Pacifica City Council
September 14, 2026

revocation should the STR operator or facility violate the LCP and/or other local, state, or federal laws.

The Commission has historically recognized that STRs can provide a unique and important source of visitor-serving accommodation in the coastal zone, especially for families and groups, and has found that undue restrictions on this type of use are inconsistent with Coastal Act and LCP provisions prioritizing public access and visitorserving opportunities and requiring that public recreational access opportunities be maximized. At the same time, the Commission has also recognized a need to restrict STRs in some coastal communities where evidence showed that the STR market was having impacts on coastal resources or was impacting housing necessary to support priority uses (e.g., visitor-serving economies). In that sense, the Commission has sought to accommodate a balance between these sometimes competing interests, where the appropriate balance is typically driven by the community and LCP context. In all cases, the Commission has consistently supported a baseline of ‘good neighbor’ operational standards (which exist already in this LCP and are proposed to be refined here) as important tools to address use concerns while maintaining such a balance.

In this case, the Pacifica LCP’s Land Use Plan (LUP), which is the standard of review, contains provisions that prioritize, protect, and require maximization of public recreational access opportunities, which echoes the same type of provisions found in Coastal Act Chapter 3. The LUP also identifies low- and moderate-income affordable housing as an important coastal resource and identifies provisions to address potential public access overuse of any particular area. Thus, the primary LUP question is whether the proposed STR provisions have been tailored to address issues of overuse and/or affordable/workforce housing in a manner that does not negatively affect the maximization of public recreational access opportunities.

In that respect, although the proposed STR provisions include a series of quite detailed operational provisions that do not raise significant LUP issues, the proposed changes would also add fairly restrictive STR use limitations, and their implementation through the LCP would likely reduce STRs and the potential use-nights available. Specifically, the proposed primary residency requirement has the potential to reduce unhosted STR rental nights by 50%, and the 60 rental night cap on unhosted rentals would reduce that even further (e.g., if all 150 STRs under the cap were unhosted, then the amount of potential unhosted rental nights would be reduced by nearly 85% as compared to the existing STR provisions). It is also worth noting that the proposed changes have already been implemented in the non-coastal zone areas of the City, where their implementation to date has led to a roughly 50% drop in STRs, all of which signals that the proposed changes would be expected to lead to further market contraction in the coastal zone if implemented.

As it relates to the broader issue of housing availability, the relationship between STRs and housing can be quite complex, and there does not appear to be an either/or distinction between allowing an STR versus using that home for longer term housing. In this case, the City’s data does not show how the proposed STR restrictions would create additional longer term housing opportunities, especially affordable housing, which is the type of housing protected by the LUP. Additionally, there is not a

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mechanism to mandate or assure that property owners will rent or sell their properties for longer term residential use if they can’t pursue STRs, and there is currently no evidence to suggest that the housing stock in question would be affordable if it were converted to permanent housing. Therefore, there is no substantive basis for concluding that the proposed STR regulations will meaningfully improve the availability of housing stock in the coastal zone in Pacifica, particularly for low and moderate cost housing.

However, reducing STRs would necessarily reduce access opportunities for those who can afford to rent them for a short time, but who cannot afford to buy or rent such properties longer term.

For these reasons, the proposed primary residency requirement and 60-night unhosted STR limit are inconsistent with LUP provisions prioritizing public access and visitorserving opportunities, and requiring that public recreational access opportunities be maximized, especially for those not fortunate enough to live in Pacifica. These proposed provisions would decrease such options, making public access more difficult in these areas, particularly for larger groups and families, underserved communities and communities of color, and inland communities. In other words, LUP inconsistencies with the proposal are amplified when considered through an environmental justice lens.

However, other than the primary residency requirement and the 60-night unhosted STR limit, many of the other proposed provisions should not significantly reduce public recreational access opportunities, would benefit existing neighborhoods and limit future home conversions. Among these proposed and approvable provisions, there are a series of proposed ‘good neighbor’ provisions; important safeguards against turning STRs into a form of major business operation; and a prohibition of unhosted STRs in multifamily units (and of both types in ADUs/JADUs), retaining these ‘more affordable by design’ units as potential housing resources. If the proposed amendment was modified to remove the primary residence requirement and 60-night unhosted limit, the resulting proposal would provide an LUP consistent version of the regulations and would represent an appropriate balancing of competing objectives overall. These changes would continue to reflect the 150 STR cap that the Commission found was an appropriate balance for Pacifica in 2024, and the suggested modifications would aim to reduce the likelihood of a substantial reduction of the availability of STRs in the coastal zone beyond that cap. This would help protect public access opportunities for all, including lower income and disadvantaged communities, while still allowing the community of Pacifica to implement its “good neighbor policies” and protect its community character. As the Commission has noted repeatedly over the years, STR regulation is not an all or nothing proposition in coastal areas. The key is finding a balance that makes sense for both a community and its visitors while remaining Coastal Act and LCP compliant. Staff believes that this recommendation meets those requirements.

Finally, staff will note that this staff report and recommendation differ from the staff report/recommendation on this proposed LCP amendment that was provided for the Commission’s February 2026 meeting (when this item was postponed, and was not heard nor acted upon by the Commission). After that prior staff report was distributed, the Commission received several hundred pages of comments, some quite specific to the staff report analysis, primarily identifying ways in which commenters thought it to be

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legally deficient and had arrived at conclusions not supported by the evidence. Staff took in all such comments, evaluated and reflected on them, and ultimately that process led staff to this revised recommendation.

In conclusion, staff recommends that the Commission suggest the modifications described, and find that the proposed IP amendment, as modified, conforms with and is adequate to carry out the LCP’s Land Use Plan. The motions and resolutions to do so – there are two each – can be found on page 6 below.

Staff Note: LCP Amendment Action Deadline
This proposed LCP amendment was filed as complete on January 8, 2026. The proposed amendment affects the LCP’s IP only, and the 60 working day deadline for the Commission to take action on it was therefore April 7, 2026. On March 12, 2026, the Commission extended the action deadline to April 7, 2027. Thus, the Commission has until that time to take a final action on this LCP amendment.

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TABLE OF CONTENTS

1. MOTIONS AND RESOLUTIONS ............................................................................... 6

2. SUGGESTED MODIFICATIONS............................................................................... 7

3. FINDINGS AND DECLARATIONS............................................................................ 8 A. Background .......................................................................................................... 8 B. Proposed LCP Amendment.................................................................................. 9 C. Consistency Determination................................................................................... 9 D. California Environmental Quality Act (CEQA)..................................................... 20

4. APPENDICES.......................................................................................................... 20

EXHIBITS
Exhibit 1: Proposed LCP Amendment

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1. MOTIONS AND RESOLUTIONS
Staff recommends that the Commission, after public hearing, certify the proposed LCP IP amendment only if it is modified. The Commission needs to make two motions on the IP amendment in order to act on this recommendation, where the amendment needs to first be denied as submitted, and then approved if modified, to complete the staff recommendation. To do so, Staff recommends a YES vote on both motions below.

A. Deny the IP Amendment as Submitted
Staff recommends a YES vote on the motion below. Passage of this motion will result in rejection of the Implementation Plan amendment and the adoption of the following resolution and findings. The motion passes only by an affirmative vote of a majority of the Commissioners present.

Motion 1 (Deny as Submitted): I move that the Commission reject LCP Implementation Amendment Number LCP-2-PAC-25-0079-2 as submitted by the City of Pacifica, and I recommend a yes vote.

Resolution to Deny: The Commission hereby denies certification of LCP Implementation Amendment Number LCP-2-PAC-25-0079-2 as submitted by the City of Pacifica and adopts the findings set forth below on grounds that the Implementation Plan Amendment as submitted does not conform with, and is inadequate to carry out, the provisions of the certified Land Use Plan.

Certification of the Implementation Plan Amendment would not meet the requirements of the California Environmental Quality Act as there are feasible alternatives and mitigation measures that would substantially lessen the significant adverse impacts on the environment that will result from certification of the Implementation Plan Amendment as submitted.

B. Certify the IP Amendment with Suggested Modifications Staff recommends a YES vote on the motion below. Passage of this motion will result in certification of the Implementation Plan Amendment with suggested modifications and the adoption of the following resolution and the findings in this staff report. The motion to certify with suggested modifications passes only by an affirmative vote of a majority of the Commissioners present:

Motion 2 (Approve if Modified): I move that the Commission certify LCP Implementation Amendment Number LCP-2-PAC-25-0079-2 as submitted by the City of Pacifica if it is modified as suggested in this staff report, and I recommend a yes vote.

Resolution to Certify: The Commission hereby certifies LCP Implementation Amendment Number LCP-2-PAC-25-0079-2 as submitted by the City of Pacifica, if modified as suggested, and adopts the findings set forth below on grounds that the Implementation Plan Amendment with the suggested modifications conforms with, and is adequate to carry out, the provisions of the certified Land Use Plan.

Certification of the Implementation Plan Amendment if modified as suggested complies with the California Environmental Quality Act, because either 1) feasible mitigation measures and/or alternatives have been incorporated to substantially

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lessen any significant adverse effects of the plan on the environment, or 2) there are no further feasible alternatives and mitigation measures that would substantially lessen any significant adverse impacts on the environment.

2. SUGGESTED MODIFICATIONS
The Commission hereby suggests the following modifications to the proposed LCP amendment, which are necessary to make the requisite Land Use Plan consistency findings. If the City of Pacifica accepts the suggested modification within six months of Commission action (i.e., by February 12, 2027), by formal resolution of the City Council, the modified amendment will become effective upon the Executive Director’s reporting to the Commission that this acceptance has been properly accomplished. Where applicable, underlined text shows proposed text to be added, and crossed-out text shows text to be deleted by the Commission.

1. Eliminate Primary Residency Requirements
a. Delete Sec. 9-4.4901(m) as follows:
(m) “Primary residence” means a residence where a Person resides, full-time, for more than six months out of the year. Primary residence shall not include an accessory dwelling unit or a Junior accessory dwelling unit. b. Delete Sec. 9-4.4903(c) as follows:
c. Each Operator Operating a Short-term Rental shall have their Primary Residence at the Site of the Short-term Rental. To prove Primary Residency, the Operator Person must provide at least three forms of documentation to the Administrator evidencing that the Site of the Short-term Rental is their Primary Residence for more than six months of the year. A State or Federally issued identification card must be one of the documents provided, and others may include, but are not limited to, proof of homeowner's tax exemption, voter registration card or certificate, or proof of vehicle registration. c. Delete Sec. 9-4904(vii) as follows:
vii. The Operator shall provide documentation required by section 9-4.4903(c) that the Site is the Operator’s Primary Residence;
d. Modify Sec. 9-4.4905(t) as follows:
(t) Short-term Rentals shall not be concurrently used for any commercial Event (such as a corporate retreat or conference), and shall not be used for any noncommercial Event that is likely to result in a violation of traffic, parking, noise, or other standards regulating the residential use and character of the neighborhood.

Home occupations conducted by the operator primary resident compliant with the City’s home occupation ordinance are allowed; provided that parking and all other requirements for both the Short-term Rental and the home occupation are met;

2. Eliminate 60-Night Unhosted STR Limit

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a. Modify Sec. 9-4.4905(v) as follows:
(v) Unhosted Short-Term Rentals. The following additional operation requirements shall apply only to Unhosted Short-term Rentals:
i. An Unhosted Short-term Rental shall be Operated no more than 60 nights per year, commencing on October 31st of each year and ending October 30th of each year.
ii. Minimum Stay. Unhosted Short-term Rentals shall have a minimum two consecutive night stay for Short-term Renters.
iii. Unhosted Short-term Rentals are prohibited in Multi-family development units.

3. FINDINGS AND DECLARATIONS
A. Background
The City of Pacifica is located about 10 miles south of San Francisco along the San Mateo County ‘coastside’, where the coastal zone boundary mostly tracks along Highway 1 and encompasses residential neighborhoods, visitor-serving and commercial areas, open space areas, and important and popular beaches and other public access attractions. In particular, the City is a very popular recreational destination for visitors from all over the Bay Area and further from the coast, due in part to its beaches, open spaces, and well-known surf breaks, but also due to its proximity to both the San Francisco area and to the Peninsula, San Mateo, the Santa Clara (or Silicon) Valley, and the East Bay.

The City has regulated short-term rentals (STRs) through its LCP since 2018 when the Commission first certified LCP Implementation Plan (IP) STR provisions. Those provisions included a (non-CDP) STR permit process; a prohibition against STRs in accessory dwelling units (ADUs), trailers, and storage sheds/garages; payment of transient occupancy taxes (TOT) to the City; and “good neighbor” policies (such as guest safety requirements and noise regulations).

In 2024 the Commission certified additional STR provisions that refined the initial provisions from 2018 while also placing additional limits on STRs. Specifically, the 2024 amendments added a cap of 150 maximum STRs (whether hosted or unhosted rentals, 1 between which the LCP did not differentiate) throughout the City (both in and out of the coastal zone);
2 added junior ADUs (JADUs) to the types of housing where STRs were prohibited; established an STR permit renewal window of October 1st to October 31st annually, allowed the City to revoke STR permits that were not renewed; and created a waitlist for STR permits if the cap had been met.

Following the 2024 LCP changes, the City continued to pursue additional STR refinements, and has regularly engaged both STR supporters and detractors, including 1 Where an ‘unhosted STR’ is a whole house/unit rental where the operator is not present, and a hosted STR is a partial house/unit rental (e.g., a room) where the operator is on site and also staying at the time. 2 The 150 STR cap equates to approximately 1% of the City’s total housing units.

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through City Planning Commission and City Council meetings and study sessions. The City indicates that the concerns that have primarily been raised locally relate to alleged inappropriate STR operations (e.g., excessive noise, improper/inadequate trash disposal, loss of on-street parking, etc.) but also indicates that local STR operators push back on these preconceptions about their operations, including where such operators express a willingness to follow stringent ‘good neighbor’ policies to address such concerns. The City also indicates that it believes that STRs are leading to a degradation of certain neighborhoods (e.g., over-saturation) and taking up housing that could be used for longer term residential use. Ultimately, the City decided to address such concerns through a series of additional operational requirements, as well as through further STR limitations overall, as discussed below.

B. Proposed LCP Amendment
The proposed amendment would add further STR restrictions and requirements in the IP, including the following:
 Requiring an STR operator to reside at the residence full time for more than six months of the year (a “primary residency requirement”)
 Requiring an STR operator to be a living human being (a “natural person requirement”)
 Requiring STR operators to only have an ownership interest in one STR within the City at a time
 Limiting unhosted stays to at most 60 nights per year (hosted stays are unlimited)  Prohibiting unhosted rentals in multi-family residential settings  Requiring at least a two consecutive night minimum stay for unhosted rentals  Establishing parking, signage, occupancy, and visitor guidelines (including related to noise and trash)
 Limiting visitors and allowed visitation times (applied to visitors who are not party to an STR booking)
 Adding safety inspection requirements, as well as standards and procedures for STR permit application, issuance, and revocation
 Requiring STRs to include exterior signage identifying the unit as an STR, and providing contact information
Please see Exhibit 1 for the full text of the proposed IP amendment.

C. Consistency Determination
Standard of Review
The proposed amendment affects only the IP component of the City’s LCP, and the standard of review for IP amendments is that they must be consistent with and

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adequate to carry out the LCP Land Use Plan (LUP).

Applicable LUP Provisions
The LUP contains a series of provisions designed to protect and provide for maximized public recreational access opportunities, as well as to protect and encourage lower cost visitor and recreational facilities, as well as highlighting affordable housing as a sensitive coastal resource. These LUP provisions include:

LUP Policy LD-G-1 Coastal Development. Ensure that development maximizes beach and coastal open space access and is orientated as much as possible to each particular coastal environment in use, design, and intensity.

LUP Policy LD-I-6: Lower Cost Visitor and Recreational Facilities. Protect, encourage, and where feasible, provide lower-cost visitor and recreational facilities in the Coastal Zone. These include major, free recreational attractions such as Pacifica Pier and Pacifica State Beach; the public golf course at Sharp Park; the San Francisco RV Park; California Coastal Trail and other trails, lower cost overnight accommodations; and numerous beaches accessible at no cost.

LUP Policy LD-I-8: Development Priority for Visitor-Serving and Recreational Uses. Allow visitor-oriented uses as-of-right in all areas designated for Visitor-Serving Commercial or Low-Intensity Visitor-Serving Commercial, and all commercial or mixed-use districts within the Coastal Zone.

LUP Policy PR-G-1: Coastal Access and Recreational Opportunities.

Provide maximum coastal access and recreational opportunities for all people consistent with public safety needs and the need to protect public rights, rights of property owners, and natural resource areas from overuse, including access at each point identified on Figure 3-1.

LUP Policy PR-G-2: Management of Public Access. Regulate the time, place, and manner that public access is provided, based on such factors as topographic and site constraints; the fragility of natural resources; public safety; and the privacy of adjacent residential uses.

LUP Policy PR-G-3: Distribution of Public Coastal Facilities. Continue to distribute public facilities, including parking areas or facilities, so as to mitigate against the impacts of overcrowding or overuse by the public of any single area.

LUP Policy PR-G-26: Private Parking. Ensure adequate off-street parking in all new development.

LUP Policy ER-I-41: Recreational Uses. Promote recreational uses, such as horse boarding and trail riding, which retain open space character while contributing to a visitor-based economy.

LUP Policy PR-I-1: Public Shoreline Access. Continue to ensure that new development does not interfere with the public’s right of access to the sea where acquired through use or legislative authorization, including, but not limited to, the

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use of dry sand and rocky coastal beaches to the first line of terrestrial vegetation.

LUP Policy PR-I-2: New Development and Coastal Access. Require that new development along the coastline provide public access from the nearest public roadway to the shoreline and along the coast, and be designed to minimize impacts to public coastal access and recreation. Ensure that impacts are mitigated through the dedication of access or trail easements or the provision of improvements to other public access points.

Sensitive Coastal Resource Areas Definition. Those identifiable and geographically bounded land and water areas within the coastal zone of vital interest and sensitivity. "Sensitive coastal resource areas" include the following:
…(e) Special communities or neighborhoods which are significant visitor destination areas; (f) Areas that provide existing coastal housing or recreational opportunities for low- and moderate income persons; and (g) Areas where divisions of land could substantially impair or restrict coastal access.

Additionally, the LUP incorporates Coastal Act provisions verbatim into the LUP as LUP policies, including the following:

Section 30210. In carrying out the requirement of Section 4 of Article X of the California Constitution, maximum access, which shall be conspicuously posted, and recreational opportunities shall be provided for all the people consistent with public safety needs and the need to protect public rights, rights of private property owners, and natural resource areas from overuse.

Section 30211. Development shall not interfere with the public's right of access to the sea…
Section 30212(a). Public access from the nearest public roadway to the shoreline and along the coast shall be provided in new development projects except where: (1) it is inconsistent with public safety, military security needs, or the protection of fragile coastal resources, (2) adequate access exists nearby, or (3) agriculture would be adversely affected.

Section 30213. Lower cost visitor and recreational facilities shall be protected, encouraged, and, where feasible, provided. Developments providing public recreational opportunities are preferred. …
Section 30222. The use of private lands suitable for visitor-serving commercial recreational facilities designed to enhance public opportunities for coastal recreation shall have priority over private residential, general industrial, or general commercial development, but not over agriculture or coastal-dependent industry.

Section 30253. New development shall: … (e) Where appropriate, protect special communities and neighborhoods which, because of their unique characteristics, are popular visitor destination points for recreational uses.

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Thus, the LCP’s LUP requires protection and maximization of public recreational access opportunities, including requiring minimization of impacts to such public recreational access areas and uses, and promotes recreational uses and access to the sea (see, for example, LUP Policies LD-G-1, PR-I-1, PR-I-2, PR-G-1, and ER-I-41, and incorporated LUP Coastal Act Sections 30210, 30211, and 30212). Relatedly, the LUP more generally directs that a variety of visitor accommodations be prioritized over other types of use and development, and that lower cost accommodations in particular be protected and provided within the coastal zone (see, for example, incorporated LUP Coastal Act Sections 30213 and 30222 and LUP Policy LD-I-6). Furthermore, the LUP directs that public recreational access be protected and expanded in a way which reduces the impacts on public street parking availability; prevents against overuse by the public of any particular area; ensures that the time, place and manner of public access protects residential privacy; and continues to protect certain neighborhoods that are popular visitor destination points (see, for example, LUP Policies PR-G-26, PR-G-3, PR-G-2, and incorporated LUP Coastal Act Section 30253(e)).

With respect to housing, the Pacifica LUP similarly mirrors Coastal Act policies, where incorporated LUP Section 30222 instructs that the use of lands suitable for visitorserving facilities that enhance public recreational access opportunities shall be prioritized over private residential and general industrial/commercial uses (but not over agriculture or coastal-dependent industry). The LUP also identifies low and moderate income as a sensitive coastal resource (although it does not include provisions past that to implement such a designation). Thus, the LUP recognizes the importance of both ‘protected’ (e.g., deed restricted) affordable housing and other more ‘naturally occurring’ affordable housing types (such as multi-family housing and ADUs/JADU).

Consistency Analysis
STR Background Context
STRs, like any other type of overnight accommodation, play an important role in implementing public recreational access requirements by providing an opportunity for those who live beyond the reach of a day trip (or for those who just want to have a longer stay) to access all the access and recreational pursuits the coast here has to offer (e.g., coastal hikes, beach trips, sightseeing, surfing, fishing, etc.). More specifically, STRs provide a unique type of visitor-serving accommodation, especially for larger families and groups. This is particularly the case in Pacifica where there are only 330 hotel and motel rooms, and the STR market (up to 150 STRs per the current LCP) provides an important part of the overall overnight accommodations mix.

At the same time, STRs must be balanced with the LUP provisions that regulate the time, place, and manner of access to guard against overuse, as well as those that protect coastal workforce and affordable housing opportunities. Therefore, to find LUP consistency, the Commission must determine the appropriate balance of regulation that protects against overuse while still maximizing public recreational access opportunities in Pacifica. This is consistent with Coastal Commission guidance to local governments going back over a decade that has emphasized the need to allow, but regulate, STRs in a manner that balances the important public access and visitor-serving benefits of such rentals with reasonable regulations to limit potential adverse impacts on coastal

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communities.
3 Such balance may take the form of good neighbor requirements to guard against noise, trash, and other neighborhood impacts; STR limits to address issues of oversaturation or overuse in particular blocks, communities, or entire jurisdictions (e.g., buffers between individual STRs, disallowances in certain neighborhoods, and percentage caps on total residences in a community); and prohibitions on STRs within protected housing types (e.g., affordable housing). This balanced approach has been reflected in past Commission actions, where although each locality has its own unique STR, housing, community character, coastal resource, LUP, and proposed policy context (and thus different outcomes due to such unique contexts), the Commission has consistently pushed for and arrived at what it has considered an appropriate and Coastal Act/LUP consistent balance, including a recognition of the heated debates and tough choices that are often part of local and Commission deliberations when crafting such STR regulations. Therefore, the body of Commission actions on STR LCP amendments vary in policy and other outcomes due to unique circumstances in each case but have all included the premise of balancing at their core.4 More recently, there has also been a push on behalf of STR proponents and opponents alike to categorize STRs as either lower or higher cost, in large part to determine if the Coastal Act (and here the LUP) protections for lower cost visitor facilities apply.

However, although the Commission has a long established and long applied methodology for identifying lower cost hotel rooms, it has not developed nor applied a methodology for determining whether any particular STR is lower cost. The difficulty lies in the product itself, where individual STRs can be vastly different from one another in terms of what they offer and how many people can be accommodated, whereas doubleoccupancy hotel rooms are less so, and more easily compared. Pro-STR and anti-STR groups draw different conclusions, with, for example, groups like Better Neighbors Los Angeles (BNLA) suggesting that STRs are predominantly higher cost, and groups like Pacifica for Responsible Tourism (PRT) suggesting the opposite, both basing their conclusions on comparisons with hotel/motel lodging. However, it is difficult to compare the cost of STRs with hotels and motels because although STRs can have significantly higher daily rates than many hotels, STRs typically have multiple bedrooms, as well as indoor and outdoor common space areas, and can accommodate more people. In addition, STRs typically have kitchen facilities, which can reduce costs by allowing for the preparation and storage of food instead of having to purchase food for each meal. 5 The variability in the facilities and amenities provided by STRs make it challenging to 3 See, for example, the Commission’s original 2016 guidance to local governments available at:
https://documents.coastal.ca.gov/assets/la/Short_Term_Vacation_Rental_to_ Coastal_Planning_&_Devt_ Directors_120616.pdf.
4 See, for example LCP amendments LCP-4-STB-17-0086, LCP 3-STC-17-0073-2-Part B, A-5-DPT- 22- 0038, LCP-6-SAN- 21-0046-2, LCP-1-TRN-22-0034-1, LCP-4-MAL-20-0083-2, LCP-2-HMB-21-0078-2, LCP-3-MAR-24-0002-1, LCP-3-MCO-24-0039-1, LCP-6-ENC-23-0041-1, LCP-6-DMR-0048-2, LCP-4- SBV-25-0043-1, and LCP-3-SCO-25-0049-2-Part B.
5 For example, in a study conducted in Monterey County it was found that families of four could save up to $267 per day by cooking their own meals (Sarah Jenkins, Kiki Patsch, and Dr. Philip D. King, 2025, “Monterey County Overnight Accommodation Market Analysis”).

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accurately compare the cost versus the value of STRs to hotel rooms or other types of more standardized overnight accommodations.

As a result, the Commission has recognized that while some STRs can likely be considered lower cost, especially when shared by families or larger groups, they are simply not homogenous enough to make any sort of blanket proclamations on either end of the spectrum. As such, STRs are probably best understood as something that provides for more choices in the overnight accommodations market to meet various travelers’ needs, but are not appropriately described explicitly as either lower or higher cost. That said, despite questions regarding how they should be categorized, the continued popularity of STRs demonstrates they meet a demand not satisfied by traditional overnight accommodations. Importantly, the Commission need not draw a conclusion one way or the other regarding categorizing STRs as lower or higher cost, and therefore does not need decide whether LUP Policy LD-I-6 and Coastal Act Section 30213 apply, because that question is only whether additional LUP protections for STRs are applicable given the LUP already clearly requires maximizing public access and recreation opportunities of all types, including STRs.

