Redwood City Measure E: A Property Owner’s Guide to the Fair and Affordable Housing Ordinance

Redwood City voters will decide Measure E on November 3, 2026. The proposed Fair and Affordable Housing Ordinance would create a local rent stabilization and tenant protection program funded through fees paid by rental property owners.

Most public discussion centers on rent control. Property owners need a wider view. Measure E also covers evictions, relocation assistance, tenant safety plans, rights to return, utility billing, buyout agreements, City filings, hearings, legal services, and civil damages.

Economic & Planning Systems, Inc. prepared a supplemental report for Redwood City under California Elections Code Section 9212. The report studies financial and operating effects beyond the rent cap. Older multifamily properties, small owners, master-metered buildings, and affordable housing providers face the greatest pressure under the report’s findings.

Which rentals fall under the rent cap?

Local rent stabilization would apply mainly to multifamily rentals built before February 1995. The report estimates pre-1995 buildings account for about 40% of Redwood City’s rental stock.

Current state law exempts single-family homes, condominiums, and post-February 1995 housing from local rent stabilization. Measure E treats those homes as partially exempt in many situations. Broader eviction, relocation, safety-plan, reporting, fee, and enforcement provisions still reach many rentals outside the rent cap.

Owner-occupied rentals with a shared kitchen or bathroom fall outside the ordinance when the owner holds at least a 51% recorded interest and lives there throughout the tenancy. Hospitals, certain care facilities, qualifying school dormitories, and selected government-owned units also receive exemptions.

How the proposed rent formula works

For a controlled unit, the annual increase would equal 60% of the percentage change in the regional Consumer Price Index for the 12-month period ending each April. The annual floor equals 0%. The ceiling equals 5%.

A 3% CPI increase produces a 1.8% allowable increase. A 6% CPI increase produces a 3.6% allowable increase. A 10% CPI increase still produces a 5% ceiling.

The City program would publish the annual percentage by August 1, with the new limit starting September 1. Owners would lose any unused annual increase. No banking or carryforward would apply.

Measure E also creates a rent rollback. A tenancy in place before October 29, 2025 would use the rent charged on October 29, 2025 as the base. A tenancy starting after October 29, 2025 would use the initial rent paid for the first term.

Owners seeking a higher increase would petition for a reasonable return. A hearing examiner would review income, expenses, property taxes, debt service, capital improvements, maintenance, utilities, and other relevant records. Owners with unresolved compliance or habitability problems would face limits on upward adjustments.

Eviction rules would cover more properties

Measure E requires an approved legal reason before ending most covered tenancies. Coverage begins without the 12-month waiting period found in current state law. Single-family homes, condominiums, deed-restricted affordable units, many owner-occupied duplexes, and newer rentals would face local eviction rules in situations where current law exempts them.

The measure preserves common fault-based grounds such as nonpayment, lease breaches, nuisance, major property damage, unauthorized subletting, and refusal of lawful access. Some state grounds do not appear as stand-alone grounds in the proposal, including refusal to sign a lease renewal, criminal activity, unlawful use, and failure to leave after employment ends. Related conduct still fits another listed ground when supported by evidence.

Owner move-in terminations face added restrictions. A landlord would face limits involving tenants age 62 or older, tenants with disabilities, terminally ill tenants, educators, and students during the school year. An owner or qualifying relative moving into a unit must occupy it within 90 days and use it as a primary residence for 36 months.

Relocation payments rise sharply

For a covered no-fault termination, an owner would pay the greater of four months of HUD Fair Market Rent or $12,000 to the tenant household. An elderly, disabled, or terminally ill household member adds $6,000.

Using fiscal year 2026 HUD figures, the EPS report estimates base payments from $12,000 for studios and one-bedroom units to $19,088 for four-bedroom units. Protected-household totals range from roughly $18,000 to $25,088.

