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Agenda packet

Daly City City Council
September 14, 2026

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September 14, 2026
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City Council Meeting Agenda Report Item # _____

Meeting Date: September 14, 2026

Subject: Zone Change ZC-06-26-017088 – Amending Chapter 17.47 - Inclusionary Housing Establishing Preference to Persons Who Live or Work in Daly City for Income- Restricted Affordable Housing Units

Recommended Action

Adopt an ordinance amending Chapter 17.47 – Inclusionary Housing to establish preferences for persons and households living in Daly City when selecting occupants for income-restricted affordable housing units.

Background

Adopted in 2021, Senate Bill SB649 (codified in the California Government Code in Section 7061) establishes a State policy to prevent the displacement of lower-income households. Among other things, this legislation allows local governments to adopt an affordable housing preference ordinance to assist residents facing gentrification, allowing them to continue living and working in the community. More specifically, the City of Daly City can require that at initial lease-up or sale that preference be given to households who live and/or work in Daly City when deciding the occupants of affordable residential units that have been constructed under the City’s Inclusionary Housing Ordinance. Households who occupy affordable units must also meet strict income qualifications. For affordable units targeting Low Income households, for example, a four-person household cannot make more than $168,100.

At the June 8, 2026 City Council Meeting, Councilmember Juslyn Manalo, a longtime advocate of affordable housing, requested that Staff amend the City’s Inclusionary Housing Ordinance to implement a local preference policy for affordable units. Because the ordinance exists within the Zoning Ordinance, Planning Commission review was required prior to advancing the proposed changes to the City Council for final approval.

Planning Commission Discussion

The Planning Commission recommended approval of the proposed Zoning Ordinance amendment 3-0 (Commissioners Paniza and Faapuaa absent). Commission Satorre asked what percentage of existing housing units would need to be constructed in Daly City to stabilize the housing market.

Staff responded that the current RHNA called for the construction of approximately 4,800 housing units. Commissioner Satorre asked if staff was familiar with the concept of gentrification and if it affected Daly City. Staff responded that it was familiar with the concept and that it did affect Daly City. Commissioner Cataur confirmed that the proposal was for people who live or work in Daly City. Commissioner Cataur stated that there was a provision in the proposed ordinance that, beyond people who live and work in Daly City, there was a preference for people who work for the school district. Staff stated that it was the staff expectation that the ordinance would primarily be people who live and work in Daly City, and then possibly the school district.

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City Council Staff Report
Zone Change ZC-06-26-017088 – Amending Chapter 17.47 – Inclusionary Housing Page 2 of 4 Establishing Preferences for Income-Restricted Affordable Housing Units September 14, 2026

Discussion

When considering such amendments to the City’s Inclusionary Housing Ordinance, the City is required under federal law to conduct an analysis that ensures the amendments are not discriminatory. More specifically, the City is required to determine if the changes could cause a “disparate impact” on a protected class, i.e., if the amendment would place individuals at a disadvantage in obtaining housing based on “protected characteristics,” such as race, gender, age, or family status. To undertake this analysis, the City of Daly City, in cooperation with HEART of San Mateo County, secured a consultant to complete a Disparate Impact Analysis (DIA) (see Attachment A – Daly City Disparate Impact Analysis).

A DIA is a statistical method used to determine if a neutral policy or practice unintentionally excludes or disproportionately harms protected groups (race, gender, age, disability). It focuses on the discriminatory effect rather than intent. It is used in employment hiring tests, credit checks, or housing, and includes the Four-Fifths Test (also called the 80% Test) and the Z-Test to identify outcomes that result in disadvantaging one or more groups by a statistically significant amount. To review the local preference policy, the DIA incorporated local race and ethnicity data of those who live or work in Daly City who might be income qualified to apply for affordable housing, compared to the race and ethnicity of those who might be income qualified and live anywhere in San Mateo County.

The DIA completed for the City of Daly found evidence of a statistically significant disparate impact for the proposed preference policy if it were applied to all units in a project. However, applying the preference to 70 percent of affordable units rather than 100 percent mitigates this concern and results in outcomes that do not appear to represent a disparate impact for any racial group.

Given the results of the DIA, staff is recommending a local preference policy that will apply to 70 percent of the affordable units in residential developments. In addition, to address Fair Housing concerns, no duration requirement would be included as part of the preference criteria. The Department of Housing and Urban Development (HUD) does not allow durational requirements for units they fund, and the legal literature on the topic makes it clear that such a requirement raises the possibility of legal challenges.

Staff feel that the proposed amendment to the Inclusionary Housing Ordinance will help to minimize the potential for disparate impact and is a legally defensible approach to achieving the City's desire to provide local preferences to City’s residents seeking to rent or own affordable housing. A preference policy does not guarantee that fulfilling the requirements will result in a housing unit or that certain households will “skip to the front of the line,” but it does ensure affordable housing units will be offered first to those who work or reside in Daly City.

Based on a review of other local policies, staff is recommending the following amendments to Chapter 17.47 – Inclusionary Housing:

1) Seventy (70) percent of the following affordable housing units would be made available to households living or working in Daly City:

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City Council Staff Report
Zone Change ZC-06-26-017088 – Amending Chapter 17.47 – Inclusionary Housing Page 3 of 4 Establishing Preferences for Income-Restricted Affordable Housing Units September 14, 2026

a) Any City-assisted affordable units; and
b) Any income-restricted units resulting from enforcement of Chapter 17.47 – Inclusionary Housing. The Policy would be applicable to both for-sale and rental units, applying at initial lease-up and upon each subsequent resale or new tenancy.

2) Applicants would self-certify their eligibility for the preference when applying for development. As a result, only those ranked high in the list will have to provide documentation, along with their other eligibility certification documentation.

3) The City’s local preference policy would be compatible with other preferences and set asides.

For example, if a developer is seeking funding from the County of San Mateo to fund an affordable housing project, the developer and that project would be subject to the County’s set- aside requirements. These set aside units are filled through referral from certain programs, such the homelessness coordinated entrance system.

4) In addition, where the County of San Mateo is funding an affordable housing project, the City’s local preference policy may be further restricted based on the proportion of funding provided by the County and the City. This funding could include direct funds, as well as land costs and fee waivers.

5) Units with accessibility features intended to help those with mobility needs, visual impairment, and/or a hearing impairment must be made available to a household with a household member with a documented need for the specific features included in the available accessible unit. If no applicant has a documented need for an accessible unit, the units will be offered to other eligible applicants according to the same preference ranking used for other City Supported and Inclusionary Housing units.

Staff has developed draft amendments to the City’s Inclusionary Zoning Ordinance, based on the above (see Attachment B – Proposed Amendments to Chapter 17.47 – Inclusionary Housing). If City Council approves the proposed Resolution and Ordinance, and directs staff to develop guidelines, staff will finalize the guidelines for approval by the City Manager. Staff are developing supplemental guidelines to provide greater detail on requirements such as the selection process, waitlist management, marketing plan, compliance monitoring, and data collection.

Environmental Assessment

The proposed zoning text amendment is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section of 15061 - Review for Exemption. The proposed zoning text amendment does 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.

RECOMMENDATION

The Planning Commission recommends that the City Council take the following actions:

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City Council Staff Report
Zone Change ZC-06-26-017088 – Amending Chapter 17.47 – Inclusionary Housing Page 4 of 4 Establishing Preferences for Income-Restricted Affordable Housing Units September 14, 2026

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-06-26-017088, amending Amendments to Chapter 17.47 – Inclusionary Housing, as described in this staff report.

Staff is available to provide any additional information desired by the Council members.

Respectfully submitted,

Acting Director
Department of Economic and Community Development

Attachments

Attachment A – Daly City Disparate Impact Analysis
Attachment B – Proposed Amendments to Chapter 17.47 – Inclusionary Housing

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Daly City, California
Proposed Live/Work Preference Policy
Disparate Impact Analysis
May 2026
Executive Summary
HEART of SMC engaged Street Level Advisors to conduct a Disparate Impact Analysis (DIA) on behalf of seven jurisdictions across San Mateo County, including Daly City. Daly City’s proposed policy would give preference to households that live or work in the jurisdiction when selecting residents for income-restricted affordable housing units. The purpose of this analysis is to determine whether the proposed preference could disproportionately disadvantage any racial or ethnic group in violation of Fair Housing law.

Using census data, the analysis compared the racial composition of households likely to benefit from the preference against the broader market-area population of income-eligible households.

Two established statistical tests—the Four-Fifths (80%) Test and the Z-Test—were applied to a hypothetical lottery of 75 affordable units with 4000 applicants (of which 500 would be preference-eligible), following the methodology endorsed by the court in Langlois v. Abington Housing Authority.

We found evidence of a statistically significant disparate impact for the proposed preference policy if it were applied to all units in a project. However, applying the preference to 70% of affordable units rather than 100% mitigates this concern and results in outcomes that do not appear to represent a disparate impact for any racial group.

I.Daly City’s Proposed Preferences
Affordable housing preferences offer priority to certain qualifying applicants in the lottery- selection process for income-restricted affordable housing projects. Several jurisdictions in San Mateo County have adopted or are considering the adoption of local preference policies. Daly City does not currently have a local preference policy, but the jurisdiction has used local preferences in affordable housing project agreements for mixed-income and 100% affordable projects. Daly City is considering adopting a preference for households that live or work in Daly City.

Preference would then be offered to applicants for affordable housing that include at least one adult (18 or over) that:
1

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●currently lives within Daly City, or
●works within Daly City.

The preference is expected to apply to all newly developed, income-restricted rental or for-sale units in the jurisdiction. The preference would not be expected to be applied to project-based voucher units or supportive-housing units filled through the Coordinated Entry System.

Table 1: Daly City, Local Preference Policy Summary
II.Defining Disparate Impact
Disparate impact is discrimination that occurs when seemingly neutral policies and practices have a disproportionate, adverse impact on any protected class. The legal precedent for disparate impact was established in the 1971 Supreme Court case Griggs v. Duke Power Co.

The justices determined that Title VII of the Civil Rights Act “proscribes not only overt discrimination, but also practices that are fair in form, but discriminatory in operation.” Under the Fair Housing Act, policies that generate a disparate impact on protected classes of applicants are illegal unless the “challenged practice is necessary to achieve one or more substantial, legitimate, non-discriminatory interests.” 1 In the context of fair housing, courts have generally looked to employment law guidelines to provide a model for evaluating whether housing preferences have the effect of adversely JurisdictionCurrent,
formalized
local
preference
policy?
Local
preference
used in the
past?
If yes, for
what kinds
of projects?
If yes, which
preferences?
Which
preferences for
new policy?
Daly City No. Yes. BMR
ownership
and rental
projects.

Only initial
sales thus
far; only
applies
to initial lease
up.

Live/work. Live/work in Daly
City.

Texas Department of Housing and Community Affairs v. Inclusive Communities Project.1 2

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impacting any racial group. No policy will result in a perfectly even representation of all racial groups, so courts have used somewhat complex statistical tests including the Four-Fifths Test (also called the 80% Test) and the Z-Test to identify outcomes that result in under-serving one or more groups by a statistically significant amount.

III.Summary of Methodology
To conduct the DIA, we first constructed estimates of the demographics of the overall applicant pool and of the preference-eligible applicant pool for future affordable housing projects. We then compared the racial composition of the population of potential applicants to the composition of households that would benefit from the proposed preference. We used Census Bureau data, as described below, to estimate the likely racial demographics of households that would benefit from a proposed preference and those of the general population of income eligible households in the broader market area (the households that would be expected to be selected if there were no preference).

Following the logic applied in the Langlois v. Abington Housing Authority case, we used this 2 data to conduct two distinct statistical tests: the Four-Fifths Test and the Z-Test.

1.The Four-Fifths Test (or 80% Test) was established and defined in federal labor guidelines and applied to the context of housing in a modified form by the Langlois decision. The Langlois version of this test finds disparate impact if the selection rate for any group in a lottery conducted with the preference would be less than 80% of the rate we would expect for that group in a lottery with no preference.

2. The Z-Test is a common test of statistical significance. The Langlois decision found that a preference selection rate for a given racial group that was two or more standard deviations from what would be expected with no preference would constitute evidence of disparate impact.

