https://mv-voice.com/square/print/2022/09/14/mountain-view-city-council-approves-plan-to-replace-rent-controlled-apartments-with-low-income-units


Town Square

Mountain View City Council approves plan to replace rent-controlled apartments with low-income units

Original post made on Sep 14, 2022

The Mountain View City Council voted unanimously Tuesday to approve a new policy in which rent-controlled apartments that are demolished for redevelopment must be replaced with units affordable to low-income residents.

Read the full story here Web Link posted Wednesday, September 14, 2022, 1:52 PM

Comments

Posted by Longtime resident
a resident of Waverly Park
on Sep 14, 2022 at 3:48 pm

Longtime resident is a registered user.

Council just poured concrete on the current housing stock... this move likely locks in current housing stock, at current conditions. I'd love to see a financial plan, given construction and financing costs, that actually 'pencils out' for tearing down a rent-controlled apartment to build more housing. I bet it's now super difficult to make any projects work, which means they won't happen.
My only guess is you'd have to 2x or 3x the number of units to get enough market rate units to 'pay for' the deed-restricted housing (assuming that is allowed).
Glad I didn't invest in Mountain View apartments....


Posted by Seth Neumann
a resident of Waverly Park
on Sep 14, 2022 at 5:20 pm

Seth Neumann is a registered user.

seems like the City just agreed to build some BMR housing for ~$1M/unit. Who will invest that much to build rent controlled housing? Seems like we're locking in the old housing stock which will inevitably deteriorate. I think the law of unintended consequences is going to bite us here.


Posted by JAFO
a resident of Old Mountain View
on Sep 15, 2022 at 9:13 pm

JAFO is a registered user.

Given the SB330 and even more housing laws likely to pass, it appears that the City had no choice.

In fact the State has prioritized law enforcement regarding housing, and this city cannot ignore state laws. I think that unfortunately the PRIVATE housing industry has cost cut itself to only market premium housing and neglected its existing units so badly that you wind up with them self destructing.

As a standard of practice if a building is over 40 years old, it should have been replaced already. The fact that no one wants to build cost effective affordable housing is the problem. As I point out.

If you expect to sell only 93 octane gas in a city, then you are not going to sell ANY gas in the city. And what is worse is the layoffs and the higher interest rates are going to crash any values of housing , it is a WORLDWIDE problem.


Posted by sfcanative
a resident of Whisman Station
on Sep 18, 2022 at 6:06 pm

sfcanative is a registered user.

Perhaps with no other choice, Mountain View once again shoots itself in the foot.

So glad I got the <unceremoniously bleeped> out of Mountain View multifamily housing five years ago.

Does anyone else find it ironic that the city's open door to unbridled business expansion over the past decade (without an increased housing requirement) has led to a horrific housing situation and now the companies they courted are pulling up stakes and moving elsewhere?

When will the planning department be down to one plan checker with nothing to do?


Posted by JAFO
a resident of Old Mountain View
on Sep 19, 2022 at 5:52 pm

JAFO is a registered user.

Well, now that treasury bonds are likely going to reach 4.5%, they are already at 3.8% and if the fed rate increases by .75% you know it will, and the market cap for housing is only 4.4%, say goodbye to all the "investor" and "speculative" purchases of housing. Because when you buy a treasury note bond it has NO RISK, and housing is a very tedious and detail oriented business. Also with the dropping inventory AND demand making it so a Santa Clara County real estate agent might get 2 home sales a year with dropping prices, that market is going to see a lot of dropping out. Many real estate agents are going to have to quit.