AVAILABILITY OF PUBLIC RECORDS:
All public record to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at the City Clerk’s Office, City Hall located at 333 90 th Street, Daly City, CA during normal business hours, at the same time that the public records are distributed or made available to the legislative body.
CITY OF DALY CITY
Regular Meeting - CITY COUNCIL
AGENDA
Monday, March 23, 2026 - 7:00 PM
City Hall Council Chambers – 2nd Floor
City Hall 333 – 90th Street
Daly City, CA 94015
To watch the live telecast:
https://www.youtube.com/@DalyCityGov/streams, https://www.dalycity.org/agendas, or Comcast Ch. 27
PUBLIC PARTICIPATION
There are three ways to submit public comments: (1) submit written comments by meeting day, (2) submit written comments during the meeting, and (3) attend the meeting in person.
1. To submit written comments by meeting day, please email [email protected] and include “Public Comment” in the subject line. All written comments received by 4:00 pm on meeting day will be provided to the City Council prior to the meeting.
Please note: Any emailed comments received after 4:00 p.m. on the meeting date are not guaranteed to be received by the City Council prior to the meeting. Comments are not read aloud into the record.
2. During the meeting, you may visit www.dalycity.org/agendas to submit comments using the Public Comment form to address the City Council on a specific item, or during the public comment period, and such comments are delivered to the City Council and City Staff during the meeting, and may be read into the record at the time they are received.
3. To speak at the meeting in person, please complete a Speaker Card located at the entrance to the Council Chamber and submit it to a Staff Member as early in the meeting as possible.
Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting should call the office of the City Clerk at (650) 991-8078 as soon as possible.
PLEDGE TO THE FLAG:
CALL TO ORDER
The City of Daly City acknowledges that we are on the ancestral lands of the Ramaytush (rah - my-toosh) Ohlone (O-lon-ee) peoples. We recognize their enduring connection to this region and honor their history, culture, and contributions. As the Indigenous protectors of this land, we affirm their sovereign rights as the original inhabitants of this land and pay respects to the Ancestors, Elders, and Relatives of the Ramaytush Ohlone peoples.
ROLL CALL:
Agenda – City Council
Monday, March 23, 2026
PRESENTATIONS:
1. SB 63 Local Investment Plan - SamTrans
2. FY 2025 Year-End Review & Financial Forecast
APPROVAL OF MINUTES:
3. Regular Meeting of March 9, 2026
APPROVAL OF AGENDA:
4. Regular Meeting of March 23, 2026
STAFF COMMUNICATION:
ORAL COMMENT:
NOTE: Speakers are limited to two minutes, unless modified by the Mayor.
The Council cannot take action on any matter raised under this item.
CONSENT AGENDA
All items listed on the Consent Agenda are considered to be routine and may be approved by one roll call vote of the City Council. There shall be no separate discussion of the matters on the Consent Agenda unless requested by a member of the City Council. If discussion is required, that item will be removed from the Consent Agenda and will be considered separately at the end of the Agenda.
Resolutions:
5. Set Time and Place of Public Hearing Regarding Linda Vista Area of Benefit Fiscal Year 2026- 2027 (Set Time: 5/11/26)
6. Set Time and Place for a Public Hearing to Consider One-Year HUD Action Plan for Fiscal Year 2026-27 (Set Time: 4/27/26)
7. Approve Allocations of HOME, HOME-ARP, PLHA and SB341 funds for 493 Eastmoor Avenue Affordable Housing Development
8. Authorize Reservoir 1 Roof Replacement
9. Accept and Appropriate Additional Funds from the Aging and Disability Services of San Mateo County
10. Receive and file Housing Successor Agency Annual Report For Fiscal Year 2024-2025
Agenda – City Council
Monday, March 23, 2026
Check Registers:
11. Check Registers for the Month of Feb 2026
END OF CONSENT AGENDA
PUBLIC HEARINGS:
12. Adoption of an Ordinance Adding Chapter 15.09 to the Daly City Municipal Code Establishing Construction Hours on Private Property
STAFF: Mario Sigala
RECOMMENDATION: Open/Close Hearing
Motion for City Attorney to Read by Title Only
Councilmember Introduce Ordinance
13. Zone Change ZC-02-26-17000 - Amendments to the City of Daly City Municipal Code Chapters 17.04.010, 17.37.030, 17.34.050, 17.44.100, and 17.45.150, Regulating the Building Height Definition, Front-Yard Paving, Use Permit Requirements on Condominium Maps, and the Expirations of Use Permit and Design Review Approvals
STAFF: Sam Fielding
RECOMMENDATION: Open/Close Hearing
Motion for City Attorney to Read by Title Only
Councilmember Introduce Ordinance
14. Zone Change ZC 04-24-16507 – Adoption of Commercial Cannabis Non-Retail (-CCNR) Combining District and Amendments to the Zoning Map Rezoning Parcels to be included in the -CCNR Commercial Cannabis Combining District
STAFF: Michael Van Lonkhuysen
RECOMMENDATION: Open/Close Hearing
Motion for City Attorney to Read by Title Only
Councilmember Introduce Ordinance
APPOINTMENTS: Board/Commission Membership Committee Appointments
REPORTS:
15. Council Committee
16. City Council
17. Staff
ADJOURNMENT:
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
MARCH 9, 2026
--------------------------------
Note on Public Comments:
To provide public comments, members of the public have the option to- 1) attend in person, 2) email the City Clerk, or 3) submit comments through the public comment portal on the City’s website. Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting are instructed to call the office of the City Clerk at 991-8078 prior to the meeting.
Visit https://www.youtube.com/@DalyCityGov/streams to view the City Council meeting
CALL TO ORDER:
Mayor Sylvester called t he regular meeting to order at 7:00 P.M. and read the City’s Land Acknowledgement:
The City of Daly City acknowledges that we are on the ancestral lands of the Ramaytush (rah -my-toosh) Ohlone (O-lon-ee) peoples. We recognize their enduring connection to this region and honor their history, culture, and contributions. As the Indigenous protectors of this land, we affirm their sovereign rights as the original inhabitants of this land and pay respects to the Ancestors, Elders, and Relatives of the Ramaytush Ohlone peoples.
ROLL CALL: Councilmembers Present
Glenn R. Sylvester, Mayor
Teresa G. Proaño, Vice Mayor
Dr. Roderick Daus-Magbual
Pamela DiGiovanni
Juslyn C. Manalo
Staff Present
Thomas J. Piccolotti, City Manager
Rose Zimmerman, City Attorney
K. Annette Hipona, City Clerk
PRESENTATIONS:
Proclamation: Women's History Month
(Adrienne Tissier, Chair of the Women's Commission)
Peninsula Clean Energy (PCE)
(Shawn Marshall, CEO, PCE)
Proclamation: Eating Disorders Awareness Week - February 23, 2026 through March 1, 2026 (Gabriella Makstman, Vice Chair of the Women’s Commission)
APPROVAL OF MINUTES:
Regular Meeting of February 23, 2026
It was moved by Councilmember Manalo, seconded by Councilmember DiGiovanni and carried to approve the minutes of February 23, 2026.
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
MARCH 9, 2026
2 APPROVAL OF AGENDA:
It was moved by Councilmember Manalo, seconded by Vice Mayor Proaño and carried to approve the agenda.
ORAL COMMENT:
Marjory Ruiz, a representative from PG&E, discussed the company’s proposal to enhance safety and modernize the power grid, which includes undergrounding work and clean energy initiatives. Marjory also highlighted PG&E’s Public Purpose Programs, which offer financial assistance, providing customers with discounts of up to 20%, and welcomed questions and concerns from the community.
Desi Danganan, Into the Streets, consisting of Plinth Agency, Make It Mariko, and Kapwa Kultural Center, addressed the Top of the Hill RFP issued in January, reporting that their coalition submitted an application that was not selected for the proposal. Desi requested transparency in the RFP process, specifically asking for a scorecard to explain why certain applicants were not chosen. Desi emphasized that their BIPOC-led consortium had submitted a competitive application, backed by 10 years of experience in the industry.
CONSENT AGENDA:
It was moved by Councilmember Manalo, seconded by Councilmember DiGiovanni and carried to approve the consent agenda, with the exception of item s # 7, 8, 10 and 11 , which were pulled for further discussion.
Resolutions:
Approve Administrative Amendment to Paragraph 2.2 of the Peninsula Clean Energy Joint Powers Agreement Reflecting the Name Change of Peninsula Clean Energy Authority to WestLight Energy
Resolution 26-35, Approving an Administrative Amendment to Paragraph 2.2 of the Peninsula Clean Energy Joint Powers Agreement Reflecting the Name Change of Peninsula Clean Energy to WestLight Energy
Consider Partnership with the Pilipino Bayanihan Resource Center (PBRC) for a Kamayan Feast Fundraiser event at the Pacelli Event Center
Director of Recreation Services Denise Brown provided the staff report on the proposed partnership with the PBRC and the consideration of waiving facility rental fee s for the Kamayan Feast Fundraiser .
Mayor Sylvester acknowledged Tita Perla Ibarrientos and Marie Villarosa from the PBRC, who were present at the meeting. Marie and Tita Perla addressed questions about the Filipino tradition of kamayan feasts.
It was moved by Councilmember DiGiovanni, seconded by Vice Mayor Proaño and carried to adopt the resolution.
Resolution 26-36, Approving Partnership with Pilipino Bayanihan Resource Center Kamayan Feast Fundraiser Event at the Pacelli Event Center
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
MARCH 9, 2026
3 Consider Partnership with Pacific Islands Together (P.I.T.) for Various Athletic Tournaments and Fundraising Opportunities
Director Denise Brown provided the staff report on the proposed partnership with P.I.T. and the consideration of waiving facility rental fees for a variety of events, including pickleball tournaments, a toy drive, a crab feed fundraiser, a Polynesian youth cultural competition, and basketball and volleyball tournaments. The Council acknowledged Colma Councilmember Gonzalez who was present and represents P.I.T. Brown addressed questions regarding the dates for the proposed events.
It was moved by Councilmember Manalo, seconded by Vice Mayor Proaño and carried to adopt the resolution.
Resolution 26- 37, Approving Partnership with Pacific Islands Together for Various Athletic Tournaments and Fundraising Opportunities
Set Time and Place of Public Hearing – Proposed Increases and Updates to the Master Fee Schedule (Set Time: 4/13/26)
Resolution 26-38, Setting Time and Place of Hearing Re: Proposed Increases and Updates to the Master Fee Schedule
Accept $20,000 Charitable Gift from the Margaret A. Zeiter Revocable Trust for the Doelger Senior Center
Director Brown provided the staff report to accept a charitable gift of $20,000 designated for programs and expenditures at Doelger Senior Center, and to authorize the City Manager to execute all necessary documents.
It was moved by Councilmember DiGiovanni, seconded by Councilmember Manalo and carried to adopt the resolution.
Resolution 26-39, Accepting a $20,000 Charitable Gift from the Margaret A. Zeiter Revocable Trust for the Benefit of the Doelger Senior Center
Approve Amendment to the Professional Service Agreement for Construction Management and Inspection Services for Northern Cities Smart Corridor Expansion Project
Director of Public Works Richard Chiu provided the staff report to amend the agreement with Zoon Engineering for the subject project. The amendment includes an additional amount of $125,730.95 for construction support and inspection services, bringing the total contract amount to $720,455.25.
It was moved by Vice Mayor Proaño, seconded by Councilmembers Manalo/DiGiovanni and carried to adopt the resolution.
Resolution 26-40, Authorizing Execution Of Amendment To The Professional Services Agreement With Zoon Engineering To Provide Construction Management And Inspection Services For The Northern Cities Smart Corridor Expansion Project
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
MARCH 9, 2026
4 Approve Notice of Completion for the Santa Barbara Ave. & Vista Grande Ave. Green Stormwater Infrastructure and Pedestrian Improvement Project
Resolution 26-41, Accepting Completion of Certain Project in the Department of Public Works (Santa Barbara Ave. & Vista Grande Ave. Green Stormwater Infrastructure and Pedestrian Improvement Project)
Authorize Interior Tank Remediation of Reservoir 6B
Resolution 26-42, Authorizing A Contract With Engineering Remediation Resources Group, Inc.
For Remediation Of The Interior Of Reservoir 6B
Set Time and Place for a Public Hearing to Consider an Ordinance to Amend the Daly City Zoning Ordinance Re: Chapters 17.04, 17.37, 17.34 and 17.44 Re: Building Height and Use Permit and Design Review Approvals (Set Time: 3/23/26)
City Attorney Rose Zimmerman clarified that the Council would have an opportunity to propose amendments to the Conditions during the public hearing on March 23.
Resolution 26-43, Setting Time And Place Of Public Hearing For Proposed Ordinance Amending Title 17 Of The Daly City Public Code Re: Building Height, Front-Yard Paving Use Permit Requirements And Use Permit And Design Review Approvals
Set Time and Place for a Public Hearing to Consider an Ordinance to Amend Chapter 15.00 of the Daly City Municipal Code Re: Construction Hours (Set Time: 3/23/26)
Resolution 26-44, Setting Time And Place Of Public Hearing For Proposed Ordinance Amending Chapter 15.00 Of The Daly City Municipal Code Re: Construction Hours On Private Property
END OF CONSENT AGENDA
AWARD OF BIDS/CONTRACTS:
Award of Contract for the Construction of the Vista Grande Drainage Basin Improvement Project to Shimmick Construction Company, Inc.
Director of Water and Wastewater Resources Joshua Cosgrove presented the staff report on a multi- benefit stormwater project designed to manage, treat and reuse stormwater in the Vista Grade Drainage Basin while also providing regional water quality, water supply, wastewater, environmental and recreational benefits. In February, the City received 3 bids, with S himmick Construction Company submitting the lowest responsible bid of $179,850,000. Cosgrove outlined the construction timeline and the financing plan for the project. He also addressed questions about the tunnel excavation, the use of local labor by the selected company, and the lack of water flow in Lake Merced. Assistant City Manager/Interim Director of Finance Tim Nevin addressed questions regarding the financing amounts allocated for the project.
Sean Spreng from Delve Underground answered questions related to the tunnel excavation process, including whether geotechnical and seismic studies have been conducted on site, the materials used for the tunnel, whether debris from the tunnel excavation can be reused and recycled, and the tunnel’s length.
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
MARCH 9, 2026
5 It was moved by Councilmember Manalo, seconded by Councilmember DiGiovanni and carried by unanimous roll call vote to adopt the resolution.
Resolution 26-45, Authorizing Execution Of Construction Contract With Shimmick Construction Company, Inc. For The Vista Grande Drainage Basin Improvement Project
ORDINANCES:
Second Reading, Ordinance No.1488, Amending Chapter 8.16 of the Daly City Municipal Code Re:
Property Maintenance and Nuisance Abatement Recovery of Attorney's Fees
It was moved by Councilmember DiGiovanni, seconded by Councilmember Daus-Magbual and carried by unanimous roll call vote to adopt the ordinance.
Ordinance 1488, Amending Chapter 8.16 of the Municipal Code Re: P roperty Maintenance and Nuisance Abatement
APPOINTMENTS:
Vice Mayor Proaño confirmed that Christina Luna will be sworn in as a member of the Library Board of Trustees during the board’s meeting on March 17th at 6 P.M.