Finally, the proposed amendment should also be viewed through an environmental justice lens, including consideration of how restrictions will impact Pacifica’s workforce and inland communities visiting Pacifica. With respect to the workforce, Pacifica’s visitor-serving economy relies on workers who require reasonably affordable and readily available workforce housing.6 Lengthy commutes from more affordable inland areas places a burden on these workers and prevents them from contributing to the civic life of the community they work in. Equitably protecting Pacifica as a visitor destination implicitly requires that affordable and workforce housing also be appropriately accommodated and protected for longer term and less transient use.

In addition, Inland communities often have less opportunities to enjoy and visit the coast and they face higher costs to do so compared to people who live closer to the coast.

There is a growing body of body of literature that shows in many parts of California, those who live nearest the coast tend to be wealthier, older, and more likely to be white than those who live further inland.
7 The demographics of Pacifica are consistent with
this trend.8 As a result, those living near the coast generally enjoy easier access to coastal public recreational opportunities compared to those living further away who tend to face longer travel times and higher transportation costs, including in some cases an 6 And some such workers/residents depend on the extra income that STRs provide them to be able make ends meet, including paying for the residential units themselves, and in some cases to be able to live in the City at all. And in fact, the Commission has received comments from STR operators in Pacifica making just this point.
7 The Reineman et al study (2016) is informative on this point, stating: “As our results demonstrate, economically disadvantaged and minority residents in general live further from coastal access points than wealthy and white residents. Thus, in order to visit and benefit from the state's public trust tidelands, these groups must travel further to reach the coastline; increased travel distance increases travel cost, compounding the burden and inequities inherent in the distribution of access points.” 8 Per 2020 Decennial United States Census data, the City of Pacifica is indeed wealthier, whiter, and older than the rest of California.

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overnight stay, further increasing the cost of their coastal access.9 In fact, over 60% of California families perceive that a visit to the coast of California is inaccessible, particularly due to the high costs of parking and overnight stays. 10 For these reasons,
the reduction in access opportunities expected by the City’s proposal would be expected to have oversized impacts on those least able to absorb additional costs. With this in mind, the ways in which the proposed STR provisions will further restrict public recreational access opportunities are only amplified when considered through an environmental justice lens. At the same time, the proposed modifications to the proposal will serve to protect multi-family and other naturally affordable housing types which are most likely to serve as workforce housing.

Proposed STR Changes Expected to Reduce STR Availability The LCP’s current STR provisions provide standards designed to ensure STRs are appropriately operated and regulated (including through existing certified ‘good neighbor’ provisions, and a process for licensing and compliance). These provisions include a 150 STR cap citywide (equating to roughly 1% of housing stock in the City), where that cap was based on historical STR activity in the City at the time. The City’s proposed amendment would add additional restrictions on STRs. The most substantive of these proposed changes are the proposed limit on unhosted stays to a maximum of 60 nights per year (while having no limits for hosted stays), and the primary residence requirement (requiring all STR operators, whether offering unhosted or hosted rentals, to live in the residence for at least six months of the year). Together, those proposed provisions mean that the allowance for unhosted STRs will be severely curtailed, as units that were formerly available for rental 365 days per year will be limited to 60 days.

Specifically, this translates into a decrease in potential overnight STR stays from the currently allowed 55,000 unhosted rental nights to 9,000 unhosted rental nights under the proposed provisions, an over 85% reduction. In addition, the cap on STRs applies to all STRs – whether they are unhosted or hosted. Thus, with implementation of the proposed amendment, there are likely to be far fewer than 150 unhosted STRs. As it relates to the primary residency requirement, the City’s intent is to ensure that more of its STR stock is also used for long-term housing. On this point it is worth noting that the City’s owner-occupied housing rate is nearly 70%.11 In other words, the City actually already has a relatively high percentage of owner-occupied housing units as compared to other coastal communities. When faced with even lower levels of owner occupancy recently, the Commission found that a 40% owner occupied housing rate was sufficient evidence of owner occupation in response to potential concerns that STR provisions should be further ratcheted down in terms of residency requirements because there 9 The King/Jenkins (2020) study states as follows: “Access to the resources and opportunities associated with California’s coast is not distributed fairly among California’s diverse population. Often, those who can afford to spend the least to visit the coast must spend the most as lower-income communities inland face the highest travel costs and accommodation burdens.”
10 Christensen, Jon., and Phillip King. 2017. Access for All: A New Generations Challenges on the California Coast
11 Where the owner-occupied housing unit rate for 2020-2024 was identified as 67.7% according to the United States Census Bureau (see United States Census Bureau Quick Facts, Pacifica, California).

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weren’t enough primary residents.12 This high rate of occupancy seems to indicate that the majority of homes are owner occupied in Pacifica, at least partly addressing the City’s concern regarding this issue. Additionally, similar to the proposed 60-night cap, a primary residence requirement would affect the availability and operation of unhosted rentals, requiring that unhosted rentals be occupied by the owner for six months of the year. Therefore, rentals which were previously available 365 days a year would now only be available for half of the year, cutting the available nights of unhosted rentals by 50% compared to the existing LCP through these provisions alone, which would be a significant reduction in this type of overnight accommodation. 13 The City has already implemented these regulations outside the coastal zone, providing a glimpse into their potential effects. Since implementing the regulations in late 2025, the number of STRs in the City dropped roughly in half (going from 145 down to 75, with 41 in the coastal zone),14 with a nearly 40% drop in the coastal zone and a nearly 60% drop outside of the coastal zone, where the latter appears to be concentrated in unhosted STR reductions. This almost immediate drop in STRs translates into a fairly significant loss in overnight accommodations available overall within the City, especially because STRs make up a significant portion of that market. 15 Implementing these
regulations within the coastal zone would be expected to lead to even further STR market contraction, leading to a significant loss of overnight accommodations in Pacifica’s coastal zone.

Finally, although the City’s intent with the proposal is to increase longer term housing opportunities, there is little evidence to suggest that the additional proposed restrictions would create such housing opportunities in Pacifica, especially affordable housing opportunities. While the City hopes that fewer STRs will lead to more long-term housing, there is no mechanism to mandate that property owners will rent or sell their properties for longer term residential use if they can’t pursue STRs. Additionally, although the LUP 12 In the City of Encinitas LCP STR case from February 2026, where the rate (there based on primary residence tax exemptions) was 40% for residential properties in the coastal zone. 13 The primary-residence requirement also raises concerns under the Dormant Commerce Clause of the United States Constitution, where that clause generally prohibits state and local laws from favoring local economic interests over out-of-state interests. By limiting STR permits to people whose primary residence is in Pacifica, the ordinance would exclude nonresident owners, including out of state owners, from operating STRs in the City, inconsistent with the Dormant Commerce Clause. This was affirmed in the South Lake Tahoe Property Owners Group v. City of South Lake Tahoe ((2023) 92 Cal.App.5th 735, 759– 767) case, where that court held that an STR exception available only to residents violated the Dormant Commerce Clause. Pacifica’s primary residence requirement creates a similar distinction and is therefore vulnerable to successful legal challenge on constitutional grounds. 14 Of the 41 STRs remaining in the coastal zone, the City estimates that 29 (or over 70%) are unhosted, and 12 are hosted, whereas outside the coastal zone the mix is roughly the opposite, with 26 (or over 75%) hosted rentals and just 8 unhosted rentals, showing the regulation’s effect on unhosted rentals has been oversized. Overall, the current mix is fairly even when both inside and outside the coastal zone STRs are counted, with the City estimating a total of 38 hosted STRs and 37 unhosted STRs in the City altogether.
15 When the 330 hotel and motel rooms available citywide are understood next to the 150 STRs allowed citywide, and where each such STR comes with multiple rooms as a general rule, it is clear that STRs are a significant component of the overall accommodations market in Pacifica, and can be considered the majority of it.

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identifies low and moderate income housing as a priority, there is currently no evidence to suggest that the housing stock in question is affordable even should it be converted to permanent housing. The neighborhoods in which STRs operate are relatively expensive, particularly in the coastal zone given their highly desirable location near the coast.16 Should an STR cease operating, there is no evidence that that residential unit would be available for rent or purchase at a rate affordable for a low- or moderateincome household. Importantly, current STRs in the coastal zone equate to about

0.025% of the City’s housing stock.17 Thus, even if all STRs currently operating in the coastal zone were converted to permanent housing, the increase in housing stock would not make a meaningful difference.

It is also illustrative to consider the overall share of residential units that would be allowed for STR use when taking into account the City’s STR limits. 150 STRs are allowed (although currently only 75 are operating) out of a community with roughly 15,000 housing units. Thus, throughout the City the allowable number of STRs constitutes just 1 percent of residential units overall, which the Commission found was an appropriate balance when the 150 cap was certified in June 2024 (see LCP-2-PAC23-0023-1). 18 Additionally, with the 60-night per year restriction, an STR operator who wishes to rent their home as an unhosted STR would not be able to also rent their home for longer term housing during the remaining 10 months, creating a binary choice, effectively leaving the house empty for most of the year or removing it as an STR. There are, however, measures that can appropriately put safeguards in place to avoid impacting more affordable housing options, as the City’s proposal does by prohibiting unhosted STRs in multi-family dwelling buildings to help ensure the continued availability of multi-family units for longer-term residential uses. In addition, the proposed amendment prohibits STRs in ADUs and JADUs, retaining these ‘more affordable by design’ units as potential more affordable housing resources as well.

In sum, there are significant and complex challenges impacting housing availability and affordability, but there is little evidence showing that the proposed STR regulation in Pacifica would be a significant driver to create more housing. It is evident that there is high demand for housing of all types in Pacifica, and the Commission is committed to working with the City to identify new opportunities for housing, especially affordable housing, within the coastal zone. However, there is little evidence that the proposed STR provisions will lead to any affordable housing, which is the type of housing protected under the LUP, or significantly affect housing availability more broadly. 16 The median home price in Pacifica is $1.3 million, and the median rental price for a 2-bedroom unit is $3,650 per month (as of July 2026, via zillow.com). These homes are generally not financially accessible to low and moderate income purchasers and renters, which fact can be reasonably presumed to extend and apply to such residences that are used as STRs, even more so in the coastal zone where costs to rent and buy are generally even higher on a relative basis. 17 Based on current STR numbers, where there are 41 coastal zone STRs, or 0.025% of the City’s overall housing stock.
18 It should be noted that STRs as a percentage of housing units vary wildly in LCP STR provisions up and down the coast (e.g., ranging from a low of 1% in Half Moon Bay to 15% in Trinidad, all the way up to 50% in certain Marin County coastal areas (like the over 350 allowed STRs in Dillon Beach and Seadrift), and even 100% in some places (e.g., the 255 units in the Seabluffe area of Encinitas west of Highway 101).

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Conversely, it is clear that the proposed provisions would lead to a decrease in public recreational access opportunities, a priority use under the LUP that is required to be maximized. Thus, this amendment, as proposed, does not achieve the balance the Commission seeks with STR provisions, and is inconsistent with the LUP. This is particularly the case as it relates to the most restrictive of the proposed provisions, namely the primary residency requirement and the 60-night limit for unhosted rentals.

When evaluated against the legal standard of review, the proposed IP amendment is not consistent with and is inadequate to carry out the LCP LUP, including its incorporated Coastal Act provisions. Specifically, the proposed LCP amendment is inconsistent with LUP Policies LD-G-1, LD-I-6, PR-I-1, PR-I-2, PR-G-1, and ER-I-41, and incorporated LUP Coastal Act Sections 30210, 30211, 30212, 30213 and 30222.

Modifications Required for Approval
As described above, the main concerns raised with the City’s proposed amendment relate to the primary residency requirement and the 60-night unhosted STR limit. Many of the other proposed provisions will not significantly reduce public recreational access opportunities, and are more common sense in their application, especially as it relates to the series of proposed ‘good neighbor’ type of provisions. In fact, the whole purpose of these types of good neighbor provisions is to ensure that STR operations appropriately blend into their residential setting, including in terms of noise, trash, and parking, which the City suggests is the basis for many STR opposition complaints in Pacifica. The proposed enforcement and revocation provisions would also provide appropriate ‘teeth’ to allow for bad actors in this respect to be disciplined (including the provisions for permit revocation if operators violate the rules two times in a year). Of course, much of the success of these programmatic provisions rests on the City’s commitment to implement and enforce them, but the provisions themselves are strong enough in this respect that they can help ensure neighborhood compatibility, and where there are bad actors, they can be weeded out.

Thus, importantly, almost all of the City’s proposal is adequate to carry out the LUP and approval of these provisions is consistent with and carries out the objectives of LUP Policy PR-G-3 (to prevent against overuse by the public of any particular area; LUP Policy PR-G-26 (to ensure adequate off-street parking to avoid impacting public street parking); LUP Policy PR-G-2 (to ensure that the time, place and manner of public access protects residential privacy); and incorporated LUP Coastal Act Section 30253(e) (to protect certain neighborhoods that are popular visitor destination points because of the characteristics of the neighborhoods themselves). This can form the starting point for an approvable amendment overall.

Among these proposed and approvable provisions, there are important safeguards against turning STRs into a form of major business operation. Specifically, requiring STR operators to be natural persons,
19 and only allowing such individuals to have one
19 Opponents of natural-person requirements argue that such restrictions violate the Equal Protection Clause, relying on Hignell-Stark v. City of New Orleans ((5th Cir. 2025) 154 F.4th 345, 353–356). There, the Fifth Circuit held that New Orleans lacked a rational basis for excluding corporations from STR permits because the City failed to identify a connection between an STR owner’s legal form (i.e. a corporation) and guest behavior or neighborhood impacts. Hignell-Stark, however, is not binding on the Commission, and the Commission concludes that Pacifica’s natural-person requirement could be

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ownership interest in only one STR within the City at a time, helps to avoid the type of mass commercialization that has been raised as a concern in Pacifica This will provide a meaningful barrier to corporate entities attempting to buy up large numbers of properties for the purposes of turning them into STRs. When combined with the already certified 150 cap on STRs, there are clearly adequate safeguards in Pacifica to protect against oversaturation, while still providing for an important STR market.

However, the primary residence requirement and the requirement that unhosted stays be limited to at most 60 nights per year cannot be found LUP consistent, as described above. Thus, both of these restrictions must be removed in order to find the required LUP consistency in this case (see Suggested Modifications 1 and 2). By removing these LUP-inconsistent restrictions, the modified IP amendment can be found consistent with the LUP, and specifically with LUP Policies LD-G-1, LD-I-6, PR-I-1, PRI-2, PR-G-1, and ER-I-41, and incorporated LUP Coastal Act Sections 30210, 30211, 30212, 30213 and 30222.

Conclusion
There is no ‘one size fits all’ STR approach to providing STRs in coastal California, and an appropriate balance must be found in each community that makes sense for both the community and its visitors while remaining Coastal Act and LCP compliant. Finding that balance can be an incredibly difficult process, where that process demands some acknowledgment and deference given for what can be truly competing objectives at times. Ultimately, however, the Commission is tasked under the Coastal Act in reviewing proposed IP changes for consistency with the LUP and only the LUP.

In Pacifica, when focused on the key LUP consistency question, namely whether the proposal maximizes public recreational access opportunities, it is clear that changes are necessary to achieve LUP consistency. In addition, existing coastal access inequities that fall disproportionality on visitors that are not living on the coast may be exacerbated by several of the proposed STR provisions, which further support the conclusion that the proposal cannot be approved as submitted, including when viewed through an environmental justice lens. This is particularly the case in a jurisdiction like Pacifica that already has an STR cap in place, and where additional restrictions of the type proposed have the potential to impact the availability of coastal zone STRs altogether, particularly as it relates to unhosted STRs. Those impacts would only be exacerbated in Pacifica where STRs arguably are the predominant form of overnight accommodation in the City.

Thus, the Commission’s suggested modifications when combined with the rest of the proposed provisions represent not only an LUP consistent version of the regulations, but also represent an appropriate balancing of competing objectives overall. The suggested modifications aim to reduce the likelihood of a substantial reduction in the availability of STRs in the coastal zone, protecting public access opportunities for all, including lower income and disadvantaged communities, while still allowing the rationally related to legitimate governmental purposes. Specifically, the requirement supports individual and small-scale STR operators, limits the consolidation of STR permits by corporate entities, and reduces the risk that affiliated entities could be used to evade permit limits or concentrate control of the local STR market. Restricting permits to natural persons is a rational means of advancing those objectives.

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community of Pacifica to implement its “good neighbor policies” and protect its community character. The result is a balance that makes sense for both a community and its visitors while remaining Coastal Act and LCP compliant.

D. California Environmental Quality Act (CEQA)
CEQA Section 21080.5(d)(2)(A) prohibits a proposed LCP or LCP amendment from being approved if there are feasible alternatives and/or feasible mitigation measures available that would substantially lessen any significant adverse effect that the LCP or LCP amendment may have on the environment. Although local governments are not required to satisfy CEQA in terms of local preparation and adoption of LCPs and LCP amendments, many local governments use the CEQA process to develop information about proposed LCPs and LCP amendments, including to help facilitate Coastal Act review. In this case, the City exempted the proposed amendment from environmental review (citing California Code of Regulations (CCR) Sections 15061(b)(3) (no significant environmental impact) and 15301 (class 1 – existing facilities)).

The Coastal Commission is not exempt from satisfying CEQA requirements with respect to LCPs and LCP amendments, but the Commission’s LCP/LCP amendment review, approval, and certification process has been certified by the Secretary of the Natural Resources Agency as being the functional equivalent of the environmental review required by CEQA (CCR Section 15251(f)). Accordingly, in fulfilling that review, this report has discussed the relevant coastal resource issues with the proposal, and has concluded that the proposed LCP amendment is expected to result in significant environmental effects, including as those terms are understood in CEQA, if it is not modified to address the coastal resource issues identified herein. Accordingly, it is necessary for the Commission to suggest modifications to the proposed LCP amendment to ensure that it does not result in significant adverse environmental effects.

Thus, the proposed LCP amendment as modified will not result in any significant adverse environmental effects for which feasible mitigation measures have not been employed, consistent with CEQA Section 21080.5(d)(2)(A).

4. APPENDICES
A. Substantive File Documents20
 LCP Amendment File for LCP-2-PAC-25-0079-2
 “A Balancing Act: Low-Cost Lodging and Affordable Housing along the California Coast.” Nicholas V. DiRago for Better Neighbors LA (2026)  “America’s Housing Affordability crisis and the Decline of Housing Supply.” Edward Glaeser and Joseph Gyourko (2025).
 “Coastal Access Equity and the Implementation of the California Coastal Act.” Dan R. Reineman; Lisa M. Wedding; Eric H. Hartge; Winn McEnery; Jesse Reiblich. 36 Stan. Envtl. L. J. 89, 108 (2016)
20 Available for review in the Commission’s North Central Coast District office in San Francisco.

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 “Monterey County Overnight Accommodation Market Analysis.” Sarah Jenkins, Kiki Patsch, and Dr. Philip G. King (2025)
 “Supply Constraints Do Not Explain House Price and Quantity Growth Across U.S. Cities.” Louie, Schuyler, John Mondragon, and Johannes Wieland. Federal Reserve Bank of San Francisco Working Paper 2025-06.
https://doi.org/10.24148/wp2025-06 (2025)
 “Unequal Access: Protecting Affordable Accommodations Along the California Coast.” Dr. Philip G. King and Sarah Jenkins (2020)
 “Access for All: A New Generations Challenges on the California Coast” Christensen, Jon., and Phillip King. (2017).

B. Staff Contact with Agencies and Groups
 City of Pacifica Planning Department
 Pacifica for Responsible Tourism
 Pacifica Homes Are Not Hotels
 AirBnB
 BNLA

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Packet Pg. 346 Attachment: Attachment A_W13b-8-2026-report - CCC STR Staff Report (6295 : STR Coastal Commission Modifications) 1 RESOLUTION NO. 2026-008

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PACIFICA INITIATING TEXT AMENDMENT TA-131-26 AND RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE TO AMEND VARIOUS PROVISIONS OF ARTICLE 49 “SHORT-TERM RENTALS” OF CHAPTER 4 OF TITLE 9 OF THE CITY OF PACIFICA MUNICIPAL CODE (PMC) INCLUDING SECTIONS 9-4.4902(m), 9-4.4903(c), 9-4.4904(a), 9-4905(t), AND 9-4905(v),

AS NECESSARY TO IMPLEMENT CERTAIN PROVISIONS OF ITS LOCAL COASTAL

PROGRAM AS CERTIFIED, WITH SUGGESTED MODIFICATIONS, BY THE CALIFORNIA COASTAL COMMISSION AT THEIR MEETING ON AUGUST 12TH, 2026; AND FINDING THE

TEXT AMENDMENT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) (FILE NO. 2026-024)
___________________________________________________________________ Initiated by: City of Pacifica
WHEREAS, on June 11, 2018, the City Council of the City of Pacifica adopted Ordinance 835-C.S. adding Article 49 "Short-Term Rentals" ("STRs") to Chapter 4 of Title 9 of the Pacifica Municipal Code to establish regulations governing the short-term rental of residential property within the City of Pacifica; and
WHEREAS, on February 27, 2023, the City Council adopted Ordinance 888-C.S. repealing and replacing Article 49 "Short-term Rentals" of Chapter 4 of Title 9 of the Pacifica Municipal Code relating to the regulation and permitting of short- term rentals; and WHEREAS, during 2024, the City Council advanced Goal 3: prioritize protection and development of affordable housing, Strategy 3.2: Update the Short-Term Rental Ordinance of the City’s Strategic Plan 2023 to 2030; and
WHEREAS, advancement of Goal 3, Strategy 3.2 of the City’s Strategic Plan included a comprehensive evaluation of the program’s status and enforcement activity; and WHEREAS, the California State Legislature has declared that housing is statewide concern; and
WHEREAS, preservation of existing housing is an integral component of the City of Pacifica Housing Element; and
WHEREAS, the stock of naturally affordable housing that comes from multi-family complexes is being impacted by short-term rentals, reducing affordable housing; and

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Packet Pg. 347 Attachment: Attachment B_PC Reso No. 2026-008_STR-Coastal Commission Modifications_executed (6295 : STR Coastal Commission 2 WHEREAS, the City Council held a Study Session on June 24, 2024, to receive information on the Short-Term Rental Program and provide direction on potential ordinance provisions for City staff to research and analyze and bring back to Council; and WHEREAS, the City Council held a Study Session on August 26, 2024, with continued deliberations occurring on September 8, 2024, to consider implementation impacts for each of the policy and regulatory compliance topics discussed at the June Study Session, and to provide direction on provisions for the updated Short-Term Rental Ordinance; and WHEREAS, on November 5, 2024, city staff consulted with California Coastal Commission staff to discuss feasibility of the proposed text amendments; and WHEREAS, during the November 5, 2024 consultation between City staff and CCC staff, four areas of potential concern were identified and feedback was provided, including parking requirements, short-term rental density limitations, use of multi-family dwellings as short-term rentals, and minimum rental duration requirements; and WHEREAS, on December 4, 2024, the City Council held a Special Council Meeting to receive updates regarding the November 5, 2024 consultation meeting between City staff and California Coastal Commission discuss the four topics of concern and provide feedback and direction to staff on ordinance provisions and amendments; and WHEREAS, the Planning Commission held a duly noticed public hearing on the proposed amendments contained in Text Amendment TA-127-25 (File No. 2025-001) (“Draft Ordinance”) on January 21, 2025, and adopted Resolution No. 2025-001 by a vote of 6 to 0 with 0 of absences, initiating and recommending City Council approval of Text Amendment TA127-25.

WHEREAS, the City Council held a duly noticed public hearing on the proposed ordinance on February 24, 2025, provided additional direction to the City Manager on revisions to the draft Ordinance, and adjourned the meeting to a future date to continue deliberations; and
WHEREAS, the City Council continued deliberations on April 14, 2025, at a duly noticed public hearing, provided final direction to the City Manager for revisions to the draft Ordinance, and directed the City Manager to refer the revisions back to the Planning Commission for review and recommendation; and
WHEREAS, on June 16, 2025, the Planning Commission held a duly noticed public hearing on the proposed amendments contained in Text Amendment TA-157-25 (File No. 2025-001) and adopted Resolution No. 2025-006 by a vote of 6-0 initiating and

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Packet Pg. 348 Attachment: Attachment B_PC Reso No. 2026-008_STR-Coastal Commission Modifications_executed (6295 : STR Coastal Commission 3 recommending to the City Council adoption of Text Amendment TA-157-25 (File No. 2025- 001); and
WHEREAS, the City Council held a duly noticed public hearing on the proposed ordinance on July 14, 2025, and introduced Ordinance No. 901-C.S. on the same day; and WHEREAS, the City Council held a duly noticed public hearing on the proposed ordinance on August 11, 2025, and adopted Ordinance No. 901-C.S. on the same day; and WHEREAS, Public Resources Code Section 30514 provides that any ordinance enacted by the City Council which amends the City's zoning standards or zoning map shall not take effect within the Coastal Zone until the California Coastal Commission certifies an amendment to the City's Local Coastal Program; and
WHEREAS, the City of Pacifica submitted an application for a Local Coastal Program Amendments which included the STR zoning text amendments of Ordinance No. 901-C.S., to the California Coastal Commission on December29, 2025 (LCP-2-PАС-25-0079-2); and WHEREAS, LCP-2-PАС-25-0079-2 was agendized for a duly noticed California Coastal Commission public hearing on February 4, 2026 with a staff recommenation to approve the LCP Amendment “as submitted” but was continued to a date uncertain at the request of Coastal Commission staff; and
WHEREAS, LCP-2-PАС-25-0079-2 was again agendized for a duly noticed California Coastal Commission public hearing on August 12, 2026, but the Coastal Commission staff recommendation had changed to include approval with modifications; and WHEREAS, on that same date, the California Coastal Commission certified the proposed amendments to the Local Coastal Program Amendment, with modifications suggested by the Coastal Commission that would eliminate the primary residency requirement for STRs in areas within the Coastal Zone and increase the maximum number of nights an unhosted STR in areas within the Coastal Zone can be rented from 60 to 120 nights; and
WHEREAS, pursuant to California Public Resources Code section 30513(c), the City of Pacifica may accept, agree, and adopt the modifications to the zoning text certified by the California Coastal Commission and as reflected in Text Amendment TA-131-26 in order to effectuate the STR zoning text amendments in the Coastal Zone; and

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Packet Pg. 349 Attachment: Attachment B_PC Reso No. 2026-008_STR-Coastal Commission Modifications_executed (6295 : STR Coastal Commission 4 WHEREAS, on August 25, 2026, the City Council and Planning Commission held a joint meeting to receive public input and discuss Coastal Commission Modifications to City of Pacifica LCP Amendment Number 2-PAC-25-0079-2; and
WHEREAS, following the special joint meeting, the Planning Commission held a duly noticed public hearing at a special meeting on August 25, 2026, on the proposed amendments contained in Text Amendment TA-131-26, and adopted Resolution No. 2026- 008 by a vote of 6-0 with 1 absence initiating and recommending City Council approval of Text Amendment TA-131-26.