Using this methodology, a proposed preference would be considered to represent a potential disparate impact if it ‘failed’ both tests. The four-fifths test indicates whether there is a meaningful difference in selection rates but, because for smaller population groups, even very small changes in outcome can represent large changes in the selection rate, ‘failing’ this test may not always indicate a fair housing problem. The Z-Test is also necessary to identify outcomes that would be unlikely to happen by pure chance. Only an outcome that is both Langlois v. Abington Housing Authority, 207 F.3d 43, 50 (1st Cir. 2000).2 3

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meaningful and unlikely is considered to be potentially a fair housing concern. We are only concerned about the Z-scores for results that ‘fail’ the Four-Fifths Test.

Data Sources
Market-Area Residents (comparison group)
We used the Census Bureau’s 2023 5-Year American Communities Survey Public Use Microdata Sample (PUMS) to create custom Census data tables that estimate the number and percentage of renter households earning less than 80% of Area Median Income (AMI) adjusted for household size for each racial group living in San Mateo County. Using PUMS data allowed us to more precisely estimate the income-eligible population in each racial group and to remove lower-income households that already own homes and are unlikely to be eligible for affordable housing (rental or ownership).

Local Residents
We used the Census Bureau’s 2023 5-Year American Communities Survey Public Use Microdata Sample (PUMS) to create custom Census data tables that estimate the number and percentage of households earning less than 80% of Area Median Income (AMI) by race living in Daly City. Because the PUMS data does not provide geographic location by city, but at the Public Use Microdata Area (PUMA) level, we used Census-published tables of households by race and income band for Daly City to proportionally assign PUMS household records to this geography. Using PUMS data allowed us to more precisely estimate the income-eligible population in each racial group and to remove lower-income households that already own homes and are unlikely to be eligible for affordable housing (rental or ownership).

Local Workers
We utilized 2023 data from LEHD Origin-Destination Employment Statistics (LODES) database to estimate the number of households that have at least one member who works in each jurisdiction. Because Census workforce data, including LODES data, is available at the individual level and not the household level, we used countywide data on the number of adult workers per household to convert the individual worker counts into estimates of the number of households in each racial group that work in Daly City. The data does not enable us to identify the race of workers and also know their household income. We thus used the countywide income distribution by race to estimate the share of each group of workers that are lower income. This data does not allow us to exclude households that also live in the jurisdiction, though it is likely that many of the households that qualify as local workers are also eligible for the local resident preference.
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Table 2: Data Sources for Preference Pools and Broader Market Estimates Combined Pool
We combined the household total estimates for each racial group from the separate analyses to construct a single table that estimates the likely racial composition of the pool of people who would be eligible for the proposed preference in each jurisdiction (for either of the two reasons).

To do this we simply added the estimated number of households from each pool and calculated new percentages.

Hypothetical Lottery
In order to illustrate the impact of preferences on a realistic lottery scenario and to evaluate the statistical significance of the results, we have assumed a potential low-income housing project of 75 affordable housing units. We assumed a pool of 4000 applicants of which 500 (or 12.5%) would qualify for the local preference.

The assumed number of applicants eligible for the preference pool has no impact on results.

The size of the affordable housing projects does: Smaller projects are less likely to have statistically significant Z scores, while larger projects are more likely to have statistically significant Z scores. We selected a project size towards the high end of the typical range.

IV.Results
Table 3 shows preference-pool demographics relative to market-area demographics. There is a higher share of Asian households in the local-resident pool than in the comparison group. There are lower shares of White and Hispanic households in the local-resident pool than in the comparison group. The shares of Black and Other/Multiple households are comparable across the local-resident pool and the comparison group.

There are higher shares of Black and Asian households in the local-worker pool than in the comparison group. There are lower shares of White and Other/Multiple households in the local- worker pool than in the comparison group. The share of Hispanic households of the local worker pool is comparable to its share of the comparison group.

Category
Market-Area Residents Households earning less than 80% of AMI (adjusted for household size) located in San Mateo County, per 2023 ACS 5-year PUMS data.

Local Residents Households earning less than 80% of AMI (adjusted for household size) located within Daly City, per 2023 ACS 5-year PUMS data.

Local Workers Estimated low-income households (<80% AMI) with at least one member employed within Daly City, based on LODES data.
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Table 3: Demographic Estimates for Preference Pools and Broader Market We used these demographic estimates to simulate the lottery results for a hypothetical affordable housing project lottery in each jurisdiction and compare results between two scenarios – one where the preference policy is applied and units are allocated randomly to preference-eligible households and one where it is not applied and units are allocated randomly to households from the broader market area.

We conducted the 4/5ths test to assess whether selection rates for racial groups fall below 80% of the expected rate with no preference and the z-test to measure statistical significance of observed differences. The selection rate is the share of all applicants (preference and non- preference) that would likely be offered housing through a lottery. For example, in our hypothetical lottery with 4000 applicants for 75 units, the overall selection rate will be 1.8% (i.e.,

1.8% of applicants will win a unit). If applicants are selected truly randomly, we would expect that each racial group would also have a 1.8% selection rate. However, when we apply the preference, wherever the preference pool includes relatively more applicants of one racial group and fewer of others, the overall selection rates for each racial group will differ. We evaluated each of the potential preference categories (current residents and local workers) alone and also evaluated a combined pool including applicants from all categories. The combined preference has been weighted according to the ratio of households to workers in Daly City (i.e., 81% residents and 19% workers). 3
We found evidence of a statistically significant disparate impact for the proposed preference policy. However, applying the preference to 70% of affordable units rather than 100% mitigates this concern. Below, we’ve included results summaries for the combined preference, the live preference, and the work preference, all applied to 100% of affordable units.

We’ve also shown results for the combined preference applied to 70% of affordable units. The As described above, under data sources for local workers, people who live and work in Daly City are 3 being counted twice.
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proposed design of Daly City’s preference policy is the combined preference; the live and work preferences are shown as standalone preferences for informational purposes.

With the Combined Preference applied to 100% of units:
•White applicants are underrepresented in the preference pool and do not meet the 80% selection rate standard of the 4/5 test. This result is statistically significant with a Z score of 2.38.
•Hispanic applicants are also underrepresented in the preference pool and do not meet the 80% selection rate standard of the 4/5 test. This result is not statistically significant, but the Z score of 1.79 is fairly high.
•Applying the combined preference to 70% of affordable units mitigates this disparate impact, bringing the Z score for White applicants down to 1.66 (see Table 5 below). This is a more cautious application of the preference given the statistically significant results at higher applications of the preference.

Table 4: Combined Preference applied to 100% of units
Table 5: Combined Preference applied to 70% of units
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With the Live Preference applied to 100% of units:

These results, and those below, are included for informational purposes only; the proposed preference would be a combined live/work preference.
•White and Hispanic applicants are underrepresented in the preference pool relative to the broader market area, so their selection rates fall below 80% of what they would otherwise be. These results are statistically significant, with Z scores of 2.66 and 2.88, respectively.
•Black applicants also fail the 4/5 test because they are underrepresented in the preference pool relative to the broader market area. Because this group represents a very small share of the population, both in the preference pool and in the broader market area, any variation in selection would result in disproportionately large changes in selection rate. The results are not statistically significant. •If the jurisdiction were to adopt a preference for residents alone without also including a workforce preference, we found evidence of disparate impact at 100% preference.

However, the combined preference applied to a share of affordable units resolves this problem.

Table 6: Live Preference alone applied to 100% of units 8

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With the Work Preference applied to 100% units:
•Other/Multiple applicants do not meet the 80% selection rate standard of the 4/5 test.

Because this group represents a very small share of the population, both in the preference pool and in the broader market area, any variation in selection would result in disproportionately large changes in selection rate. The results are not statistically significant.

Table 7: Work Preference alone applied to 100% of units 9

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1 ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DALY CITY AMENDING CHAPTER 17.47 RE: INCLUSIONARY HOUSING

The City Council of the City of Daly City, DOES ORDAIN as follows:

SECTION 1. Sections 17.47.020(G) and (H) of the Daly City Municipal Code are hereby amended to read as follows:

17.47.020 Findings.

G. A limited preference for income-eligible households that live or work in Daly City supports the city's goals of providing affordable housing opportunities, maintaining community ties, and providing affordable housing near employment.

H. Prior to adopting a local live/work preference, the city obtained a Disparate Impact Analysis evaluating the proposed preference. Based on that analysis, the city has determined that seventy (70) percent of applicable affordable units shall be subject to the combined live/work preference and shall be implemented consistently with applicable fair housing and other legal requirements.

SECTION 2. Section 17.47.030 of the DalyCity Municipal Code is hereby amended to read as follows:

17.47.030 Definitions.
“City-assisted affordable unit” means an affordable unit receiving City financial assistance, City-owned land or property provided for affordable housing purposes, or other material City housing assistance pursuant to a funding, regulatory, affordability, or other agreement with the City. General land use approvals, permits, or incentives available to residential developments generally shall not, by themselves, constitute City assistance. “Works in Daly City” means that an adult household member is regularly and currently employed or self-employed at a physical worksite or business location within the incorporated boundaries of Daly City. Remote work performed from a residence in Daly City for an employer or business located outside Daly City shall not, by itself, qualify as working in Daly City.

Occasional, temporary, intermittent, or periodic work performed in Daly City shall not, by itself, qualify for the work preference.

SECTION 3. Section 17.47.130(D) of the Daly City Municipal Code is hereby amended to read as follows:

17.47.130 Continuing affordability and initial occupancy.

D. No household may begin occupancy of an inclusionary unit until the household has been determined to be eligible to occupy that unit. Rental inclusionary units shall continue to be rented to income eligible households at an affordable rent for the entire term of the inclusionary housing

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2 restriction. The inclusionary housing guidelines shall establish standards for determining household income, minimum and maximum occupancy, affordable housing cost, provisions for continued monitoring of tenant eligibility, local preference eligibility and selection procedures, where applicable, and other eligibility criteria.

SECTION 4. Section 17.47.140 (A) and (B) of the Daly City Municipal Code are hereby amended to read as follows:

17.47.140 Affordable housing plan and inclusionary housing agreement.

A. An affordable housing plan shall be submitted as part of the application for first approval of any residential development. no application for a first approval for a residential development may be deemed complete unless an affordable housing plan is submitted in conformance with the provisions of this chapter. Approval of an affordable housing plan is a condition of any tentative map, parcel map or building permit for any development for which this chapter applies. This section does not apply to projects where the requirements of the chapter are satisfied by payment of a fee under Section 17.47.120.

B. For each construction phase, the affordable housing plan shall specify, at the same level of detail as the application for the residential development, at least all of the following information:

1. Whether the development is for sale or rental and the type of structure (attached; semi-attached, detached);

2. How the inclusionary housing requirement will be satisfied pursuant to this chapter;

3. For all inclusionary units, the number of units, unit type, tenure, number of bedrooms and baths, approximate location/floor plan, size and design, construction and completion schedule;

4. Phasing of inclusionary units in relation to market-rate units in compliance with Section 17.47.090;

5. Marketing plan, including the manner in which inclusionary units will be offered to the public in a nondiscriminatory and equitable manner; and, where applicable, how the local preference under Section 17.47.200 will be implemented;

6. Specific methods to be used to verify household incomes, and to maintain the affordability of the inclusionary units;

7. A reliable financing mechanism for the ongoing administration and monitoring of rental inclusionary units;

8. Any other information that is reasonably necessary to evaluate the compliance of the affordable housing plan with the requirements of this chapter and the inclusionary housing guidelines.

SECTION 5. Section 17.47.170 if the Daly City Municipal Code is hereby amended to read as follows:

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3 17.47.170 Compliance monitoring.

The inclusionary housing guidelines and each inclusionary housing agreement shall include provisions for the monitoring by the city of each inclusionary unit for compliance with the provisions of this chapter, the inclusionary housing guidelines, and the applicable inclusionary housing agreement. Such provisions require annual compliance reports to be submitted to the city by the owner, and the city shall conduct periodic on-site audits to ensure compliance with all applicable laws, policies, and agreements. Where the local preference under Section 17.47.200 applies, monitoring may include information reasonably necessary to evaluate implementation of the preference. The city council may adopt fees for the costs of monitoring and compliance by the city, which shall be deposited into the affordable housing trust fund for that purpose.