REPORTS:
Council Committee
Peninsula Clean Energy (PCE) (Daus-Magbual)
Community Development Block Grant (CDBG) Advisory (Sylvester/ Proaño) Illegal Dumping Committee (Proaño)
City Council
Vice Mayor Proaño reported attendance at the several events: the Women’s Commission meeting for the swearing -in of a new commissioner , joined by Mayor Sylvester and Councilmember Manalo; a celebration at the College of San Mateo honoring Councilmember Daus-Magbual’s tenure as an Associate Professor at Skyline College, also attended by Councilmember Manalo ; the birthday celebration for the Emperor of Japan, hosted by Consul General Kotaro Otsuki, with M ayor Sylvester, his wife Nida , and Councilmember Manalo; a workshop on building permits by the Daly City Planning Division and Daly City Colma Chamber of Commerce; the 26th anniversary of the Walkabout of Serramonte Shopping Center, thanking Director Brown for the event; the Daly City Host Lions Club’s 85th anniversary celebration along with Councilmembers Manalo and DiGiovanni and Mayor Sylvester and his wife; the Daly City Lunar New Year Event; Bayshore Elementary’s Read Across America event, where Proaño read Love You Forever, recognizing other participants who read to the children including Police Officers O’Shea and Briggs and Commissioner Marcelino; and Daly City Recreation Day , recognizing the various departments for their participation, along with Councilmember DiGiovanni. The Vice Mayor wished all the women, including all her colleagues, a happy Women’s Day.
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
MARCH 9, 2026
6 Councilmember DiGiovanni reported attendance at the following events: the Bayshore Readathon; the Resource Fair, along with Vice Mayor Proaño; the Lunar New Year Event; and the Walkabout event, thanking Serramonte Center, the volunteers, Marie Villarosa, Denise Brown, and Romeo Benson for their work. DiGiovanni acknowledged International Women’s Day as an important time to celebrate all women and emphasized the importance of listening to their voices.
Mayor Sylvester reported attendance at several events: the Lunar New Year event, thanking all the participants including the Council and Assemblyman Haney who presented the City with a proclamation; the monthly Mayors meeting in the City of San Bruno, which he attended with City Manager Piccolotti; the celebration for the Emperor of Japan featuring a traditional kagami biraki ceremony, along with Vice Mayor Proaño and Councilmember Manalo, and thanking City Manager Piccolotti and Assistant to the City Manager Ramos; and the Women’s Commission meeting for the swearing-in of Commissioner Liezel Chan.
Councilmember Manalo reported attendance at several events: the County’s Commission on the Status of Women meeting at the new JUHS facilities, alongside Vice Mayor Proaño; an event honoring Dr.
Daus-Magbual for his tenure at Skyline College, congratulating him on this accomplishment, joined by Vice Mayor Proaño; the birthday celebration for the E mperor of Japan, along with Mayor Sylvester , his wife, Vice Mayor Proaño and the new Consul General of Japan; the Lunar New Year Event alongside her daughter Juselle and Mayor Sylvester; the Oath of Office for Liezel Lucero Chan on the Women’s Commission, thanking Mayor Sylvester and Vice Mayor Proaño for their participation; the 26th anniversary of the Walkabout at Serramonte Center; the Daly City Host Lions 85 th anniversary at Nick’s Restaurant; the County’s Community Development Committee meeting where the members reviewed funding options; and the County’s Women’s Hall of Fame event at Skyline, congratulating the recipients . Manalo acknowledged International Women’s Day, during which Supervisor Canepa honored Commissioner Nancy Rodriguez as Woman of the Year, and Manalo and Commissioner Liezel Chan called for an end to domestic violence and violence against women . Manalo acknowledged the R eadathon event at Bayshore as a joyous occasion. Manalo discussed the upcoming Top of the Hill Festival, noting that an RFP has been issued. Due to the festival’s growing size, Manalo requested the opportunity for an ad hoc committee to discuss and review the RFP process, emphasizing transparency as good governance.
Councilmember DiGiovanni asked the City to respond to community feedback regarding the proposed road diet on Lake Merced Boulevard. This feedback included various questions and concerns about how the road diet would affect traffic in the area.
Councilmember Daus -Magbual reported attendance at several events: the Council of Cities meeting, featuring a presentation on t he Children’s Collective, which included talks from Dr. Daus - Magbual, Mayor Venkatesh of San Carlos, and Andrea Jones and Andrea Mardesich from the Collective; the New York City Dance Alliance regional competition, expressing pride in the Westlake School of Performing Arts for competing and being honored with awards including Outstanding Dances and Outstanding Studio of the Year. Dr. Daus-Magbual announced upcoming events; a St. Patrick’s Luncheon hosted by DCPLA on March 12th at the Colma Community Center; the inaugural Irish flag-raising event at City Hall on March 13th from 11 AM to 12 PM; and the Boogie Down Brisbane free event, which celebrates culture and wellness through Hip-hop. The event will feature a lineup of Hip-hop performers, vendors, and food, and will also fundraise for the annual Rock the School Bells Hip-hop Conference at Skyline, Lyrical Opposition and Kapwa Kultural Center (Brisbane Community Park on March 21st (12 - 4 PM)).
Mayor Sylvester requested updates on the Top of the Hill Festival RFP process and the proposed road diet on Lake Merced Boulevard, and agendizing the items if there is additional information to be presented.
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
MARCH 9, 2026
7 Staff
Director Chiu addressed concerns regarding the Lake Merced road diet, which is related to a study and outreach being conducted by the department. According to Chiu, staff is gathering input about the area through a community survey.
City Manager Piccolotti provided updates regarding the Top of the Hill (TOTH) Festival RFPs , reporting that six responses have been received, and negotiations are currently underway with the top two proposals. Piccolotti infor med the Council that this item can be agendized for the next Council meeting accompanied by a staff report detailing the scoring and RFP process once the process has completed .
Piccolotti indicated that the Council budgeted $200,000, which includes the cost of the Event Producer, for the TOTH Festival in response to the Council’s inquiries. Piccolotti anticipated that a full report could be given on March 23, 2026 upon completion of negotiations and collaboration. Additionally, Piccolotti announced the following week’s events, including the City of Daly City’s birthday celebration and the State of the C ity address on Wednesday, March 18 th, and the Women’s Commission celebration on Thursday, March 19th.
ADJOURNMENT:
Mayor Sylvester adjourned the meeting at 9:58 P.M. in memory of Diana Isabela Colvin and Edgar Beteta.
Approved as submitted, this 23
rd
City Clerk
day of March 2026 .
Glenn R. Sylvester
Mayor
City Council Meeting Agenda Report Item # _____
Meeting Date: March 23, 2026
Subject: Setting Time and Place of Public Hearing Regarding Linda Vista Area of Benefit Fiscal Year 2026-2027
Recommended Action
Set May 11, 2026 as the date for public hearing to establish the services and assessments for Linda Vista Area of Benefit for Fiscal Year 2026-2027.
Background
The City Council established the Linda Vista Area of Benefit on February 12, 1990, to provide for the maintenance of storm water detention basins and other storm facilities within the Linda Vista and Bay Ridge Subdivisions and the downstream Outfall Channel, through annual Benefit Assessments. Each year, it is necessary to re- establish the assessment rate for the upcoming fiscal year.
Discussion
Per the Government code that empowers the City Clerk to proceed, I have set the Public Hearing for the Linda Vista Assessment District for the Regular City Council Meeting of May 11, 2026, at 7:00 P.M.
All agencies, districts and parties interested will be notified by mail. The Notice of Hearing will also be posted in the Linda Vista Area of Benefit area as well as in City Hall and the public libraries.
Summary/Conclusion
Staff is available to provide any additional information desired by the Mayor or Councilmember.
Respectfully submitted,
K. Annette Hipona
City Clerk
City Council Meeting Agenda Report Item # _____
Meeting Date: March 23, 2026
Subject: Set Time and Place for a Public Hearing to Consider One-Year HUD Action Plan for Fiscal Year 2026-27
Recommended Action
Set a Public Hearing for April 27, 2026, for the purpose of citizen review and comment on Daly City’s One-Year Action Plan under the Community Development Block Grant (CDBG) and HOME programs for FY 2026-27, the fourth year of a Five-Year HUD Consolidated Plan.
Background
The One-Year Action Plan identifies how CDBG and HOME monies will be allocated. Prior to Council allocating these funds for FY 2026-27, the Department of Housing and Urban Development (HUD) requires the City to hold a public hearing to allow for citizen comment on Daly City’s proposed One-Year Action Plan for Fiscal Year 2026-27.
Discussion
CDBG funds can be used for various activities including Administration, Economic Development, Capital Projects, Housing and Public Services. HOME funds may be used for activities that expand the supply of decent, affordable housing for lower income families.
The City has not yet been informed of its FY 2026-27 CDBG and HOME allocations. However, in order to ensure compliance with public review requirements for the draft Action Plan, the City has prepared the draft FY 2026-27 Action Plan and incorporated contingencies should the actual CDBG and HOME allocations differ from what is estimated in its FY 2026-27 CDBG budget. The draft Action Plan will be finalized and submitted to HUD only after the City receives official notification of its FY 2026-27 CDBG and HOME allocations.
Pursuant to the City’s Community Participation Plan, the City’s HUD Action Plans will be available for a 30-day public comment period prior to the public hearing and Council consideration.
Daly City’s draft FY 2026-27 Action Plan will be available at City Hall and all City libraries for a 30-day review period beginning March 29 through April 27. Notice of the availability of this document and a summary of the draft FY 2026-27 Action Plan will be published in The Examiner and made available on the City’s web site.
Summary/Conclusion
Staff is available to provide any additional information desired by the Mayor or Councilmembers.
Respectfully submitted,
Lenelle Suliguin Michael Van Lonkhuysen
HCD Manager Acting ECD Director
City Council Meeting Agenda Report Item # _____
Meeting Date: March 23, 2026
Subject: Approving allocations of HOME, HOME-ARP, PLHA and SB341 funds for 493 Eastmoor Avenue affordable housing development
Recommended Action
1. Approve a commitment of $5,248,313.63 in funding to Eastmoor Multifamily LP, an affiliate of the Core Companies, for the construction of a 72-unit affordable housing development at 493 Eastmoor in Daly City. The funding sources include HOME, HOME-ARP, SB341, and Permanent Local Housing Allocation (PLHA) funds.
2. Adopt a resolution authorizing the City Manager or his designee to enter into the funding agreements for the commitment of City funds to Eastmoor Multifamily LP.
Background
In February 2020, the City Council approved entitlements for the Core Companies’ project at 493 Eastmoor. This project will provide 72 units of affordable housing (studio and one-bedroom units) for individuals and families earning up to 50 percent of the Area Median Income. At the current published income levels, rent for a 1-bedroom unit at 493 Eastmoor would be $ 1,813 per month with a maximum household income of $ 77,400 for a 2-person household.
In July of 2020, the City Council approved an allocation of $1.3 million in Housing Trust Funds as matching funds under the State Housing Trust Funds pursuant to an application submitted by the San Mateo County HEART (Resolution No. 20-32). The application was successful, and the City’s allocation has resulted in leveraging an additional $1.3 million through the State Local Housing Trust Fund Program.
In June 2022, the City Council approved a conditional allocation of $1,128,804 in HOME funds and $1,199,503 in HOME-ARP funds. The allocation was conditional pending completion of Federal requirements including a NEPA review, underwriting analysis, and commitment of all other funding sources (Resolution No. 22-84). Under the same resolution, the Council allocated up to $2,917,380 in anticipated PLHA funds resulting in a total allocation of $5,245,687 for the 493 Eastmoor project.
In February 2024, the City Council reallocated $486,230 in PLHA funds for the 493 Eastmoor project to the Midway Village Phase 2 project (Resolution No. 24-27). It was identified that future PLHA funds, HOME or Housing Trust funds could be used to backfill this reallocation.
In December 2026, after several rounds of funding applications, the Core Companies was awarded a reservation of tax credits and a tax-exempt bond allocation for the 493 Eastmoor project.
City Council Agenda Report
Subject: Approving allocations of HOME, HOME-ARP, PLHA and SB341 funds for 493 Eastmoor Avenue
Meeting Date: March 23, 2026
Discussion
A subsidy layering analysis, underwriting and NEPA review have been completed for 493 Eastmoor.
The analysis concluded that the HOME and HOME-ARP funds are required, in conjunction with the other proposed financing, to ensure the development and long-term operational feasibility of the affordable housing development. With the reservation of tax credits and a tax-exempt bond allocation, the project has met the conditions to enter into funding agreements for the conditional allocation of City funds. Eastmoor LLP will enter into a Loan and Regulatory Agreement, Promissory Notes, Deeds of Trust, and affordability restrictions for the various funding sources. In addition to funding from the City, other sources of public funding for 493 Eastmoor include $3 million from State HCD, $5.9 million from the County of San Mateo, $8.6 million from the Housing Authority of San Mateo County, and $2.4 million from the Housing Endowment and Regional Trust of San Mateo County.
Funding Source Amount Loan Term
HOME-ARP $1,201,129.15 55 years, 3% interest, residual receipts HOME $1,530,543.60 55 years, 3% interest, residual receipts PLHA $2,323,770.30 55 years, 1% interest, residual receipts SB341 $192,870.58 55 years, 3% interest, residual receipts Total $5,248,313.63
The transfer of Year 1 PLHA funds of $486,230 to Midway Village Phase 2 will be backfilled by HOME and SB341 funds. There was an additional allocation of $1,627 in HOME-ARP funds that the City received in April 2025 which is reflected in the table above.
All units at 493 Eastmoor, except for the Manager’s Unit, will be deed restricted and affordable to low income households for 55 years. Eight units will be HOME-assisted, two will be HOME-ARP assisted, and nine will be PLHA-assisted.
Fiscal Impact
The City funds to be committed to the 493 Eastmoor affordable housing development are comprised of local, State or Federal sources that are restricted to the development of affordable housing. There is no impact on the City’s general fund.
Summary /Conclusions
1. Staff recommends that the City Council approve the commitment of $5,248,313.63 for the development of affordable housing at 493 Eastmoor using the various funding sources outlined above, and adopt a resolution authorizing the City Manager or his designee to enter into the funding agreements for the commitment of City funds to Eastmoor Multifamily LP
City Council Agenda Report
Subject: Approving allocations of HOME, HOME-ARP, PLHA and SB341 funds for 493 Eastmoor Avenue
Meeting Date: March 23, 2026
Respectfully submitted,
Lenelle Suliguin Michael Van Lonkhuysen
HCD Manager Acting ECD Director
City Council Meeting Agenda Report Item # _____
Props Meeting Date: March 23, 2026
Subject: Authorize Reservoir 1 Roof Replacement
Recommended Action
Authorize staff to enter into an agreement with San Francisco Roofing Services, Inc. to replace the roof at Reservoir 1 in the amount not to exceed $154,445 ($134,300 and a 15% contingency).
Background
Reservoir 1, a critical part of Daly City’s drinking water and fire suppression system, has a roof that needs replacement due to age and condition. After an evaluation by staff and structural consultants, recommendations were made to remove the roofing material down to the decking and replace it with all new materials.
