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REDWOOD CITY 9212 <br /> <br />Economic & Planning Systems, Inc. 33 Fiscal Implications of Proposed Ordinance <br />rental housing to ownership off-set by a decline from a reduction in the assessed <br />values of multi-family units. The potential repeal If Costa-Hawkins were to be <br />repealed in the future, it would have the will likely have an added effect of <br />reducing the feasibility of new multi-family residential development, as described <br />above. <br />Sales Tax <br />The proposed Ordinance’s impact on sales tax is ambiguous. As previously noted, <br />rent control increases the discretionary income of renters. By allowing renters to <br />shift a portion of their income from rent towards goods and services, the <br />proposed Ordinance may boost the local economy. On the other hand, if rent <br />control were to limit the influx of higher income residents into Redwood City, it <br />may reduce the number of households that spend the most money on local <br />services. The overall impact of the proposed Ordinance on sales tax will depend <br />on the magnitude of each of these effects. <br />Public Services <br />The primary impact of the proposed Ordinance would be to decrease <br />displacement risk and risk of homelessness for existing renters in Redwood City. <br />People who experience homelessness are more likely to interact with paramedics, <br />police, and fire services than the housed population. For example, people who are <br />unhoused tend to lack insurance and as a result seek health care only once a <br />situation is dire, so they spend more nights in hospitals than people who are <br />stably housed. As a result, housing stability has been found to bring a range of <br />benefits to formerly homeless individuals as well as public savings to the <br />community.29 The proposed Ordinance may reduce the strain placed on Redwood <br />City’s emergency services and as a result, lower City costs. That said, it is difficult <br />to estimate these additional costs with precision, in part because many social <br />service costs are borne by other public agencies, such as the County. <br /> <br />29 Outcomes Associated with Providing Secure, Stable, and Permanent Housing for People Who Have Been Homeless: An <br />International Scoping Review - Phillippa Carnemolla, Vivienne Skinner, 2021 (sagepub.com) <br />8.A. - Page 161 of 168 <br />171