SECTION 6. Section 17.47.180 (B) of the Daly City Municipal Code is hereby amended to read as follows:

17.47.180 Waiver.

B. Any request for a waiver, adjustment, or reduction under this section shall be submitted to the city concurrently with the affordable housing plan required by Section 17.47.140 of this chapter. The request for a waiver, adjustment, or reduction shall set forth in detail the factual and legal basis for the claim.

SECTION 7. Section 17.47.190 (B) of the Daly City Municipal Code is hereby amended to read as follows:

17.47.190 Implementation and enforcement.

B. The city shall evaluate the effectiveness of the ordinance codified in this chapter one year after the operative date of this chapter. The city shall periodically evaluate implementation of the local preference established by Section 17.47.200 and may revise the inclusionary housing guidelines as necessary to comply with applicable law and program requirements.

SECTION 8. Section 17.47.200 of the Daly City Municipal Code is hereby added to read as follows:

17.47.200 Local preference when assigning lease or sale of affordable units.

A. Seventy (70) percent of the applicable affordable units in each development subject to this section shall be made available with a preference to households living or working in Daly City, subject to applicable fair housing laws, funding requirements, regulatory requirements and other program requirements:

1. Any City-assisted affordable units subject to an applicable City funding, regulatory, affordability, or other agreement; and

2. Any income-restricted units resulting from enforcement of Chapter 17.47 – Inclusionary Housing.

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4 The policy shall be applicable to both for-sale and rental units, applying at initial lease-up or sale and upon each subsequent resale or new tenancy. Fractional units shall be rounded up to the nearest whole number.

The local preference shall be applied through the City’s approved applicant selection procedures and shall affect the order in which otherwise eligible applicants are considered for available affordable units. The preference shall not permanently attach to or restrict a particular affordable unit.

B. Applicants seeking local preference shall be allowed to claim and document one preference, even if they are eligible for more than one preference, from the following list of preferences:

1. Currently lives in Daly City;

2. Currently works in Daly City, as defined in Section 17.47.030.

Eligibility for the preference shall not depend on the length of time an applicant has lived or worked in Daly City.

C. Applicants shall provide documentation of their eligibility for the preference when applying for an affordable unit. This certification shall be verified by the City or its designee prior to resident selection, using reasonable and uniformly applied documentation requirements established by the City.

D. The City's local preference policy shall be compatible with other applicable preferences, set-asides, funding requirements, regulatory requirements, and program requirements. The City's local preference shall not apply to the extent it conflicts with applicable funding, regulatory, referral, or other program requirement.

E. In addition, where the County of San Mateo is funding an affordable housing project, the City’s local preference policy may be further restricted based on the proportion of funding provided by the County and the City. This funding could include direct funds, as well as land costs and fee waivers.

F. Units with accessibility features intended to help those with mobility needs, visual impairment, and/or a hearing impairment must be made available to a household with a household member with a documented need for the specific features included in the available accessible unit. If no applicant has a documented need for an accessible unit, the units will be offered to other eligible applicants according to the same preference ranking used for other City Supported and Inclusionary Housing units.

Any legally required priority for a household needing the accessibility features of a particular unit shall take precedence over the local preference. Nothing in this section limits a person's right to reasonable accommodation or reasonable modification under applicable law.

Page 231 of 278 ends

5 G. Affordable units subject to the local preference shall be marketed in a nondiscriminatory manner. Marketing shall not be limited to households that live or work in Daly City, and otherwise eligible non-local
applicants shall be permitted to apply.

H. The City shall periodically review implementation of the local preference and may reduce or suspend the preference if necessary to comply with applicable fair housing laws, funding requirements, or updated fair housing analysis. The percentage of applicable units for which the preference is applied shall not exceed seventy (70) percent without City Council action supported by updated analysis.

SECTION 9. Severability. If any provision of this Ordinance is held by any court or by any Federal or State agency of competent jurisdiction, to be invalid as conflicting with any Federal or State law, rule or regulation now or hereafter in effect, or is held by such court or agency to be modified in any way in order to conform to the requirements of any such law, rule or regulation, such provision shall be considered a separate, distinct, and independent part of this Ordinance, and such holding shall not affect the validity and enforceability of all other provisions hereof. In the event that such law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed, so that the provision thereof which had previously been held invalid or modified is no longer in conflict with such law, rule or regulation, said provision shall thereupon return to full force and effect and shall thereafter be binding.

SECTION 10. 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 within CEQA’s categorical exemption for activities involving regulation of activities.

SECTION 11. Publication/Summary 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 become effective thirty (30) days from and after its adoption.

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6 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DALY CITY AMENDING CHAPTER 17.47 RE: INCLUSIONARY HOUSING

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

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City Council Meeting Agenda Report Item # _____

Meeting Date: September 14, 2026

Subject: Zone Change ZC-04-26-17042 – Amendments to Zoning Ordinance Repealing Existing Accessory Dwelling Unit Regulations

Recommended Action

Approve Zone Change ZC-04-26-17042, amending the City’s Zoning Ordinance to repeal the existing accessory dwelling unit (ADU) regulations and to retain and relocate certain requirements pertaining to ADUs to other sections within the Zoning Ordinance.

Planning Commission Discussion

On May 5, 2026, the Planning Commission voted 4-0 (Commissioner Paniza absent) to recommend approval of the proposed changes to the City Council. Commissioner Faapuaa suggested that the City build physical models of ADUs and display them at City Hall, and that she supported aligning the City’s regulations with those of the State. Staff communicated that the City provided model ADUs that could be constructed on the City website. Commissioner Satorre asked if the staff was familiar with AB130, which was a permit streamlining provision that could be associated with the proposed amendments. Commissioner Nurris stated that he supported the zoning text changes.

On June 22, 2026, the City Council tabled this item to provide additional time for staff to receive a response from the State of California Department of Housing and Community Development (HCD). Staff has received the comments and amended the proposed revisions to the City’s Zoning Ordinance accordingly.

Background

Historically referred to as “second units” in Daly City, Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) have become an innovative and effective option for homeowners and residential property owners adding an additional dwelling to their property. Since the inception of State mandates for cities to allow second units in early 1980s, the Planning Division estimates the City has permitted over 2,200 ADUs and continues to permit approximately 30 to 50 new ADUs and JADU’s per year.

In California, the primary difference between an ADU and JADU is that the JADU is smaller (maximum 500 square feet), created within an existing home's footprint, and may share a bathroom with the main house. Alternatively, an ADU can be detached, is larger (often up to 1,200 square feet), and must be a fully self-contained unit. While traditionally most ADUs in Daly City have occupied the unfinished basement of homes, several homeowners have taken advantage of State laws allowing detached ADUs in their backyards. If these ADUs meet size and height maximums, and provide four-foot side and rear yards established by State law, they are not subject to the normal 50-55 percent maximum lot coverage normally permissible on single-family lots (see Attachment A – City of Daly City ADU Handout).

Page 234 of 278 ends

City Council Staff Report
Zone Change ZC-04-26-17042 – Page 2 of 4
Amendments to Zoning Ordinance Repealing Existing Accessory Dwelling Unit Regulations September 14, 2026

To increase housing supply, beginning in 2016, the State legislature passed significant reforms that eased the regulation of ADUs and shifted control from local jurisdictions like the City of Daly City to state regulations. Key changes included mandatory ministerial approval, 60-day review timelines, removal of parking requirements near transit, elimination of owner-occupancy mandates, and increased building allowances for both single-family and multifamily lots. In 2020, the Planning Division determined that all residential lots were “transit proximate” and began to conform the City’s regulation of ADUs and JADUs to State law.

Discussion

Over the years, and continuing every year, the State has added new legal parameters for allowing ADUs and JADU’s, most recently clarifying legislation (AB 1154) that the owner-occupancy allowance only applies if the JADU shares sanitation facilities, such as a bathroom, with the main house. Below is summary of the numerous changes enacted by the State legislature since 2020:

▪ 15-Day Rule (SB 543 - 2026): Local agencies must issue a completeness determination within 15 days; failure to do so deems the application approved. It also clarifies that maximum size limits refer to interior livable space, excluding exterior walls and stairs.

▪ Fire-Affected Homes (AB 462 - 2026): Allows certificates of occupancy for detached ADUs to be issued before the main house is rebuilt in fire-affected counties.

▪ Rental Rights (AB 976 - 2025): Permanently bans local agencies from requiring property owners to live on-site in either the primary dwelling or the ADU.

▪ JADU Expansion (AB 1154 - 2026): Allows for 3-unit rentals on a single-family lot (primary house, JADU, and detached ADU) without owner occupancy.

▪ Pre-approval Requirement (AB 1332 - 2025): Requires cities to create programs for pre- approved ADU plans to expedite construction.

▪ Reduced Fees & Timelines (AB 68/AB 881 - 2020): Drastically cut down on the time local governments had to approve applications (down to 60 days) and eliminated maximum size restrictions for detached ADUs, limiting local impact fees.

▪ Substandard ADUs (AB 2533 - 2025): Provided a path to legalizing existing, unpermitted ADUs without excessive penalties.

▪ Multi-family ADUs (AB 1211 - 2025): Expanded the number of detached ADUs for multi- family properties to 1 per unit, allowing more flexibility in creating density.

All the State’s requirements for ADUs and JADUs are outlined in the California Government Code Sections 66310–66342, which the Planning Division now enforces instead of the second unit regulations in the Zoning Ordinance (see Attachment B – State Law Pertaining to ADUs and JADUs).

The City is authorized to do so by State “preemption,” meaning that State law, which supersedes City law, has specifically set aside (made illegal) any of the City’s regulations that contradict State law.

Because of the number of annual amendments, the City has just relied upon State law over the years instead of adopting Zoning Ordinance regulations that mimic State law.

Page 235 of 278 ends

City Council Staff Report
Zone Change ZC-04-26-17042 – Page 3 of 4
Amendments to Zoning Ordinance Repealing Existing Accessory Dwelling Unit Regulations September 14, 2026

When the Planning Division was preparing the Housing Element in 2023, Division staff and the State Department of Housing and Community Development (HCD) staff agreed this was the most efficient approach if the City did not have significant modifications that it would like HCD to review. It is therefore necessary that the City repeal its existing “second unit” regulations, the definitions of what constitutes an accessory dwelling unit, and the requirements pertaining to Certificates of Registration, which are no longer a requirement because owner occupancy is no longer required.

In review of the regulations proposed for repeal, staff attempted to retain several existing policies related to ADUs in Daly City, including the ability to require that the entrance to proposed ADUs be on the same side of the home as the primary entrance, unless infeasible, and that a concrete walkway be provided from the sidewalk or driveway to the ADU entrance. These two requirements have however been disallowed by HCD. In considering HCD’s has allowed the provision of trash and recycling areas behind a garage door provided the State-mandated size minimize JADU (up to 500 square feet) JADU and ADU (up to 1,200 square feet) are not impinged.

A complete outline of the proposed changes is attached to the City Council staff report (see Attachment C – Proposed Zoning Ordinance Revisions).

Environmental Assessment

The proposed rezoning are exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section of 15061 - Review for Exemption. The proposed rezoning 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

Based on the findings enumerated above, staff recommends that the City Council take the following action:

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. Approve Zone Change ZC-04-26-17042, Amending Chapter 17.04 – Definitions, Chapter

17.35.040 – General Property Development Requirements, and Chapter 17.40.090 – Review of modifications to residential floorplans; and repealing Chapter 17.40.100 – Secondary Unit Standards and Requirements and 17.40.110 – Certificate of Registration Requirements.

Staff is available to provide any additional information desired by the Council members.