Discussion
Based upon the recommendations and the need to make the required corrections, staff reached out to various roofing contractors for roof replacement at Reservoir 1. On March 6, 2026, four roofing contractors attended a site walkthrough to assess and review required scope. After the site meeting, staff requested proposals from the roofing contractors. Proposals were received on March 13, 2026, and were evaluated by staff.
Below in the table are four roofing contractors who responded and provided base bid proposals:
Bidder Base Bid
San Francisco Roofing Services, Inc $134,300.00
Best Contracting Services, Inc. $175,050.00
Western Roofing Service $199,156.00
Stronger Building Services $240,000.00
The base bid proposal is for removing the existing roof to the wood structural decking and installing vapor barrier, insulation and roofing materials. Some areas will be required to be built up to address low areas where original decking has sagged with layers of membrane prior to installing the finish cap. In addition to the base bid, aluminum hatches will be replaced.
Fiscal Impact
Sufficient funds are available in the Water Capital Fund, Plant Improvements: 44170100-55108 to provide for this action.
Summary/Conclusion
Authorize staff to enter into an agreement with San Francisco Roofing Services, Inc. to replace the roof at Reservoir 1 in the amount not to exceed $154,445 ($134,300 and a 15% contingency).
Staff is available to provide any additional information if desired by the Mayor or Councilmembers.
Respectfully submitted,
Joshua Cosgrove Michael Patolo
Director of Water and Wastewater Resources Water & Wastewater Maintenance Manager
Attachment: San Francisco Roofing Services, Inc – Bid Form
Reservoir 1 Roof Replacement
Daly City Water & Wastewater Resources
153 Lake Merced Blvd, Daly City, CA 94015
Bid Form
Daly City Water & Wastewater Resources
Reservoir 1 Roof Replacement
650 Point Pacifica Dr, Daly City, CA 94014
Item 1 - Acknowledgments
In submitting this proposal, the contractor acknowledges the following:
Acceptance:
The Owner reserves the right to accept or reject any bid for any reason without recourse by any bidder and to award a contract to any bidder on any basis which the Owner, in its sole and absolute discretion, determined to be in the best interest of the Owner.
Time Limit:
The undersigned agrees that the work of the contractor will be commenced within 30 days of Notice to Proceed.
Contract price:
Bids due on ____Fri, March 13th____ at 10 a.m. The proposed lump sum contract price as per Specifications, and Drawings.
Contractor to hold bid price for a period of 2 months from date of bid submission.
Return Bids To (e-mail):
Michael Patolo
[email protected]
Pre-Bid Walkthrough:
10:30 a.m. on 6th day of March, 2026.
Bid Deadline and Opening:
10:00 a.m. on the __13th__day of March, 2026.
Daly City Water & Wastewater Resources – Reservoir 1 Roof Replacement:
Base Bid - Roof Replacement, per drawings and specifications:
________________________________________dollars $_______________
Sq. ft. cost ½” marine garde plywood deck replacement: _____________________________dollars $______________
Add Option 1 - Replace existing roof hatches w/ new aluminum hatches:
______________________________dollars $________________
Contractor Name: ___________________________________________________ San Francisco Roofing Services, Inc.
134,300.00
One Hundred Thirty Four Thousand Three Hundred
8,000.00
Eight Thousand
10.50 Ten Dollars Fifty Cents
Reservoir 1 Roof Replacement
Daly City Water & Wastewater Resources
153 Lake Merced Blvd, Daly City, CA 94015
Bid Form
Acknowledgments (continued)
FIRM NAME: _______________________________________________________________________
LICENSE #: _________________________________________________________________________
BY ________________________________________________________________________________
TITLE ______________________________________________________________________________
OFFICIAL ADDRESS _________________________________________________________________
______________________________________________
DATE ______________________________________________________________________________
WITNESS ___________________________________________________________________________
Item 2 - Form of Warrant
Project: Reservoir 1 Roof Replacement
Owner: Daly City Water & Wastewater Resources
We hereby acknowledge and agree that:
1. We have completed our Contract in full conformity with the intent of the Contract Documents and have no substitutions in materials.
San Francisco Roofing Services, Inc.
1047655
Manuel Avila Jr.
Corporate Secretary
1314 Donner Ave San Francisco CA 94124
3/13/2025
City Council Meeting Agenda Report Item # _____
Meeting Date: March 23, 2026
Subject: Accept and Appropriate Additional Funds from the Aging and Disability Services of San Mateo County
Recommended Action
It is recommended that the City Council adopt a resolution to accept and appropriate additional funds of $55,391 from the San Mateo County Aging and Disability Services to the Senior and Active Adults Services fund.
Background
The Active Adult and Senior Services Unit was offered Nutritional Services Incentive Program (NSIP) Funds in the amount of $8,614 to serve 1060 additional meals and additional County General Funds in the amount of $46,777 to serve and additional 6,419 meals from San Mateo County Aging and Disability Services, totaling an additional 7,479 meals served.
This grant would be in addition to a grant of $298,680 for the Congregate Nutrition Program provided by the County and previously accepted and appropriated by the City Council (Res.25- 106).
Fiscal Impact
This is a reimbursement grant with the City of Daly City incurring costs for purchases in the Congregate Nutrition Program with the County paying invoices on an ongoing basis.
Revenue will be received into Account 10146300-44207.
Summary/Conclusion
Staff is available to provide any additional information desired by the Mayor or Councilmembers.
Respectfully submitted,
Denise Brown Jennifer M. Der
Director Recreation Services Manager
City Council Meeting Agenda Report Item # ____
Meeting Date: March 23, 2026
Subject: Receive and file Housing Successor Agency Annual Report For Fiscal Year 2024- 2025
Recommended Action
It is recommended that the City Council receive and file the Housing Successor Agency Annual Report for Fiscal Year 2024-2025.
Background
The City of Daly City is the Housing Successor Agency to the former Daly City Redevelopment Agency, as established by resolution in January 2012. The Housing Successor Agency is required to complete an Annual Report regarding the Low and Moderate Income Housing Asset Fund pursuant to California Health and Safety Code Section 34176.1. The purpose of the report is to provide the governing body of the Housing Successor Agency with an annual report on the housing assets and activities of the Housing Successor Agency. The current report sets forth certain details of the City of Daly City’s Housing Successor Agency activities for Fiscal Year 2024-2025.
The report is due to the California Department of Housing and Community Development (“HCD”) by April 1st of each year and must be posted to the City’s website. The report for Fiscal Year 2023- 2024 will be submitted to HCD following official receipt by the City Council.
Discussion
In the Annual Report, for the Fiscal Year 2024-2025, the Housing Asset Fund received a total of $298,048 in revenues and expended a total of $156,557, of which $111,862 was administrative costs and $44,695 to provide emergency rental assistance through a contract with Daly City Partnership and critical home repairs through a contract with Rebuilding Together Peninsula, The Housing Asset Fund balance consists of cash, investments and assets held by the Housing Successor which as of June 30, 2025 has a fund balance of $4,461,128.
Summary/Conclusion
Staff recommends the City Council receive and file the Housing Successor Annual Report for Fiscal Year 2024-2025. Staff is available to provide any additional information desired by the Mayor or City Council Members.
Respectfully submitted,
Lenelle Suliguin Michael Van Lonkhuysen HCD Manager Acting ECD Director
Attachment: Daly City Housing Successor Annual Report for Fiscal Year 2024-2025
HOUSING SUCCESSOR ANNUAL REPORT FOR FISCAL YEAR 2024-25 City of Daly City
TABLE OF CONTENTS INTRODUCTION ....................................................................................................................... 2 Scope of this Housing Successor Annual Report ................................................................... 2 Assets Transferred to the Housing Successor ....................................................................... 2 BACKGROUND ......................................................................................................................... 3 Legal Requirements Pertaining to Housing Successors .......................................................... 3 Permitted Uses of Housing Asset Funds ................................................................................ 4 Limits on the Accumulation of Housing Funds (Excess Surplus) ............................................. 6 HOUSING ASSET FUND ACTIVITY ........................................................................................... 7 Deposits and Fund Balance .................................................................................................. 7 Expenditures ........................................................................................................................ 7 Ending Cash and Fund Balance ............................................................................................ 8 Housing Successor Portfolio ................................................................................................. 9 Real Property and Disposition Status .................................................................................. 10 Loans Receivable ............................................................................................................... 11 Senior Rental Housing Limit Compliance ............................................................................. 12 Excess Surplus .................................................................................................................. 13 OTHER INFORMATION ........................................................................................................... 14 Transfers to Other Housing Successors .............................................................................. 14 Homeownership Unit Inventory ........................................................................................... 15 APPENDIX 1 – HOUSING ASSET TRANSFER FORM ............................................................... 16 APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT REQUIREMENTS .......................... 20 APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE REQUIREMENTS .............................. 21
Daly City Housing Successor Annual Report FY 2024-25 2 INTRODUCTION Following the dissolution of redevelopment in 2012, all former redevelopment agencies were required to designate a housing successor agency to receive all existing housing assets and assume any ongoing responsibilities related to the former agency’s mandated 20% set aside for affordable housing. The City of Daly City established itself as the Housing Successor Agency (“Housing Successor”) to the former Daly City Redevelopment Agency (“Agency”) with the adoption of Resolution No. 12-11 dated January 23, 2012. In addition to overseeing housing assets and ensuring that all remaining funds are spent on affordable housing efforts, housing successors must report annually on their activities as required by Senate Bill 341. The Housing Successor Annual Report (“Annual Report”) details the activity of the Housing Successor and establishes whether it is in compliance with various expenditure and asset requirements as outlined in Health and Safety Code (“HSC”) Section 34176.1(f). SCOPE OF THIS HOUSING SUCCESSOR ANNUAL REPORT The Annual Report is limited to the City’s activities as they relate to its role as Housing Successor, rather than all housing functions of the City in general. Housing successors typically establish a separate fund in order to isolate the former redevelopment agency housing assets and activities from any other City housing funds and activities. Prior to FY 2021-22, the City had maintained Housing Successor assets and activities in the Daly City Housing Development Finance Agency Fund (Fund 12) which also included non-Housing Successor fund sources not subject to Senate Bill 341 requirements. However, during FY 2021-22, the City established a separate Housing Set-Aside Fund (Fund 11) and transferred all housing successor assets, liabilities, and related activities to this fund. This Annual Report is based on funds and activity reported in Fund 11 for FY 2024-25. The Annual Report is due to the State of California (“State”) Department of Housing and Community Development (“HCD”) by April 1 annually and must be accompanied by an independent financial audit. The City’s audited financial statements will be posted on the City’s website when available. ASSETS TRANSFERRED TO THE HOUSING SUCCESSOR Upon the statewide dissolution of redevelopment in 2012, all rights, powers, committed assets, liabilities, duties, and obligations associated with the housing activities of the Agency were transferred to the Housing Successor. The Housing Successor prepared a Housing Asset Transfer (“HAT”) Form that
Daly City Housing Successor Annual Report FY 2024-25 3 provided an inventory of all housing assets transferred from the Agency to the Housing Successor. This included: 1. Real properties; 2. Personal Property; 3. Low- and Moderate-Income Housing Fund (“LMIHF”) encumbrances; 4. Loans/Grants Receivables; and 5. Deferrals. The HAT was approved by the California Department of Finance (“DOF”) on August 30, 2012. It is important to distinguish that housing assets that were not transferred from the former Agency or generated by or purchased with assets from the former Agency, are not subject to HSC Section 34176.1. A copy of the HAT is provided as Appendix 1.
BACKGROUND This Section summarizes the legal requirements for use of Housing Successor assets that are addressed in this Report. LEGAL REQUIREMENTS PERTAINING TO HOUSING SUCCESSORS In general, housing successors must comply with three major requirements pursuant to HSC Section 34176.1: 1. Expenditures and housing production are subject to income and age targets. 2. Housing successors may not accumulate an “excess surplus,” or a high unencumbered cash balance based on certain thresholds. 3. Properties must be developed with affordable housing or sold within five to ten years of DOF approving the HAT. Appendix 2 provides a more detailed summary of the reporting requirements that are addressed in this Report.
Daly City Housing Successor Annual Report FY 2024-25 4 PERMITTED USES OF HOUSING ASSET FUNDS Pursuant to HSC Section 34176.1, former Agency assets and the revenues generated by those assets, are to be maintained in a Low- and Moderate-Income Housing Asset Fund (“Housing Asset Fund”). In the case of Daly City, Housing Successor funds and activities are recorded in Fund 11, also known as the Housing Set-Aside Fund. Housing Asset Funds may be spent on: • Administrative costs for operation of the housing successor agency. The law allows a housing successor to spend the greater of: o $200,000 per year adjusted annually for inflation, or o 5% of the statutory value of real property owned by the housing successor and any loans or grants receivable on the HAT (“Portfolio”), whichever is greater. HCD has annually published an adjusted limit amount for administrative costs, reflecting the change in the Consumer Price Index from the prior year. Although HCD has not yet published the update for FY 2024-25, applying the same methodology and index HCD has previously used would yield a limit adjusted for inflation for FY 2024-25 of $270,700. The net value of the Housing Successor’s Portfolio (after an allowance for uncollectibles) is $3,366,888, of which 5 percent is $168,344. Therefore, Daly City’s FY 2024-25 annual administrative cost limit is $270,700, the greater of these two alternate limit amounts. • Homeless prevention and rapid rehousing services up to $500,000 per year if the former redevelopment agency did not have any outstanding inclusionary housing or replacement housing production requirements as of 2012. Daly City is eligible for this expense because the former Agency met its inclusionary housing and replacement housing production requirements upon dissolution. • Affordable housing development assisting households up to 80 percent of the Area Median Income (“AMI”), subject to specific income and age targets over a five- or ten-year period. Five-Year Income Proportionality on Development Expenditures: Any Housing Asset Funds may be spent on development of affordable housing projects affordable to low, very low, and extremely low-income households. “Development” is defined in HSC Section 33413 as new construction, acquisition, rehabilitation, or the preservation of affordable housing developments.
