Laserfiche WebLink
REDWOOD CITY FAIR AND AFFORDABLE HOUSING ORDINANCE <br /> <br />Economic & Planning Systems, Inc. 19 Tenant Protection Impacts <br />If redevelopment obligations are difficult to underwrite, unclear to administer, or <br />perceived as creating long-term title or successor-owner risk, owners, buyers, <br />lenders, or investors may discount property value, delay reinvestment, or avoid <br />redevelopment opportunities. Over time, this could affect housing production, <br />rehabilitation, and RHNA implementation. But again, many of these risks are the <br />result of existing State laws which the City does not control. <br />Table 9. Summary of Potential Impacts from Right to Return <br />Type and Incidence of <br />Impact Description of Ordinance’s Potential Impacts <br />Building Rehabilitation or <br />Remodel Costs <br />Increase for substantial rehabilitation / remodel projects that <br />require tenant relocation 16 <br />Post 1995 Market Rate <br />Multi-Family Rental Stock <br />May reduce financial incentives for substantial rehabilitation / <br />remodel projects and / or convert rentals to condos. But landlords <br />can mitigate impacts by raising rents over time. For demolition, <br />property owners are already required to comply with similar <br />requirements under SB 330. <br />Pre-1995 Multi-Family <br />Market Rate Rental Stock <br />Incentive to rehabilitate or remodel further diminished by tightened <br />rent controls. For demolition, property owners are already required <br />to comply with similar requirements under SB 330. <br />Deed Restricted Affordable <br />Housing (pre and post 1995) <br />Less impact because most affordable housing operators / <br />developers are already required to comply with similar <br />requirements under TPO and State law <br />Single-Family, Condos and <br />ADU Rentals <br />Because State and local laws currently exempt most of these <br />units, the proposed Ordinance further incentivizes owners to <br />permanently remove units from rental market. But SB 330 does not <br />exempt these units for right to return requirements for demolition. <br />New Housing Production <br />(City RHNA Targets) <br />Will potentially decrease feasibility of new residential projects <br />(including affordable). But historically, most development in City <br />does not displace existing residential. <br /> <br /> <br /> <br />16 Projects may be able to petition for an upward rent adjustment under the proposed Ordinance to maintain a fair return <br />8.A. - Page 78 of 168 <br />88