.07.07 Special Council Meeting

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REDWOOD CITY 9212 Economic & Planning Systems, Inc. 32 Fiscal Implications of Proposed Ordinance 2025), approximately 2,587 rental units have been sold in Redwood City according to CoStar. Of these, about 1,145 units are in properties built before 1995 and would therefore be subject to rent control. These units are most at risk for assessment appeals under the premise that the income stream estimated at the time of purchase would be restricted. However, property owners may also be eligible to petition for an upward rent adjustment if needed to obtain a fair return, which could limit the potential reduction in assessed value and associated property tax impacts. In total, these units represent approximately 7 percent of the City’s rental housing stock. The potential impact of reassessments is likely to be more pronounced if Costa- Hawkins is repealed. • In addition to property tax payments, any change in property values would also impact the City’s property tax in-lieu of vehicle license fee revenue the City is supposed to receive from the State 28. The State sends cities these funds based on the gross assessed valuation of taxable property in the jurisdiction. Therefore, if the proposed Ordinance were to result in a decrease (or increase) in assessed values, the City could receive lower (or higher) revenue from the State. The significance of the potential impacts of rent control on housing values and in turn, property taxes, depends on the value makeup of Redwood City’s rental stock. As shown in Table 16, single family properties and condos comprised more than sixty percent of the residential assessed value, while multifamily rental units, including duplexes and triplexes, accounted for about a third of residential assessed value. As noted previously, under Costa-Hawkins, rent control will only apply to the portion of multifamily units that were built before 1995. Therefore, any property value impacts caused by the proposed Ordinance will impact properties accounting for less than a third of the City’s residential assessed value. Table 16. Redwood City Residential Assessed Value Source: San Mareo County Secured Tax Roll, 2024; Economic & Planning Systems Overall, the impact of the proposed Ordinance on residential property related tax revenues is expected to be mixed with a potential increase from the conversion of 28 State payment of property tax in lieu of vehicle license fee revenue has been subject to State budget deliberations for the last several years. Land Use Assessed Value % Residential AV Single Family $14,225,911,911 63% Multifamily $6,027,127,308 27% Condo $2,434,157,675 11% All Residential $22,687,196,894 100% 8.A. - Page 160 of 168 170