Compare a one-bedroom tenant paying $2,000 per month. State law generally provides one month of contract rent for a covered no-fault termination. Redwood City’s current ordinance provides $2,000 for a standard household, $8,991 for a qualifying low-income household, or $11,988 for a qualifying special-circumstances household. Measure E starts at $12,000 for the same one-bedroom example.

Temporary displacement follows another payment schedule. For qualifying construction displacement expected to last fewer than 30 days, the owner would pay $200 per household per day for lodging and $50 per occupant per day for meals. A one-person household displaced for 30 days receives $7,500. Week-to-week extensions would apply when work runs beyond the original schedule.

Repairs would require tenant safety plans

Measure E would require an approved tenant safety plan before permitted repair or renovation work starts. Emergency work required within 48 hours receives an exception.

The report identifies water heaters, furnaces, roofs, windows, plumbing, electrical panels, structural systems, hazardous-material removal, and electrification upgrades as projects likely to trigger added review. Redwood City would write detailed safety-plan regulations after passage.

For an older two-unit or four-unit property, extra preparation time and temporary housing expense hit a smaller income base. A $12,000 relocation payment spread across a 100-unit portfolio has a different financial effect from the same payment at a duplex.

Rights to return follow the property

Tenants displaced for an owner move-in, rental-market withdrawal, substantial renovation, or demolition receive broad rights to return at prior rent and lease terms. Several rights do not expire under the proposal.

Withdrawal from the rental market creates reporting and pricing duties lasting several years. A unit offered again within two years creates damages exposure and a return offer at the old rent. A rental offered within five years faces the former rent plus lawful annual increases. The displaced household receives the first offer when a unit returns within ten years. Recorded notices and successor-owner duties place part of this burden on future buyers.

Redevelopment needs close review. A demolished rental replaced with new rentals within five years would bring rent controls and return rights into the replacement project. The EPS report flags uncertainty involving different unit counts, bedroom mixes, affordability rules, refinancing, condominium conversion, and later ownership transfers.

Ratio utility billing would end for controlled units

Many older apartment buildings use a ratio utility billing system, often called RUBS, to divide water, sewer, trash, or energy expense among residents. Measure E prohibits RUBS for controlled units, even when the lease authorizes shared billing.

A tenant would still pay a utility provider through an individually registered meter. Lawful submetering also stays available. Master-metered owners without either setup would absorb shared utility expense within rent.

The EPS report uses San Mateo County utility allowances to estimate water, sewer, and trash costs near $201 per month for a studio and $330 for a five-bedroom apartment. Gas and electricity sit outside those totals. Owners interviewed for the report described RUBS as common in older properties and estimated lost operating revenue near 10% after removal.

New filing rules raise the cost of small mistakes

Within 60 days after adoption, owners would begin sending the City copies of rent increase notices, changes in tenancy terms, and termination notices. Each filing would arrive within three days after service on a tenant, together with proof of service.

A missed fee or filing creates more than an administrative problem. The City program would authorize rent withholding after notice and a hearing for a knowing failure. A controlled-unit owner would lose the right to raise rent until compliance. Failure to pay or file before an eviction lawsuit would serve as a complete defense.

Buyout offers receive a separate process. Owners would give a City disclosure at least 10 days before making an offer. Tenants receive 30 days to cancel a signed agreement. Owners would retain records for five years and file the agreement with the program after the cancellation period.

Annual owner fees appear higher than the ballot text suggests

Measure E starts with annual fees of $120 for a controlled unit and $84 for a partially exempt unit. The City Council would later set fees high enough to pay the full program expense. General Fund money would front startup needs, followed by repayment from owner fees.

The EPS estimate is far higher. Ongoing administration, including legal services for low-income tenants, ranges from about $5.0 million to $11.1 million each year. Staffing ranges from seven to 18 full-time positions. Estimated ongoing cost equals $309 to $685 per rental unit each year. Under the maximum-enforcement model, startup-loan repayment and reserve funding raise the first two years to about $756 per unit.