Page 236 of 278 ends

City Council Staff Report
Zone Change ZC-04-26-17042 – Page 4 of 4
Amendments to Zoning Ordinance Repealing Existing Accessory Dwelling Unit Regulations September 14, 2026

Respectfully submitted,

Acting Director
Department of Economic and Community Development

Attachments

Attachment A – City of Daly City ADU Handout
Attachment B – State Law Pertaining to ADUs and JADUs
Attachment C – Proposed Zoning Ordinance Revisions

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GOVERNMENT CODE - GOV
TITLE 7. PLANNING AND LAND USE [65000 - 66499.58] ( Heading of Title 7 amended by Stats. 1974, Ch. 1536. ) DIVISION 1. PLANNING AND ZONING [65000 - 66342] ( Heading of Division 1 added by Stats. 1974, Ch. 1536. ) CHAPTER 13. Accessory Dwelling Units [66310 - 66342] ( Chapter 13 added by Stats. 2024, Ch. 7, Sec. 20. ) ARTICLE 1. General Provisions [66310 - 66313] ( Article 1 added by Stats. 2024, Ch. 7, Sec. 20. ) The Legislature finds and declares all of the following:
(a) Accessory dwelling units are a valuable form of housing in California. (b) Accessory dwelling units provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others, at below market prices within existing neighborhoods. (c) Homeowners who create accessory dwelling units benefit from added income, and an increased sense of security.
(d) Allowing accessory dwelling units in single-family or multifamily residential zones provides additional rental housing stock in California.
(e) California faces a severe housing crisis.
(f) The state is falling far short of meeting current and future housing demand with serious consequences for the state’s economy, our ability to build green infill consistent with state greenhouse gas reduction goals, and the well- being of our citizens, particularly lower and middle-income earners. (g) Accessory dwelling units offer lower cost housing to meet the needs of existing and future residents within existing neighborhoods, while respecting architectural character. (h) Accessory dwelling units are, therefore, an essential component of California’s housing supply. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) It is the intent of the Legislature that an accessory dwelling unit ordinance adopted by a local agency has the effect of providing for the creation of accessory dwelling units and that provisions in this ordinance relating to matters including unit size, parking, fees, and other requirements, are not so arbitrary, excessive, or burdensome so as to unreasonably restrict the ability of homeowners to create accessory dwelling units in zones in which they are authorized by local ordinance.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) Notwithstanding Section 65803, this chapter shall also apply to a charter city. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) For purposes of this chapter:
(a) “Accessory dwelling unit” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. An accessory dwelling unit also includes the following:
(1) An efficiency unit.
(2) A manufactured home, as defined in Section 18007 of the Health and Safety Code.

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(b) “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot. (c) “Efficiency unit” has the same meaning as defined in Section 17958.1 of the Health and Safety Code. (d) “Junior accessory dwelling unit” means a unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure. (e) “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure.
(f) “Local agency” means a city, county, or city and county, whether general law or chartered. (g) “Nonconforming zoning condition” means a physical improvement on a property that does not conform to current zoning standards.
(h) “Objective standards” means standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. (i) “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit.
(j) “Permitting agency” means any entity that is involved in the review of a permit for an accessory dwelling unit or junior accessory dwelling unit and for which there is no substitute, including, but not limited to, applicable planning departments, building departments, utilities, and special districts. (k) “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.
(l) “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.
(m) “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) 6/9/24, 1:43 PM Codes Display Text
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GOVERNMENT CODE - GOVTITLE 7. PLANNING AND LAND USE [65000 - 66499.58] ( Heading of Title 7 amended by Stats. 1974, Ch. 1536. ) DIVISION 1. PLANNING AND ZONING [65000 - 66342] ( Heading of Division 1 added by Stats. 1974, Ch. 1536. ) CHAPTER 13. Accessory Dwelling Units [66310 - 66342] ( Chapter 13 added by Stats. 2024, Ch. 7, Sec. 20. ) ARTICLE 2. Accessory Dwelling Unit Approvals [66314 - 66332] ( Article 2 added by Stats. 2024, Ch. 7, Sec. 20. ) A local agency may, by ordinance, provide for the creation of accessory dwelling units in areas zoned to allow single-family or multifamily dwelling residential use. The ordinance shall do all of the following:
(a) Designate areas within the jurisdiction of the local agency where accessory dwelling units may be permitted.

The designation of areas may be based on the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety. A local agency that does not provide water or sewer services shall consult with the local water or sewer service provider regarding the adequacy of water and sewer services before designating an area where accessory dwelling units may be permitted. (b) (1) Impose objective standards on accessory dwelling units that include, but are not limited to, parking, height, setback, landscape, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historical Resources. These standards shall not include requirements on minimum lot size.
(2) Notwithstanding paragraph (1), a local agency may reduce or eliminate parking requirements for any accessory dwelling unit located within its jurisdiction. (c) Provide that accessory dwelling units do not exceed the allowable density for the lot upon which the accessory dwelling unit is located, and that accessory dwelling units are a residential use that is consistent with the existing general plan and zoning designation for the lot.
(d) Require the accessory dwelling units to comply with all of the following:
(1) Except as provided in Article 4 (commencing with Section 66340), the accessory dwelling unit may be rented separate from the primary residence, but shall not be sold or otherwise conveyed separate from the primary residence.
(2) The lot is zoned to allow single-family or multifamily dwelling residential use and includes a proposed or existing dwelling.
(3) The accessory dwelling unit is either attached to, or located within, the proposed or existing primary dwelling, including attached garages, storage areas or similar uses, or an accessory structure or detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing primary dwelling, including detached garages.
(4) If there is an existing primary dwelling, the total floor area of an attached accessory dwelling unit shall not exceed 50 percent of the existing primary dwelling.
(5) The total floor area for a detached accessory dwelling unit shall not exceed 1,200 square feet. (6) No passageway shall be required in conjunction with the construction of an accessory dwelling unit. (7) No setback shall be required for an existing living area or accessory structure or a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites 6/9/24, 1:44 PM Codes Display Text
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unit or to a portion of an accessory dwelling unit, and a setback of no more than four feet from the side and rear lot lines shall be required for an accessory dwelling unit that is not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure. (8) Local building code requirements that apply to detached dwellings, except that the construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code (Title 24 of the California Code of Regulations), unless the building official or enforcement agency of the local agency makes a written finding based on substantial evidence in the record that the construction of the accessory dwelling unit could have a specific, adverse impact on public health and safety. Nothing in this paragraph shall be interpreted to prevent a local agency from changing the occupancy code of a space that was unhabitable space or was only permitted for nonresidential use and was subsequently converted for residential use pursuant to this article. (9) Approval by the local health officer where a private sewage disposal system is being used, if required. (10) (A) Parking requirements for accessory dwelling units shall not exceed one parking space per accessory dwelling unit or per bedroom, whichever is less. These spaces may be provided as tandem parking on a driveway. (B) Off street parking shall be permitted in setback areas in locations determined by the local agency or through tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions. (C) This subparagraph shall not apply to an accessory dwelling unit that is described in Section 66322. (11) When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unit, the local agency shall not require that those offstreet parking spaces be replaced.
(12) Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.
(e) Require that a demolition permit for a detached garage that is to be replaced with an accessory dwelling unit be reviewed with the application for the accessory dwelling unit and issued at the same time. (f) An accessory dwelling unit ordinance shall not require, and the applicant shall not be otherwise required, to provide written notice or post a placard for the demolition of a detached garage that is to be replaced with an accessory dwelling unit, unless the property is located within an architecturally and historically significant historic district.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) Section 66314 establishes the maximum standards that a local agency shall use to evaluate a proposed accessory dwelling unit on a lot that includes a proposed or existing single-family dwelling. No additional standards, other than those provided in Section 66314, shall be used or imposed, including an owner-occupant requirement, except that a local agency may require that the property may be used for rentals of terms 30 days or longer. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) An existing accessory dwelling unit ordinance governing the creation of an accessory dwelling unit by a local agency or an accessory dwelling ordinance adopted by a local agency shall provide an approval process that includes only ministerial provisions for the approval of accessory dwelling units and shall not include any discretionary processes, provisions, or requirements for those units, except as otherwise provided in this article. If a local agency has an existing accessory dwelling unit ordinance that fails to meet the requirements of this article, that ordinance shall be null and void and that agency shall thereafter apply the standards established in this article for the approval of accessory dwelling units, unless and until the agency adopts an ordinance that complies with this article.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) (a) A permit application for an accessory dwelling unit or a junior accessory dwelling unit shall be considered and approved ministerially without discretionary review or a hearing, notwithstanding Section 65901 or 65906 or any local ordinance regulating the issuance of variances or special use permits. The permitting agency shall either approve or deny the application to create or serve an accessory dwelling unit or a junior accessory dwelling unit 6/9/24, 1:44 PM Codes Display Text
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within 60 days from the date the permitting agency receives a completed application if there is an existing single- family or multifamily dwelling on the lot. If the permit application to create or serve an accessory dwelling unit or a junior accessory dwelling unit is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the permitting agency may delay approving or denying the permit application for the accessory dwelling unit or the junior accessory dwelling unit until the permitting agency approves or denies the permit application to create the new single-family or multifamily dwelling, but the application to create or serve the accessory dwelling unit or junior accessory dwelling unit shall be considered without discretionary review or hearing.

If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. If the local agency has not approved or denied the completed application within 60 days, the application shall be deemed approved. A local agency may charge a fee to reimburse it for costs incurred to implement this section, including the costs of adopting or amending any ordinance that provides for the creation of an accessory dwelling unit. (b) If a permitting agency denies an application for an accessory dwelling unit or junior accessory dwelling unit pursuant to subdivision (a), the permitting agency shall, within the time period described in subdivision (a), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant.
(c) No local ordinance, policy, or regulation, other than an accessory dwelling unit ordinance consistent with this article shall be the basis for the delay or denial of a building permit or a use permit under this section. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) (a) A local agency may amend its zoning ordinance or general plan to incorporate the policies, procedures, or other provisions applicable to the creation of an accessory dwelling unit if these provisions are consistent with the limitations of this article.
(b) An accessory dwelling unit ordinance shall not be considered in the application of any local ordinance, policy, or program to limit residential growth.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) An accessory dwelling unit that conforms to Section 66314 shall be deemed to be an accessory use or an accessory building and shall not be considered to exceed the allowable density for the lot upon which it is located, and shall be deemed to be a residential use that is consistent with the existing general plan and zoning designations for the lot. The accessory dwelling unit shall not be considered in the application of any local ordinance, policy, or program to limit residential growth.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) (a) When a local agency that has not adopted an ordinance governing accessory dwelling units in accordance with Section 66314 receives an application for a permit to create or serve an accessory dwelling unit pursuant to this article, the local agency shall approve or disapprove the application ministerially without discretionary review pursuant to Section 66317. The permitting agency shall either approve or deny the application to create or serve an accessory dwelling unit or a junior accessory dwelling unit within 60 days from the date the permitting agency receives a completed application if there is an existing single-family or multifamily dwelling on the lot. If the permit application to create or serve an accessory dwelling unit or a junior accessory dwelling unit is submitted with a permit application to create or serve a new single-family or multifamily dwelling on the lot, the permitting agency may delay approving or denying the permit application for the accessory dwelling unit or the junior accessory dwelling unit until the permitting agency approves or denies the permit application to create or serve the new single-family or multifamily dwelling, but the application to create or serve the accessory dwelling unit or junior accessory dwelling unit shall still be considered ministerially without discretionary review or a hearing.

