Agda Pkt 2026.07.07 Special Council Meeting

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REDWOOD CITY FAIR AND AFFORDABLE HOUSING ORDINANCE Economic & Planning Systems, Inc. 29 Cumulative Impacts Property managers and owners also noted that staffing costs have increased due to wage growth, labor shortages, and increased compliance responsibilities. Several stakeholders indicated that additional requirements of the proposed Ordinance may require more staff time or outside professional assistance. While reliable data on property maintenance, repair, and management costs is not readily available, it is likely that they generally track with the Consumer Price Index (CPI). As documented in the initial 9212 Report, market rents in Redwood City have generally not kept pace with CPI adjusted inflation over the last ten years, a trend that was particularly acute during the pandemic. This suggests that for many building owners, general property maintenance, repair, and management costs may be increasing faster than rental revenue. In addition to routine maintenance, the cumulative financial impacts described above, and the proposed Ordinance may reduce property owners' ability to finance substantial capital improvements, including soft-story seismic retrofits, roof replacements, and other major investments necessary to maintain the safety, resilience, and long-term preservation of the City's older rental housing stock. Increased Legal Complexity and Uncertainty Administrative Complexity Stakeholders consistently identified administrative complexity as a central concern. The proposed Ordinance would create a new local compliance system that extends beyond rent stabilization. The burden is greatest where owners either do not currently interact with a local rent program or already operate under complex affordable housing compliance systems. Stakeholders raised concerns about expanded enforcement remedies, private litigation, treble damages, anti-harassment provisions, and uncertainty about how the proposed Ordinance would be interpreted. This concern was especially pronounced among smaller “mom and pop” owners and affordable housing providers. These smaller scale operators often lack legal capacity or financial resources and may settle claims to avoid litigation costs even where they believe they acted appropriately. Affordable housing providers may face a different problem: they operate under complex regulatory agreements and may be exposed to claims if local requirements of the proposed Ordinance conflict with federal, State, tax credit, voucher, or public financing rules. Several stakeholders emphasized that inadvertent errors are more likely when multiple regulatory systems overlap. Examples include rent calculations for deed restricted units, utility allowance adjustments, over-income tenant issues, unit 8.A. - Page 88 of 168 98