Those figures sit on top of Redwood City’s current rental business license charges for owners with four or more units. The report notes a $90 annual property registration fee plus roughly $32 per rental unit.

Civil exposure changes the risk calculation

Measure E gives tenants and the City direct access to civil enforcement. Failure to provide required relocation money carries damages of at least three times actual loss. An unlawful eviction attempt carries the same minimum multiplier, including specified emotional-distress damages. Excess-rent claims also carry damages of at least three times the overcharge.

Harassment claims carry damages of at least three times actual loss or $1,000, whichever is greater. An offense against a disabled tenant or a tenant age 62 or older carries an added civil penalty up to $5,000. A prevailing tenant receives court costs and reasonable attorney fees. An owner receives attorney fees only after a court finds a claim meritless and brought in bad faith.

What the City report says about investment and housing

EPS stops short of predicting a single market outcome. The report identifies deferred maintenance, reduced reinvestment, delayed rehabilitation, lower redevelopment interest, and higher legal expenses as potential responses to higher costs and uncertainty.

The report’s 10-unit example shows $569 in added annual cost per unit from the proposed administration fee, current business-license increases, sewer-rate increases, and a water fixed-charge increase. The total excludes registration, water consumption, insurance, labor, repairs, property tax, and other variable expenses.

Affordable housing faces a separate problem. Redwood City has about 1,506 deed-restricted units, with 676 located in pre-1995 buildings. In the report’s 40-year model, a pre-1995 affordable project reaches minimum debt coverage near year 17, exhausts replacement-reserve funding near year 24, exhausts resident-service funding near year 35, then falls below full debt coverage. EPS describes the model as illustrative, rather than a forecast for every property.

Steps for Redwood City property owners before November 3

Start with the year built and unit type. Separate rent-controlled units from units facing only the broader tenant rules.

Create a rent history for every tenancy beginning October 29, 2025. Preserve leases, increase notices, concessions, payment records, and proof of service.

Review utility billing. Identify each master-metered property using RUBS, then estimate annual water, sewer, trash, gas, and electricity exposure without tenant reimbursements.

Price upcoming repairs, including relocation expenses and safety-plan work. A roof, panel, plumbing line, furnace, or hazardous-material project deserves a tenant-occupancy plan before permits.

Audit eviction and buyout forms. New City language, filing deadlines, protected-household rules, school-year limits, and return rights would change familiar procedures.

Build a compliance reserve. Include annual City fees, legal review, relocation payments, filing systems, and petition expense.

Review a planned sale or refinance. Recorded withdrawal notices, return rights, rent baselines, and successor-owner duties affect underwriting, disclosures, and value.

If voters approve Measure E, the ordinance takes effect 10 days after the City Council declares the result. Owners will have little time between certification and compliance. A property-level review now offers a clearer path for rent decisions, repairs, refinancing, and disposition planning.

Own a Redwood City duplex, apartment building, condominium, single-family rental, or ADU? Request a property-specific review focused on building age, tenancy history, rent exposure, utility billing, renovation plans, and sale options.

FAQ for Property Owners

What is Redwood City Measure E?

Measure E is the proposed Fair and Affordable Housing Ordinance. The initiative would replace Redwood City Municipal Code Chapters 42 and 42A with a new Chapter 42.

The proposal includes local rent stabilization, expanded eviction rules, relocation payments, tenant safety plans, utility-billing restrictions, annual owner fees, reporting duties, and civil enforcement.

Source: Redwood City City Attorney’s official ballot summary and full submitted ordinance.

When will Redwood City voters decide Measure E?

Measure E is scheduled for the November 3, 2026 election. The proposal has not taken effect.

Source: Redwood City 2026 Municipal Election Information.

When would Measure E take effect?

Approval requires a majority vote. The ordinance would take effect 10 days after the City Council declares the election result.

Source: Full submitted ordinance, Section 4.

Would Measure E apply to every rental property?