If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. If the local agency has not approved or denied the completed application within 60 days, the application shall be deemed approved.
(b) If a permitting agency denies an application for an accessory dwelling unit or junior accessory dwelling unit pursuant to subdivision (a), the permitting agency shall, within the time period described in subdivision (a), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) (a) Subject to subdivision (b), a local agency may establish minimum and maximum unit size requirements for both attached and detached accessory dwelling units. 6/9/24, 1:44 PM Codes Display Text
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(b) Notwithstanding subdivision (a), a local agency shall not establish by ordinance any of the following:
(1) A minimum square footage requirement for either an attached or detached accessory dwelling unit that prohibits an efficiency unit.
(2) A maximum square footage requirement for either an attached or detached accessory dwelling unit that is less than either of the following:
(A) Eight hundred fifty square feet.
(B) One thousand square feet for an accessory dwelling unit that provides more than one bedroom. (3) Any requirement for a zoning clearance or separate zoning review or any other minimum or maximum size for an accessory dwelling unit, size based upon a percentage of the proposed or existing primary dwelling, or limits on lot coverage, floor area ratio, open space, front setbacks, and minimum lot size, for either attached or detached dwellings that does not permit at least an 800 square foot accessory dwelling unit with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards. (4) Any height limitation that does not allow at least the following, as applicable:
(A) A height of 16 feet for a detached accessory dwelling unit on a lot with an existing or proposed single family or multifamily dwelling unit.
(B) A height of 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed single family or multifamily dwelling unit that is within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. A local agency shall also allow an additional two feet in height to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit. (C) A height of 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed multifamily, multistory dwelling.
(D) A height of 25 feet or the height limitation in the local zoning ordinance that applies to the primary dwelling, whichever is lower, for an accessory dwelling unit that is attached to a primary dwelling. This subparagraph shall not require a local agency to allow an accessory dwelling unit to exceed two stories. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) Notwithstanding any other law, and whether or not the local agency has adopted an ordinance governing accessory dwelling units in accordance with Section 66314, all of the following shall apply:
(a) A local agency shall not impose any parking standards for an accessory dwelling unit in any of the following instances:
(1) Where the accessory dwelling unit is located within one-half of one mile walking distance of public transit. (2) Where the accessory dwelling unit is located within an architecturally and historically significant historic district. (3) Where the accessory dwelling unit is part of the proposed or existing primary residence or an accessory structure.
(4) When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit. (5) When there is a car share vehicle located within one block of the accessory dwelling unit. (6) When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this subdivision. (b) The local agency shall not deny an application for a permit to create an accessory dwelling unit due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) 6/9/24, 1:44 PM Codes Display Text
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66323. (a) Notwithstanding Sections 66314 to 66322, inclusive, a local agency shall ministerially approve an application for a building permit within a residential or mixed-use zone to create any of the following:
(1) One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single- family dwelling if all of the following apply:
(A) The accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single-family dwelling or existing space of a single-family dwelling or accessory structure and may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory structure. An expansion beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress.
(B) The space has exterior access from the proposed or existing single-family dwelling. (C) The side and rear setbacks are sufficient for fire and safety. (D) The junior accessory dwelling unit complies with the requirements of Article 3 (commencing with Section 66333).
(2) One detached, new construction, accessory dwelling unit that does not exceed four-foot side and rear yard setbacks for a lot with a proposed or existing single-family dwelling. The accessory dwelling unit may be combined with a junior accessory dwelling unit described in paragraph (1). A local agency may impose the following conditions on the accessory dwelling unit:
(A) A total floor area limitation of not more than 800 square feet. (B) A height limitation as provided in subparagraph (A), (B), or (C) of paragraph (4) of subdivision (b) of Section 66321, as applicable.
(3) (A) Multiple accessory dwelling units within the portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings. (B) A local agency shall allow at least one accessory dwelling unit within an existing multifamily dwelling and shall allow up to 25 percent of the existing multifamily dwelling units. (4) (A) Not more than two accessory dwelling units that are located on a lot that has an existing or proposed multifamily dwelling, but are detached from that multifamily dwelling and are subject to a height limitation in subparagraph (A), (B), or (C) of paragraph (4) of subdivision (b) of Section 66321, as applicable, and rear yard and side setbacks of no more than four feet.
(B) If the existing multifamily dwelling has a rear or side setback of less than four feet, the local agency shall not require any modification of the existing multifamily dwelling as a condition of approving the application to construct an accessory dwelling unit that satisfies the requirements of this paragraph. (b) A local agency shall not require, as a condition for ministerial approval of a permit application for the creation of an accessory dwelling unit or a junior accessory dwelling unit, the correction of nonconforming zoning conditions. (c) The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing multifamily dwelling. (d) A local agency shall require that a rental of the accessory dwelling unit created pursuant to this section be for a term longer than 30 days.
(e) A local agency may require, as part of the application for a permit to create an accessory dwelling unit connected to an onsite wastewater treatment system, a percolation test completed within the last five years, or, if the percolation test has been recertified, within the last 10 years. (f) Notwithstanding Section 66321 and subdivision (a) a local agency that has adopted an ordinance by July 1, 2018, providing for the approval of accessory dwelling units in multifamily dwelling structures shall ministerially consider a permit application to construct an accessory dwelling unit that is described in subdivision (a), and may 6/9/24, 1:44 PM Codes Display Text
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66324.
66325.
66326.
impose objective standards including, but not limited to, design, development, and historic standards on said accessory dwelling units. These standards shall not include requirements on minimum lot size. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) (a) Fees charged for the construction of accessory dwelling units shall be determined in accordance with Chapter 5 (commencing with Section 66000) and Chapter 7 (commencing with Section 66012). (b) An accessory dwelling unit shall not be considered by a local agency, special district, or water corporation to be a new residential use for purposes of calculating connection fees or capacity charges for utilities, including water and sewer service, unless the accessory dwelling unit was constructed with a new single-family dwelling. (c) (1) A local agency, special district, or water corporation shall not impose any impact fee upon the development of an accessory dwelling unit less than 750 square feet. Any impact fees charged for an accessory dwelling unit of 750 square feet or more shall be charged proportionately in relation to the square footage of the primary dwelling unit.
(2) For purposes of this subdivision, “impact fee” has the same meaning as the term “fee” is defined in subdivision (b) of Section 66000, except that it also includes fees specified in Section 66477. “Impact fee” does not include any connection fee or capacity charge charged by a local agency, special district, or water corporation.
(d) For an accessory dwelling unit described in paragraph (1) of subdivision (a) of Section 66323, a local agency, special district, or water corporation shall not require the applicant to install a new or separate utility connection directly between the accessory dwelling unit and the utility or impose a related connection fee or capacity charge, unless the accessory dwelling unit was constructed with a new single-family dwelling, or upon separate conveyance of the accessory dwelling unit pursuant to Section 66342. (e) For an accessory dwelling unit that is not described in paragraph (1) of subdivision (a) of Section 66323, a local agency, special district, or water corporation may require a new or separate utility connection directly between the accessory dwelling unit and the utility. Consistent with Section 66013, the connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit, based upon either its square feet or the number of its drainage fixture unit (DFU) values, as defined in the Uniform Plumbing Code adopted and published by the International Association of Plumbing and Mechanical Officials, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) (a) Except as provided in subdivision (b), this article shall supersede a conflicting local ordinance. (b) This article does not limit the authority of local agencies to adopt less restrictive requirements for the creation of an accessory dwelling unit.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) (a) A local agency shall submit a copy of the ordinance adopted pursuant to Section 66314 to the Department of Housing and Community Development within 60 days after adoption. After adoption of an ordinance, the department may submit written findings to the local agency as to whether the ordinance complies with this article.
(b) (1) If the department finds that the local agency’s ordinance does not comply with this article, the department shall notify the local agency and shall provide the local agency with a reasonable time, no longer than 30 days, to respond to the findings before taking any other action authorized by this article. (2) The local agency shall consider the findings made by the department pursuant to paragraph (1) and shall do one of the following:
(A) Amend the ordinance to comply with this article.
(B) Adopt the ordinance without changes. The local agency shall include findings in its resolution adopting the ordinance that explain the reasons the local agency believes that the ordinance complies with this article despite the findings of the department.
(c) (1) If the local agency does not amend its ordinance in response to the department’s findings or does not adopt a resolution with findings explaining the reason the ordinance complies with this article and addressing the 6/9/24, 1:44 PM Codes Display Text
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66328.
66329.
66330.
66331.
66332.
department’s findings, the department shall notify the local agency and may notify the Attorney General that the local agency is in violation of state law.
(2) Before notifying the Attorney General that the local agency is in violation of state law, the department may consider whether a local agency adopted an ordinance in compliance with this article between January 1, 2017, and January 1, 2020.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) The department may review, adopt, amend, or repeal guidelines to implement uniform standards or criteria that supplement or clarify the terms, references, and standards set forth in this article. The guidelines adopted pursuant to this section are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) A local agency shall not issue a certificate of occupancy for an accessory dwelling unit before the local agency issues a certificate of occupancy for the primary dwelling. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) Nothing in this article shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local government shall not be required to hold public hearings for coastal development permit applications for accessory dwelling units.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) A local agency may count an accessory dwelling unit for purposes of identifying adequate sites for housing, as specified in subdivision (a) of Section 65583.1, subject to authorization by the department and compliance with this division.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) In enforcing building standards pursuant to Article 1 (commencing with Section 17960) of Chapter 5 of Part

1.5 of Division 13 of the Health and Safety Code for an accessory dwelling unit described in subdivision (a) or (b), a local agency, upon request of an owner of an accessory dwelling unit for a delay in enforcement, shall delay enforcement of a building standard, subject to compliance with Section 17980.12 of the Health and Safety Code:
(a) The accessory dwelling unit was built before January 1, 2020. (b) The accessory dwelling unit was built on or after January 1, 2020, in a local jurisdiction that, at the time the accessory dwelling unit was built, had a noncompliant accessory dwelling unit ordinance, but the ordinance is compliant at the time the request is made.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) (a) Notwithstanding any other law, and except as otherwise provided in subdivision (b), a local agency shall not deny a permit for an unpermitted accessory dwelling unit that was constructed before January 1, 2018, due to either of the following:
(1) The accessory dwelling unit is in violation of building standards pursuant to Article 1 (commencing with Section 17960) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code. (2) The accessory dwelling unit does not comply with this article or any local ordinance regulating accessory dwelling units.
(b) Notwithstanding subdivision (a), a local agency may deny a permit for an accessory dwelling unit subject to subdivision (a) if the local agency makes a finding that correcting the violation is necessary to protect the health and safety of the public or occupants of the structure. (c) This section shall not apply to a building that is deemed substandard pursuant to Section 17920.3 of the Health and Safety Code.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) 6/9/24, 1:44 PM Codes Display Text
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66333.
66334.

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GOVERNMENT CODE - GOVTITLE 7. PLANNING AND LAND USE [65000 - 66499.58] ( Heading of Title 7 amended by Stats. 1974, Ch. 1536. ) DIVISION 1. PLANNING AND ZONING [65000 - 66342] ( Heading of Division 1 added by Stats. 1974, Ch. 1536. ) CHAPTER 13. Accessory Dwelling Units [66310 - 66342] ( Chapter 13 added by Stats. 2024, Ch. 7, Sec. 20. ) ARTICLE 3. Junior Accessory Dwelling Units [66333 - 66339] ( Article 3 added by Stats. 2024, Ch. 7, Sec. 20. ) Notwithstanding Article 2 (commencing with Section 66314), a local agency may, by ordinance, provide for the creation of junior accessory dwelling units in single-family residential zones. The ordinance may require a permit to be obtained for the creation of a junior accessory dwelling unit, and shall do all of the following:
(a) Limit the number of junior accessory dwelling units to one per residential lot zoned for single-family residences with a single-family residence built, or proposed to be built, on the lot. (b) Require owner-occupancy in the single family residence in which the junior accessory dwelling unit will be permitted. The owner may reside in either the remaining portion of the structure or the newly created junior accessory dwelling unit. Owner-occupancy shall not be required if the owner is another governmental agency, land trust, or housing organization.
(c) Require the recordation of a deed restriction, which shall run with the land, shall be filed with the permitting agency, and shall include both of the following:
(1) A prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-family residence, including a statement that the deed restriction may be enforced against future purchasers. (2) A restriction on the size and attributes of the junior accessory dwelling unit that conforms with this article. (d) Require a permitted junior accessory dwelling unit to be constructed within the walls of the proposed or existing single-family residence. For purposes of this subdivision, enclosed uses within the residence, such as attached garages, are considered a part of the proposed or existing single-family residence. (e) (1) Require a permitted junior accessory dwelling unit to include a separate entrance from the main entrance to the proposed or existing single-family residence.
(2) If a permitted junior accessory dwelling unit does not include a separate bathroom, the permitted junior accessory dwelling unit shall include a separate entrance from the main entrance to the structure, with an interior entry to the main living area.
(f) Require the permitted junior accessory dwelling unit to include an efficiency kitchen, which shall include all of the following:
(1) A cooking facility with appliances.
(2) A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) (a) A junior accessory dwelling unit ordinance adopted pursuant to Section 66333 shall not require additional parking as a condition to grant a permit.
(b) This article shall not be interpreted to prohibit the requirement of an inspection, including the imposition of a fee for that inspection, to determine if the junior accessory dwelling unit complies with applicable building standards.

