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reduce property values, ultimately affecting property tax revenues that fund essential public <br />services such as police, fire protection, parks, transportation, libraries, and schools. <br />Deferred Maintenance and Property Improvements <br />The costs of owning and operating rental housing continue to rise. Insurance premiums, labor <br />costs, construction materials, utilities, and maintenance expenses have all increased <br />dramatically in recent years. When rental income cannot keep pace with these costs, owners <br />are often forced to postpone improvements and non-essential maintenance, ultimately <br />impacting the quality of housing available to residents. <br />Encourages Property Sales <br />Many small housing providers may determine that continuing to operate under increasingly <br />restrictive regulations is no longer financially sustainable. This may encourage owners to sell <br />their properties, often to larger institutional investors or for redevelopment, reducing the <br />number of locally owned rental properties. <br />Benefits Are Not Always Limited to Those Most in Need <br />Rent-controlled units are generally allocated based on availability rather than household <br />income. As a result, long-term rent-controlled units may be occupied by higher-income <br />households while lower-income families searching for housing remain unable to find available <br />units. <br />Reduced Housing Mobility <br />When tenants occupy units significantly below market rates, they naturally have less incentive <br />to relocate, even when their housing needs or financial circumstances change. This reduces <br />turnover and limits opportunities for new renters seeking housing in Redwood City. <br />Disproportionate Impact on Small Property Owners <br />The proposed ordinance would have its greatest impact on small landlords who own only a <br />few rental units. These owners generally lack the economies of scale available to large <br />apartment companies and often absorb unexpected expenses personally. <br />Limited Benefit for Prospective Renters <br />While rent control may benefit current tenants fortunate enough to secure a regulated <br />apartment, it does little to help individuals and families who are currently searching for <br />housing. In fact, by discouraging new construction and reducing turnover, rent control can <br />make it even more difficult for prospective renters to find available housing. <br />Potential for Abuse <br />Artificially below-market rents may unintentionally encourage unauthorized subleasing or <br />occupancy arrangements designed to capture the difference between regulated and market <br />rents. Such situations can create overcrowding, increased wear on properties, parking <br />shortages, and safety concerns for neighboring residents. <br />I also ask the Council to consider the inequity created by applying these restrictions only to