Daly City Housing Successor Annual Report FY 2024-25 5 During each five-year compliance period, the first one running from FY 2013-14 through FY 2018-19, the second one running from FY 2019-2020 through FY 2023-24 and the third (current) one beginning July 1, 2024, at least 30 percent of any development expenditures must assist extremely low-income households (up to 30 percent AMI), while no more than 20 percent may assist low-income households (between 60-80 percent AMI). The balance of such expenditures may be used on very low-income households (households earning between 30-60 percent AMI). Note that housing successors must report expenditures by category each year, but compliance with income proportionality limits is measured every five years. For example, a housing successor could spend all its funds in a single year on households earning between 60-80 percent AMI, as long as it was 20 percent or less of the total expenditures during the five-year compliance period. Should a housing successor not spend at least 30 percent of its development expenditures for extremely low-income households, or exceeds the amount spent on low-income households, future expenditures are subject to greater restrictions until these proportionality targets are met. Specifically, if a housing successor is unable to spend at least 30 percent of its development expenditures on extremely low units, it is required to increase this spending to 50 percent until compliant with the 30 percent threshold; a housing successor that spends more than 20 percent of its development expenditures on low-income units cannot spend any further funds on low-income developments until it is at or below the 20 percent threshold. As such, tracking these expenditures and their progress over the corresponding five-year period is an important function of the Annual Report. Ten-Year Age Proportionality: If more than 50 percent of the total aggregate number of rental units produced by the city, housing successor, or former redevelopment agency during the past 10 years are restricted to seniors, the housing successor may not spend more Housing Asset Funds on senior rental housing. It is important to stress that Housing Successor expenditure and production requirements are measured on different timeframes:
Daly City Housing Successor Annual Report FY 2024-25 6 • One-Year Limits: Administrative Allowance and Homeless Prevention Allowance. Compliance evaluated annually and resets every year. • Five-Year Limit: Expenditures by Income Level. Compliance evaluated over a fixed five-year period set by law. The third (current) period runs from July 1, 2024, to June 30, 2029. • Ten-Year Limit: Number of Senior Deed-Restricted Units Assisted. Compliance evaluated based on a rolling ten-year period that is different every year. Appendix 3 describes Housing Asset Fund expenditure requirements in more detail, including the types of costs eligible in each category. LIMITS ON THE ACCUMULATION OF HOUSING FUNDS (EXCESS SURPLUS) State law limits how much cash a housing successor may retain and, if it fails to commit and spend these funds in a reasonable timeframe, the housing successor must transfer unspent funds to HCD for use on State housing programs. HSC Section 34176.1(d) establishes a limit, known as an “excess surplus” on the amount of unencumbered Housing Asset Fund cash based on the greater of: • $1,000,000, or • The total amount of deposits made into the Housing Asset Fund over the preceding four years. Only amounts in excess of this threshold are considered an excess surplus. Once an excess surplus is determined, a housing successor must account for these funds separately and encumber said monies within three years. If after the third year the excess surplus has not been fully encumbered, the remaining balance of the excess surplus is to be transferred to HCD within 90 days. HCD is permitted to use these transferred excess surplus funds anywhere in the State under its Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program. As part of the Annual Report, a housing successor must disclose any excess surplus and describe the housing successor’s plan for eliminating this excess surplus.
Daly City Housing Successor Annual Report FY 2024-25 7 HOUSING ASSET FUND ACTIVITY This section of the Report details the Housing Successor’s activities during FY 2024-25 as reported in the City’s Fund 11. DEPOSITS AND FUND BALANCE Table 1 reports the value of funds which were deposited into the Housing Asset Fund in FY 2024-25. The Housing Successor had net deposits of $298,048 consisting mostly of an allowable pass-through of tax increment revenue from the former Agency’s Recognized Obligations Payment Schedule (“ROPS”). The other deposits consist of funds from investment earnings. Table 1: Housing Asset Fund Deposits EXPENDITURES The Housing Successor may expend Housing Asset Funds to cover administrative costs, homeless prevention and rapid rehousing programs, or to assist the development of affordable housing. Administrative and homeless prevention expenditures are subject to annual compliance limits, while housing development expenditures are subject to five-year proportionality requirements. The Housing Successor expended a total of $156,557 during FY 2024-25. Of the total amount expended, $111,862 was spent on administrative costs and $44,695 was used for emergency rental assistance through a contract with Daly City Partnership and critical home repairs contract with Rebuilding Together Peninsula. For FY 2024-25, the administrative spending was well below the annual expenditure limit of $270,700, and the homeless prevention spending was well below the annual expenditure limit of $500,000. The Housing Successor has made no housing development related expenditures in the current five-year compliance period, FY 2024-25 through FY 2028-29. Therefore, the Housing Successor is in compliance with all of the five-year income proportionality expenditure limits.
Deposit Type FY 2024-25
Investment Earnings 30,656
ROPS Payment 267,392
Total 298,048$
Source: City of Daly City
Daly City Housing Successor Annual Report FY 2024-25 8 Figure 1 below illustrates the Housing Successor’s compliance with annual and five-year expenditure requirements in FY 2024-25. Figure 1: Compliance with Expenditure Limits FY 2024-25 The Housing Successor will ensure it continues to meet all annual and five-year compliance requirements for administrative, housing assistance, and development expenditures for the remainder of the five-year compliance period. ENDING CASH AND FUND BALANCE The Housing Asset Fund balance consists of cash, investments, and assets held by the Housing Successor. The Housing Asset Fund balance as of June 30, 2025, was $4,461,128, as summarized in Table 2. It should be noted that the City’s loans receivable are offset as “uncollectible” in the fund balance table because repayment is not expected unless borrowers fail to comply with certain deed restrictions. $111,862/
$270,700
$44,695/
$500,000
$0 $0 $0
$0
$5 0,0 00
$1 00 ,000
$1 50 ,000
$2 00 ,000
$2 50 ,000
$3 00 ,000
$3 50 ,000
$4 00 ,000
$4 50 ,000
$5 00 ,000
Admin Ho meless
Preventio n
Ext. Low
<30% AMI
(30% Min.)
Very Low
31 -5 9% AM I
Low
60 -8 0% AM I
(20% Max)
Limit Total Expenditure
Annual Limits Five-Year Compliance
Daly City Housing Successor Annual Report FY 2024-25 9 Table 2: Housing Asset Funding – Ending Balance
HOUSING SUCCESSOR PORTFOLIO The Housing Successor Portfolio includes two properties and several loans transferred from the former Agency on the HAT. Since dissolution, the Housing Successor has disposed of one property and added one new loan. As of FY 2024-25, the City had a portfolio value of $3,366,888, as detailed in Table 3 below. As noted earlier, the value of the City’s loans receivable is not included in the total portfolio value because repayment is not expected unless the borrowers fail to comply with deed restrictions.
Asset FY 2024-25
Cash 1,068,042$
Gain/ (Loss) on Investment 50,903
Property Held for Development 3,366,888
Loan Receivable 2,409,888
Accounts Payable (18,310)
Accrued Payroll (1,090)
Allowance for Uncollectible (2,409,888)
Encumbrances (5,305)
Total Fund Balance 4,461,128$
Source: City of Daly City
Daly City Housing Successor Annual Report FY 2024-25 10 Table 3: Real Properties and Loans Receivable
REAL PROPERTY AND DISPOSITION STATUS HSC Sections 33334.16 and 34176.1(e) require that all real properties acquired by the former Agency prior to February 1, 2012, and transferred to the Housing Successor be developed for affordable housing purposes or disposed of within five years from the date DOF approved the HAT, or August 30, 2017. If Asset APN FY 2024-25
Real Properties
Carter/Martin 005 050 240 3,366,888$
Subtotal 3,366,888$
Loan Receivables
Loan - Mercy Housing 52 1,458,680
Loan - Sweeney Lane1 3,150,990
Loan - Hillcrest Senior Housing 479,349
First-Time Homebuyer Loans
Loan - 301 Habitat Way 23,168
Loan - 303 Habitat Way 23,168
Loan - 305 Habitat Way 23,168
Loan - 307 Habitat Way 23,168
Loan - 309 Habitat Way 23,168
Loan - 311 Habitat Way 23,168
Loan - 313 Habitat Way 23,168
Loan - 523 Delong St. 25,454
Loan - 529 Delong St. 38,182
Loan - 533 Delong St. 38,182
Loan - 539 Delong St. 38,182
Loan - 7555 Mission St2 3,034,137
Loan - 7555 Mission St II2 898,800
Subtotal 9,324,132$
Allowance for uncollectible3 (9,324,132)$
Portfolio Value 3,366,888$
Source: City of Daly City
(1) Sweeney Lane is a 52-unit affordable housing development built in 2015 and 2016 on assembled sites that include the former 206 and 208 Miriam properties. (2) The sum of the original 7555 Mission St. loans ($3,034,137+$898,800) were divided and split amongst 36 homebuyers.
(3) The City does not expect payment on any of their loans, therefore the value of the loans is recorded as uncollectible.
Daly City Housing Successor Annual Report FY 2024-25 11 the City is unable to meet this deadline, the law allows for a five-year extension via adoption of a resolution. In the event that physical development for this purpose has not begun by the end of the extended period, the property shall be sold, and the proceeds shall be deposited into the Housing Asset Fund. Pursuant to the HAT, the former Agency transferred two real properties to the Housing Successor and has since disposed of one. The City did not adopt a resolution extending the property disposition deadline but has been actively working to dispose of the one remaining property. Properties Disposed • Mission/ Miriam (APN 003-172-130, 140, 150, 170, and 003-160-170) - One property located at Mission and Miriam was sold to Mid-Peninsula Housing in 2015 for redevelopment as the Sweeney Lane Project, which consists of 52 housing units affordable to very low- and low-income households. A loan receivable from the developer of $2,420,000 was recorded in FY 2015, although the City does not expect repayment unless the developer fails to comply with its affordable housing loan agreement. Properties Retained • Carter/ Martin (APN 005-050-240) – Since 2020 the City has been in exclusive negotiations with Bridge Housing on a Disposition and Development Agreement to redevelop this property into more than 200 units of affordable housing. During FY 2022-23 the City determined that the site was subject to the Surplus Lands Act which has resulted in a delay in the anticipated development schedule for the site. Therefore, no agreement has been finalized as of yet. The City anticipates consideration of a finalized agreement during 2026. No Housing Successor Agency funds have been committed to this project. LOANS RECEIVABLE Nineteen loans receivable were transferred from the former Agency to the Housing Successor as part of the HAT approved by DOF on August 30, 2012. Since then, one new loan has been added to the Housing Successor’s Portfolio. § Mercy Housing 52 Loans: Three separate redevelopment loans were issued to Mercy Housing 52 to assist the development of two affordable housing projects including 24 units at Vista Grande
Daly City Housing Successor Annual Report FY 2024-25 12 and 47 units at School House Station. The three loans were combined into one loan at dissolution which continues to accrue interest. § Habitat for Humanity Loans: The City oversees several Habitat for Humanity Loans to assist first-time homebuyers at multiple properties including 7 units at Habitat Way, 4 units at Delong Street, 2 units at Miriam Street, and 36 units 7555 Mission. None of the loans accrue interest and the City does not expect to collect on any of the loans unless the borrowers fail to comply with deed restrictions. § Sweeney Lane: A total of $2,420,000 was loaned to assist the development of 52 affordable housing units located at 6800 Mission Street, on property that was transferred to the City on the HAT and sold in 2015. The Regulatory Agreement for Sweeney Lane stipulates that “no less than 49 percent of the units be occupied by households with incomes at or below 50% AMI and the remaining units be available to households with incomes not exceeding 85% AMI”. § Hillcrest Senior Housing: The former Agency loaned $480,000 to Hillcrest Senior Housing Corporation in 2006 for the construction of a 39-unit affordable housing development. The Affordable Housing Covenant restricts occupancy of all 39 units to seniors living at 50% AMI or below for a term of 55 years. Annual payments on the loan shall be made with residual receipts, if any. At the end of the 55-year term, the note shall be forgiven in full if the property remains affordable. SENIOR RENTAL HOUSING LIMIT COMPLIANCE Pursuant to HSC Section 34176(b), a maximum of 50 percent of deed-restricted rental housing units assisted by the former Agency, Housing Successor, or City in the previous 10 years may be restricted to seniors. The Housing Successor, City, and former Agency have assisted four projects in the past ten years, which have no senior-restricted units, as shown in Table 4. Therefore, the City is in compliance with this requirement.
Daly City Housing Successor Annual Report FY 2024-25 13 Table 4: Deed-Restricted Units Assisted – Prior 10 Years EXCESS SURPLUS The Housing Asset Fund may not accumulate an “excess surplus”, which is an unencumbered amount that exceeds the greater of $1 million or the sum of deposits in the prior four fiscal years. This requirement ensures that housing successors are actively spending available Housing Asset Funds on affordable housing. Over the past four years, the Housing Successor had deposits totaling $1,020,233, which is more than $1 million, therefore the excess surplus limit for FY 2024-25 is $1,020,233. As of FY 2024-25, the Housing Successor had an unencumbered cash balance of $930,578, which is less than the $1,000,000 limit. Therefore, the Housing Successor did not have an excess surplus for FY 2024-25. This calculation, as shown in Table 5, follows the excess surplus methodology applied by HCD prior to redevelopment dissolution.
Property1 Year
Assisted
Senior
Units % Non-Senior
Units % Total
Units
Sweeney Lane FY 16-17 0 0% 52 100% 52
1293 Hillside FY 16-17 0 0% 18 100% 18
Midway Village Phase 1 FY 22-23 0 0% 145 100%145
493 Eastmoor FY 22-23 0 0% 72 100% 72
Total 0 0% 287 100%287
Total Deed-Restricted Senior Units: 0%
Source: City of Daly City
FY 2015-16 through FY 2024-25
(1) This list includes units that were assisted by the former Agency, Housing Successor, or City with a ground lease executed in the last 10 years
Daly City Housing Successor Annual Report FY 2024-25 14 Table 5: FY 2024-25 Excess Surplus Elimination
The Housing Successor will continue to ensure it does not accumulate an excess surplus in future years.
OTHER INFORMATION TRANSFERS TO OTHER HOUSING SUCCESSORS There were no transfers to another housing successor entity for a joint project pursuant to HSC Section 34176.1.
Step 1: Determine Unencumbered Cash Balance From Financials FY 23-24 Beginning Cash Balance 935,883
Less: Encumbered Funds1 (5,305)$
Unencumbered Amount 930,578$
Step 2: Determine Greater of $1M or Last 4 Deposits
$1 Million, or 1,000,000$
Last 4 years' deposits 1,020,233$
2023-24 284,314$
2022-23 260,251$
2021-22 243,857$
2020-21 231,811$
Result: Larger Number 1,020,233$
Step 3: Excess Surplus is Amount Step 1 Exceeds Step 2
(1) Unencumbered Amount 930,578$
(2) Less: Larger Number From Step 2 1,020,233$
Excess Surplus None
Source: City of Daly City
(1) As of June 30, 2025
Daly City Housing Successor Annual Report FY 2024-25 15 HOMEOWNERSHIP UNIT INVENTORY Table 6 presents an inventory of affordable homeowner units assisted by the former Agency or Housing Successor that require restrictions, covenants, or an adopted program that protects Housing Asset Fund monies. Table 6: Assisted Unit Inventory - Homeownership
Project Name /
Address Unit No.
