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REDWOOD CITY FAIR AND AFFORDABLE HOUSING ORDINANCE <br /> <br />Economic & Planning Systems, Inc. 11 Tenant Protection Impacts <br />Based on FY 2026 HUD Fair Market Rents for San Mateo County, required no- <br />fault just cause relocation payments under the proposed Ordinance would range <br />from $12,000 for studio and one-bedroom units to $19,088 for four-bedroom <br />units, before any protected-household adjustment. For elderly, disabled, or <br />terminally ill households, total relocation assistance would increase to <br />approximately $18,000 to $25,088 per household. By comparison, a tenant <br />paying $2,000 per month in rent for a one-bedroom apartment would receive <br />approximately $2,000 under State law, $2,000 to $11,988 under the Redwood <br />City TPO requirement 11, and at least $12,000 under the proposed Ordinance. <br />The proposed Ordinance also includes a separate temporary relocation <br />framework for certain construction-related displacements lasting fewer than 30 <br />days, with week-to-week extensions if the displacement lasts longer than <br />originally noticed. Under this framework, the landlord would pay $200 per day <br />per household for hotel or motel accommodations and $50 per day per occupant <br />for meals. For a one-person household, this equals $250 per day, or <br />approximately $7,500 for a 30-day period. Because the tenant continues to pay <br />rent while receiving short-term relocation payments, the net owner cost is <br />reduced by rent received during the displacement period. Using an average <br />Redwood City rent of approximately $3,770 per month, the net temporary <br />relocation cost would be roughly $3,700 to $4,000 per month. <br />This temporary relocation framework is particularly important for repair and <br />rehabilitation projects because construction timelines are often uncertain. The <br />proposed Ordinance specifies the daily hotel and meal payment structure for <br />displacements initially expected to last fewer than 30 days, with week-to-week <br />extensions if the displacement exceeds the original timeline. For complex work <br />involving utilities, electrical upgrades, plumbing, hazardous materials, structural <br />repairs, or PG&E coordination, owners may face uncertainty regarding how long <br />temporary relocation payments will continue. Due to the combination of high <br />costs and uncertainty, some owners may pursue permanent no-fault termination <br />with fixed relocation payments rather than manage open-ended temporary <br />relocation obligations. <br />For smaller-scale operators, either a fixed relocation payment or several weeks of <br />temporary relocation payments will have a larger proportional impact on a <br />building’s total cash flow. For properties undergoing substantial renovation, the <br />higher cost and uncertainty associated with relocation may discourage owners <br />from undertaking needed work or may create an incentive to pursue permanent <br />no-fault termination pathways. <br /> <br />11 Under the TPO, the tenant would receive $8,991 if they qualified as low income and $11,988 if they qualified as special <br />circumstance. <br />8.A. - Page 70 of 168 <br />80