NOW, THEREFORE BE IT RESOLVED, by the Planning Commission of the City of Pacifica as follows:

1. The above recitals are true and correct and material to this Resolution.

2. In making its findings, the Planning Commission relied upon and hereby incorporates by reference all correspondence, staff reports, and other related materials.

3. The Planning Commission hereby finds that the proposed Draft Ordinance and included amendments to Article 49 are consistent with the General Plan and Local Coastal Plan as follows:
a. General Plan Housing Element Program HE-I-7 Preserve Existing Affordable Housing Units, in that:
i. The amended provisions limit the number of unhosted rental nights in areas within the Coastal Zones to ensure that residential units are also available for longer-term habitation (more than 30 days) for the majority of the year.
b. General Plan Policy ES-G-1 Leverage Assets (Leverage Pacifica’s coastal location and unique assets as a primary means to strengthen the local economy, focusing on increasing tourism facilities, including shops, hotels, restaurants, and hiking trails), in that:
i. Short-term rentals increase tourism by providing a diverse range of accommodation options; and
ii. Short-term rentals contribute to the City’s local economy by generating business license tax and transient occupancy taxes

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Packet Pg. 350 Attachment: Attachment B_PC Reso No. 2026-008_STR-Coastal Commission Modifications_executed (6295 : STR Coastal Commission 5 (TOT), revenues from which can be used to fund essential city services such as infrastructure and recreation facility improvements, benefiting both the tourist and local economies; and
iii. Short-term rentals attract a diverse tourist base to the city, introducing new customers to local shops and restaurants; and iv. Tourists who patronize these local businesses directly strengthen the local economy by generating revenue for local businesses and contributing to the city’s sales tax base; and
v. Short-term rentals provide supplemental income opportunities for Pacifica residents, fostering economic empowerment and enabling contribution to the local economy through increased spending at local businesses, or by pursuing their own local business; and vi. The amended provisions to the short-term rental program effectively leverage the city's unique assets and strengthen the local economy.
c. General Plan Policy CD-G-3 Neighborhood Conservation (Preserve the unique qualities of each of Pacifica’s residential neighborhoods.

Incorporate neighborhood narratives into the General Plan to reflect these unique qualities and inform appropriate development standards and other policies), in that:
i. The amended provisions preserve the unique qualities of residential neighborhoods in areas within the Coastal Zone by expanding operating regulations that address potential
neighborhood impacts such as noise, litter, and parking. d. Local Coastal Land Use Plan Implementing Policy LD-I-6, Lower Cost Visitor and Recreational Facilities (protect, encourage, and where feasible, provide lower-cost visitor and recreational facilities in the Coastal Zone.

These include major, free recreational attractions such as Pacifica Pier and Pacifica State Beach; the public golf course at Sharp Park; the San Francisco RV Park; California Coastal Trail and other trails, lower cost overnight accommodations; and numerous beaches accessible at no cost) in that

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Packet Pg. 351 Attachment: Attachment B_PC Reso No. 2026-008_STR-Coastal Commission Modifications_executed (6295 : STR Coastal Commission 6 i. The amended provisions would maintain allowances for STRs within the Coastal Zone, while providing additional regulatory and permitting requirements to address operational impacts on residential uses.

4. The public necessity, convenience, and general welfare clearly permit the adoption of the Draft Ordinance, in that clarifying operating regulations for unhosted short-term rentals to reduce neighborhood impacts and ensures short-term rentals operate in a compatible manner with existing residential uses.

5. The Planning Commission further finds that this Ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to the commonsense exemption, Section 15061(b)(3) of the State CEQA Guidelines, because CEQA applies only to projects that have the potential for causing a significant effect on the environment. It can be seen with certainty that there is no possibility that this Ordinance will have a significant effect on the environment. Additionally, the Ordinance is exempt from CEQA pursuant to CEQA Guidelines section 15301(Class 1-Existing Facilities) as the Draft Ordinance makes amendments to the City’s current short-term rental permitting program for existing residential dwelling units. The Draft Ordinance involves negligible or no expansion of existing or former use. This Ordinance is an exercise of the City’s police power to reduce the adverse effects of shortterm rentals. As a result, this Ordinance will not result in direct or indirect physical changes in the environment and is not subject to CEQA.

BE IT FURTHER RESOLVED that the Planning Commission of the City of Pacifica does hereby recommend approval to the City Council of the City of Pacifica the zoning text amendment described in Text Amendment TA-131-26, attached hereto as Exhibit 1 to this Resolution.
*****
PASSED AND ADOPTED at a special meeting of the Planning Commission of the City of Pacifica, California, held on the 25th day of August 2026.

AYES, Commissioners: Berman, Davis, Ferguson, Hauser, Redfield, Sanchez NOES, Commissioners: n/a
ABSENT, Commissioners: Fisher

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Packet Pg. 352 Attachment: Attachment B_PC Reso No. 2026-008_STR-Coastal Commission Modifications_executed (6295 : STR Coastal Commission 7 ABSTAIN, Commissioners: n/a
____________________________
Samantha Hauser, Chair
ATTEST: APPROVED AS TO FORM:
____________________________ _____________________________ Samantha Updegrave, Michelle Kenyon, City Attorney
Community Development Director

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ORDINANCE NO. __________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFICA TEXT AMENDMENT TA-131-26 AND RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE TO AMEND VARIOUS PROVISIONS OF ARTICLE 49 “SHORTTERM RENTALS” OF CHAPTER 4 OF TITLE 9 OF THE CITY OF PACIFICA MUNICIPAL CODE (PMC) INCLUDING TO SECTIONS, 9-4.4901(m), 9-4.4903(c), 9-

4.4904(a), 9-4905(t), AND 9-4905(v), AS NECESSARY TO IMPLEMENT CERTAIN

PROVISIONS OF ITS LOCAL COASTAL PROGRAM AS CERTIFIED, WITH

SUGGESTED MODIFICATIONS, BY THE CALIFORNIA COASTAL COMMISSION AT THE COASTAL COMMISSION HEARING ON AUGUST 12TH, 2026; AND FINDING

ADOPTION OF THE ORDINANCE EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) (FILE NO. 2026-024)
WHEREAS, on June 11, 2018, the City Council of the City of Pacifica adopted Ordinance 835-C.S. adding Article 49 "Short-Term Rentals" ("STRs") to Chapter 4 of Title 9 of the Pacifica Municipal Code to establish regulations governing the short-term rental of residential property within the City of Pacifica; and WHEREAS, on February 27, 2023, the City Council adopted Ordinance 888-C.S. repealing and replacing Article 49 "Short-term Rentals" of Chapter 4 of Title 9 of the Pacifica Municipal Code relating to the regulation and permitting of short- term rentals; and
WHEREAS, during 2024, the City Council advanced Goal 3: prioritize protection and development of affordable housing, Strategy 3.2: Update the Short-Term Rental Ordinance of the City’s Strategic Plan 2023 to 2030; and WHEREAS, advancement of Goal 3, Strategy 3.2 of the City’s Strategic Plan included a comprehensive evaluation of the program’s status and enforcement activity; and
WHEREAS, the California State Legislature has declared that housing is statewide concern; and
WHEREAS, preservation of existing housing is an integral component of the City of Pacifica Housing Element; and
WHEREAS, the stock of naturally affordable housing that comes from multi-family complexes is being impacted by short-term rentals, reducing affordable housing; and WHEREAS, the City Council held a Study Session on June 24, 2024, to receive information on the Short-Term Rental Program and provide direction on potential ordinance provisions for City staff to research and analyze and bring back to Council; and

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WHEREAS, the City Council held a Study Session on August 26, 2024, with continued deliberations occurring on September 8, 2024, to consider implementation impacts for each of the policy and regulatory compliance topics discussed at the June Study Session, and to provide direction on provisions for the updated Short-Term Rental Ordinance; and
WHEREAS, on November 5, 2024, city staff consulted with California Coastal Commission staff to discuss feasibility of the proposed text amendments; and WHEREAS, during the November 5, 2024, consultation between City staff and CCC staff, four areas of potential concern were identified and feedback was provided, including parking requirements, short-term rental density limitations, use of multi-family dwellings as short-term rentals, and minimum rental duration requirements; and WHEREAS, on December 4, 2024, the City Council held a Special Council Meeting to receive updates regarding the November 5, 2024, consultation meeting between City staff and California Coastal Commission discuss the four topics of concern and provide feedback and direction to staff on ordinance provisions and amendments; and
WHEREAS, the Planning Commission held a duly noticed public hearing on the proposed amendments contained in Text Amendment TA-127-25 (File No. 2025-001) (“Draft Ordinance”) on January 21, 2025, and adopted Resolution No. 2025-001 by a vote of 6 to 0 with 0 of absences, initiating and recommending City Council approval of Text Amendment TA127-25.

WHEREAS, the City Council held a duly noticed public hearing on the proposed ordinance on February 24, 2025, provided additional direction to the City Manager on revisions to the draft Ordinance, and adjourned the meeting to a future date to continue deliberations; and
WHEREAS, the City Council continued deliberations on April 14, 2025, at a duly noticed public hearing, provided final direction to the City Manager for revisions to the draft Ordinance, and directed the City Manager to refer the revisions back to the Planning Commission for review and recommendation; and
WHEREAS, on June 16, 2025, the Planning Commission held a duly noticed public hearing on the proposed amendments contained in Text Amendment TA-157-25 (File No. 2025-001) and adopted Resolution No. 2025-006 by a vote of 6-0 initiating and recommending to the City Council adoption of Text Amendment TA-157-25 (File No. 2025-001); and
WHEREAS, the City Council held a duly noticed public hearing on the proposed ordinance on July 14, 2025, and introduced Ordinance No. 901-C.S. on the same day; and

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WHEREAS, the City Council held a duly noticed public hearing on the proposed ordinance on August 11, 2025, and adopted Ordinance No. 901-C.S. on the same day; and
WHEREAS, Public Resources Code Section 30514 provides that any ordinance enacted by the City Council which amends the City's zoning standards or zoning map shall not take effect within the Coastal Zone until the California Coastal Commission certifies an amendment to the City's Local Coastal Program; and WHEREAS, the City of Pacifica submitted an application for a Local Coastal Program Amendments which included the STR zoning text amendments of Ordinance No. 901-C.S., to the California Coastal Commission on December29, 2025 (LCP-2-PАС25-0079-2); and WHEREAS, LCP-2-PАС-25-0079-2 was agendized for a duly noticed California Coastal Commission public hearing on February 4, 2026 with a staff recommenation to approve the LCP Amendment “as submitted” but was continued to a date uncertain at the request of Coastal Commission staff; and
WHEREAS, LCP-2-PАС-25-0079-2 was again agendized for a duly noticed California Coastal Commission public hearing on August 12, 2026, but the Coastal Commission staff recommendation had changed to include approval with modifications; and
WHEREAS, on that same date, the California Coastal Commission certified the proposed amendments to the Local Coastal Program Amendment, with modifications suggested by the Coastal Commission that would eliminate the primary residency requirement for STRs in areas within the Coastal Zone and increase the maximum number of nights an unhosted STR in areas within the Coastal Zone can be rented from 60 to 120 nights; and
WHEREAS, pursuant to California Public Resources Code section 30513(c), the City of Pacifica may accept, agree, and adopt the modifications to the zoning text certified by the California Coastal Commission and as reflected in Text Amendment TA-131-26 in order to effectuate the STR zoning text amendments in the Coastal Zone; and WHEREAS, on August 25, 2026, the City Council and Planning Commission held a joint meeting to receive public input and discuss Coastal Commission Modifications to City of Pacifica LCP Amendment Number 2-PAC-25-0079-2; and WHEREAS, following the special joint meeting, the Planning Commission held a duly noticed public hearing at a special meeting on August 25, 2026, on the proposed amendments contained in Text Amendment TA-131-26, and adopted Resolution No. 2026-008 by a vote of 6-0 with 1 absence initiating and recommending City Council approval of Text Amendment TA-131-26.

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WHEREAS, the City Council held a duly noticed public hearing on the proposed ordinance on September 8, 2026, and introduced Ordinance No. ### on the same day; and
NOW, THEREFORE, the City Council of the City of Pacifica does ordain as follows:

Section 1. Recitals. The City Council of the City of Pacifica does hereby find that the above referenced recitals are true and correct and material to the adoption of this Ordinance.

Section 2. Amendment. Section 9-4.4901, Article 49, “Short-Term Rentals” of Chapter 4, “Zoning” within Title 9, “Planning and Zoning” is amended as follows, with additions identified in underline and deletions identified in strikethrough:
“Sec. 9-4.4901. Definitions.
(m) “Primary residence” means a residence where a Person resides, full-time, for more than six months out of the year. Primary residence shall not include an accessory dwelling unit or a Junior accessory dwelling unit. Primary Residence requirements shall apply outside of the Coastal Zone pursuant to section 9-4.4903(c).”
Section 3. Amendment. Section 9-4.4903, Article 49, “Short-Term Rentals” of Chapter 4, “Zoning” within Title 9, “Planning and Zoning” is amended as follows, with additions identified in underline and deletions identified in strikethrough:
“Sec. 9-4.4903. Standards applicable to Short-term Rental Sites.

The following standards shall apply to any Site offered as a Short-term Rental. No Short-term Rental Permit shall be issued if the Site is not compliant with the following:
(a) In accordance with Section 9-4.453(a)(6) and 9-4.454(a)(6), no Person may Operate a Short-term Rental in any accessory dwelling unit or junior accessory dwelling unit.
(b) No Person shall Operate or allow a Short-term Rental in any location not approved for use as a permanent dwelling unit (received Certificate of Occupancy or equivalent final inspection), including, but not limited to, any vehicle, trailer, tent, storage shed or garage;
(c) In areas outside of the Coastal Zone, each Each Operator Operating a Short-term Rental shall have their Primary Residence at the Site of the Short-term Rental. To prove Primary Residency, the Operator Person must provide at least three forms of documentation to the Administrator evidencing that the Site of the Short-term Rental is their Primary Residence for more than six months of the year. A State or Federally issued

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identification card must be one of the documents provided, and others may include, but are not limited to, proof of homeowner's tax exemption, voter registration card or certificate, or proof of vehicle registration. (d) An Operator shall Operate only one Short-term Rental at any given time; (e) For a single-family residential unit or a residential condominium dwelling unit, one Short-term Rental may Operate as an accessory use on the Site; and
(f) For a Multi-family development, only Hosted Short-term Rentals may be Operated as an accessory use to an individual unit within the Multi-family development.”
Section 4. Amendment. Section 9-4.4904, Article 49, “Short-Term Rentals” of Chapter 4, “Zoning” within Title 9, “Planning and Zoning” is amended as follows, with additions identified in underline and deletions identified in strikethrough:
“Sec. 9-4.4904. - Short-term Rental Permit required.

Subject to those requirements in Section 9-4.4903 and subject to the Short-term Rental Permit cap specified in Section 9-4.4902, a Short-term Rental Permit along with a Short-Term Rental Permit number may be approved and issued by the Administrator, provided that the Administrator determines the applicant has met the following requirements:
(a) Application. Any Person seeking to Operate a Short-term Rental must complete an application on a form provided by the City, accompanied with the fees established by resolution of the City Council. The application form will include, at a minimum, the following information:
i. Name and contact information of the Operator;
ii. All adults for whom the property is a permanent residence shall be listed;
iii. The name and contact information of the authorized Responsible Party. Any change in the Responsible Party’s address or telephone number shall be promptly furnished to the City within 48 hours of such change;
iv. Site plan showing location, dimensions, and use of all existing buildings on the Site, and on-Site parking;

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v. Floor plan showing the use of all rooms per the California Building Code, and identifying Legally Permitted Bedrooms Rooms, rooms and doors to be used for the Short-term Rental;
vi. If the Operator is not the property owner, the property owner’s written consent to the Short-term Rental use;
vii. In areas outside of the Coastal Zone, the The Operator shall provide documentation required by section 9-4.4903(c) that the Site is the Operator’s Primary Residence;
viii. Identification of whether the Short-term Rental shall be a Hosted or Unhosted Short-term Rental or combination of both, and the estimated number of nights per year the Short-term Rental will be rented;
ix. Advertising platform(s) used by the Operator to advertise the Shortterm Rental; x. Proof that the Operator has installed a Noise Monitor on the exterior of the Short-term Rental in a location to ensure that accurate noise levels can be taken by the Noise Monitor;
xi. Proof of insurance or insurance certificate for the Site. xii. The permit application and any associated business licenses shall include an affidavit signed by the owner under penalty of perjury stating that all the information in the application is correct and that the owner maintains full responsibility that the Short-term Rental shall be advertised, rented, operated, and maintained in compliance with this article and all other relevant municipal codes. Failure to sign the affidavit shall be grounds for denial of a Short-term Rental Permit. (b) The permit application shall be accompanied by an application fee in an amount established by City Council resolution. Applications for a Short-term Rental Permit shall not be deemed complete until all information required by this article is provided and the Short-term Rental application fee, as set by City Council resolution, is paid to the City.
(c) The permit application shall be accompanied by a signed safety declaration, under penalty of perjury, in a form prepared by the Administrator, to be kept in the property file at the City, self-certifying that the Short -term Rental is in a safe and habitable condition and contains working smoke detector(s), carbon monoxide detector(s), and fire extinguishers have been installed

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and maintained consistent with the requirements of and in compliance with the California Fire Code, as adopted by the City in Title 4, Chapter 3, Article 1 of this Code and the California Building Code, International Property Maintenance Code and Residential Code, as adopted by the City in Title 8 of this Code.
(d) Inspection of Short-term Rentals. For Short-term Rentals, the City shall conduct a life, safety and health inspection of the proposed Short-term Rental unit, prior to issuing a Short-term Rental Permit. (i) A life, safety, and health and safety inspection shall include verification of the number of Legally Permitted Bedrooms, the presence and operation of working smoke detector(s), carbon monoxide detector(s), fire extinguishers, pools/spas, and lighted ingress/egress. The City shall also verify that no space has been converted into a bedroom or living space without permits required by the California Building Code, International Property Maintenance Code and Residential Code, as adopted by the City in Title 8, or any other provision of this Code.
(ii) The permit application shall be accompanied by a separate STR inspection fee in an amount established by City Council resolution. (e) Consent to Inspection and Production of Records. For all Short-term Rentals, the permit application shall be accompanied by a consent to inspection in a form prepared by the Administrator, which shall be signed by the Operator and if the Operator is not the owner of the Site, the owner of the Site consenting to (i) physical inspection(s) by city staff, contractors, or representatives for the purpose of verifying compliance with this article during regular business hours (7:30 a.m. to 5:30 p.m.) upon forty-eight (48) hours’ notice and (ii) that if said inspection is deemed necessary by the Administrator because of complaints received by the City of noncompliance, the Operator will produce records demonstrating compliance with all provisions of this article within seven (7) calendar days of the request.
(f) Compliance with the Municipal Code. No Short-term Rental Permit shall be issued if there are any unresolved or outstanding building, electrical, plumbing, fire, health, housing, police, or planning violations or enforcement actions issued by the City or other enforcement agency, including but not limited to, any administrative citations, notices of violation, notices to cure, orders of abatement, cease and desist orders, or correction notices related to the Site.

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(g) Compliance with Operation Requirements. No Short-term Rental Permit shall be issued if the Site has had two or more violations of this article within twelve months prior to application submittal. No Short-term Rental Permit shall be issued if the Operator has had a Short-term Rental Permit revoked within twelve months of the application date by the City of Pacifica. (h) Waitlist. The Administrator will maintain a waiting list when the number of Short-term Rental applicants exceeds the Short-term Rental Permit cap identified in Section 9-4.4902. The Administrator will continually maintain the Short-term Rental Permit cap inventory as Permits are not renewed or revoked. Persons wishing to be placed on the waitlist shall submit a waitlist application on a form provided by the City accompanied by the completed Short-term Rental Permit application required by Section 9-4.4904(a). A nonrefundable waitlist application fee in an amount established by resolution of the City Council shall be remitted with the application. Shortterm Rental applications for qualifying properties on the waitlist will be processed bi-annually between October 31 and November 30 of each year and between April 30 and May 31 of each year based on the date of receipt of the application, starting with the oldest date. The Administrator, in their discretion, may require an Applicant placed on the waitlist to provide updated information at the time a Short-Term Rental Permit becomes available, in accordance with requirements in place at the time the application is being considered.
(i) Appeals of Determination of Administrator. Any decision of an Administrator relating to an application or the waitlist may be appealed within ten (10) days of the decision of the Administrator to an administrative hearing officer, pursuant to the process specified in section 9-4.4908(d). (j) All Operators and their respective Sites, authorized by the City for the Operation of a Short-term Rental pursuant to this article, shall be listed on a registry created by the City and updated periodically by the City. The City shall publish the registry on the City’s website, and a copy shall be sent electronically to any Person or Hosting Platform upon request.” Section 5. Amendment. Section 9-4.4905, Article 49, “Short-Term Rentals” of Chapter 4, “Zoning” within Title 9, “Planning and Zoning” is amended as follows, with additions identified in underline and deletions identified in strikethrough:
“Sec. 9-4.4905. Operation Requirements.

A Short-term Rental must comply with the following operation requirements at all times that the Short-term Rental Permit is issued:

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(a) Permit required. The Short-term Rental must be operated under a valid Short-term Rental Permit issued by the City in accordance with Section 9-

4.4904;
(b) The Operator shall, during the term of the Short-term Rental Permit, promptly inform the Administrator regarding any changes to the information provided in the application, including contact information and Advertising platform(s) used by the Operator to advertise the Short-term Rental; (c) The Operator shall, at all times while the Site is being used as a Short-term Rental, maintain a Responsible Party that can be reached via telephone twenty-four (24) hours a day, seven (7) days a week, to respond to complaints regarding the use of the Short-term Rental. The Operator can be identified as the Responsible Party. The Responsible Party shall be a local contact person who shall meet all of the following requirements: 1) be available 24 hours per day and seven days a week when the Short-term Rental is in Operation and 2) be accessible and able to respond in person at the Short-term Rental within a reasonable time of 30 minutes to any complaint regarding condition, operation, or conduct of occupants of the dwelling and 3) be responsive to take remedial action necessary to resolve any violation of the requirements of this article;
(d) The Operator must provide the following materials electronically to any Short-term Renters before arrival and make available printed materials at the Site for the guest with the following information:
i. A diagram of exits, fire extinguisher locations, and fire and police contact numbers;
ii. The Short-term Rental Operator’s contact information; iii The Responsible Party’s contact information;
iv. Information on the maximum allowed number of occupants, parking capacity and location of parking spaces, noise regulations, disclosure that the property is equipped with a noise monitoring device, quiet hours, and trash, composting, and recycling disposal requirements including collection time and date and instructions on collection and use of the collection containers;
v. The City's noise regulations (Chapter 10 of Title 5 of this Code); and vi. The City's Social Host Liability Ordinance (Chapter 28 of Title 5 of this Code);
(e) The Operator shall include the City-issued Short-term Rental Permit number in any Advertising platform or any other advertisement appearing in any newspaper, magazine, brochure, television trade paper, internet website, etc., that promotes the availability or existence of a Short-term Rental on the Site. The Short-term Rental Permit number must also be prominently and legibly included in the first line of the property description text in any

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advertisement in the following format: “City of Pacifica Short-term Rental Permit No. #### ”;
(f) Each Short-term Rental Site shall be identified with a single, weatherproof exterior sign, not more than two (2) square feet in total area, posted either at the front of the Site and visible from the right-of-way for single family dwellings, or on the door if it is a hosted Multi-family dwelling unit or condominium, indicating the Site is being utilized as a Short-term Rental.

The sign shall include the Short-term Rental Permit number and a Quick Response (QR) code that is a minimum of 3-by-3 inches with the Operator’s name and contact information and the Responsible Party’s name and contact information, if different, and a link to the City’s code enforcement website. The sign shall be in a form approved by the Administrator. At a minimum, the sign shall be posted while the Site is being utilized as a Shortterm Rental; (g) A Short-term Rental shall not create pedestrian, automobile, or truck traffic detrimental to property in the vicinity or neighborhood parking impacts. The property address shall be clearly marked;
(h) A Short-term Rental shall comply with all provisions of the Pacifica Municipal Code, including, but not limited to the City’s noise regulations (Chapter 10 of Title 5 of this Code) and the Loud and Unruly Gatherings and Social Host Liability Ordinance (Chapter 28 of Title 5 of this Code), Garbage, Collection and Recycling (Chapter 5 of Title 6 of this Code), and the Building Regulations (Chapters 1-17 of Title 8 of this Code); (i) A Short-term Rental shall comply with all applicable state and local laws and orders, including any public health order;
(j) Each Person Operating a Short-term Rental shall comply with the transient occupancy tax requirements set forth in Chapter 7 of Title 3 (Transient Occupancy Tax) of this Code, and shall obtain a Transient Occupancy Registration Certificate pursuant to Section 3.7-06 for the entire period of time the Site is used as a Short-term Rental;
(k) Each Person Operating a Short-term Rental shall obtain a business license and pay the business license tax required pursuant to Chapter 1 of Title 3 (Business Licenses) of this Code for the entire period of time the Site is used as a Short-term Rental;
(l) The Operator of a Hosted Short-term Rental must be on-Site between the hours of 11:00 p.m. and 6:00 a.m. when the Site is being utilized as a Shortterm Rental;

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(m) Maximum overnight occupancy for all Short-term Rentals shall not exceed two (2) Short-term Renters per Legally Permitted Bedroom. Children under the age of six (6) shall not count towards these occupancy limits; (n) In addition to the maximum number of Short-term Renters allowed, the number of Visitors allowed at any time in a Short-term Rental shall not exceed one half of the maximum Short-term Renters allowed, and visitor hours are limited to 8:00 a.m. – 10:00 p.m.;
(o) Short-term Renters shall not make any excessive or loud noise during Quiet Hours from 10:00 p.m. to 7:00 a.m. daily;
(p) Use of all outdoor pools, spas and hot tubs shall be prohibited between the hours of 10:00 p.m. and 7:00 a.m.;
(q) In addition to the noise standards identified in Chapter 10 of Title 5 and Chapter 28 of Title 5 of this Code, no radio receiver, musical instrument, phonograph, compact disk player, loudspeaker, karaoke machine, sound amplifier, or any machine, device or equipment that produces or reproduces any sound shall be used outside or be audible from the outside of any Shortterm Rental. Any machine, device or equipment that amplifies music inside any Short-term Rental shall not be heard beyond the property line of the Short-term Rental at all times;
(r) Each Operator shall install and maintain in continuous operation a Noise Monitor on the exterior of the Short-term Rental to ensure compliance with the City’s noise regulations (Chapter 10 of Title 5 of this Code). The Operator shall retain a record of the Noise Monitor readings for a period of thirty (30) days after each Rental of the Short-term Rental; (s) The Short-term Rental must provide at least one off-street parking space per Legally Permitted Bedroom that is being utilized as a Short-term Rental, which shall be dedicated and available to Short-term Renters during the period of the Rental;
(t) Short-term Rentals shall not be concurrently used for any commercial Event (such as a corporate retreat or conference), and shall not be used for any non-commercial Event that is likely to result in a violation of traffic, parking, noise, or other standards regulating the residential use and character of the neighborhood. Home occupations conducted by the operator primary resident compliant with the City’s home occupation ordinance are allowed; provided that parking and all other requirements for both the Short-term Rental and the home occupation are met;
(u) Short-term Rental use shall comply with trash and recycling requirements and scheduled solid waste pick-up days at least once per week. Trash and

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recycling containers shall be located to be readily accessible for servicing, but shall not be placed within the limits of any street, road, avenue, way, alley, public place, or any other places as to constitute a nuisance; and (v) Unhosted Short-Term Rentals. The following additional operation requirements shall apply only to Unhosted Short-term Rentals:
i. In areas outside of the Coastal Zone, an An Unhosted Short-term Rental shall be Operated no more than 60 nights per year, commencing on October 31st of each year and ending October 30th of each year.
ii. In areas within the Coastal Zone, unhosted short-term rental shall be operated no more than 120 nights per year, commencing on October 31 of each year and ending October 30 of each year.
iiiii. Minimum Stay. Unhosted Short-term Rentals shall have a minimum two consecutive night stay for Short-term Renters.
iviii. Unhosted Short-term Rentals are prohibited in Multi-family development units.”
Except as specifically modified herein, all other provisions of Article 49 shall remain unchanged.

Section 6. Compliance with CEQA. The City Council hereby finds that the action to adopt this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.), including without limitation under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility the adoption of this Ordinance may have a significant effect on the environment. The revised ordinance will continue to allow a maximum of 150 Short-term rentals in the City, the same number as the existing ordinance and will primarily establish operational requirements for existing short-term rentals that are designed to address community concerns and ensure responsible Shortterm rental operations. The revisions to the ordinance also do not involve any physical changes to the environment or the construction of new facilities or infrastructure.

Additionally, the Ordinance is exempt from CEQA pursuant to CEQA Guidelines section 15301(Class 1-Existing Facilities) as the Ordinance makes amendments to the City’s current short-term rental permitting program for existing residential dwelling units. The Ordinance involves negligible or no expansion of existing or former use. The text amendment would make amendments to the existing Short-term Rental STR Ordinance to, among other things, revise provisions related to Short-term rental operation and enforcement actions for non-compliance. The exceptions to the exception in CEQA Guidelines section 15300.2(a)-(f) do not apply to the draft Ordinance. The City Clerk shall file a Notice of Exemption with the San Mateo County Clerk.

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Section 7. Severability. If any section, subsection, sentence, clause, or phase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentence, clauses or phrases be declared unconstitutional.

Section 8. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance by the City Council of the City of Pacifica, California, and cause the same to be published in accordance with State law.

Section 9. Effective Date. This Ordinance shall be in full force and effective thirty (30) days after its adoption and shall be published and posted as required by law. For areas within the Coastal Zone, this Ordinance shall not become effective until the California Coastal Commission certifies an amendment to the City’s local coastal program. *****
Section 9. PASSED AND ADOPTED this __ day of , 2026 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Christine Boles, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ ____________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney

11.b
Packet Pg. 367 Attachment: Attachment B_PC Reso No. 2026-008_STR-Coastal Commission Modifications_executed (6295 : STR Coastal Commission

CITY OF PACIFICA

COUNCIL AGENDA SUMMARY REPORT
9/14/2026
1 SUBJECT:

File No. 2026-006 – Public Hearing Text Amendment TA-129-26, initiated by the City of Pacifica, to repeal and replace Article 41 Density Bonus Program and Article 47 City of Pacifica Below Market Rate (Inclusionary) Program of the City of Pacifica Zoning Regulations (Title 9, Chapter 4 of the Pacifica Municipal Code) relating to the implementation of state density bonus law and regulations for inclusionary housing and below market rate units, respectively. The City Council will also discuss a resolution updating the City’s Below Market Rate (“BMR”) In-Lieu Fees established pursuant to Resolution No. 24-2007.

RECOMMENDED ACTION
Conduct a public hearing and introduce an Ordinance of the City Council or the City of Pacifica repealing and replacing Article 41 (“Density Bonus Program”) and Article 47 (“City of Pacifica Below Market Rate (Inclusionary) Program”) of Chapter 4, Title 9, of the Pacifica Municipal Code; and finding adoption of the Ordinance exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), “General Rule” (Attachment A); and discuss updates to the housing in-lieu fee resolution (Attachment B).

STAFF CONTACT
Samantha Updegrave, Community Development Director
650-738-7341
[email protected]
BACKGROUND/DISCUSSION:

The Density Bonus (DBO) and Inclusionary and Below Market Rate Program of the City of Pacifica (IHO) ordinances are separate but related ordinances that dictate the provision of affordable housing in the City of Pacifica. The Density Bonus Ordinance is based on and implements California State Density Bonus law, which allows developers to receive increased density, waivers of development standards and concessions or incentives for residential, residential mixed-use, and commercial developments in exchange for the provision of restricted affordable housing units. The Inclusionary and Below Market Rate Housing Program1 Ordinance is a local regulation that mandates the affordable housing in each residential and residential mixed-use development with more than eight units, and the policies and procedures related to that affordable housing.

These ordinances make a significant impact on the development of residential, residential mixed-use, and commercial developments in the City of Pacifica; however, neither has been updated in many years. The DBO was adopted in 1984 and last updated in 1992, and IHO was adopted in 2007 and has never been updated. There have been significant changes to state law, federal requirements, and best practices in the past 20 to 30 years. The City’s adopted 1 City of Pacifica Below Market Rate (Inclusionary) Program of the City of Pacifica to be renamed “Inclusionary and Below Market Rate Housing Program” to remove redundancy, and for ease of use, and clarity.
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Housing Element also requires that the City modernize its zoning ordinance and align our IHO with state law. The City partnered with the Housing and Regional Trust of San Mateo County (HEART) to draft amendments that will bring Pacifica’s ordinances into alignment with state law and best practices.

The City is also participating in a multi-jurisdictional Affordable Housing Study that is being conducted by Community Planning Collaborative and Strategic Economics. The study is currently under way and is exploring updates to affordable housing policies to be applied to new development projects, including residential affordable housing impact fees, inclusionary requirements and in-lieu fees, and commercial linkage fees.2 Data and analysis from the completed study are expected in 2027 and will be used to evaluate additional potential substantive changes to the City’s IHO and fee structure at a later date. Interim changes to the current in-lieu are being proposed to update the City’s in-lieu fees pending the completion of the study. The actual fee adoption will take place at a future publicly noticed hearing.

Since adoption of the Rezoning Program and certification of the City’s Housing Element has laid the framework for new development, amending these ordinances now to comply with state law and align with best practices is a priority. The proposed changes would provide clarity for developers and facilitate better outcomes for the City. These initial updates would also make future substantive changes easier to understand, review and consider, and incorporate into a future zoning text amendment.

Planning Commission Actions
On October 6, 2025, the City Council and Planning Commission held a Joint Study Session3to discuss potential updates to the DBO and IHO based on state laws and best practices. The Council then directed the City Manager to prepare a draft ordinance and return to the Planning Commission for consideration and a recommendation.

The City of Pacifica Planning Commission held three public hearings to consider the draft ordinances.
• May 4, 2026:
4 The Planning Commission held a public hearing, provided comments on the draft ordinance, and continued the item to a future meeting to allow staff additional time to coordinate the Local Coastal Program (LCP) provisions with Coastal Commission staff as well as incorporate Planning Commission edits. The full May 4, 2026, staff report packet is included as Attachment C.
• June 1, 2026:
5 City and Coastal Commission staff had not reached a resolution on the LCP provisions, so a placeholder was included in the draft. The Planning Commission adopted PC Resolution No. 2026-005 (Attachment D) recommending approval of the draft ordinance. The full June 1, 2026, staff report packet is included as Attachment E.

Staff planned to come back later in the year with additional revisions to the DBO in the Coastal Zone.
• July 20, 2026:
6 After working with the Coastal Commission, City staff found language that 2 Because Pacifica does not have commercial linkage fees for affordable housing, the City’s participation is limited to residential fees.
3 Joint City Council and Planning Commission Study Session, October 6, 2025:
• Agenda: https://pacificacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1730 • Video: PCC & PPC 10/6/25 - Pacifica Joint Study Session - October 6, 2025 4 Planning Commission Agenda Packet, May 4, 2026:
https://pacificacityca.iqm2.com/Citizens/FileOpen.aspx?Type=14&ID=1640&Inline=True 5 Planning Commission Agenda packet, June 1, 2026:
https://pacificacityca.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=1643&Inline=True 6 Planning Commission Agenda packet, July 20, 2026:
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satisfied the requirements of the Coastal Commission for the Density Bonus Ordinance.

The Planning Commission adopted PC Resolution No. 2026-006 (Attachment F) with revisions to the text amendments incorporating the LCP provisions. The full July 20, 2026, staff report packet is included as Attachment G.

The draft ordinance provided for Council’s consideration combines the PC recommendations from June 1 and July 20, 2026.

Proposed Amendments
Because the ordinances are decades out of date, staff recommend repealing, reorganizing, and replacing the entire articles. As discussed during the Joint Study Session, while these changes may represent a major update to the ordinances, most of the changes incorporate current state housing and planning law, including density bonus law, or best practices, and are not substantive.

The proposed changes to Article 41 “Density Bonus” are summarized in the Table 1 below.

Table 1: Density Bonus Ordinance, Article 41
Category Summary of Changes to Density Bonus Ordinance
Applicability
9-4.4101a
Created applicability section for clarity, consistency, and ease of use Definitions
9-4.4102b
Consolidated and amended definitions to cross-reference State Density Bonus Law where appropriate to ensure consistency Application
Requirements
9-4.4103
Added a section to standardize requirements for density bonus requests, incentives/concessions, parking reductions, and waivers Added a requirement to have a tentative map or preliminary plan indicate proposed market rate and density bonus units
Added a requirement to include a construction phasing plan for affordable units in relation to market rate units
LCP Consistency
9-4.4104
Added a section to state that the City’s Density Bonus Ordinance shall not be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act
Provides that granting of a density bonus, concession or incentive, waiver, or parking reduction shall not be interpreted, in and of itself, to require a local coastal plan amendment
Added section stating that any requested density bonus, concession or incentive, waiver, or parking reduction shall be consistent with all applicable requirements of the certified Local Coastal Program, with the exception of density, including without limitation regulations to ensure coastal resources are not significantly impacted, and shall be consistent with State Density Bonus law) so long as it doesn’t lead to significant coastal resource impacts.

Application
Review
9-4.4105
Added a section to outline the process for review and approval of density bonus requests and require concurrent submission with planning entitlement application
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Table 1: Density Bonus Ordinance, Article 41
Category Summary of Changes to Density Bonus Ordinance
Density Bonus
Housing
Agreement
9-4.4106
Added a section outlining the requirements of a density bonus housing agreement
For-Sale BMR units: amended affordability term from 30 years to 45 years per State Density Bonus Law and resetting for each new purchase or transfer to a new owner
Rental BMR units: amended affordability term from 30 years to 55 years, or such longer time as may be required by the City’s Inclusionary and Below Market Rate Program
Added a section requiring the same proportion of bedroom sizes, exterior appearance, quality of construction, distribution of units throughout the property, and access to amenities for affordable units as market rate
Added a section requiring the affordable housing agreement to be recorded prior to final parcel map approval
Added a section requiring the building permit, final inspections, and certificates of occupancy to be filed for concurrently for affordable and market rate units
Density Bonus
Calculations
9-4.4107
Cited to state law for calculations of a density bonus, in accordance with state law
Added a section to round up fractional units to the next whole number for density bonus unit calculations, in accordance with state law
Density Bonus
Delivery and
Design Standards
9-4.4108
Referenced Inclusionary Housing Ordinance standards for unit size, design, and proportional construction phasing, and implementation requirements
Commercial
Development
9-4.4109
Added a section for commercial development to request a density bonus in partnership with an affordable housing partner, in accordance with state law
Interpretation
9-4.4110
Added a section subordinating this article to state law Table Notes
a: Section 9-4101 “Applicability” was re-ordered from the PC version for structure consistency
b: Section 9-4.4102 “Definitions” was re-ordered from the PC version for structure consistency
The proposed changes to Article 47 “Inclusionary and Below Market Rate Housing Program” are summarized in the Table 2 below.
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Table 2: Inclusionary Housing and BMR Housing Program, Article 47 Category Summary of Changes to Inclusionary Housing Ordinance Applicability
9-4.4701
Moved applicability to its own section for clarity, consistency, and ease of use
Clarified that the Inclusionary Housing Ordinance applies to residential and residential mixed-use development projects with 8 or more units, including conversion of non-residential buildings or floor area, but excluding Accessory Dwelling Units (ADUs) and Junior ADUs
Added an “opt-in” provision for projects vested under California Government Code Section 65941.1a
Definitions
9-4.4702
Updated the following definitions to comply with state
requirements and county guidelines: BMR Unit, Residential Development Project, and Household Income (Lower-Income, Moderate-Income, and Very-Low Income)
Added definitions for First Approval, Group Living
Accommodations, Household Income (110% AMI), and
Residential Unit Floor Area
Inclusionary
Requirements –
Onsite Construction
of Units
9-4.4703
Added requirement for any calculation of Below Market Rate (BMR) units that results in a fractional amount under 0.5 to be paid as an in-lieu fee, and any calculation at or above 0.5 to be rounded up to the next whole number to encourage ongoing contributions to the City’s Housing In-Lieu Fund
Lowered Area Median Income (AMI) requirement for rental units from ½ of affordable units at 120% of AMI and ½ of affordable units at 80% of AMI to:
• 1/3 of affordable units at 110% of AMI;
• 1/3 of affordable units of 80% of AMI; and
• 1/3 of affordable units at 50% of AMI
Unit Size and Design
9-4.4704
Altered comparability of size and design requirements to allow for more but smaller units, or fewer but larger units to be restricted at affordability, if approved by the Community Development Director
Alternatives b
9-4.4705
General: Increased requirements for alternatives from 15% to 20% to encourage onsite construction while providing viable alternatives
General: Clarified City Council as review authority for approval of alternatives b
In-Lieu Fee: Set In-Lieu fee alternative to be based on the cost of providing 20% of units on-site to encourage on-site construction of affordable units
In-Lieu Fee: Clarified that any in-lieu fees collected under this Article shall be deposited into the City’s Housing In-Lieu fund 12 Packet Pg. 372
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Table 2: Inclusionary Housing and BMR Housing Program, Article 47 Category Summary of Changes to Inclusionary Housing Ordinance Off-Site Construction: Altered requirements for off-site affordable units so that they must be located with compatible land uses, zoning, and be accessible by paved roads
Off-Site Preservation: Added alternatives for off-site preservation Off-Site Preservation: Added the ability for the Community Development Director to set requirements for rehabilitation of off-site preservation properties and protection of existing tenants in off-site preservation properties
Land Dedication: Altered section requiring an appraiser to determine the purchase price of an off-site property or land dedication to use Guidelines to determine purchase price Affordable Housing
Plan
9-4.4706
Added a section requiring an affordable housing plan as part of the development’s application for first approval
Added a section outlining the requirements and procedures for an affordable housing plan
For Sale BMR Units
9-4.4707
Altered affordability term for deed-restricted affordable units to 45 years and resetting for each new purchase or transfer to a new owner, consistent with state density bonus law
Rental BMR Units
9-4.4708
Altered affordability term for deed-restricted affordable units for 99 years
Eligibility
Requirements
9-4.4709
Required household eligibly to be approved by the City
Codified local preference policy for persons residing or working in Pacifica, in accordance with federal and state fair housing laws Provided authority for the Community Development Director to develop and approve eligibility requirements
Affordable Housing
Agreement
9-4.4710
Added a section requiring an affordable housing agreement that shall run with the land and bind all future owners
Added a section requiring that the affordable housing agreement is in place before issuance of building permits
Adjustments,
Waivers
9-4.4711
Included legal requirement to provide a pathway to waive, adjust, or reduce the inclusionary requirements if the Applicant shows that applying the requirements of this article would take property in violation of the United States or California Constitutions Hillside Preservation
and B-Lot Size
Overlay Districts
9-4.4712
Maintained existing provision stating that the inclusionary provisions to not supersede the provisions of these districts Implementation c
9-4.4713
Added a requirement that the on-site affordable units must be built at the same time as the market rate units
Provided that guidelines outlining the specifics of requirements for the affordable housing agreement, resale restrictions, marketing plan, resident selection process, rent setting, sales 12 Packet Pg. 373
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Table 2: Inclusionary Housing and BMR Housing Program, Article 47 Category Summary of Changes to Inclusionary Housing Ordinance price, compliance and monitoring procedures, subordination, and resale procedures will be developed for approval by the Community Development Director
Enforcement
9-4.4714
Included enforcement authority
Table Notes:
a: See discussion of opting in below
b: See discussion of alternatives and review authority below c: Monitoring and subordination fees will be added at the conclusion of the Affordable Housing Study
Alternatives to Onsite Construction of BMR Units
State law requires the City to provide options for viable alternatives to onsite construction to meet the local inclusionary requirements. The use of alternatives is only available to meet inclusionary housing requirements, as state law requires that affordable units used to qualify for a state density bonus must be built onsite.

Staff's initial recommendation to the Planning Commission included an approach to approving the use of alternatives to onsite construction of inclusionary BMR units that primarily followed the review authority for the project, with exceptions for land dedications. The three methods of alternatives approval recommended by staff were:
(1) Approval by the review authority for the project, whether by the Zoning Administrator for ministerial projects, or the Planning Commission or City Council for discretionary projects:

In-Lieu Fee payment; Off-site construction of affordable housing; Off-site preservation of affordable housing
(2) Approval by Planning Commission: Land dedication to an affordable housing developer (3) Approval by City Council: Land dedication to the City The recommendation to require the approval of the in-lieu fee payment, offsite construction, and offsite preservation by the approval authority addresses potential constraints to housing production, issues which numerous state laws are directed at resolving. First, it creates predictability for applicants, which is essential as they design housing development projects, develop programming, and pursue funding. Second, bundling the approvals necessary for a residential development project under the same review authority streamlines the permitting and approval processes by reducing the need for duplicative review or hearings. Third, the criteria for approval rely on objective criteria which do not require increased discretion. Elevating the approval of alternatives to a higher review authority then the project itself requires adds process – and time, applicant costs, staff resources, and uncertainty – without added benefit.

Higher levels of discretion are appropriate for land dedications in lieu of constructing onsite affordable units, however. Staff recommended that land dedication to a City-approved affordable housing developer be decided by the Planning Commission, as these separate developments require additional scrutiny and consideration. Further, the City Council is the only body that can accept land donations and have full discretion over such decisions. Therefore, Council review is appropriate and even mandatory.

The Planning Commission directed staff to revise the alternatives section of the draft ordinance 12 Packet Pg. 374
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to have any proposed alternatives decided by the City Council, which is provided in the draft ordinance for consideration (Attachment A). They also directed staff to present their initial recommendation and reasoning to the City Council so that the Council could consider the issue.

Staff’s recommendations are included as Attachment H, and as noted below under “Alternative Council Actions,” could be included in the ordinance before it is introduced and then incorporated by reference in the motion to introduce the ordinance.

Vested Allowance for Vested Projects to “Opt-In” for Inclusionary Housing Housing development projects that submit a valid preliminary application with all the information required by California Government Code section 65941.1(a) vest to the planning and zoning laws in effect at the time of that submittal. This means that any projects with a valid preliminary application prior to the effective date of this ordinance, likely around October 15, 2026, would be subject to the prior provisions. The City Council could consider whether to allow applicants of such projects to voluntarily “opt in” to the new Inclusionary Housing Ordinance without relinquishing vesting to all other planning and zoning laws. Given that the City has already started to receive applications for residential development on Housing Element sites, this would provide an opportunity to have the modern inclusionary requirements apply to these new projects, including but not limited application requirements, streamlining, and payments for fractional units. Staff has included this in the Applicability provisions of the draft Ordinance (Attachement A).

Fee Resolution Updates
In addition to updating the Inclusionary Housing Ordinance, City Council provided direction at the joint study session to increase the in-lieu fees based on the adjustments to the dollar amounts established in City Council Resolution No. 24-20077(Attachment G) and clarify the methodology for annual updates based on changes in median home values, Consumer Price Index, or the California Construction Cost Index. Under the 2007 resolution, the fees are set both by unit type and by the Area Median Income (AMI) of the unit. As such, fees were based on the cost of providing a replacement unit at 80 percent or 120 percent of AMI. Under the proposed revisions to the Inclusionary Housing Ordinance, rental units will be provided at 50 percent, 80 percent, and 110 percent of AMI, which when blended together, is an average of 80 percent of AMI. As the 2007 resolution did not anticipate the creation of 50 percent of AMI and 110 percent of AMI units staff are proposing a single rate, based on the 2007 80 percent of AMI rental fee (based on this average AMI of 80 percent), adjusted by CPI. For homeownership projects, there is no change in the AMI of units provided (80 percent of 120 percent of AMI), but since there will be a single rate for rental units, and to simplify administration of the fees, staff are recommending a simplification of the homeownership fees, by blending the 80 percent and 120 percent of AMI fees, which were adjusted by the changes in sales prices from 2007 to 2025. These new, revised fees set forth in the proposed resolution remain based on the already adopted methodology, and the annual adjustments going forward.

The City will likely consider substantive changes to the in-lieu fees, including methods of calculation, after the completion of the multi-jurisdictional Grand Nexus / Affordable Housing Study that is currently underway.

Table 3: In-Lieu Fee Adjustments
2007 In-Lieu Fee Resolution (Current) 2026 In-Lieu Fee Resolution (Proposed) In-lieu payment for a BMR Unit affordable
to Lower-Income Household (80% of AMI)
RENTAL: $205,416
7 City Council Resolution No. 24-
2007: https://pacificacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1730 12 Packet Pg. 375
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FOR SALE:

Detached Single Family: $561,910
Condominium/Townhouse: $356,910 RENTAL: $349,566
FOR SALE:

Detached Single Family: $944,921
Condominium/Townhouse: $548,052
In-lieu payment for a BMR Unit affordable
to Moderate-Income Household (120% of
AMI)
RENTAL: $26,732
FOR SALE:

Detached Single Family: $465,023
Condominium/Townhouse: $260,023

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff recommend that the Planning Commission find the proposed zoning text amendment in the Draft Ordinance to be exempt from the California Environmental Quality Act (CEQA). The text amendment would be exempt from CEQA pursuant to the “General Rule” exemption in CEQA Guidelines Section 15061(b)(3). The General Rule exemption provides that “the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.”
The text amendment would make amendments to the existing Density Bonus Program and Inclusionary Housing Ordinances to, among other things, establish provisions related to the implementation of sate density bonus law and regulations for inclusionary housing, in accordance with state law and incorporating best practices. The amendments and regulations governing density bonus and inclusionary housing would not have a significant effect on the environment.

ALTERNATIVE ACTION
There are three primary alternative actions that the Council could consider. (1) As noted above in “Alternatives to Onsite Construction,” the City Council could consider and include staff’s recommended three-tier approach to the review and approval of proposed alternatives, replacing proposed section 9-4.4705 Alternatives with the draft provided in Attachment H. Staff recommend this option.
(2) City Council could also choose to amend only the Density Bonus and wait on changes to the Inclusionary Housing Ordinance until completion of the Grand Nexus Affordable Housing Study, leaving it as is. Given the fact that the Inclusionary Housing Ordinance is 19 years old, there are multitude of changes in state housing and planning laws, advancement of best practices in affordable housing regulations and administration, and the increased development capacity approved under the Housing Element Rezoning Program, staff do not recommend this option.
(3) Council could take no action on updating the DBO and IHO. Given that this work stems from programs adopted in the Housing Element, staff do not recommend this option. 12 Packet Pg. 376
Pacifica City Council 10 September 14, 2026

RELATION TO CITY COUNCIL GOALS AND WORKPLAN
Updates to the Density Bonus and Inclusionary Housing Ordinance directly address City Council’s Strategic Plan goals and strategies, and Community Development’s workplan.

Strategic Plan Goal No. 3: Prioritize protection and development of affordable housing Strategy C: Prioritize Housing Element program implementation and interim housing solutions. • Housing Element Programs:
o HE-I-2 Zoning Modernization and Streamlining: Advances zoning modernization and streamlining by restructuring Articles 41 and 47, aligning them with current best practices and state laws, and clarifying application and review processes o HE-I-5 Fund a Housing Action Fund: Updates to the inclusionary requirements, including requiring in-lieu payment for fractional units and updating the current fees, will provide opportunities for contributions to the City’s Housing In-Lieu Fund, which is a restricted fund to be used for purpose of providing funding assistance for the provision of affordable housing and inclusionary monitoring costs, as well as reasonable administration costs
o HE-I-6 Strengthen Inclusionary Housing: Ensures alignment with state law and best practices, increases the length of time affordable units must remain affordable, adds provisions for 110% Annual Mean Income households, and increases and clarifies requirements for alternatives to on-site construction o HE-I-14 State and Federal Law Compliance: Updates ordinances to comply with state housing and planning laws, including State Density Bonus Law FISCAL IMPACT:

Updates to the Density Bonus and Inclusionary Housing Ordinances is expected to have no significant immediate fiscal impact, as these are part of the Zoning Ordinance and are implemented through standard development review which is primarily cost recovery. However, the updates to align with state law and best practices, establish application and review requirements will increase predictability, transparency, and efficiency during review, which is expected to save staff time which has a positive impact on department and staff resources.

Additionally, the changes to in lieu fees are expected to increase contributions to the City’s Housing In-Lieu Fund, improving the City’s ability to invest in affordable housing development and preservation.

ORIGINATED BY:

Community Development Department
ATTACHMENT LIST:

Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (PDF) Attachment B - Draft In Lieu Fee Resolution (PDF)
Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026(PDF) Attachment D - Planning Commission Resolution No. 2026-005 (PDF) Attachment E - Planning Commission 2nd Staff Report, dated June 1, 2026 (PDF) Attachment F - Planning Commission Resolution No. 2026-006 (PDF) Attachment G - Planning Commission 3rd Staff Report, dated July 20, 2026 (PDF) Attachment H - 9-4.4705 Alternatives-Staff Recommendation (PDF) Attachment I - CC Resolution No. 24-2007 In Lieu Fees (PDF) 12 Packet Pg. 377
ORDINANCE NO. ###-##.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PACIFICA REPEALING AND REPLACING ARTICLE 41 (“DENSITY
BONUS PROGRAM”) OF CHAPTER 4, TITLE 9 OF THE PACIFICA
MUNICIPAL CODE AND ARTICLE 47 (“CITY OF PACIFICA BELOW
MARKET RATE (INCLUSIONARY) PROGRAM”) OF CHAPTER 4,
TITLE 9 OF THE PACIFICA MUNICIPAL CODE, AND FINDING THE

ORDINANCE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT (CEQA)
________________________________________________________________________ Initiated by: City of Pacifica
WHEREAS, the City’s Density Bonus Ordinance, codified as Article 41 of Chapter 4 of Title 9 of the Pacifica Municipal Code and based on California State Density Bonus law, was adopted on May 23, 1984, repealed and replaced on December 10, 1986, and last updated on February 12, 1992; and
WHEREAS, the City of Pacifica adopted a below market rate (“BMR”) inclusionary program pursuant to the General Plan and the City’s Five-Year Vision Statement, adding Article 47 to Title 9, Chapter 4 of the Pacifica Municipal Code on May 9, 2007, which has not been amended since; and
WHEREAS, significant changes to state housing and planning laws, federal requirements, and best practices have occurred since these updates, and amendments are needed to bring the City of Pacifica’s ordinances into alignment with these changes; and WHEREAS, the City’s adopted and certified 2023-2031 Housing Element includes three implementation programs related to the current density bonus and inclusionary requirements in the Zoning Ordinance that represent commitments to action by the City: HE-I-5 Fund a Housing Action Fund; HE-I-6 Strengthen Inclusionary Housing; and HE-I-14 State and Federal Law Conformance; and WHEREAS, on May 4, 2026, the City Council and Planning Commission held a hearing to receive a presentation from The Housing Endowment and Regional Trust of San Mateo County (“HEART”) and City staff regarding the Density Bonus Ordinance and Inclusionary Housing Ordinance; and
WHEREAS, during that hearing HEART and City Staff identified several amendments necessary to bring the Density Bonus Ordinance and Inclusionary Housing Ordinance into alignment with current state housing and planning law requirements and regional best practices; and
WHEREAS, at the conclusion of that study session, the City Council provided direction on amendments and directed the City Manager to prepare draft ordinances for consideration; and

12.a
Packet Pg. 378 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 2 WHEREAS, on May 4, 2026, the Planning Commission held a duly noticed public hearing on the proposed amendments contained in Text Amendment TA-129-26 (File No. 2026-006) and at the conclusion of that hearing, the Planning Commission continued the hearing to June 1, 2026, and directed staff to make a number of revisions to the ordinance and address comments submitted by the California Coastal Commission; and WHEREAS, on June 1, 2026, the Planning Commission held a duly noticed public hearing on the revised proposed amendments and adopted Resolution No. 2026-005 by a vote of 6 to 0 with 1 absence, initiating Text Amendment TA-129-26 (File No. 2026-006) and recommending adoption of the proposed ordinance; and WHEREAS, on July 20, 2026, the Planning Commission held a duly noticed public hearing to consider revisions to the proposed amendments to Sections 9-4.4102 (“Applicability”) and 9-4.4104 (“Local Coastal Program consistency”) contained in Text Amendment TA-129-26 (File No. 2026-005) that address density bonus projects in the Coastal Zone (“Coastal Zone Density Bonus Amendments”); and WHEREAS, at that same meeting on July 20, 2026, the Planning Commission approved incorporation of the Coastal Zone Density Bonus Amendments into the draft ordinance and adopted Resolution No. 2026-006 by a vote of 5 to 1 with 1 absence, initiating Text Amendment TA-129-26 and recommending adoption of the proposed ordinance, with the Coastal Zone Density Bonus Amendments; and WHEREAS, on August 24, 2026, the City Council held a duly noticed public hearing on the proposed ordinance and continued the item, at staff’s request, to September 14, 2026; and
WHEREAS, the City Council held the continued public hearing at their regular meeting on September 14, 2026, and introduced Ordinance No. ###-C.S..

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica does ordain as follows:

Section 1. Recitals. The City Council of the City of Pacifica does hereby find that the above referenced recitals are true and correct and material to the adoption of this Ordinance.

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Packet Pg. 379 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 3 Section 2. Amendment. Article 41 (“Density Bonus Program”) of Chapter 4, “Zoning” within Title 9, “Planning and Zoning” is repealed and replaced in its entirety to read as follows:

Article 41. - Density Bonus Program
Sec. 9-4.4100. – Purpose and Intent.

Sec. 9-4.4101. – Applicability.

Sec. 9-4.4102. – Definitions.

Sec. 9-4.4103. – Application Requirements
Sec. 9-4.4104. – Local coastal program consistency.

Sec 9-4.4105 – Application review process.

Sec. 9-4.4106. – Density Bonus Housing Agreement.

Sec. 9-4.4107. – Density Bonus Calculations.

Sec. 9-4.4108. – Density Bonus Delivery and Design Standards.

Sec 9-4.4109. – Commercial Density Bonus
Sec 9-4.4110. – Interpretation.

Sec. 9-4.4100. – Purpose and Intent.

In accordance with California Government Code Sections 65915, et seq., this Article specifies how compliance with state density bonus law will be implemented. Specifically, the purpose of this Article is to provide density bonuses, incentives, concessions, and waivers of development standards for the production of housing for very low-, low-, and moderate-income households, senior households, provision of daycare facilities, student housing, and donations of land, and for other housing types as provided by and consistent with state law. In enacting this Article, it is also the intent of the City of Pacifica to implement the goals, objectives, and policies of the City of Pacifica’s Housing Element of the General Plan. In the event of a conflict with this article and state law, state law shall govern.

Sec. 9-4.4101 Applicability.
(a) A housing development shall be eligible for a density bonus and other regulatory benefits that are provided by state density bonus law when the applicant seeks and agrees to provide housing as specified in Government Code Section 65915(b), (c), (f), (g), (h) and (v) or in Government Code Section 65195.5, or successor provisions. The density bonus calculations shall be made in accordance with state density bonus law.

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Packet Pg. 380 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 4 (b) The granting of a density bonus, concession or incentive, waiver, or parking reduction pursuant to this Article, shall not be interpreted, in and of itself, to require a general plan amendment, zoning ordinance text amendment, zoning change, or other discretionary approval, or any additional CEQA studies for bonus units above the site's maximum density.
(c) For any housing development project located within the coastal zone that utilizes density bonus, the provisions of Section 9-4.4104 also apply. (d) Application of this Article does not waive application of other provisions of the City of Pacifica Municipal Code.

Sec. 9-4.4102 - Definitions.

The following terms are defined for purpose of this Article. In the event of a conflict between the words and phrases defined in this article and the words and phrases defined in Title 9 "Planning and Zoning,” Chapter 4 "Zoning," Article 2 "Definitions," the definitions in this Article shall prevail.
(a) "Base units" means the total number of units in a housing development, not including units added through a density bonus pursuant to this Article. (b) "Below Market Rate (BMR) unit" means any income-restricted dwelling unit created pursuant to and meeting the requirements of this Article. (c) "Concession" shall have the same meaning as the term "concession or incentive" pursuant to the state density bonus law, as defined in Government Code section 65915 subdivision (k), as may be amended.
(d) "Cost reduction" means a cost reduction that would be achieved for a housing development through a concession.
(e) "Density bonus" means a density increase over the otherwise maximum allowable residential density for a housing development as of the date the application is deemed complete, as prescribed by Government Code section 65915, as may be amended, or, if elected by the applicant, a lesser percentage of density increase, including, but not limited to, no increase in density.
(f) "Housing development" shall have the same meaning as the term "housing development" pursuant to the state density bonus law, as defined in Government Code section 65915 subdivision (i), as may be amended.
(g) "Maximum allowable residential density" means the maximum residential density allowed for a residential housing development under the Zoning Chapter and the land use element of the general plan. If the density allowed under the Zoning Chapter is inconsistent with the density allowed under the land use element of the

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Packet Pg. 381 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 5 general plan, the general plan density shall prevail. For purposes of this definition, residential density shall be calculated based upon the gross acreage of a residential housing development.
(h) "State Density Bonus Law" means California Government Code Section 65915, et seq, as the same may be renumbered or amended.
(i) “Waiver” is a reduction or modification of any “development standards” and other regulations when those requirements potentially make the construction of the project physically infeasible if not approved, pursuant to state density bonus law, as defined in Government Code section 65915 subdivision (e).

Sec. 9-4.4103 Application Requirements.
(a) All requests for density bonuses, concessions, and waivers for a housing development shall be submitted as part of the application for approval of the housing development. No application for a housing project seeking a density bonus, concession or waiver may be deemed complete unless an affordable housing plan is submitted in accordance with the provisions of this Article. (b) An application for a density bonus shall include any required fees and the following minimum information as part of the Affordable Housing Plan required under Section 9-4.4706 of the Municipal Code:
(1) For a requested density bonus, the following information shall be required, in addition to any information required under Article 47, Section 9-4.4706 of the Municipal Code:
i. Summary table showing the maximum number of dwelling units permitted by the zoning and general plan excluding any density bonus units, proposed number of BMR units and income level, proposed bonus percentage, number of density bonus units proposed, total number of dwelling units proposed on the site, and resulting density in units per acre.
ii. The Subparagraph of Government Code Section 65915(b)(1) under which the housing development qualifies for a density bonus and reasonable documentation demonstrating that the housing development is eligible for a bonus under that subparagraph. iii. Where the housing development is seeking an additional bonus, the subparagraph of Government Code Section 65915(v)(1) under which the housing development qualifies for an additional density bonus and reasonable documentation demonstrating that the housing

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Packet Pg. 382 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 6 development is eligible for the additional bonus under that subparagraph.
iv. A description of all dwelling units existing on the site in the fiveyear period preceding the date of submittal of the application, including number of bedrooms, and identification of any units rented in the five-year period; and whether any are/were subject to any form of rent control through a public entity’s valid exercise of its police power; or subject to a recorded covenant ordinance, or law restricting rents to levels affordable to households of lower or very low income.

1. number of bedrooms; and

2. identification of any units rented in the five-year period; and

3. whether any of the units are/were subject to any form of rent control through a public entity’s valid exercise of its police power;, or subject to a recorded covenant ordinance, or law restricting rents to levels affordable to households of lower or very low income.
v. If dwelling units on the site are currently rented, income and household size of all residents of currently occupied units, if known.

If any dwelling units on the site were rented in the five-year period but are not currently rented, the income and household size of residents occupying the dwelling units when the site contained the maximum number of dwelling units, if known.
vi. If a density bonus is requested for a land donation, the location of the land to be dedicated, proof of site control, and reasonable documentation that each of the requirements included in Government Code Section 65915 (g) can be met.
(2) Concessions. The number of concessions that may be requested shall be the number the applicant is entitled to pursuant to state density bonus law. The application shall include the following minimum information for each concession requested:
i. The regulation from which the applicant is requesting a concession and the description of the proposed cost reduction.

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Packet Pg. 383 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 7 (3) Waivers. For each waiver requested the applicant shall describe each waiver requested and how the requested waiver deviates from the City of Pacifica’s required development standard.
(4) Parking reductions. If a housing development is eligible for a density bonus pursuant to state density bonus law, the applicant may request an on-site vehicular parking reduction specified in Government Code Section 65915(p). An applicant may request this parking reduction in addition to the concessions and waivers permitted by paragraphs (2) and (3) of this subsection. The application shall include a table showing parking required by the zoning regulations, parking proposed under state density bonus law, the paragraph under Government Code Section 65915(p) (or other statute) under which the project qualifies for the parking reduction, and reasonable documentation that the project is eligible for the requested parking reduction
(5) Density bonus or concession for a childcare facility in a housing development. The application shall include reasonable documentation that all of the requirements included in Government Code Section 65915(h) can be met.
(6) Density bonus or concession for a condominium conversion. The application shall include reasonable documentation that all of the requirements included in Government Code Section 65915.5 can be met.

Sec. 9-4.4104 – Local Coastal Program Consistency.
(a) State Density Bonus Law provides that it shall not be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Cal. Public Resources Code § 30000 et seq.) and further provides that the granting of a density bonus, concession or incentive, waiver, or parking reduction shall not be interpreted, in and of itself, to require a local coastal plan amendment. (b) For development within the coastal zone, any requested density bonus, concession or incentive, waiver, or parking reduction shall be consistent with all applicable requirements of the certified Local Coastal Program, with the exception of density, including without limitation regulations to ensure coastal resources are not significantly impacted, and shall be consistent with State Density Bonus law (Government Code section 65915 et seq.) so long as it doesn’t lead to significant coastal resource impacts.

Sec 9-4.4105 – Application review process.
(a) All requests under state density bonus law shall be reviewed and acted upon concurrently with the housing development planning application by the approval body with authority to approve the housing development, within the timelines

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Packet Pg. 384 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 8 prescribed by California Government Code Section 65950. Appeals of any decision on planning application shall include the appeal of all requests under state density bonus law.
(b) To ensure that an application for a housing development conforms with the provisions of state density bonus law and the Coastal Act, if applicable, the decision-making body must make the following findings, as applicable, to approve a requested density bonus:
(1) The housing development provides the housing required by state density bonus law to be eligible for a density bonus and any concessions, parking reduction, or waivers requested
(2) If an additional bonus is requested, the housing development provides the housing required by state density bonus law to be eligible for an additional density bonus under Government Code Section 65915(v)(1). (3) If the housing development requires the demolition of one or more residential dwelling units, the housing development will create replacement units as required by California Government Code Sections 65915(c)(3) and 66300.6(a). (4) If a waiver is requested, the development standards for which a waiver is requested would have the effect of physically precluding the construction of the housing development at the densities or with the concessions permitted. (5) If a parking reduction is requested, the housing development is eligible for any requested parking reductions under Government Code Section 65915(p) or other statute.
(6) If the density bonus is based all or in part on donation of land, the requirements of Government Code Section 65915(g) have been met.
(7) If the density bonus or concession is based all or in part on the inclusion of a childcare facility or condominium conversion, the requirements included in Government Code Section 65915(h) or 65915.5, as appropriate, have been met. (8) If the housing development is in the coastal zone, the requested density bonus and any requested concession, waiver or parking reduction is consistent with all applicable requirements of the certified Local Coastal Program. (c) The decision-making body shall grant a concession requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:
(1) The proposed concession would be contrary to state or federal law; or

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Packet Pg. 385 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 9 (2) The proposed concession would have a specific, adverse impact upon the public health or safety or on any real property that is listed in the California Register of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low- and moderate-income households. For the purpose of this subsection, “specific adverse impact” means a significant, quantifiable, direct and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the housing development was deemed complete as defined in Government Code Section 65589.5.
(3) The concession would not result in a cost reduction. (d) The decision-making body shall grant the waiver of development standards requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:
(1) The proposed waiver would be contrary to state or federal law; or (2) The proposed waiver would have an adverse impact on any real property listed in the California Register of Historic Resources; or
(3) The proposed waiver would have a specific, adverse impact upon public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low- and moderate-income households. For the purpose of this subsection, “specific, adverse impact” means a significant, quantifiable, direct and unavoidable impact, based on objective written public health or safety standards, policies or conditions as they existed on the date that the application for the housing development was deemed complete as defined in Government Code Section 65589.5
(e) If a child care center complies with the requirements of the Government Code Section 65915 (h), the decision-making body may deny a density bonus or concession that is based on the provision of child care facilities only if it makes a written finding, based on substantial evidence, that the City already has adequate child care facilities
(f) A request for a minor modification of an approved density bonus housing plan may be granted by the Community Development Director, or their designee, if the modification substantially complies with the original density bonus plan and conditions of approval. Other modifications to the density bonus housing plan shall be approved in the same manner as the original plan

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Packet Pg. 386 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 10 9-4.4106 Density Bonus Housing Agreement.
(a) If a density bonus, concession, parking reduction, or waiver is approved pursuant to this Article, the applicant shall enter into a affordable housing agreement, as outlined in Article 47 Section 9-4.4710, with the following additional provisions for density bonus projects, which sets forth the conditions and guidelines to be met in the implementation of the state density bonus law and that ensures compliance with all provisions of this Article. The agreement will also establish specific compliance standards and remedies available to the City of Pacifica upon failure to comply with state density bonus law, this Article, or the affordable housing agreement.
(1) For for-sale projects, the applicant shall enter into an affordable housing agreement with the City of Pacifica, running with the land, in a form approved by the City Attorney or their designee, to be executed by the City Manager, or their designee. The agreement shall require that the initial purchasers of those for-sale units that qualified the applicant for the receipt of the density bonus, waiver, or parking reduction are persons and families of lower or moderate income, as applicable, or if any for-sale unit is not purchased by an incomequalified household within 180 days after the issuance of the certificate of occupancy, then the unit(s) must be sold pursuant to a contract that satisfies the requirements of the Revenue and Taxation Code Section 402.1(a)(10) to a qualified non-profit housing corporation as defined in state density bonus law, unless otherwise allowed by the City, and that the units are offered at an affordable housing cost, as that cost is defined in state density bonus law and that the units are offered at an affordable housing cost, as that cost is defined in Health and Safety Code Section 50052.5l; and shall contain other relevant provisions approved by the City Attorney. The City of Pacifica shall enforce an equity sharing agreement consistent with state density bonus law unless it is in conflict with the requirements of another public funding source or law. The affordable housing agreement shall require the continued affordability of the for-sale units for 45 years, resetting for each purchase or transfer to a new owner.
(2) For rental projects, the applicant shall enter into an affordable housing agreement with the City of Pacifica, running with the land, in a form approved by the City Attorney or their designee, to be executed by the City Manager, or their designee. The agreement shall require the continued affordability of all rental units that qualified the applicant for the receipt of the density bonus, waiver, or parking reduction for 55 years or a different period of time if required by Article 47 regarding the City’s Inclusionary and Below Market Rate Program or the construction or mortgage financing assistance program,

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Packet Pg. 387 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 11 mortgage insurance program, or rental subsidy program. The agreement shall identify the type, size, and location of each affordable unit; shall specify the eligible occupants; shall specify phasing of the affordable units in relation to the market-rate units; and shall contain other relevant provisions approved by the City Attorney. Rents for the lower income density bonus units shall be set at an affordable rent as defined in state density bonus law. (c) Where a density bonus, waiver or parking reduction is provided for a market-rate senior housing development, the applicant shall enter into an affordable housing agreement with the City of Pacifica, running with the land, in a form approved by the City Attorney or their designee, to be executed by the City Manager, or their designee, to require the housing development to be operated as “housing for older persons” consistent with state and federal fair housing laws. (d) The executed affordable housing agreement or restrictive covenant shall be recorded against the housing development prior to issuance of building permit for any structure in a residential development project required to meet the provisions of this Article. The affordable housing agreement shall run with the land and bind all future owners and successors in interest for the period of time set forth in this Article.
9-4.4107. Density Bonus Calculations.
(a) In determining the total number of units to be granted, each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number. (b) When calculating the number of affordable units needed to qualify for a given density bonus, any fractions of affordable dwelling units shall be rounded up to the next whole number.
(c) Except where a housing development is eligible for an additional bonus pursuant to Government Code Section 65915(v), each housing development is entitled to only one density bonus. If a housing development qualifies for a density bonus under more than one category, the applicant shall identify the category under which the density bonus is requested to be granted.
(d) In determining the number of affordable units required to qualify a housing development for a density bonus pursuant to state density bonus law, only base units are included in the calculations. Any on-site units that satisfy the City of Pacifica’s inclusionary housing requirements in Article 47 of the Code and are required to be constructed concurrently with the housing development may qualify the housing development for a density bonus if those units meet or exceed the requirements of state density bonus law.

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Packet Pg. 388 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 12 (e) Payment of fees in lieu of providing affordable units under Article 47 of the Code does not qualify a housing development for a density bonus. (f) The applicant may elect to accept a lesser percentage of density bonus than the housing development is entitled to, or no density bonus, but no reduction will be permitted in the percentages of affordable units required by state density bonus law.

Regardless of the number of affordable units, no housing development shall be entitled to a density bonus greater than what is authorized under state density bonus law.
(g) Nothing in this Article requires the provision of direct financial incentives from the City of Pacifica for the housing development, including, but not limited to, the provision of financial subsidies, publicly owned land, no-interest or below market rate loans, fee waivers, or waiver of dedication requirements. The City of Pacifica, at its sole discretion, may choose to provide such direct financial incentives. 9-4.4108 Density Bonus Delivery and Design Standards.

Any BMR Units created as a result of this Article shall be completed in accordance with the unit size, design, and proportional construction phasing, set out in Section 9-4.4704 of the Code, and the implementation requirements set out in Section 9-4.4713 of the Code. 9-4.4109 Commercial Development Bonus
(a) A commercial development may be eligible for a development bonus where the commercial developer partners with an affordable housing developer to construct affordable housing on the commercial project site, or offsite elsewhere in the City of Pacifica located near schools and employment centers and within one-half mile of a major transit stop.
(b) The commercial developer may participate through the donation of land or funds for the affordable housing, or through direct construction of the housing units. (c) To be eligible for a development bonus, at least 30 percent of the housing units must be set aside for lower-income households or 15 percent of the housing units must be set aside for very low-income households.

Sec 9-4.4110 Interpretation.

If any portion of this Article conflicts with state density bonus law or other applicable state law, state law shall supersede this Article. Any ambiguities in this Article shall be interpreted to be consistent with state density bonus law. Statutory references in this ordinance include successor provisions.

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Packet Pg. 389 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 13 Section 3. Amendment. Article 47 (“City of Pacifica Below Market Rate (Inclusionary) Program”) of Chapter 4, “Zoning” within Title 9, “Planning and Zoning” is repealed and replaced in its entirety to read as follows:

Article 47. - Inclusionary and Below Market Rate Housing Program Sec. 9-4.4700. – Purpose and Intent.

Sec. 9-4.4701. – Applicability.

Sec. 9-4.4702. – Definitions.

Sec. 9-4.4703. – Inclusionary housing requirements—Onsite Construction of BMR Units Required.

Sec. 9-4.4704. – BMR unit size and design; construction phasing.

Sec. 9-4.4705. – Alternatives to onsite affordable residential units.

Sec. 9-4.4706. – Affordable housing plan for BMR units.

Sec. 9-4.4707. – For-sale BMR units.

Sec. 9-4.4708. – Rental BMR units.

Sec. 9-4.4709. – Eligibility requirements.

Sec. 9-4.4710. – Affordable housing agreement.

Sec. 9-4.4711. – Adjustments, waivers.

Sec. 9-4.4712. – Hillside preservation and B-Lot size overlay districts.

Sec. 9-4.4713. – Implementation.

Sec. 9-4.4714. – Enforcement.

Sec. 9-4.4700. – Purpose and Intent.

The purpose of this Article is to enhance the public welfare by establishing policies which require the development of housing affordable to households with very low, low, median, and moderate incomes to assure that residents have a diversity of housing options, to help meet the City's regional share of housing needs, and implement the goals and objectives of the general plan and housing element.

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Packet Pg. 390 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 14 It is the intent of this article to establish requirements for the provision of income restricted housing units in residential and mixed-use residential development projects of a certain size, encourage construction of on-site affordable units, and provide alternatives to constructing inclusionary units on the same site as the market rate residential development project.

Sec. 9-4.4701 Applicability.
(a) Applicability. The requirements of this article shall apply to all residential development projects and mixed-use residential development projects of eight or more residential units, lots, or parcels, including any of the following:
(1) New construction of residential units;
(2) Addition of residential units to existing projects; (3) Addition of residential units to an existing multifamily dwelling; (4) Creation of residential lots;
(5) Conversion of existing dwelling units to condominium ownership; and (6) Conversion of an existing nonresidential building or floor area to residential use
(b) For purposes of determining the total number of units for applicability, accessory dwelling units and junior accessory dwelling units are not included. (c) Contemporaneous construction of eight (8) or more primary dwelling units on a lot, or on contiguous lots for which there is evidence of common ownership or control, even though not covered by the same city land use approval, shall also be considered a single residential development. Construction shall be considered contemporaneous if any building permits are issued within five (5) years following the date of completion of any earlier construction.
(d) An applicant for a residential development project vested by a preliminary application submitted under California Government Code section 65941.1(a) may opt-in to the provisions of a subsequently adopted version of this article by submitting a written notice to the Community Development Director and including an affordable housing plan, as required under Sec. 9-4.4706. (e) Exemptions. The requirements of this article do not apply to:
(1) The reconstruction of any structures that have been destroyed by fire, flood, earthquake, or other act of nature provided that the reconstruction takes place within three years of the date the structures were destroyed. (2) Residential development projects that will contain sufficient BMR units to meet or exceed the requirements of this article.

Sec. 9-4.4702. - Definitions.

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Packet Pg. 391 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 15 For the purposes of this article, unless otherwise apparent from the context, the following words and phrases are defined as set forth below. In the event of a conflict between the words and phrases defined in this article and the words and phrases defined Article 2 "Definitions" of this article the definitions in this article shall prevail with respect to implementation of this article.
(a) "Affordable housing agreement" means an agreement, running with the land that assures that a BMR unit will be maintained and sold or leased at an affordable housing cost as required by this Article and City policies. It may include a covenant, resale restriction and refinance limitation agreement, deed restriction, performance deed of trust, or such other document or documents as are satisfactory to the City Attorney.
(b) "Affordable housing cost" means an "affordable housing cost" as defined in Section 50052.5 of the California Health and Safety Code.
(c) "Affordable rent" means "affordable rent" as defined in Section 50053 of the California Health and Safety Code.
(d) "Applicant” means the applicant for a residential development project, as set forth on the City’s General Planning Application form.
(e) "Area median income" (AMI) means the median household income for the San Francisco Primary Metropolitan Statistical Area (PMSA) as determined annually by the California Department of Housing and Community Development (“HCD”) and published by the County of San Mateo.
(f) "Below Market Rate (BMR) unit" means any income-restricted dwelling unit created pursuant to and consistent with this Article.
(1) " BMR unit, For-sale " means a BMR unit offered for sale, including, but not limited to, single-family homes, condominiums, other common interest developments, and mutual housing associations.
(2) "BMR unit, Rental" means a BMR unit offered for lease or rent. (g) "Density bonus" shall have the meaning as specified in Section 9-4.4102 of the Code.
(h) "Eligible household" means a very low-, lower-, 110% of AMI-, or moderateincome household approved by the City in accordance with this article. (i) “First Approval” means the first of the following approvals to occur with respect to a residential development project: any planning entitlement, discretionary or ministerial, or approval under the Zoning Ordinance, subdivision approval, or building permit for construction.

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Packet Pg. 392 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 16 (j) “Group living accommodation” means a residential development project that is occupied by individuals of separate households and are characterized by separate sleeping rooms without individual kitchen facilities, and containing congregate bath and/or dining facilities or rooms.
(k) "Household" means one person living alone or two or more persons sharing residency, regardless of relationship or dependent status, whose income is considered for housing payments.
(l) “Household Income” shall be the gross income of the household as calculated pursuant to Section 50079.5 of the California Health and Safety Code, as amended, or its successor. The household income categories addressed in this Article shall be defined as follows:
(1) "Very low-income household" means a household whose annual income does not exceed the qualifying limits set for "very low-income households" and is generally understood to be approximately 50 percent of area median income, as defined by HCD.
(2) “Lower-Income Household” means a household whose annual income does not exceed the qualifying limits set for "lower income households" and is generally understood to be approximately 80 percent of area median income, as defined by HCD.
(3) “110% of Area Median Income Household” means a household whose annual income does not exceed 110 percent of area median income, based on HCD published income limits.
(4) "Moderate-income household" means a household whose annual income does not exceed the qualifying limits set for "persons and families of low or moderate income" and is generally understood to be approximately 120 percent of area median income, as defined by HCD.
(m)"Market rate unit" means a dwelling unit where the rental rate or sales price is not restricted by this article.
(n) "Off-site" means located outside or in a location other than site of the residential development project.
(o) "On-site" means located within the residential development project. (p) "Residential development project" means any new construction of dwelling units, subdivision of property for housing development, conversion of rental projects to condominium or other common interest ownership under Article 24.5, conversion of non-residential buildings or floor area to residential, or any other creation of dwelling units or lots for housing that is authorized by a ministerial or discretionary

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Packet Pg. 393 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 17 land use. Residential development projects include those that are part of a mixeduse residential project. (q) “Residential unit" means any dwelling unit, live/work unit, or any bedroom of a group living accommodation in a residential development project. (r) "Residential Unit Floor Area" means, for the purpose of this article, the floor area of the residential unit(s) of a residential development project. (1) Residential Unit Floor Area shall be measured from the interior of the walls of each unit. The residential unit floor area shall exclude areas that are not habitable residential square footage such as:
i. Balconies, whether private or open to all residents
ii. Storage lockers not located within residential units iii. Vehicular (e.g., automobile or motorcycle) and bicycle parking areas that are separate areas from the residential unit iv. Other qualifying areas that are not associated with residential units, upon approval of the Zoning Administrator.
(2) For residential units consisting of group living accommodations, residential unit floor area shall also include common rooms/lounges and supporting facilities such as kitchens and restrooms.

Sec. 9-4.4703. - Inclusionary housing requirements—Onsite Construction of BMR Units Required.
(a) Requirement to Construct Onsite BMR Units. Unless an alternative pursuant Sec 9-4.4704 is approved, and as otherwise provided in this section for fractional units, all BMR units must be constructed onsite.
(b) General
(1) Fractional Units. In determining the number of BMR units required, any decimal fraction below 0.5 shall be paid as an in-lieu fee, in accordance with section 9-4.4705(b) and the in-lieu fee schedule. Any decimal fraction of

0.5 or above shall be rounded up to the nearest whole number. (c) On-Site BMR Units
(1) Number of BMR units required. A minimum of 15 percent of all units, lots, or parcels in a residential development project subject to this article shall be

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Packet Pg. 394 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 18 on-site BMR units restricted for occupancy by, and affordable to, very low- , lower-, 110 percent of AMI, or moderate-income households. (2) A BMR Unit that is constructed to qualify for a density bonus under Government Code section 65915 that otherwise meets these inclusionary housing requirements shall also qualify as inclusionary housing and a density bonus unit.
(3) For projects with for sale units:
i. At least 50 percent of the required BMR units shall be restricted to occupancy by lower-income households; and
ii. The remaining BMR units required shall be restricted to occupancy by moderate-income households.
iii. The Applicant has the right, but is not required, to increase the percentage of lower-income household BMR units.
(4) For projects with rental units:
i. At least 33.3 percent of the required BMR units shall be restricted to occupancy by very low-income households. Where there is only one BMR unit required, this unit shall be a very low-income unit; and
ii. 33.3 percent of the required BMR units shall be restricted to occupancy by lower income households; and
iii. The remaining required BMR units shall be restricted to occupancy by 110 percent of AMI households.
iv. The Applicant has the right, but is not required, to increase the percentage of very low- and lower-income household BMR units.

Sec. 9-4.4704. - BMR unit size and design; construction phasing. (a) BMR units shall meet the following requirements:
(1) Be distributed throughout the residential development project; (2) Have exterior design and appearance compatible with and substantially the same as market rate units within the residential development project, including landscaping; (3) Have similar access from the exterior as market rate units; (4) Have access to all on-site common areas and amenities; (5) Have interior finishes, fixtures, and appliances that are comparable with the standard market rate units;

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Packet Pg. 395 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 19 i. An Applicant may propose the use of different interior unit amenities, such as floor covering, appliances, and other fixtures, but these differences shall be specified within the affordable housing plan submitted at the time of planning application, as required by Section 9-4.4706(a), but all amenities must at a minimum be Underwriters Laboratories (UL) or American Gas Association (AGA) listed;
ii. The Zoning Administrator shall approve the proposed use of different interior unit amenities provided the proposal meets the requirements of this section. (6) Have the same proportion of units by number of bedrooms and average size as the market rate units;
i. An Applicant may propose an alternative mix of unit-types to comply with this section by providing BMR Units that comprise at least 15 percent of the total residential unit floor area of the residential development project where the alternative mix benefits the City by meeting either of the two following conditions:
a. the Applicant is creating units greater than 2,000 square feet, and by creating smaller units, more BMR units will be created; or b. the Applicant is creating mostly studio and one-bedroom units, and by providing BMR units with two or three bedrooms, fewer units are created, but meet the needs of families.
ii. The Zoning Administrator shall approve the proposed alternative mix of unit types that meet the requirements of this section.
(7) That a proportionate number of units be constructed prior to or concurrently with market rate units in the residential development project or applicable phase of the residential development project.

Sec. 9-4.4705. – Alternatives to onsite affordable residential units. (a) General - An Applicant may comply with this Article through one or more of the following alternatives approved in accordance with this section. (1) Unless otherwise provided in this section, the use of an alternative or combination of alternatives shall be subject to approval by the City Council.

The alternative will be considered by the City Council as set forth below. (2) Alternatives shall be based on a minimum of 20 percent of all units, lots, or parcels in a residential development project seeking alternative compliance.

For purposes of determining the total number of BMR units required, density bonus units, accessory dwelling units, and junior accessory dwelling units are not included.

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Packet Pg. 396 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 20 (3) In accordance with state density bonus law, these alternatives are not available for BMR units that serve to qualify for a density bonus under Government Code Section 65915(g), unless the dedication of land conforms to the provisions of Government Code Section 65915(g).
(b) In-Lieu Fee Payment
(1) Payment in lieu of providing a unit. The Applicant may propose to pay the City an amount of money in lieu of providing a BMR unit, which shall be based on 20 percent of the residential development project’s units. The inlieu payment for each BMR unit shall be set forth in a resolution adopted by the City Council.
(2) In-Lieu Fees shall be paid prior to the issuance of the first building permit for the residential development project at the rate in effect at time of payment. Where an applicant will be creating custom lot subdivisions and selling the lots to individual purchasers, the applicant shall pay the in-lieu fee prior to the sale of the first lot.
(3) In-lieu payments collected under this article shall be deposited into the City’s Housing In-Lieu Fund and shall be used only for the purpose of providing funding assistance for the provision of affordable housing, inclusionary monitoring costs, and administration costs. Administration costs shall not exceed 15 percent of any deposits into the Housing In-Lieu Fund. Such funds may also be used for a homebuyer's assistance program for eligible households.
(4) The City Council shall approve the in-lieu fee alternative if all of the above requirements are satisfied. In the event of approval, the residential development project shall be conditioned to require compliance with all of the above requirements.
(c) Off-site construction. When this off-site option is allowed, the Applicant must provide 20 percent of the residential unit floor area of the residential development project as BMR units, at affordability levels that meet or exceed the applicable onsite requirements in this article. (1) Off-site BMR units shall be constructed within the City of Pacifica and shall receive Certificate of Occupancy prior to the issuance of any Certificate of Occupancy of the residential development project, unless being built in phases, in proportion to the phasing of the residential development project, as set forth in the Affordable Housing Agreement.
(2) Off-site BMR units shall be consistent and comply with the standards and requirements specified in this Article, except that the size and number of BMR units may differ from what the Applicant would have provided onsite.

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Packet Pg. 397 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 21 (3) BMR units shall be located on sites that are designated in the general plan for the intended residential development, have access to similar availability of services to the on-site units, and be accessible by paved roads. (4) The City Council shall approve the off-site construction alternative provided all of the above requirements are satisfied. In the event of approval, the residential development project shall be conditioned to require compliance with all of the above requirements.
(d) Off-site preservation. In lieu of building BMR units, the Applicant may request to create off-site BMR units through the purchase and conversion of existing marketrate units to affordable units, either by the Applicant or by a not-for-profit entity.

When this off-site option is allowed, the Applicant must provide 20 percent of the residential unit floor area of the residential housing development as BMR units, at affordability levels that meet or exceed the applicable on-site requirements of this article.
(1) The off-site preservation units must be located within the City of Pacifica. (2) The size and number of BMR units may differ from what the Applicant would have provided on-site.
(3) If a not-for-profit is involved, they must be approved by the City Manager. (4) The off-site preservation units used to qualify for this alternative must be purchased prior to the issuance of a building permit for the residential development project. The Community Development Director may set out requirements related to the rehabilitation and condition of the property and the protection and/or temporary relocation of existing tenants. The Community Development Director may require that rehabilitation of the property and/or temporary relocation of existing tenants be completed before the issuance of a building permit for the residential development project.
(5) For five years prior to the preservation of the off-site units, the average market rents must have been higher than 100 percent of area median income rent limits.
(6) The City Council shall approve the off-site preservation alternative provided all of the above requirements are satisfied. In the event of approval, the residential development project shall be conditioned to require compliance with all of the above requirements.
(e) Land dedication. In lieu of building BMR units, the Applicant may propose to dedicate land to the City or to an affordable housing developer. (1) This land must be of equivalent or greater value than the amount of the required in-lieu fee. The valuation of any land offered in-lieu shall be determined by an appraisal made by an appraiser mutually agreed upon by

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Packet Pg. 398 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 22 the City and the Applicant. Costs associated with the appraisal shall be borne by the Applicant.
(2) The timing of the land dedication shall be at or before issuance of a building permit of the. Marketable title to the site is transferred to the City, or an affordable housing developer approved by the City, prior to issuance of building permit of the residential development project pursuant to an agreement between the Applicant and the City.
(3) Approval of land dedication.
i. Land proposed to be dedicated to the City requires approval of the City Council, at its sole discretion. Factors considered for the approval may include, but are not limited to, general location, access to transit, buildability, current General Plan and zoning designations, availability utilities and other services, the number of units that could be built at the location, and the availability of a proposed affordable housing developer.
ii. Land dedicated to an affordable housing developer must meet the following requirements:
a. The site has a General Plan designation that authorizes residential uses and is zoned for residential development at a density to accommodate at least the number of affordable units that would otherwise be required.
b. The site is suitable for development of the BMR units, taking into consideration its configuration, physical characteristics, location, access, adjacent uses, and applicable development standards and other relevant planning and development
criteria including, but not limited to, factors such as the cost of construction or development arising from the nature, condition, or location of the site.
c. Infrastructure to serve the dedicated site, including, but not limited to, streets and public utilities, are available at the property line and have adequate capacity to serve the
maximum allowable residential density permitted under
zoning regulations.
d. The site has been evaluated for the presence of hazardous materials and for the presence of geological hazards and all such hazards are or will be mitigated to the satisfaction of the City prior to acceptance of the site by the City.
e. The value of the site upon the date of dedication is equal to or greater than the in-lieu fee that would otherwise be required under Subsection (b) above. The value of the site

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Packet Pg. 399 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 23 shall be determined pursuant to the program guidelines approved by the City Manager or their designee.
(4) Transfer of the property. At the time the land is transferred to the City or to an affordable housing developer, the Applicant must have paid any outstanding property taxes, and the property must be free of any liens or encumbrances, unless otherwise approved by the City.
(5) In the event of approval, the residential development project shall be conditioned to require compliance with all of the above requirements, and any other applicable conditions as determined by the City Council. (f) Combination. The Applicant may propose any combination of on-site construction, in-lieu payments, off-site construction, off-site preservation, and/or land dedication.

Sec. 9-4.4706. - Affordable housing plan for BMR units. (a) An affordable housing plan for BMR units shall be submitted as part of the application for first approval of any residential housing development. An application cannot be deemed complete unless an affordable housing plan conforming to the provisions of this article is submitted.
(b) If the applicant has requested a density bonus pursuant to Article 41 of this Code, the affordable housing plan required under this Section shall be combined with the affordable housing plan for BMR units required pursuant to Article 41 of this Code. (c) The affordable housing plan for BMR units shall include the following information:
(1) For residential housing development projects proposing to construct the BMR units on-site within the development, the affordable housing plan shall specify, at the same level of detail as the application for the residential development project:
i. Calculations for compliance with this Article. This includes the number of required and proposed BMR units, calculation of in-lieu fee, if applicable, and/or residential unit floor area, based on the specifics of the proposed residential development project.
ii. The number, type, tenure, household income categories, number of bedrooms and baths, approximate location, size, and design (including finishes and features) of all BMR units.
iii. A tentative map or preliminary site plan, drawn to scale, showing the number and location of all proposed units, and designating the location of proposed BMR units.
iv. The zoning and general plan designations and assessor’s parcel number(s) of the residential development project site.

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Packet Pg. 400 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 24 v. If the residential development project is to be constructed in phases, an outline of the proposed phases and how the Applicant intends to construct the BMR units concurrently with the market-rate units.
vi. A preliminary marketing plan indicating the general approach to marketing BMR units, including the manner in which the BMR units will be offered to the public in a nondiscriminatory and equitable manner. The final marketing plan must be approved prior to first building permit issuance and shall be subject to approval by the Community Development Director or their designee. vii. If the applicant requests the use of different finishes and features than marketrate units as addressed in Section 9-4.4704, the affordable housing plan shall describe this request.
(2) If an Applicant requests approval of alternatives to constructing the BMR units within a residential development project pursuant to subsection Section 9-4.4705 of this Article, the affordable housing plan shall describe the requested alternatives, and any in-lieu fee calculations.
(d) The affordable housing plan for BMR units shall be reviewed simultaneously with any other applications associated with the first approval of the residential housing development.

Sec. 9-4.4707. - For-sale BMR units.
(a) Price of units. The maximum sales price of a for-sale BMR unit shall be set by the City, based on the affordable housing cost, as defined in Section 9-4.4702, for each income category, and as established in guidelines approved by the Community Development Director.
(b) Deed and resale restrictions.
(1) For-sale BMR units shall remain available at an affordable housing cost to an eligible household for 45 years, which shall reset upon transfer or resale. Resale controls shall be by affordable housing agreements approved as to form by the City Attorney or their designee. Such documents shall provide that the City has an option to purchase the for-sale BMR unit(s), for the maximum resale price, as defined below. The City's option to purchase may be assigned to a qualifying eligible household, a nonprofit housing organization, other government entity, or other entity that will ensure the continuation of the affordability of the BMR units.
(2) Occupancy restrictions. For-sale BMR units shall only be occupied by their owners. Renting, leasing, subleasing, or subletting shall not be permitted for

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Packet Pg. 401 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 25 more than two months in any year. Violation of these occupancy restrictions will be grounds for termination of the occupancy.
(3) Resale price. The resale agreement shall establish the following. In order to maintain the affordability of the for-sale BMR units constructed pursuant to this article, the maximum purchase price paid by each subsequent purchaser shall be limited to the original purchase price, increased by the percentage increase in area median income from the date of original purchase, plus the depreciated cost of any capital improvement expenditures greater than one percent of the original purchase price, minus any costs necessary to bring the unit into conformity with City building regulations in the event that the occupant has allowed the unit to deteriorate due to deferred maintenance. i. Formula for Maximum Purchase Price: Original Maximum Purchase Price + Percentage Increase in area median income from date of Original Purchase + Depreciated Cost of any Capital Improvement Expenditures > 1 Percent of Original Purchase Price – Any Costs Necessary to bring the unit into City building regulations due to deferred maintenance
(c) Administration. The City may contract with an outside agency, which shall be responsible for selection and qualification of buyers in accordance with City-approved policies. The Applicant or subsequent seller shall pay all costs associated with this service for the for-sale BMR unit. The City also may contract with an outside agency to assist with monitoring the ongoing compliance of for-sale BMR units.

Sec. 9-4.4708. - Rental BMR units.
(a) Rental rates. The maximum rent of a rental BMR unit shall be an affordable rent approved by the City based on CA Health & Safety Code § 50052.5 or County of San Mateo County published rents. These rents shall include a utility allowance, in accordance with the utility allowance schedule published by the County of San Mateo Department of Housing.
(b) Rental restrictions. Rental BMR units shall remain available at an affordable rent to an eligible household for 99 years. The rents shall be regulated by affordable housing agreements approved as to form by the City Attorney or their designee. (c) Administration. The rental of rental BMR units shall be administered according to Cityapproved policies by the Applicant or a nonprofit housing organization, government entity, or other entity approved by the City. The City may charge fees to cover the costs of administration of this program, in an amount set from time to time by City Council resolution.

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Packet Pg. 402 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 26 Sec. 9-4.4709. - Eligibility requirements.

Only eligible households may occupy BMR units. No household may occupy a BMR unit unless the City or its designee has approved the household's eligibility in accordance with City-approved policies. Preference shall be given to persons residing or working within Pacifica, in accordance with federal and state fair housing and other applicable laws.

Eligibility requirements may be further defined in guidelines approved by the Community Development Director.

Sec. 9-4.4710. - Affordable housing agreement.
(a) Applicability. Recordation of an affordable housing agreement shall be made prior to issuance of a building permit for any structure in a residential housing development. The affordable housing agreement shall run with the land and bind all future owners and successors in interest.
(b) The affordable housing agreement shall be in a form approved by the City Attorney or their designee and shall include the following, without limitation:
(1) All information provided in the affordable housing plan pursuant to Section 9-

4.4706 of this Article.
(2) The household income categories of the BMR units, consistent with the requirements of Section 9-4.4702 of this Article or any alternative requirements pursuant to Section 9-4.4705 of this Article.
(3) Continued affordability of the BMR units, as follows:
i. For-Sale Inclusionary Units. The affordable housing agreement shall require that a resale restriction agreement, in a form approved by the City Attorney or their designee, be recorded against each for-sale BMR unit when the unit is first transferred to an eligible purchaser. The resale restriction agreement shall provide that BMR units in for-sale housing developments shall remain affordable for 45 years, to be reset upon resale, and that the affordability provisions be applicable to any subsequent transferees or successors in interest. The resale restriction agreement shall also provide that the for-sale BMR unit shall not be rented, except as allowed in Section 9-4.4707 of this Article.
ii. Rental BMR Units. The affordable housing agreement, in a form approved by the City Attorney or their designee, shall be recorded against each residential housing development containing rental units to ensure that the BMR units remain affordable for 99 years. Rental BMR units that are later converted to for-sale units, e.g., converted to condominiums, and then sold

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Packet Pg. 403 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 27 shall be sold as for-sale BMR units, in accordance with Chapter 4, Article

24.5 of the Municipal Code and any regulations implementing this section approved by the Community Development Director.
(4) The affordable housing agreement shall specify that no household shall be permitted to begin occupancy of a BMR unit unless the City Community Development Director, or the City Community Development Director’s designee, has approved the household’s eligibility.
(5) Affordable housing agreements for residential Development projects intended to be occupied by special populations or households with special needs, such as those with a physical or mental disability, or for those who were formerly unhoused, or with one or more members who are 62 years of age or older shall provide that dwelling units in the residential development project shall be occupied by persons eligible to reside in such a project. (6) The affordable housing agreement shall include provisions requiring maintenance of records to demonstrate compliance with this Article. (7) The affordable housing agreement shall include a description of remedies for breach of the agreement by either party. The City may identify tenant households or qualified purchaser households as third party beneficiaries under the agreement.
(8) The affordable housing agreement shall include any other provisions determined necessary by the City Attorney or their designee to ensure implementation and compliance with this Article.

Sec. 9-4.4711. - Adjustments, waivers.
(a) Process. The requirements of this article may be waived, adjusted, or reduced if the Applicant shows that applying the requirements of this article would take property in violation of the United States or California Constitutions. Such a request shall be made in writing and filed with the City Manager at the time of submittal of an initial application for approval of the residential development project and/or as part of any appeal that the city provides as part of the process of approval. The request shall state completely and in detail: (i) the requested waiver, adjustment, or reduction of the requirements, (ii) the factual basis for the request, and (iii) the legal basis of this request. In making a determination on an application for waiver, adjustment, or reduction, the Applicant shall bear the burden of presenting substantial evidence to support the claim. The City Manager, in consultation with the City Attorney, shall consider the request and render a decision in writing within 30 days. If the City

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Packet Pg. 404 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 28 Manager determines that those requirements constitute a taking in violation of the United States or California Constitutions, the requirements of this article shall be modified, adjusted, or waived to the extent necessary to avoid an unconstitutional result or illegal outcome. If the City Manager determines that no violation of the United States or California Constitutions would occur through application of this article, the requirements of this article shall remain applicable unless the City Manager's determination is overruled or modified by the City Council on appeal. (b) Appeal procedure. A decision of the City Manager on a request for a reduction or waiver pursuant to subsection (a) above shall be appealable in accordance with this section. A person seeking judicial review of a decision shall first complete an appeal under this section. Any person wishing to appeal a decision of the City Manager shall file an appeal to the City Council in writing with the City Clerk not later than ten days from the date of the written decision of the City Manager. The written appeal shall state completely and in detail the factual and legal grounds for the appeal. The City Council shall consider the appeal at a public hearing within sixty days after the filing of the request. The decision of the City Council is final. (c) Fee for adjustment request or appeal. The cost of the request for adjustment or waiver of the requirements of this article and appeal shall be borne by the applicant in an amount set forth in a resolution adopted by the City Council.

Sec. 9-4.4712. - Hillside preservation and B-Lot size overlay districts.

Nothing in this article is intended to nor shall it supersede the provisions of the Hillside Preservation District (HPD) or B-lot size overlay district (B-district). Residential development projects located within HPD and/or B-district land that provide BMR units in accordance with this article shall be subject to all regulations and standards of Article 22.5, regarding the HPD district, including applicable lot coverage limitations, and Article 20, regarding the B-district.

Sec. 9-4.4713. - Implementation.
(a) No building permit shall be issued for any market-rate unit until the permittee has obtained permits for a proportionate number of the BMR units required by this article. No final inspection for occupancy for any market-rate unit shall be completed until final inspection has been completed for a proportionate number of the BMR units required by this article.
(b) The time requirements set forth in this Section for issuance of building permits for market-rate units and for final inspections for occupancy for market-rate units may be modified to accommodate phasing schedules, model variations, or other factors in a residential development project within the submitted affordable housing plan pursuant to Section 9-4.4707 of this Article, if the City determines this will provide greater public benefit and an affordable housing agreement pursuant to Section 9-

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Packet Pg. 405 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 29 4.4710 of this Article has been accepted by the approval body with the authority to approve the development.
(c) Conditions to carry out the purposes of this Article shall be imposed on the first approval for a residential development project and any subsequent approvals. (d) The City Manager is authorized to execute the affordable housing agreements following approval by the Community Development Director and the City Attorney or their designee.
(e) The Community Development Director shall promulgate guidelines to further implement this ordinance. These guidelines shall include, but are not limited to, the following:
(1) The form and contents of the affordable housing agreements, including provisions for successors in interest and other ownership transfers; (2) The form and contents of the final marketing plan and resident selection process;
(3) Procedures for setting rents and sales prices for the BMR units in accordance with this article and with state law;
(4) Procedures for qualifying tenant households and prospective purchaser households of BMR units, including any preferences;
(5) Compliance and monitoring procedures to assure that affordability restrictions are maintained; and
(6) Resale and subordination procedures for BMR for-sale units. (f) The City Council, as part of its master fee schedule, may establish fees to recover the City’s costs for the ongoing administration and monitoring of the affordability provisions of the BMR units, except where prohibited by State law.

Sec. 9-4.4714 - Enforcement.
(a) The City is authorized to enforce the provisions of this Article and all affordable housing agreements, including without limitation, regulatory agreements, resale controls, deeds of trust, or similar documents placed on the BMR units, by civil action and any other proceeding or method permitted by law.
(b) Failure of any official or agency to fulfill the requirements of this Article shall not excuse any applicant or owner from the requirements of this Article. (c) The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the City from any other remedy or relief to which it otherwise would be entitled under law or equity.
(d) Legal action. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this article. Failure of any official or agency to fulfill the requirements of this article shall not excuse any person, owner, household, or other party from the requirements of this article.