Covenant
Expiration
Affordability
Period (Yrs)Notes
Agency
Loan amount
301 Habitat Wayna 11/30/5045 23,168$
303 Habitat Wayna 11/30/5045 23,168$
305 Habitat Wayna 11/30/5045 23,168$
307 Habitat Wayna 11/30/5045 23,168$
309 Habitat Wayna 8/2/66 45 resold 23,168$
311 Habitat Wayna 1/7/65 45 resold 23,168$
313 Habitat Wayna 11/30/5045 23,168$
523 Delong St.na 7/10/51 45 25,454$
529 Delong St.na 7/10/51 45 38,182$
533 Delong St.na 7/10/51 45 38,182$
539 Delong St.na 7/10/51 45 38,182$
206 Miriam na 4/22/56 45 95,000$
208 Miriam na 4/20/56 45 95,000$
7555 Mission St.1016/24/58 45 109,248$
7555 Mission St.1026/21/58 45 109,248$
7555 Mission St.1036/13/58 45 109,248$
7555 Mission St.104 7/3/58 45 109,248$
7555 Mission St.1056/20/58 45 109,248$
7555 Mission St.1066/12/58 45 109,248$
7555 Mission St.1078/30/58 45 109,248$
7555 Mission St.1086/24/58 45 109,248$
7555 Mission St.1098/30/58 45 109,248$
7555 Mission St.1107/31/58 45 109,248$
7555 Mission St.1118/26/58 45 109,248$
7555 Mission St.11210/31/5845 109,248$
7555 Mission St.2016/19/58 45 109,248$
7555 Mission St.2026/21/58 45 109,248$
7555 Mission St.203 8/6/58 45 109,248$
7555 Mission St.2046/14/58 45 109,248$
7555 Mission St.2056/12/58 45 109,248$
7555 Mission St.2066/26/58 45 109,248$
7555 Mission St.2076/21/58 45 109,248$
7555 Mission St.2086/11/58 45 109,248$
7555 Mission St.2096/11/58 45 109,248$
7555 Mission St.2106/24/58 45 109,248$
7555 Mission St.2116/21/58 45 109,248$
7555 Mission St.2127/31/58 45 109,248$
7555 Mission St.3018/16/58 45 109,248$
7555 Mission St.3026/17/58 45 109,248$
7555 Mission St.3036/18/58 45 109,248$
7555 Mission St.3046/18/58 45 109,248$
7555 Mission St.305 8/7/58 45 109,248$
7555 Mission St.3066/27/58 45 109,248$
7555 Mission St.3073/10/59 45 109,248$
7555 Mission St.3086/20/58 45 109,248$
7555 Mission St.309 8/1/58 45 109,248$
7555 Mission St.3106/12/58 45 109,248$
7555 Mission St.3116/24/58 45 109,248$
7555 Mission St.312 8/7/58 45 109,248$
Source: City of Daly City
Daly City Housing Successor Annual Report FY 2024-25 16 APPENDIX 1 – HOUSING ASSET TRANSFER FORM
Former Redevelopment Agency:Daly City Redevelopment Agency Successor Agency to the Former
Redevelopment Agency:City of Daly City as Successor Agency to the Former Daly City Redevelopment Agency Entity Assuming the Housing Functions
of the former Redevelopment Agency:Daly City Housing Development Finance Agency Entity Assuming the Housing Functions
Contact Name: Donald W. McVey Title Phone650/991-8048 [email protected] Entity Assuming the Housing Functions
Contact Name: Brian Millar Title Phone650/991-8156 [email protected] The following Exhibits noted with an X in the box are included as part of this inventory of housing assets:
Exhibit A - Real Property X
Exhibit B- Personal Property
Exhibit C - Low-Mod Encumbrances
Exhibit D - Loans/Grants ReceivablesX
Exhibit E - Rents/Operations
Exhibit F- Rents X
Exhibit G - Deferrals
Prepared By: Betsy ZoBell
Date Prepared: 7/30/12
E-Mail Address
E-Mail Address
All assets transferred to the entity assuming the housing functions between February 1, 2012 and the date the exhibits were created are included in this housing assets list.
DEPARTMENT OF FINANCE
HOUSING ASSETS LIST
ASSEMBLY BILL X1 26 AND ASSEMBLY BILL 1484
(Health and Safety Code Section 34176)
Director of Economic &
Community Develo[pment
Director of Finance and
Administrative Services
Daly City Housing Successor Annual Report FY 2024-25 17
Exhibit A - Real Property
Item #
Carrying Value of Asset
Total square footage
Is the property encumbered by a low-mod housing covenant? Source of low-mod housing covenant b/
Date of transfer to Housing Successor Agency
Construction or acquisition cost funded with Low-Mod Housing Fund monies Construction or acquisition costs funded with other RDA funds Construction or acquisition costs funded with non-RDA funds Date of construction or acquisition by the former RDA
Interest in real property (option to purchase, easement, etc.) 1 $3,308,78415,246 no 1/1/12$3,308,784 October 2007Fee
2 $3,366,878609,840 no 7/25/12 $3,366,878 December 1999Fee 34567891011121314151617181920
Mixed Income Housing Carter/Martin property APN 005 050 240 b/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.
City of Daly CityInventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Type of Asset a/
Low-Mod Housing with Commercial Space
a/ Asset types may include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space.
Square footage reserved for low-mod housing
Legal Title and Description
15,246
609,840
Mission/Miriam properties APN 003 172 170 APN 003 172 160 APN 003 172 130 APN 003 172 150 APN 003 172 140
Daly City Housing Successor Annual Report FY 2024-25 18
Exhibit D - Loans/Grants Receivables
Item # Amount of the loan or grant
Date the loan or grant was issued
Purpose for which the funds were loaned or granted
Are there contractual requirements specifying the purposes for which the funds may be used? Repayment date, if the funds are for a loanInterest rate of loan Current outstanding loan balance
1 $315,508.007/26/95 Affordable Housing Development yes 12/31/683.00%$315,508 2 $278,459.00 8/14/96 Affordable Housing Development yes 12/31/673.00%$278,459 3 $234,041.008/14/96 Affordable Housing Development yes 12/31/673.00%$234,041 4 $23,168.00 6/23/03 Affordable Housing Development yes 11/30/500.00%$23,168 5 $23,168.00 6/23/03 Affordable Housing Development yes 11/30/500.00%$23,168 6 $23,168.00 6/23/03 Affordable Housing Development yes 11/30/500.00%$23,168 7 $23,168.00 6/23/03 Affordable Housing Development yes 11/30/500.00%$23,168 8 $23,168.00 6/23/03 Affordable Housing Development yes 11/30/500.00%$23,168 9 $23,168.00 6/23/03 Affordable Housing Development yes 11/30/500.00%$23,168 10 $23,168.00 6/23/03 Affordable Housing Development yes 11/30/500.00%$23,168 11 $25,454.00 5/24/04 Affordable Housing Development yes 6/1/510.00%$25,454 12 $38,182.00 5/24/04 Affordable Housing Development yes 6/1/510.00%$38,182 13 $38,182.00 5/24/04 Affordable Housing Development yes 6/1/510.00%$38,182 14 $38,182.00 5/24/04 Affordable Housing Development yes 6/1/510.00%$38,182 15 $95,000.00 7/29/09 Affordable Housing Development yes 7/29/540.00%$95,000 16 $95,000.00 7/29/09 Affordable Housing Development yes 7/29/540.00%$95,000 17 $480,000.00 7/1/06 Affordable Housing Development 7/1/610.00% $480,000 18 $3,034,137.008/12/09 Affordable Housing Development yes 45 years from date of Certificate of Occupancy0.00%$3,034,137 19 $898,800.008/12/09 Affordable Housing Development yes 45 years from date of Certificate of Occupancy0.00% $898,800 City of Daly CityInventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Loan
Loan
Loan
Loan
Loan
Loan
Loan
Loan
Mercy Housing 52, a California Limited Partnership (Vista Grande) Loan
Loan
Loan
Loan
Loan
Loan
Habitat for Humanity GSF (529 Delong St.)
Habitat for Humanity GSF (533 Delong St.)
Loan
Loan
Loan
Habitat for Humanity GSF (539 Delong St.)
Was the Low-Mod Housing Fund amount issued for a loan or a grant? Person or entity to whom the loan or grant was issued Loan
Mercy Housing 52, a California Limited Partnership (School House Station) Loan
Mercy Housing 52, a California Limited Partnership (School House Station) Habitat for Humanity GSF ( 301 Habitat Way)
Habitat for Humanity GSF (303 Habitat Way)
Habitat for Humanity GSF (305 Habitat Way)
Habitat for Humanity GSF (307 Habitat Way)
Habitat for Humanity GSF (7555 Mission St.)
Habitat for Humanity GSF (7555 Mission St.)
Habitat for Humanity GSF (309 Habitat Way)
Habitat for Humanity GSF (311 Habitat Way)
Habitat for Humanity GSF (313 Habitat Way)
Habitat for Humanity GSF (523 Delong St.)
Habitat for Humanity GSF (206 Miriam)
Habitat for Humanity GSF ( 208 Miriam)
Hillcrest Senior Housing Inc.
Daly City Housing Successor Annual Report FY 2024-25 19 Exhibit F - Rents
Item #
Type of
property with
which the
payments are
associated b/
Property
owner
Entity that
collects the
payments
Entity to which
the collected
payments are
ultimately
remitted
Purpose for
which the
payments
are used
Is the
property
encumbered
by a low-mod
housing
covenant?
Source of low-
mod housing
covenant c/
Item # from
Exhibit A the
rent is
associated with
(if applicable)
1 Low/Mod
Housing with
Commercial
Space
Daly City
Housing
Developme
nt Finance
Agency
Daly City
Housing
Development
Finance
Agency
Daly City
Housing
Development
Finance Agency
Property
Maintenance
and
Affordable
Housing no 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 City of Daly City
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) b/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space. c/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.
Type of payment a/
Rent
a/ May include rents or home loan payments.
Daly City Housing Successor Annual Report FY 2024-25 20 APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT REQUIREMENTS Health and Safety Code Section 34176.1(f) Housing Asset Fund Revenues & Expenditures Total amount deposited in the Housing Asset Fund for the fiscal year. Amount of deposits funded by a Recognized Obligation Payment Schedule (“ROPS”). Statement of balance at the close of the fiscal year. Description of Expenditures for the fiscal year, broken out as follows: • Homeless prevention and rapid rehousing • Administrative and monitoring • Housing development expenses by income level assisted Description of any transfers to another housing successor for a joint project. Other Assets and Active Projects Description of any project(s) funded through the ROPS. Update on property disposition efforts (note that housing successors may only hold property for up to five years, unless it is already developed with affordable housing). Other “portfolio” balances, including: • Statutory value of any real property either transferred from the former Agency or purchased by the Housing Asset Fund • Value of loans and grants receivable Inventory of homeownership units assisted by the former Agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former Agency’s investment of monies from the Low- and Moderate-Income Housing Fund. Obligations & Proportionality Description of any outstanding production obligations of the former Agency that were inherited by the Housing Successor. Compliance with proportionality requirements (income group targets), which must be upheld on a five-year cycle. Percentage of deed-restricted rental housing restricted to seniors and assisted by the former Agency, the Housing Successor, or the City within the past ten years compared to the total number of units assisted by any of those three agencies. Amount of any excess surplus, and, if any, the plan for eliminating it.
Daly City Housing Successor Annual Report FY 2024-25 21 APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE REQUIREMENTS Health and Safety Code Section 34176.1 Expense Category Limits Allowable Uses Administration and Compliance Monitoring Annual Limit $270,700 limit for FY 2024-25 (limit varies each year)
Administrative activities such as: • Professional services (consultant fees, auditor fees, etc.) • Staff salaries, benefits, and overhead for time spent on Housing Successor administration • Compliance monitoring to ensure compliance with affordable housing and loan agreements • Property maintenance at Housing Successor-owned properties Capped at $200,000 and adjusted annually for inflation or 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”), whichever is greater. Homeless Prevention and Rapid Rehousing Solutions Annual Limit $500,000 maximum per fiscal year • Services for individuals and families who are homeless or would be homeless but for this assistance, including: • Contributions toward the construction of local or regional homeless shelters • Housing relocation and stabilization services including housing search, mediation, or outreach to property owners • Short-term or medium-term rental assistance • Security or utility deposits • Utility payments • Moving cost assistance • Credit repair • Case management • Other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless. Affordable Housing Development No spending limit, but must comply with income and age targets “Development” includes: • New construction • Acquisition and rehabilitation • Substantial rehabilitation • Acquisition of long-term affordability covenants on multifamily units • Preservation of at-risk units whose affordable rent restrictions would otherwise expire over the next five years
Daly City Housing Successor Annual Report FY 2024-25 22 Health and Safety Code Section 34176.1 Expense Category Limits Allowable Uses Income Targets Fixed Five-Year Compliance Period: FY 2024-25 to FY 2028-29 Every five years, Housing Asset Funds must meet income targets: • At least 30% on extremely low-income rental households (up to 30% AMI or “Area Median Income”) • No more than 20% on low-income households (60-80% AMI) Moderate and above moderate-income households may not be assisted (above 80% AMI). Failure to comply with the extremely low-income requirement in any five-year compliance period will result in having to ensure that 50 percent of remaining funds be spent on extremely low-income rental units until in compliance. Exceeding the expenditure limit for low households earning between 60-80% AMI in any five-year reporting period will result in not being able to expend any funds on these income categories until in compliance. Age Targets Rolling Ten-Year Period For the prior ten years (resets every year), a maximum of 50% of deed-restricted rental housing units assisted by the Housing Successor or its host jurisdiction may be restricted to seniors. If a housing successor fails to comply, Housing Asset Funds may not be spent on deed-restricted rental housing restricted to seniors until in compliance.
City Council Meeting Agenda Report Item # _____
Meeting Date: March 23, 2026
Subject: Adoption of an Ordinance Adding Chapter 15.09 to the Daly City Municipal Code Establishing Construction Hours on Private Property
Recommended Action
Adopt an ordinance adding Chapter 15.09 to the Daly City Municipal Code establishing construction hours for outdoor construction activities on private property.
Background
This is a request by the City of Daly City to adopt an ordinance that regulates construction hours for outdoor construction activities on private property (see Attachment A – Draft Construction Hours Ordinance).
Construction activity can generate temporary noise and disruptions for nearby residents and businesses. Daly City currently regulates noise through provisions in the General Plan Noise Element and the Municipal Code, which essentially prohibits unwelcome noise between the hours of 10:00 P.M. and 6:00 A.M. In the past, such hours have also been regulated through Public Works Department permit guidelines which relate to work in the public right-of-way only and through Conditions of Approval, which have been imposed by the Planning Commission and City Council.
As a result, there has never been a uniform regulation of construction hours on private property, with some projects being subject to different regulations than others and confusion about whether any of the hours imposed by Conditions of Approval regulated indoor construction activity.
The proposed ordinance establishes consistent construction hours for outdoor construction activity associated with building permits, while allowing interior work that does not create exterior noise impacts to continue without restriction.
Discussion
In determining what construction hours and enforcement would be appropriate in Daly City, staff conducted a survey of the larger cities in San Mateo County and the Bay Area (see Attachment B – Construction Hours Survey). Using this information, staff developed an ordinance that would establish the following construction hours for outdoor construction activities:
• Weekdays: 8:00 A.M. to 8:00 P.M.
• Saturdays: 9:00 A.M. to 8:00 P.M.
• Construction prohibited on Sundays and Federal holidays, unless an exemption is granted.
Construction work inside a completely enclosed building that does not exceed exterior ambient noise levels would not be subject to these restrictions. Small kitchen and bath remodeling projects within a home, for example, would be excluded while additions to a home would, as would construction of all new buildings.