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66335.
66336.
66337.
66338.
66339.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) (a) (1) An application for a permit pursuant to this article shall, notwithstanding Section 65901 or 65906 or any local ordinance regulating the issuance of variances or special use permits, be considered ministerially, without discretionary review or a hearing.
(2) The permitting agency shall either approve or deny the application to create or serve a junior accessory dwelling unit within 60 days from the date the local agency receives a completed application if there is an existing single-family dwelling on the lot.
(3) If the permit application to create or serve a junior accessory dwelling unit is submitted with a permit application to create or serve a new single-family dwelling on the lot, the permitting agency may delay approving or denying the permit application for the junior accessory dwelling unit until the permitting agency approves or denies the permit application to create or serve the new single-family dwelling, but the application to create or serve the junior accessory dwelling unit shall still be considered ministerially without discretionary review or a hearing.
(4) If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. (b) If a permitting agency denies an application for a junior accessory dwelling unit pursuant to subdivision (a), the permitting agency shall, within the time period described in subdivision (a), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant.
(c) A local agency may charge a fee to reimburse the local agency for costs incurred in connection with the issuance of a permit pursuant to this article.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) A local agency shall not deny an application for a permit to create a junior accessory dwelling unit pursuant to this article due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and that are not affected by the construction of the junior accessory dwelling unit.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) (a) For purposes of any fire or life protection ordinance or regulation, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit.
(b) This article shall not be construed to prohibit a city, county, city and county, or other local public entity from adopting an ordinance or regulation relating to fire and life protection requirements within a single-family residence that contains a junior accessory dwelling unit so long as the ordinance or regulation applies uniformly to all single- family residences within the zone regardless of whether the single-family residence includes a junior accessory dwelling unit or not.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) (a) For purposes of providing service for water, sewer, or power, including a connection fee, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit. (b) This section shall not be construed to prohibit a local agency from adopting an ordinance or regulation related to a service or a connection fee for water, sewer, or power, that applies to a single-family residence that contains a junior accessory dwelling unit, so long as that ordinance or regulation applies uniformly to all single-family residences regardless of whether the single-family residence includes a junior accessory dwelling unit. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) If a local agency has not adopted a local ordinance pursuant to this article, the local agency shall ministerially approve a permit to construct a junior accessory dwelling unit that satisfies the requirements set forth in paragraph (1) of subdivision (a) of Section 66323 and the requirements of this article. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) 6/9/24, 1:45 PM Codes Display Text
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66340.
66341.

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GOVERNMENT CODE - GOVTITLE 7. PLANNING AND LAND USE [65000 - 66499.58] ( Heading of Title 7 amended by Stats. 1974, Ch. 1536. ) DIVISION 1. PLANNING AND ZONING [65000 - 66342] ( Heading of Division 1 added by Stats. 1974, Ch. 1536. ) CHAPTER 13. Accessory Dwelling Units [66310 - 66342] ( Chapter 13 added by Stats. 2024, Ch. 7, Sec. 20. ) ARTICLE 4. Accessory Dwelling Unit Sales [66340 - 66342] ( Article 4 added by Stats. 2024, Ch. 7, Sec. 20. ) For purposes of this article:
(a) “Qualified buyer” means persons and families of low or moderate income, as that term is defined in Section 50093 of the Health and Safety Code.
(b) “Qualified nonprofit corporation” means a nonprofit corporation organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Section 214.15 of the Revenue and Taxation Code for properties intended to be sold to low-income families who participate in a special no-interest loan program.
(Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) A local agency shall allow an accessory dwelling unit to be sold or conveyed separately from the primary residence to a qualified buyer if all of the following apply:
(a) The accessory dwelling unit or the primary dwelling was built or developed by a qualified nonprofit corporation. (b) There is an enforceable restriction on the use of the land pursuant to a recorded contract between the qualified buyer and the qualified nonprofit corporation that satisfies all of the requirements specified in paragraph (10) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code. (c) The property is held pursuant to a recorded tenancy in common agreement that includes all of the following:
(1) The agreement allocates to each qualified buyer an undivided, unequal interest in the property based on the size of the dwelling that each qualified buyer occupies. (2) A repurchase option that requires the qualified buyer to first offer the qualified nonprofit corporation to buy the accessory dwelling unit or primary dwelling if the buyer desires to sell or convey the property. (3) A requirement that the qualified buyer occupy the accessory dwelling unit or primary dwelling as the buyer’s principal residence.
(4) Affordability restrictions on the sale and conveyance of the accessory dwelling unit or primary dwelling that ensure the accessory dwelling unit and primary dwelling will be preserved for low-income housing for 45 years for owner-occupied housing units and will be sold or resold to a qualified buyer. (5) If the tenancy in common agreement is recorded after December 31, 2021, it shall also include all of the following:
(A) Delineation of all areas of the property that are for the exclusive use of a cotenant. Each cotenant shall agree not to claim a right of occupancy to an area delineated for the exclusive use of another cotenant, provided that the latter cotenant’s obligations to each of the other cotenants have been satisfied. (B) Delineation of each cotenant’s responsibility for the costs of taxes, insurance, utilities, general maintenance and repair, improvements, and any other costs, obligations, or liabilities associated with the property. This Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites 6/9/24, 1:46 PM Codes Display Text
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66342.
delineation shall only be binding on the parties to the agreement, and shall not supersede or obviate the liability, whether joint and several or otherwise, of the parties for any cost, obligation, or liability associated with the property where such liability is otherwise established by law or by agreement with a third party. (C) Procedures for dispute resolution among the parties before resorting to legal action. (d) A grant deed naming the grantor, grantee, and describing the property interests being transferred shall be recorded in the county in which the property is located. A Preliminary Change of Ownership Report shall be filed concurrently with this grant deed pursuant to Section 480.3 of the Revenue and Taxation Code. (e) Notwithstanding Section 66324, if requested by a utility providing service to the primary residence, the accessory dwelling unit has a separate water, sewer, or electrical connection to that utility. (f) Nothing in this section limits the ability of an accessory dwelling unit to be sold or otherwise conveyed separate from the primary residence as a condominium pursuant to an ordinance adopted under Section 66342. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) In addition to the requirement that a local agency allow the separate sale or conveyance of an accessory dwelling unit pursuant to Section 66341, a local agency may also adopt a local ordinance to allow the separate conveyance of the primary dwelling unit and accessory dwelling unit or units as condominiums. Any such ordinance shall include all of the following requirements:
(a) The condominiums shall be created pursuant to the Davis-Stirling Common Interest Development Act (Part 5 (commencing with Section 4000) of Division 4 of the Civil Code). (b) The condominiums shall be created in conformance with all applicable objective requirements of the Subdivision Map Act (Division 2 (commencing with Section 66410)) and all objective requirements of a local subdivision ordinance.
(c) Before recordation of the condominium plan, a safety inspection of the accessory dwelling unit shall be conducted as evidenced either through a certificate of occupancy from the local agency or a housing quality standards report from a building inspector certified by the United States Department of Housing and Urban Development.
(d) (1) Neither a subdivision map nor a condominium plan shall be recorded with the county recorder in the county where the real property is located without each lienholder’s consent. The following shall apply to the consent of a lienholder:
(A) A lienholder may refuse to give consent.
(B) A lienholder may consent provided that any terms and conditions required by the lienholder are satisfied. (2) Prior to recordation of the initial or any subsequent modifications to the condominium plan, written evidence of the lienholder’s consent shall be provided to the county recorder along with a signed statement from each lienholder that states as follows:
“(Name of lienholder) hereby consents to the recording of this condominium plan in their sole and absolute discretion and the borrower has or will satisfy any additional terms and conditions the lienholder may have.” (3) The lienholder’s consent shall be included on the condominium plan or a separate form attached to the condominium plan that includes the following information:
(A) The lienholder’s signature.
(B) The name of the record owner or ground lessee.
(C) The legal description of the real property.
(D) The identities of all parties with an interest in the real property as reflected in the real property records. (E) The lienholder’s consent shall be recorded in the office of the county recorder of the county in which the real property is located.
(e) The local agency shall include the following notice to consumers on any accessory dwelling or junior accessory dwelling unit submittal checklist or public information issued describing requirements and permitting for accessory 6/9/24, 1:46 PM Codes Display Text
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dwelling units, including as standard condition of any accessory dwelling unit building permit or condominium plan approval:
“NOTICE: If you are considering establishing your primary dwelling unit and accessory dwelling unit as a condominium, please ensure that your building permitting agency allows this practice. If you decide to establish your primary dwelling unit and accessory dwelling unit as a condominium, your condominium plan or any future modifications to the condominium plan must be recorded with the County Recorder. Prior to recordation or modification of your subdivision map and condominium plan, any lienholder with a lien on your title must provide a form of written consent either on the condominium plan, or on the lienholder’s consent form attached to the condominium plan, with text that clearly states that the lender approves recordation of the condominium plan and that you have satisfied their terms and conditions, if any.

In order to secure lender consent, you may be required to follow additional lender requirements, which may include, but are not limited to, one or more of the following:
(a) Paying off your current lender.

You may pay off your mortgage and any liens through a refinance or a new loan. Be aware that refinancing or using a new loan may result in changes to your interest rate or tax basis. Also, be aware that any subsequent modification to your subdivision map or condominium plan must also be consented to by your lender, which consent may be denied.
(b) Securing your lender’s approval of a modification to their loan collateral due to the change of your current property legal description into one or more condominium parcels. (c) Securing your lender’s consent to the details of any construction loan or ground lease.

This may include a copy of the improvement contract entered in good faith with a licensed contractor, evidence that the record owner or ground lessee has the funds to complete the work, and a signed statement made by the record owner or ground lessor that the information in the consent above is true and correct.” (f) If an accessory dwelling unit is established as a condominium, the local government shall require the homeowner to notify providers of utilities, including water, sewer, gas, and electricity, of the condominium creation and separate conveyance.
(g) (1) The owner of a property or a separate interest within an existing planned development that has an existing association, as defined in Section 4080 of the Civil Code, shall not record a condominium plan to create a common interest development under Section 4100 of the Civil Code without the express written authorization by the existing association.
(2) For purposes of this subdivision, written authorization by the existing association means approval by the board at a duly noticed board meeting, as defined in Section 4090 of the Civil Code, and if needed pursuant to the existing association’s governing documents, membership approval of the existing association. (h) An accessory dwelling unit shall be sold or otherwise conveyed separate from the primary residence only under the conditions outlined in this paragraph or pursuant to this article. (Added by Stats. 2024, Ch. 7, Sec. 20. (SB 477) Effective March 25, 2024.) 6/9/24, 1:46 PM Codes Display Text
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City of Daly City
Planning Division

DRAFT

Proposed Amendments to Chapter 17.04 – Definitions

17.04.010 - Definitions

"Dwelling unit accessory" means an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single -family dwelling is situated. An accessory dwelling unit also includes the following: 1) An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code; and 2) a manufactured home, as defined in Section 18007 of the California Health and Safety Code.

"Dwelling, secondary" means a room or suite of rooms constructed or adapted within or onto a one-family (i.e., principal) dwelling being an integral part thereof, and designed for the use and occupancy by a person or persons living independently from the one-family dwelling occupants. A secondary dwelling shall be subordinate to the principal dwelling.

Proposed Repeal of Chapter 17.40.100 –
Secondary Unit Standards and Requirements

17.40.100 - Secondary unit standards and requirements.

A. An accessory dwelling unit that conforms to this section shall be deemed to be an accessory use or an accessory building and shall not be considered to exceed the allowable density for the lot upon which it is located, and shall be deemed to be a residential use that is consistent with the general plan and zoning designations for the lot. The accessory dwelling unit shall not be considered in the application of any local ordinance, policy, or program to limit residential growth.