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Packet Pg. 406 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 30 Section 4. Compliance with CEQA. The City Council hereby finds that the action to adopt this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.), including without limitation under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility the adoption of this Ordinance may have a significant effect on the environment. The City Clerk shall file a Notice of Exemption with the San Mateo County Clerk.

Section 5. Severability. If any section, subsection, sentence, clause, or phase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentence, clauses or phrases be declared unconstitutional.

Section 6. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance by the City Council of the City of Pacifica, California, and cause the same to be published in accordance with State law.

Section 7. Effective Date. This Ordinance shall be in full force and effective 30 days after its adoption and shall be published and posted as required by law. For areas within the Coastal Zone, this Ordinance shall not become effective until the California Coastal Commission certifies an amendment to the City’s local coastal program pursuant to Section 30514 of the Public Resources Code.

Section 8. PASSED AND ADOPTED this ____ day of ________, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Christine Boles, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney

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Packet Pg. 407 Attachment: Attachment A - Draft Council Ordinance_DBO+IHO Text Amendment_TA-129-26 (6296 : Density Bonus + Inclusionary Ord) 1 RESOLUTION NO. ##-2026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA

REVISING THE SCHEDULE FOR PAYMENTS IN LIEU OF PROVIDING

BELOW MARKET RATE UNITS UNDER THE INCLUSIONARY HOUSING

PROGRAM AND ESTABLISHING ANNUAL ADJUSTMENTS BASED ON
THE CONSUMER PRICE INDEX FOR SAN FRANCISCO-OAKLANDHAYWARD, CA WHEREAS, the City of Pacifica has a below market rate ("BMR") (inclusionary) program pursuant to Article 47 of Title 9, Chapter 4 of the Pacifica Municipal Code (PMC); and
WHEREAS, PMC Section 9-4. 4705(b)(1) requires that the method of determining the amount of such "in-lieu" payments be set forth in a resolution adopted by the City Council at a level that reflects the estimated cost to provide BMR units at rents or sale prices that are affordable to moderate- and lower-income household in Pacifica; and WHEREAS, on May 29, 2007, the Pacifica City Council adopted resolution 24-2007 establishing an in-lieu fee schedule based on standards set by the United States Department of Housing (HUD) and California Department of Housing and Community Development (HCD) for determining the rents and housing prices that are affordable to Lower Income and Moderate Income Households, as defined in the ordinance, in the San Francisco Primary Metropolitan Statistical Area, and the County of San Mateo; and WHEREAS, Resolution 24-2007 established that the in-lieu payment shall be reviewed and adjusted annually to reflect any increase or decrease in the median housing sale prices in Pacifica and such other factors as the City Council determines are relevant; and
WHEREAS, as part of a general update to the below market rate program, the City Council is revising the income requirements of rental inclusionary units from 7.5 percent of the development’s units at 80 percent of Area Median Income (AMI) and 7.5 percent of units at 120 percent of AMI to 5 percent of the development’s units at 50 percent of AMI, 5 percent at 80 percent of AMI, and 5 percent at 110 percent of AMI; and WHEREAS, as part of that same update, in-lieu payments will be required for any inclusionary fractional units with a decimal below 0.5.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pacifica that:

SECTION 1. Change in Median Housing Prices in Pacifica. According to the San Mateo County Association of Realtors, the median price for a single-family dwelling in the City of Pacifica increased 84.0 percent between 2006 and 2025, from $720,000 to $1,325,000, and the median price for a condominium or town house increased 77.7 percent over the same period, from $515,000 to $915,000.

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Packet Pg. 408 Attachment: Attachment B - Draft In Lieu Fee Resolution (6296 : Density Bonus + Inclusionary Ord) 2 SECTION 2. Change in Consumer Price Index. According to the United States Bureau of Labor Statistics, the Consumer Price Index increased 70.2 percent from 2006 to 2025 for all items in San Francisco-Oakland-Hayward, CA (all urban consumers, not seasonally adjusted).

SECTION 3. In-Lieu Payment Schedule. Given the increase in median home sales prices and the Consumer Price Index for all items in San Francisco-Oakland-Hayward, CA, to recognize the changes in the annual median income (AMI) requirements for rental inclusionary units, to require payments for fractional units, and to simplify administration, the payment schedule for in lieu fee for an on-site BMR unit shall be as follows:

Rental Unit: $349,566
For Sale Unit:

Detached Single Family: $944,921
Condominium/Townhouse: $548,052
SECTION 4. Fractional Units. Where a development is providing on-site units and a fractional unit of less than 0.5 units remains, the fee shall be the per-unit rate above, times the remaining fractional percentage.

SECTION 5. Annual Adjustments. For calendar year 2027 and each year thereafter, the in-lieu fees shall be adjusted annually, as follows:
(A) The rental in-lieu fee shall be adjusted on March 1 of each year in proportion to any increase in the annual change for the previous calendar year in the in the Consumer Price Index for all items in San Francisco-Oakland-Hayward, CA (all urban consumers, not seasonally adjusted), and posted by the Community Development Department after City Manager approval.
(B) The in-lieu fee for condos/townhouses and single-family homeownership projects shall be adjusted on March 1 of each year by the most prior calendar year annual increase in Pacifica median home values, as published by the San Mateo County Association of Realtors, and posted by the Community Development Department after City Manager approval.

SECTION 6. In-lieu payments are subject to the adjustment and waiver provisions of the waiver and variance procedures of Sec. 9-4.4711 of the City of Pacifica Municipal Code.

SECTION 7. Fees shall be segregated into a housing fund and used only for those purposes set forth in Article 47 of the Municipal Code.

SECTION 8. The updated fee amounts established by this Resolution shall be effective 60 days after adoption of this Resolution.
*****

12.b
Packet Pg. 409 Attachment: Attachment B - Draft In Lieu Fee Resolution (6296 : Density Bonus + Inclusionary Ord) 3 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on this ___ day of _____, 2026, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:
___________________________
Christine Boles, Mayor
ATTEST: APPROVED AS TO FORM:
_______________________ ____________________________
Sarah Coffey, City Clerk Michelle Kenyon, City Attorney

12.b
Packet Pg. 410 Attachment: Attachment B - Draft In Lieu Fee Resolution (6296 : Density Bonus + Inclusionary Ord)

PLANNING COMMISSION
Staff Report
Scenic Pacifica
Incorporated Nov. 22, 1957
DATE: May 4, 2026 FILE: TA-129-26
ITEM: 1

SUBJECT
File No. 2026-006 – Text Amendment TA-129-26, initiated by the City of Pacifica, to repeal and replace Article 41 Density Bonus Program and Article 47 City of Pacifica Below Market Rate (Inclusionary) Program of the City of Pacifica Zoning Regulations (Title 9, Chapter 4 of the Pacifica Municipal Code) relating to the implementation of state density bonus law and regulations for inclusionary housing and below market rate units, respectively.

PROJECT LOCATION
Citywide

PUBLIC NOTICE
A one-eighth page Notice of Public Hearing was published in the San Mateo Daily Journal on April 22, 2026.

CEQA RECOMMENDATION
Exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b)(3) “General Rule” exemption.

REQUIRED APPROVALS
Government Code Section 65853 et seq. requires the Planning Commission to conduct a public hearing and provide a written recommendation to the City Council on any new zoning ordinance, amendment to a zoning ordinance, or change in a property’s zoning designation.

Pacifica Municipal Code Section 9-4.3501 et seq. similarly requires the Planning Commission to conduct a public hearing and to provide by resolution a recommendation to the City Council on any zoning text amendment or change in a property’s zoning designation.
1 Packet Pg. 3

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Packet Pg. 411 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) PC Staff Report
Text Amendments - Density Bonus + Inclusionary Housing Ordinance May 4, 2026

The City Council, as the legislative body of the City, must conduct a public hearing and enact by ordinance any zoning text amendment or change in a property’s zoning designation before it may take effect, with few exceptions. Public Resources Code Section 30514 additionally provides that any ordinance enacted by the City Council which amends the City’s zoning standards or zoning map shall not take effect within the Coastal Zone until the California Coastal Commission certifies an amendment to the City’s Local Coastal Program.

RECOMMENDED ACTION:

Adopt a Resolution initiating the Text Amendment and recommending approval of the Ordinance to the City Council and finding the proposed is exempt from review under the California Environmental Quality Act (“CEAQ”) pursuant to CEQA Guidelines Section 15061(b)(3), “General Rule” (Attachment A)
BACKGROUND/DISCUSSION:

The Density Bonus (DBO) and City of Pacifica Below Market Rate (Inclusionary) Program of the City of Pacifica (IHO) Ordinances are separate but related ordinances that dictate the provision of affordable housing in the City of Pacifica. The Density Bonus Ordinance is based on California State Density Bonus law, which allows developers to receive increased density, waivers of development standards and concessions or incentives for residential, residential mixed-use, and commercial developments in exchange for the provision of affordable housing by restricting a percentage of units as affordable housing units. The Inclusionary and Below Market Rate Housing Program1 Ordinance are local regulations that mandate the amount of affordable housing required in each residential and residential mixed-use development with more than five units and the policies and procedures related to that affordable housing.

These ordinances make a significant impact on the development of residential, residential mixed-use, and commercial developments in the City of Pacifica; however, neither has been updated in many years. The DBO was adopted in 1984 and last updated in 1992, and IHO was adopted in 2007 and has never been updated. There have been significant changes to state law, federal requirements, and best practices in the past 20 to 30 years, and these amendments will bring Pacifica’s ordinances into alignment with those changes.

The City is also participating in a multi-jurisdictional Affordable Housing Study that is being conducted by Community Planning Collaborative and Strategic Economics. The study is currently under way and is exploring updates to affordable housing policies to be applied to new development projects and include some combination of residential affordable housing impact fees, inclusionary requirements and in-lieu fees, and commercial linkage fees.2 Data 1 City of Pacifica Below Market Rate (Inclusionary) Program of the City of Pacifica to be renamed “Inclusionary and Below Market Rate Housing Program” to remove redundancy, ease of use, and clarity. 2 Because Pacifica does not have commercial linkage fees for affordable housing, the City’s participation 1 Packet Pg. 4

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Packet Pg. 412 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) PC Staff Report
Text Amendments - Density Bonus + Inclusionary Housing Ordinance May 4, 2026

and analysis from the completed study are expected in 2027 and will be used to evaluate further substantive changes to the City’s IHO. Since adoption of the Rezoning Program and certification of the City’s Housing Element has laid the framework for new development, amending these ordinances now to comply with state law and align with best practices is a priority. The proposed changes would provide clarity for developers and facilitate better outcomes for the City. These initial updates would also make future substantive changes easier to understand, review and consider, and incorporate into a future zoning text amendment.

Proposed Amendments
On October 6, 2025, the City Council and Planning Commission held a Joint Study Session3 to discuss updates to the DBO and IHO. The Housing Endowment and Regional Trust of San Mateo County4(HEART) and Community Development staff provided an overview of current State and Federal laws that apply to housing development projects, the basics of affordable housing and financing, and discussion of Pacifica’s ordinances including recommended updates. After receiving the presentation, taking public comments, and discussion, the City Council and Planning Commission provided direction to the City Manager to develop DBO and IHO revisions for consideration.

Because the ordinances are decades out of date, staff recommends repealing, reorganizing, and replacing the entire articles. As discussed during the Joint Study Session, while these changes may represent a major update to the ordinances, most of the changes incorporate current state housing and planning law, including density bonus law, or best practices and are not substantive. The proposed changes are summarized in the tables below.

Table 1: Density Bonus Ordinance, Article 41
Category Summary of Changes to Density Bonus Ordinance
Definitions
9-4.4102
Consolidated and amended definitions to cross-reference State Density Bonus Law where appropriate to ensure consistency Application
Requirements
9-4.4103
Added a section to standardize requirements for density bonus requests, incentives/concessions, parking reductions, and waivers
Added a requirement to have a tentative map or preliminary plan with proposed market rate and density bonus units
is limited to residential fees.
3 Joint City Council and Planning Commission Study Session Agenda, October 6, 2025:
https://pacificacityca.iqm2.com/Citizens/FileOpen.aspx?Type=14&ID=1608&Inline=True 4 HEART is a joint powers authority created by the San Mateo County jurisdictions to facilitate the creation of affordable housing. HEART provides Housing Consulting Services to help local communities improve their housing programs and policies, launch new programs, and meet goals set out in the housing elements. Currently, HEART is under contract with eight cities to provide services, including Pacifica.
1 Packet Pg. 5

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Packet Pg. 413 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) PC Staff Report
Text Amendments - Density Bonus + Inclusionary Housing Ordinance May 4, 2026

Table 1: Density Bonus Ordinance, Article 41
Category Summary of Changes to Density Bonus Ordinance
Added a requirement to include construction phasing plan for affordable units in relation to market rate units
Application Review
9-4.4105
Added a section to outline the process for review and approval of density bonus requests and require concurrent submission with planning entitlement application
Density Bonus Housing
Agreement
9-4.4106
Added a section outlining the requirements of a density bonus housing agreement
Amended section with affordability requirements to alter affordability term from 45 years for ownership and 55 years for rental to 99 years for both, consistent with the Inclusionary Housing Ordinance
Added a section requiring the same proportion of bedroom sizes, exterior appearance, quality of construction, distribution of units throughout the property, and access to amenities for affordable units as market rate units
Added a section requiring the affordable housing agreement to be recorded prior to final parcel map approval
Added a section requiring the building permit, final inspections, and certificates of occupancy to be filed for concurrently for affordable and market rate units
Density Bonus
Calculations
9-4.4107
Altered law to point to and match state law for calculations of a density bonus, in accordance with state law
Added a section to round up fractional units to the next whole number for density bonus unit calculations, in accordance with state law
Commercial
Development
9-4.4109
Added a section for commercial development to request a density bonus in partnership with an affordable housing partner, in accordance with state law
Miscellaneous
9-4.4110
9-4.4104
Added a section subordinating this chapter to state law Added a section noting that, within the coastal zone, any requested density bonus, concession, waiver, or parking reduction must be consistent with all applicable requirements of the certified City of Pacifica Local Coastal Program Table 2: Inclusionary Housing and BMR Housing Program, Article 47 Category Summary of Changes to Inclusionary Housing Ordinance Definitions
9-4.4702
Updated the following definitions to comply with state
requirements and county guidelines: BMR Unit, Residential Development Project, and Household Income (Lower-Income, Moderate-Income, and Very-Low Income)
Added definitions for First Approval, Group Living
Accommodations, Household Income (110% AMI), and
1 Packet Pg. 6

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Packet Pg. 414 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) PC Staff Report
Text Amendments - Density Bonus + Inclusionary Housing Ordinance May 4, 2026

Table 2: Inclusionary Housing and BMR Housing Program, Article 47 Category Summary of Changes to Inclusionary Housing Ordinance Residential Unit Floor Area
Applicability and
Requirements
9-4.4701
9-4.4703
Clarified that IHO applies to units with 8 or more units, including conversion of non-residential buildings or floor area, but excluding Accessory Dwelling Units (ADUs) and Junior ADUs
Altered affordability term for deed-restricted affordable units to 99 years for both ownership and rental units
Added requirement for any calculation of Below Market Rate (BMR) units that results in a fractional amount under 0.5 shall be paid out as an in-lieu fee, and any at or above 0.5 shall be rounded up to the next whole number to encourage ongoing contributions to the City’s Housing Action Fund
Lowered Area Median Income (AMI) requirement for rental units from ½ of affordable units at 120% of AMI and ½ of affordable units at 80% of AMI to:
• 1/3 of affordable units at 110% of AMI;
• 1/3 of affordable units of 80% of AMI; and
• 1/3 of affordable units at 50% of AMI
Unit Size and Design
9-4.4704
Altered comparability of size and design requirements to allow for more but smaller units, or fewer but larger units to be restricted at affordability, if approved by the Community Development Director
Alternatives
9-4.4705
General: Increased requirements for alternatives from 15% to 20% to encourage onsite construction while providing viable alternatives
General: Clarified review authority for approval of alternatives follows the permit approval, expect for:
• Land dedication to the City: Council approval required • Land dedication to an Affordable Housing Developer:

Planning Commission approval required
In-Lieu Fee: Set In-Lieu fee alternative to be based on the cost of providing 20% of units on-site to encourage on-site
construction of affordable units
Off-Site Construction: Altered requirements for off-site affordable units so that they must be located with compatible land uses, zoning, and be accessible by paved roads
Off-Site Preservation: Added alternatives for off-site
preservation
Off-Site Preservation: Added the ability for the Community Development Director to set requirements for rehabilitation of off-site preservation properties and protection of existing tenants in off-site preservation properties
Land Dedication: Altered section requiring an appraiser to 1 Packet Pg. 7

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Packet Pg. 415 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) PC Staff Report
Text Amendments - Density Bonus + Inclusionary Housing Ordinance May 4, 2026

Table 2: Inclusionary Housing and BMR Housing Program, Article 47 Category Summary of Changes to Inclusionary Housing Ordinance determine the purchase price of an off-site property or land dedication to use Guidelines to determine purchase price Affordable Housing Plan
and Agreement
9-4.4706
9-4.4710
Added a section requiring an affordable housing plan as part of the development’s application for first approval
Added a section outlining the requirements and procedures for an affordable housing plan
Added a section requiring an affordable housing agreement that shall run with the land and bind all future owners Added a section requiring that the affordable housing
agreement is in place before issuance of building permits Implementation and
Enforcement*
9-4.4713
Added a requirement that the on-site affordable units must be built at the same time as the market rate units
Guidelines outlining the specifics of requirements for the affordable housing agreement, resale restrictions, marketing plan, resident selection process, rent setting, sales price, compliance and monitoring procedures, subordination, and resale procedures will be developed for approval by the Community Development Directo
* Monitoring and subordination fees will need to be added at the conclusion of the Affordable Housing Study

Although not within the purview of the Planning Commission, staff will also prepare an update to the in-lieu inclusionary housing fee for Council consideration, based on the direction provided at the Joint Study Session. Changes include increasing the fee based on the adjustments to the dollar amounts established in City Council Resolution No. 24-20075 and clarifying the methodology for annual updates based on changes in median home values, Consumer Price Index, or California Construction Cost Index. The City will likely consider substantive changes to the in-lieu fees, including methods of calculation, after the completion of the Affordable Housing Study.

General Plan Conformance
The proposed amendments to Article 41, Density Bonus Ordinance and Article 47 Inclusionary and Below Market Rate Housing Ordinance are consistent with Pacifica’s adopted General Plan 2040, 2023-2031 Housing Element, and Local Coastal Land Use Plan (LCLUP), as summarized below.

1. General Plan LU-I-1 Zoning Consistency. Update the Zoning Ordinance and zoning map and apply zoning to all land within the City, consistent with General Plan City Council Resolution No. 24-2007:
https://pacificacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1730 1 Packet Pg. 8

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Packet Pg. 416 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) PC Staff Report
Text Amendments - Density Bonus + Inclusionary Housing Ordinance May 4, 2026

and LCLUP policies and land use designations.

The proposed amendments would apply to residential and mixed-use residential development, and commercial development eligible to use state density bonus law, throughout the City, support and further General Plan policies and Housing Element programs and be consistent with the LCLUP by facilitating the provision of affordable housing in compliance with state and local laws.

2. General Plan LU-I-16 Density Bonus. Continue to facilitate housing affordable to moderate-, low- and extremely-low-income households by providing a density bonus of up to 50 percent over the maximum allowed by zoning, consistent with State Government Code Sections 65915-65918.

The proposed amendments would facilitate the provision of affordable housing to moderate-, low-, and extremely-low-income households by aligning Pacifica’s regulations with current state density bonus law, as well as clarifying the application, processing, and implementation requirements.

3. General Plan LU-I-16.1 Inclusionary Zoning Update. Consider an update to the City’s below-market rate (BMR) inclusionary zoning ordinance as an action program in a future Housing Element update to study an increase in the inclusionary requirement to 20 percent consistent with the requirements of state law, to evaluate longer terms of afford ability, and other opportunities to expand the applicability of inclusionary zoning requirements to more projects.

The proposed amendments would require that alternatives to on-site construction of affordable units are based on a higher percentage (20 percent) to continue to encourage on-site affordable units, ensuring compliance with current state housing and planning laws as well as best practices, and extend affordability terms to 99 years.

4. Housing Element HE-I-5 Fund a Housing Action Fund. Fund a Housing Action Fund to support housing projects or other supportive activities to remove constraints on housing production and promote development of multi-family rental and for-sale housing.

The proposed amendments, specifically changes to the provision of in-lieu fees, would create additional funding sources for the City’s Housing Action Fund by requiring fractional affordable units below 0.5 to pay the fee, and increasing the percentage for the in-lieu alternative.

5. Housing Element HE-I-6 Strengthen Inclusionary Housing. Commission a study to evaluate revisions to current Below Market Rate (inclusionary zoning) program to 1 Packet Pg. 9

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Packet Pg. 417 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) PC Staff Report
Text Amendments - Density Bonus + Inclusionary Housing Ordinance May 4, 2026

increase the minimum required proportion of affordable units and incentivize production of units with deeper affordability than the current program.

The proposed amendments would strengthen the inclusionary housing program by ensuring alignment with current state housing and planning laws and best practices, clarifying application and implementation, increasing the length of time units must remain affordable, adding provisions for housing affordable to 110 percent AMI households, and increasing the requirements for alternatives to on-site construction.

Although a comprehensive multi-jurisdictional Affordable Husing Study is underway that will look at more substantive changes, the proposed amendments are necessary to strengthen and clarifying the program in the interim, especially in light of the framework established by the rezoning program (HE-I-1) which has increased development opportunities across the City.

6. Housing Element HE-I-14 State and Federal Law Conformance. Amend the zoning ordinance and other local policies to remove any inconsistencies between local policies and State and Federal law.

The proposed amendments would update the density bonus and inclusionary housing and BMR program requirements in conformance with current state housing and planning law, including state density bonus law.

7. LCLUP LD-I-1 Zoning Consistency. Update the Zoning Ordinance and zoning map and apply zoning to all land within the City, consistent with General Plan and LCLUP policies and land use designations.

See General Plan LU-I-1 Zoning Consistency, above.

8. LCLUP LD-I-3 Coastal Development Permit Findings. For all development that requires a coastal development permit, continue to require written findings that are consistent with all LCLUP policies and Implementation Plan provisions of the City’s certified Local Coastal Program.

The proposed amendments would not supersede the California Coastal Act, and individual projects that require a Coastal Development Permit would be subject to the applicable findings of the General Plan, LCLUP, and Zoning Ordinance.

Future Amendments
After completion of the multi-jurisdictional Affordable Housing Study, Community Development staff will return to the City Council and Planning Commission in 2028 to report the findings and provide initial recommendations for consideration. 1 Packet Pg. 10

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Packet Pg. 418 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) PC Staff Report
Text Amendments - Density Bonus + Inclusionary Housing Ordinance May 4, 2026

PUBLIC COMMENT:

At the time of writing this report, staff had not received any public comment regarding this Planning Commission action.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff recommend that the Planning Commission find the proposed zoning text amendment in the Draft Ordinance to be exempt from the California Environmental Quality Act (CEQA).

The text amendment would be exempt from CEQA pursuant to the “General Rule” exemption in CEQA Guidelines Section 15061(b)(3). The General Rule exemption provides that “the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.” The text amendment would make amendments to the existing Density Bonus Program and Inclusionary Housing Ordinances to, among other things, establish provisions related to the implementation of sate density bonus law and regulations for inclusionary housing, in accordance with state law and incorporating best practices. The amendments and regulations governing density bonus and inclusionary housing would not have a significant effect on the environment.

STAFF RECOMMENDATION
Staff recommend that the Planning Commission adopt the attached resolution, initiating the text amendment, and recommending approval to the City Council.

COMMISSION ACTION
Motion for Approval: Move that the Planning Commission ADOPT the resolution included as Attachment A to the staff report to initiate Text Amendment TA-129-26 and recommend approval to the City Council and FIND the Draft Ordinance is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines section 15061(b)(3); and incorporate all maps and testimony into the record by reference.

ATTACHMENT LIST:

Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (PDF) 1 Packet Pg. 11

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Packet Pg. 419 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) RESOLUTION NO. 2026-xxx

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
PACIFICA INITIATING TEXT AMENDMENT TA-129-26 AND

RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE TO REPEAL AND REPLACE ARTICLE 41 (“DENSITY BONUS PROGRAM”) OF CHAPTER 4, TITLE 9 OF THE PACIFICA MUNICIPAL CODE AND ARTICLE 47 (“CITY OF PACIFICA BELOW MARKET RATE (INCLUSIONARY)
PROGRAM”) OF CHAPTER 4, TITLE 9 OF THE PACIFICA MUNICIPAL

CODE, AND FINDING THE TEXT AMENDMENT EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
(FILE NO. 2026-006; TEXT AMENDMENT TA-129-26)
________________________________________________________________________ Initiated by: City of Pacifica
WHEREAS, the City’s Density Bonus Ordinance, codified as Article 41 of Chapter 4 of Title 9 of the Pacifica Municipal Code and based on California State Density Bonus law, was adopted on May 23, 1984, repealed and replaced on December 10, 1986, and last updated on February 12, 1992; and
WHEREAS, the City of Pacifica adopted a below market rate (“BMR”) inclusionary program pursuant to the General Plan and the City’s Five-Year Vision Statement, adding Article 47 to Title 9, Chapter 4 of the Pacifica Municipal Code on May 9, 2007, which has not been amended since; and
WHEREAS, significant changes to state housing and planning laws, federal requirements, and best practices have occurred since these updates, and amendments are needed to bring the City of Pacifica’s ordinances into alignment with these changes; and WHEREAS, the City’s adopted and certified 2023-2031 Housing Element includes three implementation programs related to the current density bonus and inclusionary requirements in the Zoning Ordinance that represent commitments to action by the City: HE-I-5 Fund a Housing Action Fund; HE-I-6 Strengthen Inclusionary Housing; and HE-I-14 State and Federal Law Conformance; and
WHEREAS, on October 6, 2025, the City Council and Planning Commission held a joint study session to receive a presentation from The Housing Endowment and Regional Trust of San Mateo County (“HEART”) and City staff regarding the Density Bonus Ordinance and Inclusionary Housing Ordinance; and
WHEREAS, during that study session HEART and City Staff identified several amendments necessary to bring the Density Bonus Ordinance and Inclusionary Housing Ordinance into alignment with current state housing and planning law requirements and regional best practices; and
WHEREAS, at the conclusion of that study session, the City Council provided direction on amendments and directed the City Manager to prepare draft ordinances for consideration; and WHEREAS, on May 4, 2026, the Planning Commission held a duly noticed public hearing on the proposed amendments contained in Text Amendment TA-129-26 (File No. 2026-006).