City Council Agenda Report March 23, 2026
Ordinance Adding Chapter 15.09 to the DCMC Establishing Allowable Construction Hours Page 2 of 2
Additional provisions include:
• Limiting material deliveries to permitted construction hours; • Allowing site staging up to one hour before permitted hours without operating construction equipment;
• Requiring the permissible construction hours signs to be posted at the job site, to inform workers at the jobsite and the public; and
• Allowing the Building Official or their designee to grant exemptions in emergency or exceptional circumstances.
Compliance with construction hours would be a condition of all future building permits, with enforcement authority shared between the Building Division and Code Enforcement. The Building Official or their designee would enforce the ordinance through warning notices, inspection holds, or Stop Work Orders when violations occur. Code Enforcement staff may also assist by responding to complaints regarding construction activity occurring outside permitted hours. Violations would be treated as a public nuisance, allowing the City to pursue additional remedies as necessary.
Environmental Assessment
The ordinance is exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3) as it does not have the potential to cause a significant effect on the environment.
Recommendation
Staff recommends that the City Council take the following action:
1. Adopt the Findings as outlined herein;
2. Adopt the CEQA Exemption 15061-Regulation Review;
3. Approve the addition of Chapter 15.09 to the Daly City Municipal Code Establishing Construction Hours on Private Property.
Staff is available to provide any additional information desired by the Council members.
Mario Sigala Michael VanLonkhuysen
Chief Building Official Acting Director
Economic and Community Development
Attachments
Attachment A – Draft Construction Hours Ordinance
Attachment B – Construction Hours Survey
1 ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DALY CITY ADDING CHAPTER 15.09 TO THE MUNICIPAL CODE RE: HOURS OF CONSTRUCTION
The City Council of the City of Daly City, DOES ORDAIN as follows:
SECTION 1. Chapter 15.09 of the Daly City Municipal Code is hereby added to read as follows:
15.09.010 Hours of Construction
A. General construction hours for work being performed outdoors on private property for construction projects requiring a building permit shall be limited to weekdays from 8:00 a.m. to 8:00 p.m., and Saturdays from 9:00 a.m. to 8:00 p.m. Sunday and Federal Holidays construction work shall be prohibited unless exemptions are granted in accordance with this section by the Building Official or their designee, at his or her sole discretion. If such an exemption is granted, the approved hours of construction shall be posted at the construction site in a place and manner that can be easily viewed by an interested member of the public.
B. These hours do not apply to construction work that takes place inside a completely enclosed building and does not exceed the exterior ambient noise level as measured ten feet from the exterior property lines.
C. Compliance with the construction hours established in this section shall be a condition of the building permit.
D. This section shall not apply to emergency work necessary to protect life, safety, or property.
15.09.020 Noise
During the permitted construction hours, the contractor shall ensure noise generated by construction equipment shall not exceed construction noise levels allowed for temporary noise sources, as defined in the Noise Element of the Daly City General Plan. Additionally, no deliveries of materials or equipment are permitted outside these hours. The contractor is permitted to stage and prepare the worksite up to one hour before the permitted hours of construction provided that no construction equipment is in use. The use of any construction equipment outside the permitted construction hours is strictly prohibited.
15.09.030 Posted Signs.
Construction hours sign(s) for projects subject to this ordinance shall be posted five (5) feet above ground level and shall be visible to the street at all entrances to the construction site.
15.09.040 Hours of Work Exemption
A. Exemptions from the hours of work designated in this chapter may be granted under the
2 following:
Upon written application to the Building Official or their designee. The Building Official or their designee may approve such application in his or her sole discretion for emergency situations or exceptional circumstances beyond the control of the applicant.
An application shall contain any information required by the Building Official or their designee, including, but not limited to the type of work to be performed, the equipment to be used, the date(s) and time(s) for the proposed hours of work, and the reason(s) therefore.
B. The approved hours of construction activity shall be posted at the construction site in a place and manner that can be easily viewed by an interested member of the public.
C. The Building Official or their designee may revoke an exemption at any time if the contractor or owner of the property fails to abide by the conditions of the exemption or if it is determined that the peace, comfort and tranquility of the occupants of adjacent residential or commercial properties are impaired because of the location and nature of the construction.
15.09.050 Violations and Enforcement
A. The Building Official or their designee is authorized to enforce the provisions of this section.
B. Enforcement actions may include issuance of a warning notice, placement of a hold on permit inspections, or issuance of a Stop Work Order until the violation is corrected.
C. Violations of this chapter shall be deemed and are hereby declared to be a public nuisance. Such nuisance may be abated, removed, or enjoined, and damages assessed therefor in any manner provided by law.
SECTION 2. Applicability. This Ordinance shall be applicable to building permits issued after the effective date of this Ordinance.
SECTION 3. Environmental Determination. The City Council of the City of Daly City finds and determines that the implementation of measures described in this Chapter is in furtherance of the police powers of the City of Daly City, and that these purposes are exempt from the provisions of the California Environmental Quality Act (CEQA); Chapter 3 (commencing with Section 21100) of Division 13 of the Public Resources Code, as provided in categorical exemption Classes 1, 4, 5, 7, 8, 9, and/or 21 of the CEQA Guidelines (Title 14, California Code of Regulations, Sections 15301-15329).
SECTION 4. Effective Date and Publication: Pursuant to the provisions of Government Code Section 36933, a summary of this ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this ordinance is scheduled to be adopted, the City Clerk shall (1) publish the summary, and (2) post it in the City Clerk’s Office a certified copy of this ordinance. Within fifteen (15) days after the adoption of this ordinance, the City Clerk shall (1) publish the summary and (2) post in the City Clerk’s Office a certified copy of the full text of this ordinance along with the names of those City Council members voting for and against this
3 ordinance or otherwise voting. This ordinance shall become effective thirty (30) days from and after its adoption.
SECTION 5. Severability: If any section, subsection or sentence of this Ordinance is found by a court of competent jurisdiction to be invalid or unlawful, the City Council finds and declares that the remainder of this ordinance would be and is enforceable and would have been adopted notwithstanding the finding of invalidity as to any section, subsection or sentence.
Introduced this day of , 2026.
Passed and adopted as an Ordinance of the City of Daly City at a regular meeting of the City Council of the City of Daly City held on the day of , 2026, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
CITY CLERK OF THE CITY OF DALY CITY
APPROVED:
MAYOR OF THE CITY OF DALY CITY
City Construction Hours Penalties
City and County SF 7am – 8pm, 7 days a week,
including holidays
City of South SF 8am – 8pm Mon-Fri, Sat. 9am-
8pm, Sundays and holidays
10am-6pm with noise level not
exceeding 90 dB.
Violations designated as infractions are punishable by
fines, specifically: $100 for the first violation, $200 for a second, and $500 for any additional violations
within a year
City of San Mateo Mon - Fri: 7am - 7pm
Sat: 9am - 5pm.
Sunday and City Observed
Holidays: 12pm - 4pm
Violation of a STOP WORK order per occurrence $282.78
City of Redwood City Mon-Fri 7am-8pm, no
construction allowed during
holidays. Unreasonable const.
noise 9am-4pm Mon-Fri.
$1,000 fine or 6-month imprisonment or both. $100 for
first violation, $200 second violation within one year . $500 fine for each additional violation.
City of Palo Alto 9am – 6 pm Mon-Fri, 9am – 6
pm Sat. Prohibited on Sundays
and holidays
$1,000 fine plus 6 months in jail and misdemeanor.
City of Mountain View Mon-Fri 7am-6pm. No work on
Sat. unless prior approval by
Bldg. Official. No construction
on Sunday or recognized
holidays.
Violations reported to Building Dept. during business
hours and to Police Dept after business hours, weekends and holidays.
City of Sunnyvale Mon-Fri 7am-6pm, Sat 8am-
5pm. No construction on
Sundays or federal holidays.
No penalties. Use complaint tracking. 1st complain
received warning. 2nd complaint is STOP WORK order. If
complaint on weekend call Police Dept.
City of Santa Clara Mon-Fri 7am-6pm. Sat. 9am-
6pm. Prohibited on holidays
Contact Police for complaints.
City of San Jose Within 500 ft of residential unit
Mon-Fri and at any time on
weekends, 7am-7pm.
Construction hours beyond
those hours must be approved
through a development permit.
Code enforcement enforces construction hours. If in
violation may have to pay inspection and reinspection
fees. If still fail to comply goes to appeals hearing board where judge can levy fines/fees daily, up to $100,000.
From there goes to legal process with City Attorney
office. Quiet hours are 10pm to 6am, enforced by Police.
City of Fremont Mon-Fri 7am-7pm, Sat. or
holidays 9am-6pm. No
construction on Sundays. For
construction no within 500 ft of
residences, lodging, nursing
homes or hospital: Mon-Fr
6am-10pm, weekends or
holidays 8am – 8pm.
Violations trigger withholding inspections and if further complaints, then referred to Safety Nuisance noise to
the Police Department.
City of Hayward Mon-Fri 7am-7pm, Sunday and
holidays 10am-6pm.
Withhold inspections if construction hours are not
observed.
City of Richmont General Construction limited to
Mon-Fri 7am-6pm. Pile driving
limited to Mon-Fri 8am-5pm.
Residential construction 1-5
units limited to 7am-8pm Mon-
Fri and 9am-6pm on Sat. Sun.
and federal holidays
Abatement costs
City Council Meeting Agenda Report Item # _____
Meeting Date: March 23, 2026
Subject: Zone Change ZC-02-26-17000 - Amendments to the City of Daly City Municipal Code Chapters 17.04.010, 17.37.030, 17.34.050, 17.44.100, and 17.45.150, Regulating the Building Height Definition, Front-Yard Paving, Use Permit Requirements on Condominium Maps, and the Expirations of Use Permit and Design Review Approvals
Recommended Action
Approve the proposed amendments to the City of Daly City Municipal Code Chapters 17.04.010,
17.37.030, 17.34.050 and Chapters 17.44.100 and 17.45.150, regulating the definition of building height, front-yard paving, the requirement for use permit as part of a condominium development, and the expiration times of use permit and design review approvals.
Planning Commission Discussion
On March 3, 2026, the Planning Commission voted 5-0 to recommend that the City Council adopt the zoning changes with one amendment. The following issue was raised at the meeting:
▪ Commissioner Satorre requested that Chapters 17.44.100 and 17.45.150, expiration of use permit and design review entitlements, be amended to five years, instead of three years to give applicants more time to complete their projects. The other commissioners agreed to amending the expiration to five years but with no extensions. The Planning Commission voted to amend the staff proposal from three to five years (no extensions). Staff raised no objections to the modification.
Background
This is a request by the City of Daly City to increase the expiration times for use permit and design review approvals, in Chapters 17.44 and 17.45, respectively; remove the requirement for a use permit for all condominium projects that are allowed by-right in Chapter 17.37.030; clarify the requirement that a triangular-shaped landscaping area as part of any front yard paving that adds a parking space in Chapter 17.34.050; and add a building height definition for all buildings not located within the Commercial Mixed Use (C-MU) Zone to Chapter 17.04.010 (see Attachment A – Proposed Zoning Ordinance Revisions).
Discussion
The Zoning Ordinance amendments proposed are a cumulation of necessary amendments that the Planning Division has determined are needed to codify current policies, address issues where the Zoning Ordinance may in conflict with the City’s adopted Housing Element, and for other purposes.
Staff proposes the following amendments to Chapter 17 (Zoning Ordinance):
City Council Agenda Report March 23, 2026
Zoning Change ZC-02-26-17000 – Amendments to DCMC - 17.04.010, 17.37.030, 17.34.050, Et al. Page 2 of 4
Chapter 17.04.10 Definitions
Staff requests that the building height definition be added back into Chapter 17.04.010 – General Provisions. When the General Plan was amended in 2025 with adoption of the Commercial – Mixed Use (C-MU) Zone, the height definition for all buildings was inadvertently removed and replaced with the height requirements for buildings within the C-MU zone. Staff requests re-introducing the building height definition for all buildings not located within the C-MU zone. For clarity and for the purpose of complementing the City’s Objective Design Standards, staff has proposed several amendments to the original language and the new definition would therefore read:
“Building height” means the average of the vertical measurements distance from the average taken at the horizontal center point of all of a building’s finished walls, this measurement beginning at the ground level at the center of all such walls of a building to the highest point of the coping of a flat roof, or the deck line of a mansard roof, or to the average height level between eaves and ridges for gable, hip, or gamble roofs.
The measurement for the height of an ADU shall be taken at the lowest measurable point for gable, hip, or gamble roofs (the roof itself shall not be included in the height calculation). In no case shall the front of building which faces a street exceeded the required height limit. However, a building may be “stepped” to allow a total front building height in excess of this requirement, providing that no part of any upper building section shall intercept a plane having an angle of 45 degrees from the horizontal to the interior of the lot. Said plane shall originate at the intersection of the roof line of the lowest building section with the front of the building section.
Staff proposes removing the stepped building height calculation primarily because this allowance is no longer necessary given significantly increased building height mandated by the City’s Housing Element implementation measures adopted by the City Council in 2024. Prior to this, the allowance resulted in “wedding cake” height calculations, which then forced the requirement for Planned Development zoning, variances, and other measures. A special measurement of building height is required for detached ADUs to allow the construction of two-story detached ADUs in compliance with State law.
Chapter 17.34.050 Contiguous front paving
Currently, replacement of existing front yard lawn or landscaping with hardscape (e.g., concrete, pavers, etc.) is allowed on any property with a single dwelling or duplex, subject to the following requirements: On parcels wider than twenty-five feet, at least twenty-five percent of the front yard shall be retained as landscape or xeriscape. The front yard is defined as the area between in front of the dwelling and the back of sidewalk, including the public right-of-way.
Staff requests adding a clarification to require triangular shaped landscaping for front yard paving that adds a parking space. There are two reasons for this proposed amendment. First is that driveway widening is not permitted, therefore, a triangular shaped paved area will accommodate a parked vehicle at an angle allowing for access from the existing driveway. Second is that a triangular shaped landscaping is desired as it reduces stormwater runoff from paved areas into the stormwater drains, reducing pressure on the stormwater drainage system.
City Council Agenda Report March 23, 2026
Zoning Change ZC-02-26-17000 – Amendments to DCMC - 17.04.010, 17.37.030, 17.34.050, Et al. Page 3 of 4 Furthermore, staff proposes amending the Zoning Ordinance to clarify that side-yard paving on corner lots is not permitted, as the allowance of this has resulted in significant paving at side yards where the original regulations did not intend to allow paving.
Chapter 17.37.030 - Use permit and subdivision map required
A use permit is currently required for a Subdivision Map associated with any condominium proposal.
This requirement has been in place for many years and the origin is unknown. Upon adoption of the City’s Housing Element in 2024, the element committed the city to reducing barriers to residential development such as discretionary review in development proposals. While the Zoning Ordinance and Subdivision Map Act requires hearings for condominium maps, there is no such authorization in the Map Act for a use permit, a discretionary permit without the objective standards of the subdivision map. Staff therefore requests that the use permit requirement for Condominiums be removed. A Subdivision Map application would still be required for condominiums.
