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REDWOOD CITY FAIR AND AFFORDABLE HOUSING ORDINANCE <br /> <br />Economic & Planning Systems, Inc. 9 Tenant Protection Impacts <br />As summarized in Table 3, the most significant financial impact of tighter just <br />cause eviction protections will most likely fall on pre-1995 buildings. This is <br />because building operators (e.g., landlords, property managers, investors) will <br />would have limited ability to raise rents to off-set potential compliance impacts <br />(e.g., lost revenue, increased liability, legal fees, etc.). In contrast, post-1995 <br />market rate operators can raise rent on problem tenants, consistent with more <br />generous State limits, to incentivize a voluntary move-out. <br />Table 3. Summary of Potential Impacts from Tighter Eviction Controls <br />Type and Incidence of <br />Impact Description of Ordinance’s Potential Impacts <br />Building or Unit Operating Costs <br />(all units) <br />Potential for sporadic cost increases to landlords from compliance but <br />difficult to quantify change relative to existing requirements. <br />Post 1995 Market Rate Multi- <br />Family Rental Buildings <br />May increase costs and affect building desirability to higher income <br />tenants, but change from existing law appears minimal and can be <br />mitigated over time with rent increases <br />Pre-1995 Multi-Family Market <br />Rate Rental Buildings <br />Larger potential impacts to landlords because their allowed rent <br />increases are more limited but change from existing law appears <br />minimal <br />Deed Restricted Affordable <br />Housing (pre and post 1995) <br />May conflict with pre-existing regulatory requirement related to tenant <br />income restrictions (see Chapter 4) <br />Single-Family, condos, and ADUs <br />Because State and local laws currently provide more exemptions for <br />these units, the Ordinance may incentivize some owners to remove <br />units from the rental market <br />New Housing Production (City <br />Regional Housing Needs <br />Allocation (RHNA) Targets)6 <br />May affect the investment climate for rental housing due to perceived <br />incremental increase in costs and risks <br /> <br /> <br />6 Regional Housing Need Allocation (RHNA) process is number of housing units and the affordability of those units, each local <br />government must plan for in its Housing Element. <br />8.A. - Page 68 of 168 <br />78