No. Narrow full exemptions cover certain transient lodging, specified institutional housing, and some owner-occupied homes where the owner shares a kitchen or bathroom with the tenant.

For the shared-home exemption, the owner must be a natural person with at least 51 percent recorded ownership. The property must have served as the owner’s primary residence since the tenancy began.

Source: Full submitted ordinance, Sections 42.3 and 42.4.

Which properties would face the local rent cap?

Under current state law, Measure E’s rent cap would primarily cover multifamily rental units built before February 1, 1995.

Qualifying newer units, separately alienable condominiums, and many single-family homes receive protection from local rent control under the Costa-Hawkins Rental Housing Act. State-law exceptions exist, so owners should confirm each property’s status.

Source: Redwood City City Attorney’s official ballot summary and California Civil Code Section 1954.52.

Would single-family homes, condominiums, and ADUs be entirely exempt?

No. Costa-Hawkins generally excludes qualifying single-family homes and condominiums from local rent stabilization. Measure E states Costa-Hawkins-protected units remain subject to many other requirements.

Those requirements include eviction restrictions, relocation payments, City reporting, annual fees, tenant safety plans, and enforcement provisions.

ADU treatment depends on construction date, ownership, certificate of occupancy, and property configuration.

Source: California Civil Code Section 1954.52 and full submitted ordinance, Sections 42.3 and 42.4.

How much would an owner be allowed to raise rent?

For a controlled unit, the annual increase would equal 60 percent of the local Consumer Price Index.

The increase would have a 0 percent floor and a 5 percent ceiling. The new annual limit would take effect each September 1. Unused increases would not carry forward.

Owners and tenants would receive the right to petition the City for individual rent adjustments under specified circumstances.

Source: Redwood City City Attorney’s official ballot summary and full submitted ordinance, Section 42.6.

What rent would serve as the starting point?

For a tenancy in place on October 29, 2025, the base rent would equal the rent charged on October 29, 2025.

For a tenancy beginning after October 29, 2025, the base rent would equal the initial rent the tenant paid.

A rent increase charged after October 29, 2025, would not automatically become part of the lawful base rent.

Source: Redwood City City Attorney’s official ballot summary and full submitted ordinance, Section 42.6(D).

Would an owner set a new rent after a tenant moves out?

Yes. The proposal allows an owner to set the initial rent for a new tenancy to the extent permitted by California law. Measure E’s annual cap would govern later increases during the new tenancy.

Source: Full submitted ordinance, Section 42.6(B) and California Civil Code Section 1954.52.

How would Redwood City Measure E affect utility billing?

For controlled units, an owner would generally be prohibited from charging utilities separately from rent.

A tenant would pay a utility directly when the service has a separate meter and the account was placed in the tenant’s name at the start of the tenancy. Lawful submeters would also qualify.

Ratio utility billing systems, often called RUBS, would be prohibited for controlled units even when the lease authorizes such billing.

Source: Full submitted ordinance, Section 42.6(E).

How would Measure E change eviction rules?

The measure would expand Redwood City’s existing eviction protections. Owners would need to state and prove an approved reason for terminating a tenancy.

The proposal adds conditions for owner move-ins, withdrawal from the rental market, demolition, and substantial renovation. Some tenants would receive added protections based on age, disability, terminal illness, school enrollment, or employment as an educator.

Many eviction provisions would apply regardless of the property’s construction date.

Source: Redwood City City Attorney’s official ballot summary and City-commissioned Section 9212 supplemental report.

How much relocation assistance would an owner owe?

For an eviction covered by the measure’s no-fault provisions, the owner would pay four months of HUD Fair Market Rent or $12,000, whichever amount is greater. Payment would be due when the termination notice is served.

The City-commissioned report estimated payments ranging from $12,000 for studios and one-bedroom units to $19,088 for four-bedroom units, based on fiscal year 2026 figures.

