Laserfiche WebLink
<br />BTI <br />528 Fordham Road <br />San Mateo, CA 94402 <br /> <br /> <br /> <br />Date: July 27, 2026 <br />To: Mayor and Members of the City Council, City of Redwood City <br />From: Barbara Tyson-Cavalieri/BTI <br />Subject: Opposition to Proposed Rent Stabilization Ordinance (GPI Cap for Pre-1995 Properties) <br /> <br />Dear Mayor and Members of the City Council, <br /> <br />I am writing to express my strong opposition to the proposed rent stabilization policy under <br />consideration, specifically the options capping annual rent increases at 5% or 60% of the Gross <br />Price Index (GPI) for properties built prior to 1995. While I appreciate the Council’s intention to <br />address housing affordability, this policy will trigger severe unintended consequences that will <br />undermine Redwood City’s housing stock, harm small local property owners, and erode municipal <br />tax revenues. <br /> <br />1. Disproportionate Impact on Small, Independent Landlords <br />Smaller apartment complexes—particularly those with under 15 units—operate on narrow profit <br />margins. Unlike corporate real estate developers, small housing providers rely on turnover to <br />absorb the rising operational costs of insurance, utilities, labor, and unit upgrades upon move-out. <br />Capping revenue streams forces small property owners to absorb skyrocketing costs without relief, <br />pressuring over half of independent housing providers to consider selling to large conglomerates <br />who will simply redevelop the parcels into high-density, expensive complexes. <br />2. Distortion of Market Dynamics & Existing Vacancies <br />Redwood City currently has ample apartment availability due to recent construction. Rather than <br />allowing standard market supply and demand to regulate rental rates naturally, strict government <br />controls arbitrarily target older structures built before 1995. Arbitrarily penalizing older properties <br />reduces their market value and discourages non-corporate investment in maintaining the existing <br />housing stock. <br />3. Degradation of Property Conditions & Neighborhood Quality <br />When housing providers cannot keep up with inflation and rising maintenance expenses, capital <br />improvements are deferred. Industry data shows that over 60% of housing providers are forced to <br />cut back on non-essential maintenance and property upgrades under strict rent caps. Instead of <br />restricting a housing provider's ability to maintain a viable business, the City should incentivize <br />owners to invest in building improvements that directly benefit tenants. <br />4. Loss of Municipal Tax Revenue <br />Rent control artificially suppresses property values over time. Because property assessments <br />correlate with income potential, reduced property valuations result in lower property tax <br />collections. Property taxes fund essential civic assets—schools, parks, public safety, and local <br />infrastructure. Reducing this revenue stream hurts the broader Redwood City community. <br />5. Inefficiencies, Illegal Subletting, and Reduced Mobility <br />Strict rent controls often produce structural inefficiencies across the housing market: