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Economic & Planning Systems, Inc. 23 Cumulative Impacts <br />3. Cumulative Impacts <br />A consistent theme across stakeholder interviews suggests that the proposed <br />Ordinance may create operating, administrative, and feasibility issues that are not <br />fully captured by evaluating rent stabilization alone. Additionally, interviewees <br />also identified several external factors that are outside the scope of the proposed <br />Ordinance and/or City control that have increased the operating cost of rental <br />housing that will compound the magnitude of the proposed Ordinance. <br />This chapter focuses on the cumulative impacts of the proposed Ordinance and <br />external factors that may compound compliance cost from the perspective <br />landlords. These factors create uncertainty because they may alter the regulatory <br />or financial environment in which the proposed Ordinance would operate. They <br />are also likely to be more onerous for smaller “mom and pop” rental property <br />owner / operators because they generally have less financial and administrative <br />resources and costs are spread across fewer units. <br />Local Government Fees and Charges <br />Proposed Ordinance Housing Fee <br />As discussed further in Chapter 5, the proposed Ordinance will require the City to <br />establish and impose annual program fees on rental units, including affordable <br />units, sufficient to recover the full cost of program administration. While this new <br />fee has not yet been established, stakeholder interviewees expressed concern <br />that they will exacerbate the impact or other recent increases in local government <br />fees and charges. This increasing fee burden would be most significant for pre- <br />1995 rent-stabilized units, where owners may have limited ability to increase <br />rents to offset new costs. Affordable housing providers may face similar <br />constraints because they cannot raise rents to market levels, even upon vacancy, <br />as discussed further in Chapter 4. <br />Other City Fees <br />Affordable Housing Monitoring Fee <br />More recently developed or converted affordable housing projects are subject to <br />an annual affordable housing monitoring fee of up to $177 per unit for <br />compliance review and monitoring. This is a relatively new cost reflected in the <br />City’s current Affordable Housing Program fee schedule and applies to regulated <br />affordable units that require ongoing City monitoring. However, <br />with recent changes to State law, the City cannot impose a monitoring fee on <br /> <br />8.A. - Page 82 of 168 <br />92