Chapter 17.44.100 - Use permit expiration of permit
Currently a use permit entitlement expires if not used within one year from the date of approval. Due to the time needed to secure financing for construction and prepare building permit plans for submittal, the applicant is often not able to submit plans before the entitlement expires within one year. The Planning Commission modified the original staff request and is requesting that the expiration of the use permit permit be increased to five years from the date of approval with no extension from this date. Staff recommends that the City Council review the change to ensure the modification reflects the Council’s desires.
Chapter 17.45.150 Design Review Expiration of permit
Currently a design review permit entitlement expires if not used within one year from the date of approval. Similarly to the reason for use permit delays, the applicant is often not able to submit plans before the entitlement expires within one year. The Planning Commission modified the original staff request and is requesting that the expiration of the design review permit be increased to five years from the date of approval with no extension from this date. Staff recommends that the City Council review the change to ensure the modification reflects the Council’s desires.
General Plan and Zoning
The proposed amendments and clarifications all conform to the General Plan and Zoning and will improve and clarify the requirements for planning entitlements for use permits, design review, building heights, and the front yard paving program.
Environmental Assessment
The Planning Commission has reviewed the proposal under the requirements of the California Environmental Quality Act (CEQA) and determined the project is exempt under the CEQA – Guidelines Section of 150601 – Review for Exemption The proposed zone changes will not have a significant impact on the environment.
City Council Agenda Report March 23, 2026
Zoning Change ZC-02-26-17000 – Amendments to DCMC - 17.04.010, 17.37.030, 17.34.050, Et al. Page 4 of 4 Recommendation
The Planning Commission recommends that the City Council take the following action:
1. Adopt the Findings as outlined herein;
2. Adopt the CEQA Exemption 15061-Regulation Review;
3. Approve Zone Change ZC-02-26-17000.
Staff is available to provide any additional information desired by the Council members.
Sam Fielding Michael VanLonkhuysen
Associate Planner Acting Director
Economic and Community Development
Attachments
Attachment A – Proposed Zoning Ordinance Revisions
City of Daly City
Planning Division
Attachment A – Proposed Zoning Ordinance Revisions (March 2026)
17.44.010 - General provisions
“Building height” means the average of the vertical measurements distance from the average taken at the horizontal center point of all of a building’s finished walls, this measurement beginning at the ground level at the center of all such walls of a building to the highest point of the coping of a flat roof, or the deck line of a mansard roof, or to the average height level between eaves and ridges for gable, hip, or gamble roofs. The measurement for the height of an ADU shall be taken at the lowest measurable point for gable, hip, or gamble roofs (the roof itself shall not be included in the height calculation). In no case shall the front of building which faces a street exceeded the required height limit. However, a building may be “stepped” to allow a total front building height in excess of this requirement, providing that no part of any upper building section shall intercept a plane having an angle of 45 degrees from the horizontal to the interior of the lot. Said plane shall originate at the intersection of the roof line of the lowest building section with the front of the building section.
17.34.050 - Contiguous front yard paving.
A. Replacement of existing front yard lawn or landscaping with hardscape (e.g., concrete, pavers, etc.) shall be allowed on any property with a single dwelling or duplex, subject to the following requirements:
1. On parcels wider than twenty-five feet, at least twenty-five percent of the front yard shall be retained as landscape or xeriscape. For the purpose of compliance with this section, the front yard shall be defined as the area between in front of the dwelling and the back of sidewalk, including the public right-of-way. Front-yard paving projects on such lots providing a parking space shall provide the required landscape in a triangular shape or similar, as directed by the Planning Division staff. On corner lots, side-yard paving shall not be permitted.
2. Paving of any portion of the public right-of-way shall require the issuance of an encroachment permit by the engineering division. The application for encroachment
permit shall demonstrate compliance with the above landscape/xeriscape requirement. The engineering division shall have the ability require the replacement of the utility box serving the dwelling with a box rated for vehicular traffic, if one does not already exist.
3. All hardscape not subject to the one-time exemption provided in this section shall incorporate pavers, integral colored concrete, or any combination thereof. Integral concrete shall colored be brown or a color complementary to the dwelling situated upon the lot.
4. Paving on properties not served by an existing, legal vehicular curb-cut shall incorporate a permanent vertical barrier or other concrete cut-out pattern preventing the hardscape area from being used to park a vehicle. The permanent vertical barrier shall consist of a poured concrete curb not less than six inches in height and bricks and/or pavers set in poured concrete with an exposed surface not less than six inches.
B. Any single dwelling or duplex property with contiguous front yard paving which has been installed as of July 1, 2017, shall be considered legal and non-conforming, and shall be exempt from the requirements of this section provided the dwelling owner has secured a non-conformity finding from the planning division by a date set by city council resolution. Any front yard pavement not granted a nonconformity finding shall be brought into conformance with these regulations upon issuance of any building permit for work exceeding a valuation set by city council resolution.
C. Paving, terracing, and/or filling of any yard shall not be counted toward lot coverage.
Placing removable rock material in any front yard area shall be exempt from this section.
(Ord. No. 1412, § 5, 2-13-2017)
17.37.030 - Use permit and subdivision map required (not including condominiums).
A. A use permit pursuant to Chapter 17.44 and a subdivision map pursuant to city and state codes shall be required for the use and development of any lot or parcel of real property for condominiums, conversions, stock cooperatives, community apartments of communal ownership, irrespective of the area or size of such lot or parcel.
B. A use permit application and subdivision map shall be filed concurrently.
(Ord. 900 § 1 (part), 1980: prior code § 26-102)
17.44.100 - Expiration of permit.
A use permit granted in accordance with the terms of this title shall be automatically terminated if not used within one three five years from the date of approval. A use permit shall not be deemed used or exercised until the permittee has actually obtained a building permit and commenced construction thereunder or has actually commenced the permitted use on the premises. Where a use permit is granted in conjunction with a tentative map for a condominium development pursuant to Section 17.37.030, the use permit shall terminate one year after the approval of the final subdivision map by the city council, if not used. Upon written request from the permittee, such use permit may be extended by the city council for a maximum period of six months two years.
(Ord. 988 § 1, 1983)
17.45.150 - Expiration of permit.
A design review permit granted in accordance with the terms of this title shall be automatically terminated if not used within one three five years from the date of approval. A design review permit shall not be deemed used or exercised until the permittee has actually obtained a building permit and commenced construction thereunder. Where a design review permit is granted in conjunction with a tentative map for a condominium development pursuant to Section 17.37.030, the design review permit shall terminate one year after the approval of the final subdivision map by the city council, if not used. Upon written request from the permittee, such design review permit may be extended by the reviewing body for a maximum period of six months two years. (Ord. 1170 § 1 (part), 1993)
City of Daly City
Department of Economic and Community Development
Planning Division
Zoning Change ZC-02-26-017000
City Council
Public Hearing
March 23, 2026
Proposed Amendments
• Chapter 17.04.010 Height definition for buildings not within C-MU. • Chapters 17.44 Use permit approvals
• Chapter 17.45 Design review approvals
• Chapter 17.37.030 Use permit and Subdivisions
• Chapter 17.34.050 Triangular shaped landscaping for FYP program
Background
§ March 3, 2026: PC voted 5-0 to recommend approval of March 3, 2026: PC voted 5-0 to recommend approval of the staff recommended proposed amendments with an the staff recommended proposed amendments with an amendment of Chapters 17.44 and 17.45 regarding amendment of Chapters 17.44 and 17.45 regarding expiration of entitlements.expiration of entitlements.
§ Instead of recommended increasing from 1 year to 3 Instead of recommended increasing from 1 year to 3 years with extension request of 2 years, the PC years with extension request of 2 years, the PC requested a use permit and design review expire in 5 requested a use permit and design review expire in 5 years with no extension. years with no extension.
Driveway curb cut
Stormwater run0ff
flows into soil
CEQA Environmental Review
§ Determined to be Categorically Exempt pursuant to
CEQA Guidelines Section 15061 Review for Exemption.
Staff recommends the City Council take the following action:
Recommend City Council approval of minor amendments to
Municipal Code Chapters 17.04.010, 17.34.050, 17.37.030,
17.44 and 17.45.
Recommendation
Presentation Conclusion
Questions?
Source: San Diego County, Zoning Division
Source: City of Daly City ADU Guidelines Checklist
deck line
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DALY CITY AMENDING CHAPTER 17 OF THE MUNICIPAL CODE RE: ZONING ORDINANCE UPDATES
The City Council of the City of Daly City, DOES ORDAIN as follows:
SECTION 1. Section 17.44.010 of the Daly City Municipal Code is hereby amended to read as follows:
17.44.010 - General provisions
“Building height” means the average of the vertical measurements taken at the horizontal center point of all of a building’s finished walls, this measurement beginning at the ground level of all such walls to the highest point of the coping of a flat roof, the deck line of a mansard roof, or to the average height level between eaves and ridges for gable, hip, or gamble roofs. The measurement for the height of an ADU shall be taken at the lowest measurable point for gable, hip, or gamble roofs (the roof itself shall not be included in the height calculation).
SECTION 2. Section 17.34.050 of the Daly City Municipal Code is hereby amended to read as follows:
17.34.050 - Contiguous front yard paving.
A. Replacement of existing front yard lawn or landscaping with hardscape (e.g., concrete, pavers, etc.) shall be allowed on any property with a single dwelling or duplex, subject to the following requirements:
1. On parcels wider than twenty-five feet, at least twenty-five percent of the front yard shall be retained as landscape or xeriscape. For the purpose of compliance with this section, the front yard shall be defined as the area between in front of the dwelling and the back of sidewalk, including the public right-of-way. Front-yard paving projects on such lots providing a parking space shall provide the required landscape in a triangular shape or similar, as directed by the Planning Division staff. On corner lots, side-yard paving shall not be permitted.
2. Paving of any portion of the public right-of-way shall require the issuance of an encroachment permit by the engineering division. The application for encroachment permit shall demonstrate compliance with the above landscape/xeriscape requirement. The engineering division shall have the ability require the replacement of the utility box serving the dwelling with a box rated for vehicular traffic, if one does not already exist.
3. All hardscape not subject to the one-time exemption provided in this section shall incorporate pavers, integral colored concrete, or any combination thereof. Integral concrete shall colored be brown or a color complementary to the dwelling situated upon the lot.
4. Paving on properties not served by an existing, legal vehicular curb-cut shall incorporate a permanent vertical barrier or other concrete cut-out pattern preventing the hardscape area from being used to park a vehicle. The permanent vertical barrier shall consist of a poured concrete curb not less than six inches in
height and bricks and/or pavers set in poured concrete with an exposed surface not less than six inches.
B. Any single dwelling or duplex property with contiguous front yard paving which has been installed as of July 1, 2017, shall be considered legal and non-conforming, and shall be exempt from the requirements of this section provided the dwelling owner has secured a non-conformity finding from the planning division by a date set by city council resolution.
Any front yard pavement not granted a nonconformity finding shall be brought into conformance with these regulations upon issuance of any building permit for work exceeding a valuation set by city council resolution.
C. Paving, terracing, and/or filling of any yard shall not be counted toward lot coverage.
Placing removable rock material in any front yard area shall be exempt from this section.
SECTION 3. Section 17.37.030 of the Daly City Municipal Code is hereby amended to read as follows:
17.37.030 - Use permit and subdivision map required (not including condominiums).
A. A use permit pursuant to Chapter 17.44 and a subdivision map pursuant to city and state codes shall be required for the use and development of any lot or parcel of real property for conversions, stock cooperatives, community apartments of communal ownership, irrespective of the area or size of such lot or parcel.
SECTION 4. Section 17.44.100 of the Daly City Municipal Code is hereby amended to read as follows:
17.44.100 - Expiration of permit.
A use permit granted in accordance with the terms of this title shall be automatically terminated if not used within five years from the date of approval. A use permit shall not be deemed used or exercised until the permittee has actually obtained a building permit and commenced construction thereunder or has actually commenced the permitted use on the premises. Where a use permit is granted in conjunction with a tentative map for a condominium development pursuant to Section 17.37.030, the use permit shall terminate one year after the approval of the final subdivision map by the city council, if not used
SECTION 5. Section 17.45.150 of the Daly City Municipal Code is hereby amended to read as follows:
17.45.150 - Expiration of permit.
A design review permit granted in accordance with the terms of this title shall be automatically terminated if not used within five years from the date of approval. A design review permit shall not be deemed used or exercised until the permittee has actually obtained a building permit and commenced construction thereunder. Where a design review permit is granted in conjunction with a tentative map for a condominium development pursuant to Section 17.37.030, the design review permit shall terminate one year after the approval of the final subdivision map by the city council, if not used.
SECTION 6. Environmental Determination. The City Council of the City of Daly City finds and determines that the implementation of measures described in this Chapter is in furtherance police powers of the City of Daly City, and that these purposes are exempt from the provisions of the California Environmental Quality Act (CEQA); Chapter 3 (commencing with Section 21100)
of Division 13 of the Public Resources Code, as provided in categorical exemption Classes 1, 4, 5, 7, 8, 9, and or 21 of the CEQA Guidelines (Title 14, California Code of Regulations, Sections 15301-15329).
SECTION 7. Effective Date and Publication: Pursuant to the provisions of Government Code Section 36933, a summary of this ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this ordinance is scheduled to be adopted, the City Clerk shall (1) publish the summary, and (2) post it in the City Clerk’s office a certified copy of this ordinance. Within fifteen (15) days after the adoption of this ordinance, the City Clerk shall (1) publish the summary and (2) post in the City Clerk’s office a certified copy of the full text of this ordinance along with the names of those City Council members voting for and against this ordinance or otherwise voting. This Ordinance shall be in full force and effect thirty (30) days from and after its passage.
SECTION 8. Severability: If any section, subsection or sentence of this Ordinance is found by a court of competent jurisdiction to be invalid or unlawful, the City Council finds and declares that the remainder of this ordinance would be and is enforceable and would have been adopted notwithstanding the finding of invalidity as to any section, subsection or sentence.
Introduced this day of , 2026.
Passed and adopted as an Ordinance of the City of Daly City at a regular meeting of the City Council of the City of Daly City held on the day of , 2026, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
CITY CLERK OF THE CITY OF DALY CITY
APPROVED:
MAYOR OF THE CITY OF DALY CITY
City Council Meeting Agenda Report Item # _____
Meeting Date: March 23, 2026
Subject: Zone Change ZC 04-24-16507 – Adoption of Commercial Cannabis Non-Retail (-CCNR) Combining District and Amendments to the Zoning Map Rezoning Parcels to be included in the -CCNR Commercial Cannabis Combining District
Recommended Action
Approve Zone Change ZC 04-24-16507, adding a Commercial Cannabis Non-Retail (-CCNR) Combining District to the Zoning Ordinance and amend the Zoning Map to rezone parcels to be included in the new -CCNR Commercial Cannabis Combining District.
Planning Commission Discussion
On February 3, 2026, the Planning Commission voted 5-0 to recommend that the City Council adopt the proposed zone text amendment and add certain parcels to the combining district.
Background
In 2016, California voters enacted Proposition 64, intended to create a comprehensive system to legalize, control, and regulate the cultivation, processing, manufacture, distribution, testing, and sale of non-medical cannabis, and to tax the cultivation and retail sale of cannabis for non-medical use.
In November 2018, Daly City voters approved a business license tax on all cannabis businesses of up to ten percent of gross receipts in anticipation of the future allowance of cannabis sales. In October 2019, the City Council adopted an ordinance that authorized commercial cannabis activities and established the process for permitting and regulating commercial cannabis activities in Daly City.
The ordinance requires that, in addition to a State license, operators of commercial cannabis businesses in Daly City obtain a Commercial Cannabis Business License from the City of Daly City.
The ordinance also required staff to present for adoption to the Planning Commission and City Council an overlay district in which commercial cannabis operations would be allowed to operate.
In November 2020, the Council Committee accepted for recommendation to the Planning Commission and City Council a series of maps intended to implement an approximate 600-foot buffer zone around schools and youth centers throughout Daly City. These overlay district maps are based generally on whether the frontage of a property (where the property abuts the public right-of-way) is greater than 600 feet from a public/private school and/or youth center.
In March 2021, the City Council approved Zone Change ZC 01-21-14846, which enacted amendments to the Zoning Ordinance and Zoning Map Establishing -CC Commercial Cannabis Combining District. These amendments to the Zoning Ordinance, which currently exist in the Daly City Municipal Code as Chapter 17.56 – CC-Commercial Cannabis Combining District, allowed cannabis retailers and cannabis delivery businesses in six “eligibility zones,” with one retailer or delivery business in each zone. In July 2023, the City Council approved a seventh eligibility zone that solely included the property at 1618 Sullivan Avenue (see Attachment A – Current Retail Cannabis Eligibility Zones Map).
City Council Staff Report March 23, 2026
Zone Change ZC 04-24-16507 – Creation of Non-Retail Commercial Cannabis Combining District Page 2
At the time of the 1618 Sullivan Avenue rezoning approval, Councilmember Daus-Magbual expressed concern that the Council would not need to have to consider additional eligibility zones if there were additional opportunities for cannabis retail sales in Daly City. In September 2023 a Council Committee directed staff to prepare a proposal for rezoning additional sites into the -CC overlay zone for Planning Commission and City Council consideration. Another Council Committee and the Small Business Commission recently reviewed the same proposal.
On September 8, 2025, the City Council considered a proposal to rezone additional sites on Mission Street and Geneva Avenue into the -CC overlay zone. After discussing the proposal, the City Council directed staff to prepare an ordinance allowing only cannabis uses that did not include onsite retail at the additional sites.
Discussion
As initially proposed to the Planning Commission and City Council, the -CC combining district was proposed to apply to approximately 230 properties in 12 distinct eligibility zones (see Attachment B – Initially Proposed Retail Cannabis Eligibility Zones Map). This quantity of eligibility zones and their geographic distribution was agreed to and recommended by a Council Committee, using in most part an approximate 600-foot buffer zone around schools and youth centers throughout Daly City.
At the time of the Planning Commission public hearing to consider the -CC combining district in February 2021, residents expressed concerns about the number of eligibility zones that were proposed and called for a greater buffer around schools. Consequently, the Planning Commission concurred with these concerns and unanimously agreed to recommend that the City Council exclude several geographic areas from the new combining district that would have allowed retail sales along School Street, the East Market/Mission/San Pedro, and Hillside Boulevard, respectively.
At the City Council meeting to consider the -CC combining district in March 2021, additional residents and several community organizations expressed concerns about the number of eligibility zones, especially regarding expanding the -CC combining district to School Street, Mission Street, and Skyline Plaza. After a robust discussion, the Council agreed with the Planning Commission’s above recommendations for exclusions, and that the -CC combining district should not be extended to the Bayshore neighborhood or the Crocker neighborhood along Mission Street.
Since the time of initial adoption however, the City has had the opportunity to evaluate the community impact of retail cannabis with the operation of the Megabud dispensary (temporarily closed) at 190 Skyline Plaza, the Catalyst Dispensary at 1000 King Drive, and Nectar Dispensary at 2468 Junipero Serra Boulevard, and has found such impacts to be negligible. For this reason, staff recommended in June 2025 that the Planning Commission forward a recommendation to the City Council that it add into the -CC combining district parcels fronting Mission Street between Crocker Avenue and Templeton Avenue, fronting Geneva Avenue between Talbert Street and Bayshore Boulevard, and fronting Geneva Avenue between Castillo Street and Calgary Street (see Attachment C – Proposed Additional Parcels Mission Street and Geneva Avenue).
While the Planning Commission did so and the City Council consequently considered the additions into the -CC combining district, the Council ultimately directed staff to develop a regulatory method of allowing only non-retail cannabis uses on these parcels (off site retail would be permissible). Staff
City Council Staff Report March 23, 2026
Zone Change ZC 04-24-16507 – Creation of Non-Retail Commercial Cannabis Combining District Page 3
has therefore proposed the creation of a new Commercial Cannabis Non-Retail (-CCNR) Combining District and that the previously considered parcels be rezoned to be included in the new -CCNR Commercial Cannabis Combining District. Allowable uses could include cannabis delivery, developing and manufacturing products where cannabis is a primary ingredient for sale off-site, and similar uses.
Staff feels that including these areas would provide additional cannabis business opportunities in Daly City. The City Council should be aware that the Mission Street and Geneva Avenue parcels would each provide one opportunity zone for these uses (only one in the Bayshore neighborhood).
Environmental Assessment
The proposed rezonings are exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section of 15061 - Review for Exemption. The proposed rezonings do not have the potential to cause significant effects on the environment and it can be seen with certainty that there is no possibility that the regulations would have a significant effect on the environment.
Recommendations
The Planning Commission recommends that the City Council:
1. Adopt the Findings as outlined herein;
2. Find that the proposed rezonings are exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section of 15061 - Review for Exemption; and
3. Approval Zone Change ZC 04-24-16507, creating a new Commercial Cannabis Non-Retail (- CCNR) combining district and rezoning parcels fronting Mission Street between Crocker Avenue and Templeton Avenue, fronting Geneva Avenue between Talbert Street and Bayshore Boulevard, and fronting Geneva Avenue between Castillo Street and Calgary Street into the new combining district.
Staff is available to provide any additional information desired by the Council members.
Respectfully submitted,
Acting Director
Department of Economic and Community Development
City Council Staff Report March 23, 2026
Zone Change ZC 04-24-16507 – Creation of Non-Retail Commercial Cannabis Combining District Page 4
Attachments
Attachment A – Current Retail Cannabis Eligibility Zones Map Attachment B – Initially Proposed Retail Cannabis Eligibility Zones Map Attachment C – Proposed CCNR Inclusion Parcels Mission Street and Geneva Avenue Attachment D – Draft Zoning Ordinance Language for -CCNR Overlay
Area A (Mission Street between Crocker Avenue and Templeton Avenue)
AREA B (Geneva Avenue between Talbert Street and Bayshore Boulevard)
AREA C (Geneva Avenue between Castillo Street and Calgary Street)
CITY OF DALY CITY
PLANNING DIVISION
DRAFT COMBINING DISTRICT ZONING LANGUAGE
Chapter 17.XX - -CC-NR COMMERCIAL CANNABIS NON-RETAIL COMBINING DISTRICT Sections:
17.27.010 - General provisions.
The purpose and intent of this chapter is to provide for the orderly regulation of the commercial cannabis non-retail industry within the City of Daly City with the intent of encouraging economic growth and job creation while protecting the public health, safety and welfare of the residents and patients of the city. All definitions, authority, scope, responsibilities, requirements, standards, conditions, exemptions, procedures, and penalties described within state law are adopted and incorporated, as are any regulations identified in Chapter 5.104, Commercial Cannabis Regulations.
17.27.020 - Lands to be included.
This Chapter and the regulations contained herein apply to the entire city and more specifically lands identified on the Zoning Map in the -CCNR Commercial Cannabis Non- Retail combining district. Excluded from -CCNR Commercial Cannabis combining district is any property that are is in the Coastal Zone, situated on the County line with San Francisco, State-owned, County-owned, or any property that is zoned Commercial Office (C-O), Manufacturing (M), or PD (Planned Development). Also excluded is any property containing an existing or proposed gasoline service station.
17.27.030 – Permitted use.
Following is the permitted use which may be permitted in an -CC combining district:
A. Cannabis non-retailer, as defined in Chapter 5.104, Commercial Cannabis Regulations, and subject to the regulations contained therein.
B. Cannabis delivery, as defined in Chapter 5.104, Commercial Cannabis Regulations, and subject to the regulations contained therein.
17.27.040 - Application requirements.
The application requirements shall be those identified in 5.104.60 Commercial Cannabis Business License – General Provisions.
17.27.050 – Eligibility zones.
The eligibility for any specific property located within the -CCNR Commercial Cannabis combining district shall conform to Chapter 5.104.XX – Eligibility.
17.27.060 - Development regulations.
The development regulation shall be those identified in the underlying zoning designation and any such regulations identified by Chapter 5.104.50 Conditions of Operation.
17.27.070 - Hearing and notice requirements.
No public hearing for the purpose of zoning conformance shall be required prior to the commencement of any use meeting the definition of Cannabis retailer, as defined in Chapter 5.104, Commercial Cannabis Regulations. The use shall be considered non- discretionary and therefore not subject to the requirements of the California Environmental Quality Act (CEQA).
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DALY CITY AMENDING CHAPTER 17 OF THE MUNICIPAL CODE RE: ZONING ORDINANCE UPDATES
The City Council of the City of Daly City, DOES ORDAIN as follows:
SECTION 1. Section 17.44.010 of the Daly City Municipal Code is hereby amended to read as follows:
17.44.010 - General provisions
“Building height” means the average of the vertical measurements taken at the horizontal center point of all of a building’s finished walls, this measurement beginning at the ground level of all such walls to the highest point of the coping of a flat roof, the deck line of a mansard roof, or to the average height level between eaves and ridges for gable, hip, or gamble roofs. The measurement for the height of an ADU shall be taken at the lowest measurable point for gable, hip, or gamble roofs (the roof itself shall not be included in the height calculation).
SECTION 2. Section 17.34.050 of the Daly City Municipal Code is hereby amended to read as follows:
17.34.050 - Contiguous front yard paving.
A. Replacement of existing front yard lawn or landscaping with hardscape (e.g., concrete, pavers, etc.) shall be allowed on any property with a single dwelling or duplex, subject to the following requirements:
1. On parcels wider than twenty-five feet, at least twenty-five percent of the front yard shall be retained as landscape or xeriscape. For the purpose of compliance with this section, the front yard shall be defined as the area between in front of the dwelling and the back of sidewalk, including the public right-of-way. Front-yard paving projects on such lots providing a parking space shall provide the required landscape in a triangular shape or similar, as directed by the Planning Division staff. On corner lots, side-yard paving shall not be permitted.
2. Paving of any portion of the public right-of-way shall require the issuance of an encroachment permit by the engineering division. The application for encroachment permit shall demonstrate compliance with the above landscape/xeriscape requirement. The engineering division shall have the ability require the replacement of the utility box serving the dwelling with a box rated for vehicular traffic, if one does not already exist.
3. All hardscape not subject to the one-time exemption provided in this section shall incorporate pavers, integral colored concrete, or any combination thereof. Integral concrete shall colored be brown or a color complementary to the dwelling situated upon the lot.
4. Paving on properties not served by an existing, legal vehicular curb-cut shall incorporate a permanent vertical barrier or other concrete cut-out pattern preventing the hardscape area from being used to park a vehicle. The permanent vertical barrier shall consist of a poured concrete curb not less than six inches in
height and bricks and/or pavers set in poured concrete with an exposed surface not less than six inches.
B. Any single dwelling or duplex property with contiguous front yard paving which has been installed as of July 1, 2017, shall be considered legal and non-conforming, and shall be exempt from the requirements of this section provided the dwelling owner has secured a non-conformity finding from the planning division by a date set by city council resolution.
Any front yard pavement not granted a nonconformity finding shall be brought into conformance with these regulations upon issuance of any building permit for work exceeding a valuation set by city council resolution.
C. Paving, terracing, and/or filling of any yard shall not be counted toward lot coverage.
Placing removable rock material in any front yard area shall be exempt from this section.
SECTION 3. Section 17.37.030 of the Daly City Municipal Code is hereby amended to read as follows:
17.37.030 - Use permit and subdivision map required (not including condominiums).
A. A use permit pursuant to Chapter 17.44 and a subdivision map pursuant to city and state codes shall be required for the use and development of any lot or parcel of real property for conversions, stock cooperatives, community apartments of communal ownership, irrespective of the area or size of such lot or parcel.
SECTION 4. Section 17.44.100 of the Daly City Municipal Code is hereby amended to read as follows:
17.44.100 - Expiration of permit.
A use permit granted in accordance with the terms of this title shall be automatically terminated if not used within five years from the date of approval. A use permit shall not be deemed used or exercised until the permittee has actually obtained a building permit and commenced construction thereunder or has actually commenced the permitted use on the premises. Where a use permit is granted in conjunction with a tentative map for a condominium development pursuant to Section 17.37.030, the use permit shall terminate one year after the approval of the final subdivision map by the city council, if not used
SECTION 5. Section 17.45.150 of the Daly City Municipal Code is hereby amended to read as follows:
17.45.150 - Expiration of permit.
A design review permit granted in accordance with the terms of this title shall be automatically terminated if not used within five years from the date of approval. A design review permit shall not be deemed used or exercised until the permittee has actually obtained a building permit and commenced construction thereunder. Where a design review permit is granted in conjunction with a tentative map for a condominium development pursuant to Section 17.37.030, the design review permit shall terminate one year after the approval of the final subdivision map by the city council, if not used.
SECTION 6. Environmental Determination. The City Council of the City of Daly City finds and determines that the implementation of measures described in this Chapter is in furtherance police powers of the City of Daly City, and that these purposes are exempt from the provisions of the California Environmental Quality Act (CEQA); Chapter 3 (commencing with Section 21100)
of Division 13 of the Public Resources Code, as provided in categorical exemption Classes 1, 4, 5, 7, 8, 9, and or 21 of the CEQA Guidelines (Title 14, California Code of Regulations, Sections 15301-15329).
SECTION 7. Effective Date and Publication: Pursuant to the provisions of Government Code Section 36933, a summary of this ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this ordinance is scheduled to be adopted, the City Clerk shall (1) publish the summary, and (2) post it in the City Clerk’s office a certified copy of this ordinance. Within fifteen (15) days after the adoption of this ordinance, the City Clerk shall (1) publish the summary and (2) post in the City Clerk’s office a certified copy of the full text of this ordinance along with the names of those City Council members voting for and against this ordinance or otherwise voting. This Ordinance shall be in full force and effect thirty (30) days from and after its passage.
SECTION 8. Severability: If any section, subsection or sentence of this Ordinance is found by a court of competent jurisdiction to be invalid or unlawful, the City Council finds and declares that the remainder of this ordinance would be and is enforceable and would have been adopted notwithstanding the finding of invalidity as to any section, subsection or sentence.
Introduced this day of , 2026.
Passed and adopted as an Ordinance of the City of Daly City at a regular meeting of the City Council of the City of Daly City held on the day of , 2026, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
CITY CLERK OF THE CITY OF DALY CITY
APPROVED:
MAYOR OF THE CITY OF DALY CITY