B. Any proposed accessory dwelling unit, or any existing accessory dwelling unit proposed for legalization, shall meet or exceed the following development standards:

1. There shall be no more than one accessory dwelling unit per parcel;

2. The principal and accessory dwelling unit shall meet all development standards for the residential zoning district in which it is located;

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3. Occupancy of one of the two units shall be the owner(s) of record. The applicant for an accessory dwelling unit shall provide evidence of occupancy in the form of a government issued photo identification card that includes the address of the property where the accessory dwelling unit is proposed and the current owner of record. Prior to permit issuance for an accessory dwelling unit, the applicant shall record a deed restriction for the property as prescribed in Section 17.40.110 below. Any rental agreement for the main or accessory dwelling unit shall provide a disclosure to the renter of the requirement of owner occupancy of the subject property;

4. The accessory dwelling unit shall meet the standards of the building, fire, and other applicable health and safety codes;

5. The floor area of an attached accessory dwelling unit shall not exceed fifty percent of the size of the primary dwelling unit, with a maximum increase in floor area of one thousand two hundred square feet. The total area of floor area for a detached accessory dwelling unit shall not exceed one thousand two hundred square feet;

6. Accessory dwelling units shall provide one parking space per unit or per bedroom (studio units shall provide one parking space). These spaces may be provided as tandem parking on an existing driveway in the front setback. No parking spaces shall be required for an accessory dwelling unit in any of the following instances:

a. The accessory dwelling unit is located within one-half mile of public transit.

b. The accessory dwelling unit is located within an architecturally and historically significant historic district.

c. The accessory dwelling unit is part of the existing primary residence or an existing accessory structure.

d. When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit.

e. When there is a car share vehicle located within one block of the accessory dwelling unit. Parking spaces shall comply with the parking space dimension regulations provided in Section 17.34.020(H).

7. Only one exterior pedestrian entrance (not including slide glass door) shall be provided for each accessory dwelling unit. The entrance shall be provided at the dwelling unit's rear elevation or at the side elevation providing the main entrance to the dwelling, unless such a requirement would result in trespass onto adjacent property. A paved walkway shall be provided leading from the sidewalk or driveway to the pedestrian entrance.

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Proposed Repeal of 17.40.110 –
Certificate of Registration Requirements

17.40.110 - Certificate of registration requirements.

Prior to final building inspection, the applicant for an accessory dwelling unit shall file a certificate of registration for the property which indicates that the property owner shall live in either the main or accessory dwelling unit.

A. The certificate of registration shall contain the following:

1. The name and address of the current owner or owners;

2. The address of the property for which an accessory dwelling unit is proposed to be permitted;

3. A photocopy of the deed for the property as recorded with the county recorder, county of San Mateo;

4. A scale drawing showing the lot dimensions, the location of the building, building setbacks, and proposed additions to the building and all vehicular parking spaces;

5. Floor plans of the principal and accessory dwelling units drawn to the scale showing all existing and proposed improvements;

6. Consent of the owner to the physical inspection of the premises prior to the issuance of any building permit or certificate of registration;

7. Signature of the owner(s) under penalty of perjury;

8. A nonrefundable filing fee, to be established by resolution of the city council;

9. Any other information or data deemed necessary by the city planner to determine compliance of the proposed accessory dwelling unit with the terms of this section.

B. Application for a certificate of registration shall be made when applying for a building permit. Issuance of a certificate of registration will take place upon final building inspection and the issuance of a certificate of occupancy. The city planner shall also c e r t i f y , d a t e a n d c a u s e t o b e r e c o r d e d t h e c e r t i fi c a t e o f r e g i s t r a t i o n a t t h e t i m e o f issuance.

C. The following shall appear on the certificate of registration:

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This certificate of registration has been issued in accordance with the provisions of Section

17.40.100 of the Daly City Municipal Code (Zoning Ordinance) and is subject to certain restrictions and conditions so long as an accessory dwelling unit exists on the premises; these include, but are not necessarily limited to the following:

1. That the accessory dwelling is allowed only so long as one of the two dwelling units is occupied by the owner(s) of record;

2. That all off-street parking spaces, as identified in plans submitted in application for this Certificate of Registration shall be maintained in usable condition. Said spaces shall not be used for storage of materials, inoperable vehicles or equipment, if s uch storage necessitates the parking of the property owner's or tenant's vehicles outside the specified parking area.

3. That no improvement or modification of the building shall be made without issuance of a building permit by the City of Daly City . The City Council of the City of Daly City has the right to terminate the continued use of the accessory dwelling unit if, afte r a Public Hearing on the matter, it determines that a violation of any zoning, building, fire o r o t h e r h e a l t h a n d s a f e t y c o d e o f t h e c i t y e x i s t s ; t h e c o u n c i l m a y c a u s e t o b e recorded with the County Recorder of San Mateo a revocation of this certificate o f registration. The use of said property contrary to these special restrictions shall constitute a violation of the Daly City Zoning Ordinance and shall constitute a misdemeanor and upon conviction thereof the person violating the ordinance shall be subject to all remedies under Section 1.12.010 of the Daly City Municipal Code, including a fine of not more than five hundred dollars, or imprisonment in the county jail for a term not exceeding six months, or both. A separate offense shall have been committed for each and every day during which a violation persists. In addition, the city may take any and all civil action necessary to abate said use. The certificate of registration shall be signed and acknowledged by the owner(s) of record.

4. The certificate of registration may be conveyed with title to the property, however, this in no way relieves any property owner or successor from compliance with all the terms of the ordinance and all other applicable regulations.

5. Failure to comply with the requirements of this or any other section of the zoning ordinance will comprise a violation that, in addition to penalties cited in Section 1 . 1 2 . 0 1 0 o f t h e M u n i c i p a l C o d e , c a n r e s u l t i n t h e r e v o c a t i o n o f t h e c e r t i fi c a t e o f registration by the city council after public hearing on the matter.

(Ord. 1159 § 3, 1992; Ord. 1128 § 2, 1990; Ord. 991 § 5, 1983)

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Proposed Amendments to 17.35.040 –
General property development requirements.

A. All plans submitted for building permits shall be reviewed for the following:

1. Flat plywood shall not be used as an exterior siding material. All exterior surfaces shall be finished with paint or other weather protective coating.

2. Metal grills and gates are allowed if they are ornate and of a unique design, in keeping with the architectural components of the development and neighborhood.

3. Dry Goods Storage. All residential units must be constructed with adequate storage for the number of occupants or for commercial structures, for the type of occupancy allowed by the construction type.

4. Trash Receptacle and Recycling Container Storage. All new buildings or buildings where the occupancy is changed or in buildings where an expansion of business area or living space is applied for, including expansion of internal habitable areas, shall provide adequate space to accommodate a trash bin and recycling containers. The storage areas shall be weather-proof, vermin-proof and easily accessible to facilitate solid waste collection. Existing or new dwellings without side yards shall provide an area devoted to such storage that measures three feet by eight feet adjacent and connected to the dwelling's garage. Accessory dwelling units shall utilize the trash and recycling receptacles of the primary dwelling unit on the parcel. For garages converted to any other use in any home with side yards, including for the purpose of constructing an accessory dwelling unit or junior accessory dwelling unit , the garage door shall be retained and an area provided sufficient to accommodate trash and recycle bins at least 36 inches deep and the full width of the garage door. This requirement shall not preclude the const ruction of a ny State-mandated Accessory Dwelling Units or Junior Accessory Dwelli ng Units constructed pursuant to California Government Code Sections 66314 and 66323.

(Ord. 1242 § 1 (part), 1997)

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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 17.04.010 of the Daly City Municipal Code is hereby amended to repeal the following definitions:

"Dwelling unit accessory" means an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated. An accessory dwelling unit also includes the following: 1) An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code; and 2) a manufactured home, as defined in Section 18007 of the California Health and Safety Code.

"Dwelling, secondary" means a room or suite of rooms constructed or adapted within or onto a one-family (i.e., principal) dwelling being an integral part thereof, and designed for the use and occupancy by a person or persons living independently from the one-family dwelling occupants.

A secondary dwelling shall be subordinate to the principal dwelling.

SECTION 2. Section 17.40.100 of the Daly City Municipal Code is hereby repealed in its entirety.

SECTION 3. Section 17.40.110 of the Daly City Municipal Code is hereby repealed in its entirety.

SECTION 4. Section 17.34.040 of the Daly City Municipal Code is hereby amended to read as follows:
.

A. All plans submitted for building permits shall be reviewed for the following:

1. Flat plywood shall not be used as an exterior siding material. All exterior surfaces shall be finished with paint or other weather protective coating.

2. Metal grills and gates are allowed if they are ornate and of a unique design, in keeping with the architectural components of the development and neighborhood.

3. Dry Goods Storage. All residential units must be constructed with adequate storage for the number of occupants or for commercial structures, for the type of occupancy allowed by the construction type.

4. Trash Receptacle and Recycling Container Storage. All new buildings or buildings where the occupancy is changed or in buildings where an expansion of business area or living

Page 262 of 278 ends

space is applied for, including expansion of internal habitable areas, shall provide adequate space to accommodate a trash bin and recycling containers. The storage areas shall be weather-proof, vermin-proof and easily accessible to facilitate solid waste collection.

Existing or new dwellings without side yards shall provide an area devoted to such storage that measures three feet by eight feet adjacent and connected to the dwelling's garage.

Accessory dwelling units shall utilize the trash and recycling receptacles of the primary dwelling unit on the parcel. For garages converted to any other use in any home with side yards, including for the purpose of constructing an accessory dwelling unit or junior accessory dwelling unit, the garage door shall be retained and an area provided sufficient to accommodate trash and recycle bins at least 36 inches deep and the full width of the garage door. This requirement shall not preclude the construction of any State-mandated Accessory Dwelling Units or Junior Accessory Dwelling Units constructed pursuant to California Government Code Sections 66314 and 66323.

SECTION 5. 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 6. 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 7. 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.

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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

Page 264 of 278 ends

City Council Meeting Agenda Report Item # _____

Meeting Date: September 14, 2026

Subject: Use Permit UPR-6-26-17087 - Billiards Hall at 6232 Mission Street

Recommended Action

Approve the Use Permit subject to the Findings and Conditions as outlined herein.

Planning Commission Discussion

On September 1, 2026, the Planning Commission voted 4-0 (Faapuaa absent) to recommend that the City Council approve Use Permit UPR-6-26-17087. Commissioner Paniza asked about the occupancy load of the proposed hall and how the applicant would handle people hanging outside the hall smoking and drinking. Staff responded that the tenant improvement would go through a thorough plan check prior to opening and the occupancy limit would be established at that time.

Regarding potential loitering, the applicant responded that on-site security would address any such problems. Staff added that smoking within fifty feet of the entrance to any building is not permitted and that applicant would be required to notify patrons of this restriction. Commissioner Catuar asked if the applicant had previous experience operating a billiard hall. The applicant responded that he has operated several businesses in San Francisco and Daly City, including the vehicle registration business adjacent to the Department of Motor Vehicles in Daly City. The applicant requested that the Planning Commission reconsider a Condition of Approval limiting the operating hours for adult patrons to 12:00 A.M. daily and minors to 8:00 P.M. on weeknights and 10:00 P.M. on weekends. The Commission agreed to recommend to the City Council that it allow operating hours until 1:00 A.M. every night for adult patrons and 10:00 P.M. all nights for minors, under age 18.

Background

The applicants, George and Henry Khanouf, request approval to use an existing retail building for a billiards hall at 6232 Mission Street (see Attachment A – Site Location). The subject lot is approximately 11,965 square feet and located at the southern on parcel north of the intersection of Mission Street and San Jose Avenue. According to the City’s Building Permit records, the subject building was most recently used as the Dollar Tree retail store. The Zoning Ordinance requires the approval of a Use Permit for the operation of a billiards hall in the Commercial – Mixed Use (C-MU) zoning district.

Discussion

The proposed facility would provide a billiards hall that would contain 21 billiard tables, two snooker tables, and one air hockey table. The applicant has provided a narrative describing the business operation (see Attachment B – Operational Narrative). There will be customer seating areas and a television viewing area as shown on the floor plan (see Attachment C – Floor Plan). The applicant intends to serve packaged snacks and bottled beer (for which they will be applying for the required ABC permit). All activities will be conducted fully within the enclosed building.

Page 265 of 278 ends

City Council Agenda Report September 14, 2026 Use Permit UPR-6-26-17087 - Billiards Hall at 6232 Mission Street Page 2 of 4

Parking for the facility is provided by three parking spaces in an adjacent lot associated with the subject building. Since the Zoning Ordinance does not prescribe parking regulations for billiard halls, the Planning Division has determined that it is acceptable to use the same parking space requirement for general retail, one space for each 300 square feet. Since the existing building is therefore “legal, non-conforming,” so too would any use that occupies the building with the same parking requirement. Staff has added a finding to the Planning Commission findings identifying this parking nonconformity and outlining a rationale for allowing its continuance.

