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<br />July 6, 2026 <br /> <br />Hon. Mayor Elmer Martínez Saballos and Members of the City Council <br />City of Redwood City <br />1017 Middlefield Road <br />Redwood City, CA 94063 <br /> <br />RE: SAMCEDA Letter of Concern - Agenda Item 8.A. <br /> <br />Dear Hon. Mayor Martínez Saballos and Members of the City Council, <br /> <br />For seven decades, the San Mateo County Economic Development Association (SAMCEDA) has <br />been a leading voice for the economic engine that is San Mateo County. SAMCEDA believes in the <br />power of a strong economy driven by an appreciation of what that engine provides to our <br />ecosystem on the Peninsula. <br /> <br />By working with employers of all sizes and industries, engaging with our public sector and our <br />elected leadership, recognizing that we have 21 individual jurisdictions (20 cities and one county) <br />and collaborating and communicating with the Chambers of Commerce, non-profit organizations <br />and our educational institutions, SAMCEDA tackles the most difficult challenges through goal- <br />oriented solutions. <br /> <br />On behalf of SAMCEDA, I am writing to express our ongoing, significant concerns regarding the <br />proposed rent-control ballot initiative that may appear before Redwood City voters this November. <br /> <br />Based on the City’s recently released supplemental economic analysis, this initiative raises serious <br />concerns that deserve careful consideration before moving forward. <br /> <br />The supplemental report concludes that the initiative would introduce substantial new financial, <br />administrative, and legal complexity for housing providers, affordable housing operators, and the <br />City of Redwood City itself. Rather than creating a straightforward framework, the measure would <br />establish a new regulatory structure that could increase uncertainty, administrative burdens, and <br />litigation risk while requiring significant ongoing public resources. <br /> <br />Equally concerning is the fiscal impact. The City’s analysis estimates annual program costs ranging <br />from approximately $5 million to $11.1 million. To fund these costs, housing provider fees could <br />reach as much as $757 per rental unit during the first two years of full implementation. These costs <br />will ultimately affect the very housing stock Redwood City seeks to preserve and improve. <br /> <br />The report also identifies disproportionate impacts on older multifamily properties and affordable <br />housing providers. Many of these properties already operate with narrow financial margins and <br />require ongoing investment to maintain safe, quality housing. Additional regulatory costs and <br />operational uncertainty could make it increasingly difficult to finance needed repairs, modernize <br />aging buildings, or preserve naturally occurring affordable housing over the long term.