A household would receive another $6,000 when a tenant is age 62 or older, disabled, or terminally ill. The tenant must notify the owner. Both payment amounts would receive annual CPI adjustments.

Source: Redwood City City Attorney’s official ballot summary, full submitted ordinance, Section 42.9(C), and City-commissioned Section 9212 supplemental report.

Would repair or construction work require a tenant safety plan?

A tenant safety plan would be required before specified work begins on an occupied rental unit, a building containing occupied rentals, or the same lot.

The requirement applies when the work requires a permit or follows a City abatement order. The City or designated Program would review the plan before permit approval.

The emergency exception is narrow. The repair must protect tenant health or safety, require completion within 48 hours, and require no permit before work starts.

Source: Full submitted ordinance, Section 42.10.

What would an owner pay for short-term construction displacement?

For displacement expected to last fewer than 30 days, the owner would pay $200 per day per household for hotel or motel accommodations. The owner would also pay $50 per day for each occupant’s meals.

A tenant accepting the payments would remain responsible for rent. A tenant declining the payments would owe no rent during the displacement period. Payment amounts would receive annual CPI adjustments.

Source: Full submitted ordinance, Section 42.10(G).

What annual fees would property owners pay?

The measure begins with interim annual fees of $120 per controlled unit and $84 per partially exempt unit. The City Council would later establish fees designed to cover program costs.

The City’s consultant estimated ongoing program costs of $309 to $685 per rental unit. Estimated costs during each of the first two years ranged from $344 to $757 per unit. Those figures assume costs spread across 16,168 rental units.

These amounts are planning estimates. They are not adopted final fees.

Source: Full submitted ordinance, Section 42.14(D) and City-commissioned Section 9212 supplemental report.

What notices would an owner need to file with the City?

Within 60 days after adoption, owners would need to file copies of the following notices with the City:

• Rent increases
• Changes in tenancy terms
• Terminations of tenancy

Each filing would be due within three days after service on the tenant. The filing would need proof showing the date and time of service.

Source: Full submitted ordinance, Section 42.14(F).

What happens if an owner misses a fee or filing?

After notice and a hearing, the Program would receive authority to permit rent withholding when an owner knowingly and willfully fails to pay a fee or file a required notice.

A restriction on rent increases would begin 30 days after a Program determination.

Failure to pay required fees or file required notices before starting an eviction lawsuit would also give the tenant a complete defense. No prior Program decision would be required for the tenant to raise this defense.

Source: Full submitted ordinance, Section 42.14(F).

Would tenants receive a private right of action?

Yes. An affected tenant or the City would receive authority to file a civil action.

Specified relocation, unlawful eviction, and excess-rent violations carry damages of at least three times actual damages. Harassment damages equal at least three times actual damages or $1,000, whichever amount is greater.

An additional civil penalty of up to $5,000 applies to each qualifying offense against a tenant who is disabled or age 62 or older. A prevailing tenant would also receive reasonable attorney fees and court costs.

Source: Full submitted ordinance, Section 42.18.

How would demolition and redevelopment affect future rents?

The redevelopment restriction applies when rental units are withdrawn under the measure and then demolished.

New rental units built on the same property and offered within five years would enter the rent-control system at the rent paid when the prior tenancy ended. The restriction would apply despite a new-construction exemption.

Successor owners would inherit the withdrawal obligations. The proposal also requires recorded notices with the County Recorder.

Source: Full submitted ordinance, Section 42.9(A)(2).

What should Redwood City rental owners review before the election?

Start with your property records and current operating procedures.

• Confirm each building’s certificate of occupancy date
• Preserve rent records from October 29, 2025
• Identify leases using RUBS or other shared utility billing
• Review planned repairs, renovations, and permit applications
• Estimate relocation exposure for each unit size
• Review termination and rent-increase notice procedures
• Budget for annual fees and added administrative work
• Examine title records before purchasing a property with withdrawn or demolished rental units

Source: Full submitted ordinance and City-commissioned Section 9212 supplemental report.