Staff has met with the City Attorney’s office and Police Department to discuss the proposal, and this group feels that given the primarily commercial nature of the adjacent land uses, the proposed use is appropriate with the limitation on the hours of operation. The applicant initially proposed to operate Sunday through Thursday 12:00 P.M. to 1:00 A.M. and Friday through Saturday 12:00 P.M. to 2:00 A.M.. Staff suggests a Condition of Approval that limits the operational hours to 12:00 A.M. daily and limits the hours for minors under the age of 18 to 8:00 P.M. weeknights and 10:00 P.M., Friday and Saturday. Additionally, staff has added conditions regarding security, lighting, and window covering for the billiards hall.

Findings

The Planning Commission finds that, as conditioned, the proposed Use Permit UPR-6-26-17087 complies with Title 17 (Zoning) of the Daly City Municipal Code. Approval of the proposed project would not be detrimental to the health, safety, morals, comfort and general welfare of persons residing in or working in the neighborhood, or be injurious or detrimental to the property and improvements in the neighborhood or the general welfare of the city. Approval of the proposed Use Permit UPR-6-26-17087, as conditioned herein, is in the best interest of the public health, safety, and general welfare of the community, and that the use of the site is complimentary to adjacent business and compatible with the Commercial Mixed-Use (CMU) Zoning District. The Planning Commission recommends the City Council approve the project with the following findings:

1. In accordance with Title 17 of the Daly City Municipal Code, as well as applicable State zoning enabling legislation, the City Council conducted a public hearing on September 14, 2026; notice of said hearing was by newspaper publication on September 6, 2026, posting and first class mailing to property owners within 300 feet;

2. The City Council has determined that the proposed billiard hall use is subject to the same parking space requirement for general retail, one space for each 300 square feet. Since the existing building is therefore “legal, non-conforming,” so too would any use that occupies the building with the same parking requirement. The proposed use does not therefore exacerbate an existing condition and shall too be considered legal, non-conforming.

3. The proposed use is appropriate at the subject location given its location in an area with primarily commercial zoning. The City Council has adopted a condition limiting the hours of operation 12:00 A.M.. daily and limiting the hours for minors under the age of 18 to 8:00 P.M. weeknights and 10:00 P.M., Friday and Saturday;
Environmental Review

The Planning Commission has reviewed the proposal under the requirements of the California Environmental Quality Act (CEQA) and determined the proposed project is categorically exempt pursuant to CEQA Guidelines Section 15301.

Page 266 of 278 ends

City Council Agenda Report September 14, 2026 Use Permit UPR-6-26-17087 - Billiards Hall at 6232 Mission Street Page 3 of 4

Conditions of Approval

The Planning Commission recommends approval of Use Permit UPR-6-26-17087 based on the following conditions as specified by each Department and Division. These conditions need to be complied with prior to, or as part of, any building permit for the proposed improvements.

1. The use permit approval shall be valid for a period of three years from the date of City Council approval. The approvals shall terminate if a building permit has not been obtained and construction commenced within one-year of City Council approval of the project or if the applicant fails to obtain a valid business license.

2. The use permit and shall be valid only in conjunction with plans submitted and approved by the City Council. Any significant modifications and changes to the plans shall be treated as an amendment and shall be subject to review by a Council Committee appointed by the Mayor.

3. The applicant shall secure an approved tenant improvement plan from the City of Daly City Building Division prior to any occupancy of the building associated with the application. No occupancy of the property shall occur without proper authorization from the Building Division and North County Fire Authority. The applicant shall adhere to occupancy limits established by the Building Division and North County Fire Authority. Violations of established occupancy limits shall be grounds for revocation of this use permit.

4. The facility shall comply with the City of Daly City’s Smoking Ordinance. The applicant shall place signs stating that smoking is not permitted within 50 feet of building entrances and shall take proactive steps to enforce this requirement.

5. All windows shall have a maximum coverage of 25 percent to maintain visibility into the building interior.

6. The applicant shall install flush-mounted lighting on the underside of the building canopy protruding over the Mission Street sidewalk and wall pack lighting at San Jose Avenue, to the satisfaction of the Planning Division. Exterior lighting shall be downcast and maintained in operational condition.

7. The applicant shall conduct video surveillance of the premises for all hours the billiard hall is operational. The surveillance system shall be coordinated with the Police Department.

8. Hours of operation shall be limited to 12:00 P.M. For minors under the age of 18, hours shall be limited to 8:00 P.M. on weeknights and 10:00 P.M. on weekends.

9. Any arcade games, if proposed, including billiards tables that accept payment at the table, shall be registered with the City.

10. The applicant shall provide door security from 6:00 P.M. to 1:00 A.M., and such security shall be provided as required by Daly City Police Department.

11. The applicant shall stripe the parking lot area adjacent to Mission Steet in accordance with requirements of the Building Division. The triangular area adjacent to the Mission Street sidewalk shall be striped to prevent cars parking on it and the City sidewalk.

12. The applicant shall ensure that all trash and refuse associated with the use shall be stored indoors until the day of trash collection.

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City Council Agenda Report September 14, 2026 Use Permit UPR-6-26-17087 - Billiards Hall at 6232 Mission Street Page 4 of 4

13. The building exterior entrance on San Jose Avenue shall be reserved for emergency access only. The applicant shall takes steps to ensure that loitering does not occur at this location.

14. All water services shall incorporate a reduced pressure principle back flow device. Existing fire suppression may utilize a double detector check assembly. If these devices are not present, they will be required as part of building permit approval.

15. If food service is planned in the future, it is recommended that the infrastructure to support that use is installed during initial construction. To combat fats, oils, and grease in the collection system, a gravity grease interceptor will be required if there is any food service, including heat and serve. Design and installation after initial construction can be much more difficult, more costly to install, and will be disruptive to the business.

Recommended Action

1. Adopt the Findings as outlined herein;

2. Affirm the Environmental Assessment;

3. Approve Use Permit UPR-6-26-17087 subject to the Findings and Conditions outlined herein.

Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Brian Paland Micheal VanLonkhuysen
Assistant Planner Acting Director of Economic and Community Development

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SITE LOCATION

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Project Overview
The proposed project consists of a tenant improvement and change of use within an existing commercial building located at 6232 Mission Street, Daly City, California (APN 004-041-100).

The proposed use is an indoor recreational facility centered on the game of billiards and casual social recreation. The facility is intended to provide a clean, professionally managed indoor recreational use serving residents and visitors of Daly City and the surrounding community.

The facility is proposed to contain:
● Approximately twenty one (21) billiard tables
● Approximately two (2) billiard tables
● A foosball table
● A Air hockey table
● Customer seating areas
● Lounge and spectator seating
● A customer service/check-in counter
● Packaged snack sales
● Beverage sales
● Television viewing areas
● Existing ADA restroom facilities
The facility will operate entirely within the existing building.

No building expansion is proposed.

No structural modifications are proposed.

Proposed Improvements
Improvements will be limited to interior tenant improvements and cosmetic upgrades within the existing building, including:
● Installation of billiard tables and furnishings
● Installation of arcade game machines
● Customer seating and lounge areas
● Customer service/check-in counter
● Interior painting and cosmetic improvements
● Floor refinishing/coating
● Business signage
● Minor accessory furnishings
● Television installation

Page 270 of 278 ends

Existing restroom facilities will remain in their current locations.

No expansion of the existing building footprint is proposed.

No structural modifications are proposed.

Operations
The facility is intended to operate as an indoor recreational venue focused on billiards, arcade games, and casual social interaction.

Proposed hours of operation:
● Sunday – Thursday: 12:00 PM to 1:00 AM
● Friday – Saturday: 12:00 PM to 2:00 AM
All hours remain subject to City review and approval.

Security personnel may be provided during evening operating hours to maintain a safe environment for patrons, neighboring businesses, and surrounding properties.

The facility will not include:
● Live entertainment
● Concerts
● DJs
● Dance events
● Nightclub activities
● Outdoor entertainment
● Outdoor amplified music
● Outdoor gathering areas

Food and Beverage Service
The facility will offer packaged snacks and beverages for patrons.

No full kitchen is proposed.

No cooking equipment is proposed.

It is our intention to acquire an ABC license to sell beer on site.

Page 271 of 278 ends

Parking and Access
The property includes an existing on-site parking area accessed from San Jose Avenue.

The proposed site plan maintains the existing ADA-accessible parking space and proposes restriping and reconfiguration of the parking area to improve efficiency and maximize available on-site parking.

The proposed parking layout includes:
● Three to Four (3-4 ) standard parking spaces
The property is also served by nearby public parking and public transportation facilities located along the Mission Street corridor.

The proposed parking configuration improves utilization of the existing parking area while maintaining accessibility and site circulation.

Community Compatibility
The project will activate a currently vacant commercial building and provide an indoor recreational use within an existing commercial corridor.

The proposed use is designed to operate entirely within the building and is intended to remain compatible with surrounding commercial uses. The project does not include building expansion, outdoor seating, outdoor gathering areas, outdoor amplified music, or significant exterior modifications.

Page 272 of 278 ends


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Page 273 of 278 ends

City Council Meeting Agenda Report Item # _____

Meeting Date: September 14, 2026

Subject: Designate Voting Delegate and Alternate for League of California Cities General Assembly

Recommended Action
Designate a voting delegate and alternate(s) to cast ballots on behalf of the City of Daly City at the League of California Cities General Assembly to be held at the conclusion of the League of California Cities Annual Conference and Expo in Anaheim on September 25, 2026.

Background/Discussion
The League of California Cities Annual Conference and Expo is scheduled for September 23-25, 2026 in Anaheim. Each year, at the League of California Cities Annual Conference and Expo, the League membership considers and acts on resolutions that establish Cal Cities policy. To vote at the General Assembly, the City Council must designate a voting delegate. The City Council may also appoint up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve this role.

The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference if scheduling precludes such participation, but they must be registered for the General Assembly on September 25, 2026.

The League of California Cities General Assembly Voting Guidelines are outlined in the attached document. These guidelines detail how the official voting delegate may transfer the City’s voting card to the alternate(s), if required.

Summary/Conclusion
It is recommended that the City Council designate a voting delegate and alternate(s) to cast ballots on behalf of the City of Daly City at the League of California Cities General Assembly to be held at the conclusion of the League of California Cities Annual Conference and Expo in Anaheim on September 25, 2026.

Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Leilani Ramos
Assistant to the City Manager

Attachment: League of California Cities General Assembly Voting Guidelines

Page 274 of 278 ends

1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org DATE: Wednesday, May 13, 2026
T
O: Mayors, Council Members, City Clerks, and City Managers RE
: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Sept. 23-25, 2026 Anaheim Convention Center
E
very year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.

Ta
king place on Friday, Sept. 25, 2026 the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.

To c
ast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.

A
ction by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.

F
ollowing council action, please submit your city’s delegates through the online submission portal by Tuesday, Sept. 1, 2026. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form.

S
ubmitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates.

C
onference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration opens June 2.

F
or a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and Council Action Advised by September 1, 2026

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alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.

Please view Cal Cities’ event and meeting policy in advance of the conference.

Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official.

Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

The voting delegate desk, located in the conference registration area of the Anaheim Convention Center, will be open at the following times: Wednesday, Sept. 23, 8:00 a.m.-6:00 p.m. and Thursday, Sept. 24, 7:30 a.m.-4:00 p.m. On Friday, Sept. 25, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting.

The voting procedures that will be used at the conference are attached to this memo.

Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.

Once again, thank you for submitting your voting delegate and alternates by Tuesday, Sept. 1. If you have questions, please contact Zach Seals at [email protected].

Attachments:
• G
eneral Assembly Voting Guidelines
• Information Sheet: Cal Cities Resolutions and the General Assembly

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1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org

General Assembly Voting Guidelines

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.

3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.

4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.

5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.

6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.

Page 277 of 278 ends

Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.

The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.

Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.

Recommendations are forwarded
to the Resolutions Committee.

Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.

Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.

Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.

Cal Cities policy
development is a member-
informed process,
grounded in the voices and
experiences of city officials
throughout the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.

General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.2
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f).

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← All documents from this meeting