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DOWDALL LAW OFFICES A PROFESSIONAL CORPORATION ATTORNEYS AT LAW City of Santa Ana August 28, 2023 Page 8 landlords could move into the property themselves, known as move -in eviction. Second, the Ellis Act allows landlords to evict tenants if they intend to remove the property from the rental market, for instance, in order to convert the units to condos. Finally, landlords are legally allowed to offer their tenants monetary compensation for leaving. In practice, these transfer payments from landlords are common and can be quite large. DMQ find that rent -controlled buildings were 8 percentage points more likely to convert to a condo than buildings in the control group. Consistent with these findings, they find that rent control led to a 15 percentage point decline in the number of renters living in treated buildings and a 25 percentage point reduction in the number of renters living in rent -controlled units, relative to 1994 levels. This large reduction in rental housing supply was driven by converting existing structures to owner -occupied condominium housing and by replacing existing structures with new construction. This 15 percentage point reduction in the rental supply of small multi -family housing likely led to rent increases in the long -run, consistent with standard economic theory. In this sense, rent control operated as a transfer between the future renters of San Francisco (who would pay these higher rents due to lower supply) to the renters living in San Francisco in 1994 (who benefitted directly from lower rents). Furthermore, since many of the existing rental properties were converted to higher -end, owner -occupied condominium housing and new construction rentals, the passage of rent control ultimately led to a housing stock that caters to higher income individuals. DMQ find that this high -end housing, developed in response to rent control, attracted residents with at least 18 percent higher income. Taking all of these points together, it appears rent control has actually contributed to the gentrification of San Francisco, the exact opposite of the policy's intended goal. Indeed, by simultaneously bringing in higher income residents and preventing displacement of minorities, rent control has contributed to widening income inequality of the city. Rent controls the mobilehome park's eliminate affordable housing, protect profiteering in a black-market a mobile home tenancies petaled at market value and constitute not rent control, but "wealth transfer" laws that do nothing other than permit a false and artificial market of subsidized tenancies to be sold on every street corner. Rent Control Continues To Be A Destructive Policy Disregarding Development Of A Positive Economic Future For Santa Ana. Rent control laws not only offend the Constitution, they are also misguided policy. Far from advancing the goal of housing affordability, rent control laws like the RSL generate a host of problems in housing markets by discouraging construction of new housing units and the