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<br />Economic & Planning Systems, Inc. 36 Conclusion <br />7. Conclusion <br />xxx Rent regulations are increasingly prevalent in the Bay Area. In cities like Redwood <br />City where apartments account for a sizable portion of the housing stock, the <br />impact of the policy could be significant. Current state law significantly limits the <br />impact of rent control by exempting single family units, condominiums, and <br />properties built after 1995 and requiring vacancy decontrol. <br />The proposed Ordinance is likely to stabilize rents and decrease displacement risk, <br />which is often cited as an important equity concern in the City. Thus, existing <br />Redwood City renters would be the direct beneficiaries of the proposed <br />Ordinance, accruing long-term financial benefits and reduced risk of eviction. This <br />benefit would come at a direct cost to existing Redwood City landlords who could <br />experience limited increases in rental income and limitations on removing <br />unwanted tenants. <br />However, despite the clear and direct redistribution effects of the proposed <br />Ordinance, the broader economic implications are likely to be modest absent the <br />repeal of Costa-Hawkins. This is because Costa-Hawkins limits rent control to <br />multi-family rental housing units built before 1995, a product type that accounts <br />for about 19 percent of the City’s housing. While 19 percent of the City’s housing <br />is not immaterial, the renter protections embodied in the proposed Ordinance are <br />likely to have both positive and negative impacts on the local economy and the <br />City’s fiscal health. The positive impacts include reduced displacement as well as <br />increased economic stability and disposable income for renters. The negative <br />impacts may include reduced labor mobility and housing availability for new <br />residents. <br /> <br /> <br />8.A. - Page 164 of 168 <br />174