1.a
Packet Pg. 12
Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing

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Packet Pg. 420 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) Attachment A - 2
NOW, THEREFORE BE IT RESOLVED by the Planning Commission of the City of Pacifica as follows:

1. The above recitals are true and correct and material to this Resolution.

2. In making its findings, the Planning Commission relied upon and hereby incorporates by reference all correspondence, staff reports, and other related materials.

3. The Planning Commission finds that the text amendment is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to the commonsense exemption, CEQA Guidelines § 15061(b)(3), because CEQA applies only to projects that have the potential for causing a significant effect on the environment. It can be seen with certainty that there is no possibility that this Ordinance will have a significant effect on the environment. This Ordinance will not result in direct or indirect physical changes in the environment and is exempt under CEQA.

4. The Planning Commission finds that the proposed amendments to Article 41 and Article 47 are consistent with the City’s General Plan and Housing Element, as well as the Local Coastal Land Use Plan as follows:
a) General Plan LU-I-1 Zoning Consistency. Update the Zoning Ordinance and zoning map and apply zoning to all land within the City, consistent with General Plan and LCLUP policies and land use designations.

The proposed amendments will apply to residential and mixed-use residential development, and commercial development eligible to use state density bonus law, throughout the City, support and further General Plan policies and Housing Element programs and be consistent with the LCLUP by facilitating the provision of affordable housing in compliance with state and local laws. b) General Plan LU-I-16 Density Bonus. Continue to facilitate housing affordable to moderate-, low- and extremely-low-income households by providing a density bonus of up to 50 percent over the maximum allowed by zoning, consistent with State Government Code Sections 65915-65918
The proposed amendments will facilitate the provision of affordable housing to moderate-, low-, and extremely-low-income households by aligning Pacifica’s regulations with current state density bonus law, as well as clarifying the application, processing, and implementation requirements. c) General Plan LU-I-16.1 Inclusionary Zoning Update. Consider an update to the City’s below-market rate (BMR) inclusionary zoning ordinance as an action program in a future Housing Element update to study an increase in the inclusionary requirement to 20 percent consistent with the requirements of state law, to evaluate longer terms of afford ability, and other opportunities to expand the applicability of inclusionary zoning requirements to more projects.

The proposed amendments will require that alternatives to on-site construction of affordable units are based on a higher percentage (20 percent) to continue to encourage on-site affordable units, ensuring compliance with current state housing

1.a
Packet Pg. 13
Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing

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Packet Pg. 421 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) Attachment A - 3
and planning laws as well as best practices, and extend affordability terms to 99 years.
d) Housing Element HE-I-5 Fund a Housing Action Fund. Fund a Housing Action Fund to support housing projects or other supportive activities to remove constraints on housing production and promote development of multi-family rental and for-sale housing.

The proposed amendments, specifically changes to the provision of in-lieu fees, will create additional funding sources for the City’s Housing Action Fund by requiring fractional affordable units below 0.5 to pay the fee. e) Housing Element HE-I-6 Strengthen Inclusionary Housing. Commission a study to evaluate revisions to current Below Market Rate (inclusionary zoning) program to increase the minimum required proportion of affordable units and incentivize production of units with deeper affordability than the current program.

The proposed amendments will strengthen the inclusionary housing program by ensuring alignment with current state housing and planning laws and best practices, clarifying application and implementation, increasing the length of time units must remain affordable, adding provisions for housing affordable to 110 percent AMI households, and increasing the requirements for alternatives to onsite construction. Although a comprehensive multi-jurisdictional Affordable Husing Study is underway that will look at more substantive changes, the proposed amendments are necessary to strengthen and clarifying the program in the interim, especially in light of the framework established by the rezoning program (HE-I-1) has increased development opportunities across the City. f) Housing Element HE-I-14 State and Federal Law Conformance. Amend the zoning ordinance and other local policies to remove any inconsistencies between local policies and State and Federal law.

The proposed amendments will update the density bonus and inclusionary housing and BMR program requirements in conformance with current state housing and planning law, including state density bonus law.
g) LCLUP LD-I-1 Zoning Consistency. Update the Zoning Ordinance and zoning map and apply zoning to all land within the City, consistent with General Plan and LCLUP policies and land use designations.

See General Plan LU-I-1 Zoning Consistency, above.
h) LCLUP LD-I-3 Coastal Development Permit Findings. For all development that requires a coastal development permit, continue to require written findings that are consistent with all LCLUP policies and Implementation Plan provisions of the City’s certified Local Coastal Program.

The proposed amendments will not supersede the California Coastal Act, and individual projects that require a Coastal Development Permit would be subject to the applicable findings of the General Plan, LCLUP, and Zoning Ordinance.

1.a
Packet Pg. 14
Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing

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Packet Pg. 422 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) Attachment A - 4

5. The Planning Commission also finds that adoption of the Draft Ordinance is in the public interest in that adopting updates will avoid defaulting to state law provisions that do not account for Pacifica’s unique local conditions.

BE IT FURTHER RESOLVED that the Planning Commission of the City of Pacifica does hereby intend to initiate an amendment to Article 41 and Article 47 of Chapter 4 of Title 9 of the Pacifica Municipal Code to make revisions to the existing regulations to implement 2023-2031 Housing Element programs HE-I-5 Fund a Housing Action Fund, HE-I-6 Strengthen Inclusionary Housing, and HE-I-14 State and Federal Law Conformance, regional best practices, and current state housing and planning law, and include restructuring for ease of use.

BE IT FURTHER RESOLVED that the Planning Commission of the City of Pacifica does hereby recommend that the City Council of the City of Pacifica adopt the Ordinance attached as Exhibit A to this resolution.
* * * * *
PASSED AND ADOPTED at a regular meeting of the Planning Commission of the City of Pacifica, California, held on the 4th day of May 2026.

AYES,
Commissioner:

NOES,
Commissioner:

ABSENT,
Commissioner:

ABSTAIN,
Commissioner:
______________________________
Samantha Hauser, Chair
ATTEST: APPROVED AS TO FORM:
_____________________________ ______________________________ Samantha Updegrave,
Community Michelle Kenyon, City Attorney
Development Director

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Packet Pg. 423 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) ATTACHMENT A; EXHIBIT 1:

DRAFT ORDINANCE

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Packet Pg. 424 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) Attachment A – Exhibit 1 – 2
ORDINANCE NO. ###-##.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFICA REPEALING AND REPLACING ARTICLE 41 (“DENSITY BONUS
PROGRAM”) OF CHAPTER 4, TITLE 9 OF THE PACIFICA MUNICIPAL CODE AND ARTICLE 47 (“CITY OF PACIFICA BELOW MARKET RATE (INCLUSIONARY) PROGRAM”) OF CHAPTER 4, TITLE 9 OF THE PACIFICA

MUNICIPAL CODE, AND FINDING THE ORDINANCE EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
________________________________________________________________________ Initiated by: City of Pacifica
WHEREAS, the City’s Density Bonus Ordinance, codified as Article 41 of Chapter 4 of Title 9 of the Pacifica Municipal Code and based on California State Density Bonus law, was adopted on May 23, 1984, repealed and replaced on December 10, 1986, and last updated on February 12, 1992; and
WHEREAS, the City of Pacifica adopted a below market rate (“BMR”) inclusionary program pursuant to the General Plan and the City’s Five-Year Vision Statement, adding Article 47 to Title 9, Chapter 4 of the Pacifica Municipal Code on May 9, 2007, which has not been amended since; and
WHEREAS, significant changes to state housing and planning laws, federal requirements, and best practices have occurred since these updates, and amendments are needed to bring the City of Pacifica’s ordinances into alignment with these changes; and WHEREAS, the City’s adopted and certified 2023-2031 Housing Element includes three implementation programs related to the current density bonus and inclusionary requirements in the Zoning Ordinance that represent commitments to action by the City: HE-I-5 Fund a Housing Action Fund; HE-I-6 Strengthen Inclusionary Housing; and HE-I-14 State and Federal Law Conformance; and
WHEREAS, on October 6, 2025, the City Council and Planning Commission held a joint study session to receive a presentation from The Housing Endowment and Regional Trust of San Mateo County (“HEART”) and City staff regarding the Density Bonus Ordinance and Inclusionary Housing Ordinance; and
WHEREAS, during that study session HEART and City Staff identified several amendments necessary to bring the Density Bonus Ordinance and Inclusionary Housing Ordinance into alignment with current state housing and planning law requirements and regional best practices; and
WHEREAS, at the conclusion of that study session, the City Council provided direction on amendments and directed the City Manager to prepare draft ordinances for consideration; and WHEREAS, on May 4, 2026, the Planning Commission held a duly noticed public hearing on the proposed amendments contained in Text Amendment TA-129-26 (File No. 2026-006) and adopted Resolution No. #### by a vote of # to # with # absences, initiating Text Amendment TA2129-26 and recommending adoption of the proposed ordinance.

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WHEREAS, on Month Day, Year, the City Council held a duly noticed public hearing on the proposed ordinance.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica does ordain as follows:

Section 1. Recitals. The City Council of the City of Pacifica does hereby find that the above referenced recitals are true and correct and materials to the adoption of this Ordinance.

Section 2. Compliance with CEQA. The City Council hereby finds that the action to adopt this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.), including without limitation under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility the adoption of this Ordinance may have a significant effect on the environment. The City Clerk shall file a Notice of Exemption with the San Mateo County Clerk.

Section 3. Findings.

1. The Planning Commission finds that the proposed amendments to Article 41 and Article 47 are consistent with the City’s General Plan and Housing Element, as well as the Local Coastal Land Use Plan as follows:
a) General Plan LU-I-1 Zoning Consistency. Update the Zoning Ordinance and zoning map and apply zoning to all land within the City, consistent with General Plan and LCLUP policies and land use designations.

The proposed amendments will apply to residential and mixed-use residential development, and commercial development eligible to use state density bonus law, throughout the City, support and further General Plan policies and Housing Element programs and be consistent with the LCLUP by facilitating the provision of affordable housing in compliance with state and local laws.
b) General Plan LU-I-16 Density Bonus. Continue to facilitate housing affordable to moderate-, low- and extremely-low-income households by providing a density bonus of up to 50 percent over the maximum allowed by zoning, consistent with State Government Code Sections 65915-65918
The proposed amendments will facilitate the provision of affordable housing to moderate, low-, and extremely-low-income households by aligning Pacifica’s regulations with current state density bonus law, as well as clarifying the application, processing, and implementation requirements.
c) General Plan LU-I-16.1 Inclusionary Zoning Update. Consider an update to the City’s below-market rate (BMR) inclusionary zoning ordinance as an action program in a future Housing Element update to study an increase in the inclusionary requirement to 20 percent consistent with the requirements of state law, to evaluate longer terms of afford ability, and other opportunities to expand the applicability of inclusionary zoning requirements to more projects.

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The proposed amendments will require that alternatives to on-site construction of affordable units are based on a higher percentage (20 percent) to continue to encourage onsite affordable units, ensuring compliance with current state housing and planning laws as well as best practices, and extend affordability terms to 99 years. d) Housing Element HE-I-5 Fund a Housing Action Fund. Fund a Housing Action Fund to support housing projects or other supportive activities to remove constraints on housing production and promote development of multi-family rental and for-sale housing.

The proposed amendments, specifically changes to the provision of in-lieu fees, will create additional funding sources for the City’s Housing Action Fund by requiring fractional affordable units below 0.5 to pay the fee, as well as increasing the percentage requirement. e) Housing Element HE-I-6 Strengthen Inclusionary Housing. Commission a study to evaluate revisions to current Below Market Rate (inclusionary zoning) program to increase the minimum required proportion of affordable units and incentivize production of units with deeper affordability than the current program.

The proposed amendments will strengthen the inclusionary housing program by ensuring alignment with current state housing and planning laws and best practices, clarifying application and implementation, increasing the length of time units must remain affordable, adding provisions for housing affordable to 110 percent AMI households, and increasing the requirements for alternatives to on-site construction. Although a comprehensive multijurisdictional Affordable Husing Study is underway that will look at more substantive changes, the proposed amendments are necessary to strengthen and clarifying the program in the interim, especially in light of the framework established by the rezoning program (HE-I-1) has increased development opportunities across the City. f) Housing Element HE-I-14 State and Federal Law Conformance. Amend the zoning ordinance and other local policies to remove any inconsistencies between local policies and State and Federal law.

The proposed amendments will update the density bonus and inclusionary housing and BMR program requirements in conformance with current state housing and planning law, including state density bonus law.
g) LCLUP LD-I-1 Zoning Consistency. Update the Zoning Ordinance and zoning map and apply zoning to all land within the City, consistent with General Plan and LCLUP policies and land use designations.

See General Plan LU-I-1 Zoning Consistency, above.
h) LCLUP LD-I-3 Coastal Development Permit Findings. For all development that requires a coastal development permit, continue to require written findings that are consistent with all LCLUP policies and Implementation Plan provisions of the City’s certified Local Coastal Program.

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The proposed amendments will not supersede the California Coastal Act, and individual projects that require a Coastal Development Permit would be subject to the applicable findings of the General Plan, LCLUP, and Zoning Ordinance.

2. The Planning Commission also finds that adoption of the Draft Ordinance is in the public interest in that adopting updates will avoid defaulting to state law provisions that do not account for Pacifica’s unique local conditions.

Section 4. Amendment. Article 41 (“Density Bonus Program”) of Chapter 4 of Title 9 of the Pacifica Municipal Code is hereby repealed and replaced with Article 41 in the form set forth in Attachment A:

Section 5. Amendment. Article 47 (“City of Pacifica Below Market Rate (Inclusionary) Program”) of Chapter 4 of Title 9 of the Pacifica Municipal Code is hereby repealed and replaced with Article 47 in the form set forth in Attachment B:

Section 6. Severability. If any section, subsection, sentence, clause, or phase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentence, clauses or phrases be declared unconstitutional.

Section 7. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance by the City Council of the City of Pacifica, California, and cause the same to be published in accordance with State law.

Section 8. Effective Date. This Ordinance shall be in full force and effective 30 days after its adoption and shall be published and posted as required by law. For areas within the Coastal Zone, this Ordinance shall not become effective until the California Coastal Commission certifies an amendment to the City’s local coastal program pursuant to Section 30514 of the Public Resources Code.

Section 8. PASSED AND ADOPTED this ____ day of ________, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Christine Boles, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney

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Packet Pg. 428 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) Exhibit 1; Attachment A - 1
EXHIBIT 1; ATTACHMENT A:

ARTICLE 41 DENSITY BONUS PROGRAM

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Packet Pg. 429 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) Exhibit 1; Attachment A - 2
Article 41. - Density Bonus Program
Sec. 9-4.4100. – Purpose and Intent.

Sec. 9-4.4101. – Definitions.

Sec. 9-4.4102. – Applicability.

Sec. 9-4.4103. – Application Requirements
Sec. 9-4.4104. – Local coastal program consistency.

Sec 9-4.4105 – Application review process.

Sec. 9-4.4106. – Density Bonus Housing Agreement.

Sec. 9-4.4107. – Density Bonus Calculations.

Sec. 9-4.4108. – Density Bonus Delivery and Design Standards.

Sec 9-4.4109. – Commercial Density Bonus
Sec 9-4.4110. – Interpretation.

Sec. 9-4.4100. – Purpose and Intent.

In accordance with California Government Code Sections 65915, et seq., this Article specifies how compliance with state density bonus law will be implemented.

Specifically, the purpose of this Article is to provide density bonuses, incentives, concessions, and waivers of development standards for the production of housing for very low-, low-, and moderate-income households, senior households, provision of daycare facilities, student housing, and donations of land, and for other housing types as provided by and consistent with state law. In enacting this Article, it is also the intent of the City of Pacifica to implement the goals, objectives, and policies of the City of Pacifica’s Housing Element of the General Plan.

Sec. 9-4.4101. - Definitions.

The following terms are defined for purpose of this Article. In the event of a conflict between the words and phrases defined in this article and the words and phrases

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defined in Title 9 "Planning and Zoning, Chapter 4 "Zoning", Article 2 "Definitions", the definitions in this Article shall prevail.
(a) "Base units" means the total number of units in a housing development, not including units added through a density bonus pursuant to this Article. (b) "Below Market Rate (BMR) unit" means any income-restricted dwelling unit created pursuant to and meeting the requirements of this Article. (c) "Concession" shall have the same meaning as the term "concession or incentive" pursuant to the state density bonus law, as defined in Government Code section 65915 subdivision (k), as may be amended.
(d) "Density bonus" means a density increase over the otherwise maximum allowable residential density for a housing development as of the date the application is deemed complete, as prescribed by Government Code section 65915, as may be amended, or, if elected by the applicant, a lesser percentage of density increase, including, but not limited to, no increase in density. (e) "Housing development" shall have the same meaning as the term "housing development" pursuant to the state density bonus law, as defined in Government Code section 65915 subdivision (i), as may be amended. (f) "Identifiable and actual cost reduction to provide for affordable housing cost" means a reasonably quantifiable cost reduction that would be achieved for a housing development through a concession.
(g) "Maximum allowable residential density" means the maximum residential density allowed for a residential housing development under the Zoning Chapter and the land use element of the general plan. If the density allowed under the Zoning Chapter is inconsistent with the density allowed under the land use element of the general plan, the general plan density shall prevail.

For purposes of this definition, residential density shall be calculated based upon the gross acreage of a residential housing development. (h) “Reasonable documentation to establish eligibility for a concession" means a credible written explanation or other documentation demonstrating to the reasonable satisfaction of the planning director or designee that a concession

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will achieve an identifiable and actual cost reduction to provide for affordable housing cost.
(i) "State Density Bonus Law" means California Government Code Section 65915, et seq, as the same may be renumbered or amended.
(j) “Waiver” is a reduction or modification of any “development standards” and other regulations when those requirements potentially make the construction of the project physically infeasible if not approved, pursuant to state density bonus law, as defined in Government Code section 65915 subdivision (e).

Sec. 9-4.4102 Applicability.
(a) A housing development shall be eligible for a density bonus and other regulatory benefits that are provided by state density bonus law when the applicant seeks and agrees to provide housing as specified in Government Code Section 65915(b), (c), (f), (g), (h) and (v) or in Government Code Section 65195.5, or successor provisions. The density bonus calculations shall be made in accordance with state density bonus law.
(b) The granting of a density bonus, waiver, or concession, pursuant to this Article, shall not be interpreted, in and of itself, to require a general plan amendment, zoning ordinance text amendment, zoning change, or other discretionary approval.
(c) Application of this Article does not waive application of other provisions of the City of Pacifica Municipal Code.

Sec. 9-4.4103 Application Requirements.
(a) All requests for density bonuses, concessions, and waivers for a housing development shall be submitted as part of the application for approval of the housing development. No application for a housing project seeking a density bonus, concession or waiver may be deemed complete unless an affordable housing plan is submitted in accordance with the provisions of this Article.

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(b) An application for a density bonus shall include any required fees and the following minimum information as part of the Affordable Housing Plan required under Section 9-4.4706 of the Municipal Code:
(1) For a requested density bonus, the following information shall be required, in addition to any information required under Article 47, Section 9-4.4706 of the Municipal Code:
i. Summary table showing the maximum number of dwelling units permitted by the zoning and general plan excluding any density bonus units, proposed number of BMR units and income level, proposed bonus percentage, number of density bonus units proposed, total number of dwelling units proposed on the site, and resulting density in units per acre.
ii. The Subparagraph of Government Code Section 65915(b)(1) under which the housing development qualifies for a density bonus and reasonable documentation demonstrating that the housing development is eligible for a bonus under that
subparagraph.
iii. Where the housing development is seeking an additional bonus, the subparagraph of Government Code Section 65915(v)(1) under which the housing development qualifies for an additional density bonus and reasonable documentation demonstrating that the housing development is eligible for the additional bonus under that subparagraph.
iv. A description of all dwelling units existing on the site in the fiveyear period preceding the date of submittal of the application, including number of bedrooms, and identification of any units rented in the five-year period; and whether any are/were subject to any form of rent control through a public entity’s valid exercise of its police power; or subject to a recorded covenant ordinance, or law restricting rents to levels affordable to households of lower or very low income.

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v. If dwelling units on the site are currently rented, income and household size of all residents of currently occupied units, if known. If any dwelling units on the site were rented in the fiveyear period but are not currently rented, the income and household size of residents occupying the dwelling units when the site contained the maximum number of dwelling units, if known.
vi. If a density bonus is requested for a land donation, the location of the land to be dedicated, proof of site control, and reasonable documentation that each of the requirements included in Government Code Section 65915 (g) can be met.
(2) Concessions. The number of concessions that may be requested shall be the number the applicant is entitled to pursuant to state density bonus law. The application shall include the following minimum information for each concession requested, shown on a site plan (if appropriate)
i. The regulation from which the applicant is requesting a concession.
ii. Reasonable documentation to establish eligibility for a concession.
(3) Waivers. For each waiver requested the applicant shall include, shown on a site plan, and the City of Pacifica’s required development standard from which a waiver is requested and the requested development standard.
(4) Parking reductions. If a housing development is eligible for a density bonus pursuant to state density bonus law, the applicant may request an on-site vehicular parking reduction specified in Government Code Section 65915(p). An applicant may request this parking reduction in addition to the concessions and waivers permitted by paragraphs (2) and (3) of this subsection. The application shall include a table showing parking required by the zoning regulations, parking proposed under

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state density bonus law, the paragraph under Government Code Section 65915(p) (or other statute) under which the project qualifies for the parking reduction, and reasonable documentation that the project is eligible for the requested parking reduction
(5) Density bonus or concession for a childcare facility in a housing development. The application shall include reasonable documentation that all of the requirements included in Government Code Section 65915(h) can be met.
(6) Density bonus or concession for a condominium conversion. The application shall include reasonable documentation that all of the requirements included in Government Code Section 65915.5 can be met.

Sec. 9-4.4104 – Local coastal program consistency.

For a housing development within the coastal zone, any requested density bonus, concession, waiver, or parking reduction shall be consistent with all applicable requirements of the certified City of Pacifica Local Coastal Program.

Sec 9-4.4105 – Application review process.
(a) All requests under state density bonus law shall be reviewed, and acted upon concurrently with the housing development planning application by the approval body with authority to approve the housing development, within the timelines prescribed by California Government Code Section 65950. Appeals of any decision on planning application shall include the appeal of all requests under state density bonus law.
(b) To ensure that an application for a housing development conforms with the provisions of state density bonus law and the Coastal Act, if applicable, the decision-making body must make the following findings, as applicable, to approve a requested density bonus:
(1) The housing development provides the housing required by state density bonus law to be eligible for a density bonus and any concessions, parking reduction, or waivers requested

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(2) If an additional bonus is requested, the housing development provides the housing required by state density bonus law to be eligible for an additional density bonus under Government Code Section 65915(v)(1). (3) If the housing development requires the demolition of one or more residential dwelling units, the housing development will create replacement units as required by California Government Code Sections 65915(c)(3) and 66300.6(a).
(4) If a waiver is requested, the development standards for which a waiver is requested would have the effect of physically precluding the construction of the housing development at the densities or with the concessions permitted.
(5) If a parking reduction is requested, the housing development is eligible for any requested parking reductions under Government Code Section 65915(p) or other statute.
(6) If the density bonus is based all or in part on donation of land, the requirements of Government Code Section 65915(g) have been met. (7) If the density bonus or concession is based all or in part on the inclusion of a childcare facility or condominium conversion, the requirements included in Government Code Section 65915(h) or 65915.5, as appropriate, have been met.
(8) If the housing development is in the coastal zone, the requested density bonus and any requested concession, waiver or parking reduction is consistent with all applicable requirements of the certified Local Coastal Program.
(c) The decision-making body shall grant a concession requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:
(1) The proposed concession would be contrary to state or federal law; or

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(2) The proposed concession would have a specific, adverse impact upon the public health or safety or on any real property that is listed in the California Register of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low- and moderateincome households. For the purpose of this subsection, “specific adverse impact” means a significant, quantifiable, direct and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the housing development was deemed complete as defined in Government Code Section 65589.5.
(3) The concession does not result in identifiable and actual cost reductions. (d) The decision-making body shall grant the waiver of development standards requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:
(1) The proposed waiver would be contrary to state or federal law; or (2) The proposed waiver would have an adverse impact on any real property listed in the California Register of Historic Resources; or (3) The proposed waiver would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low- and moderate-income households. For the purpose of this subsection, “specific, adverse impact” means a significant, quantifiable, direct and unavoidable impact, based on objective written public health or safety standards, policies or conditions as they existed on the date that the application for the housing development was deemed complete as defined in Government Code Section 65589.5 (e) If a child care center complies with the requirements of the Government Code Section 65915 (h), the decision-making body may deny a density bonus or concession that is based on the provision of child care facilities only if it makes

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a written finding, based on substantial evidence, that the City already has adequate child care facilities
(f) A request for a minor modification of an approved density bonus housing plan may be granted by the Community Development Director, or their designee, if the modification substantially complies with the original density bonus plan and conditions of approval. Other modifications to the density bonus housing plan shall be approved in the same manner as the original plan 9-4.4106 Density Bonus Housing Agreement.
(a) If a density bonus, concession, parking reduction, or waiver is approved pursuant to this Article, the applicant shall enter into a affordable housing agreement, as outlined in Article 47 Section 9-4.4709, with the following additional provisions for density bonus projects, which sets forth the conditions and guidelines to be met in the implementation of the state density bonus law and that ensures compliance with all provisions of this Article. The agreement will also establish specific compliance standards and remedies available to the City of Pacifica upon failure to comply with state density bonus law, this Article, or the affordable housing agreement. (1) For for-sale projects, the applicant shall enter into an affordable housing agreement with the City of Pacifica, running with the land, in a form approved by the City Attorney or their designee, to be executed by the City Manager, or their designee. The agreement shall require that the initial purchasers of those for-sale units that qualified the applicant for the receipt of the density bonus, , waiver, or parking reduction are persons and families of lower or moderate income, as applicable, or if any for-sale unit is not purchased by an income-qualified household within one-hundred eighty (180) days after the issuance of the certificate of occupancy, then the unit(s) must be sold pursuant to a contract that satisfies the requirements of the Revenue and Taxation Code Section 402.1(a)(10) to a qualified nonprofit housing corporation as defined in state density bonus law and that the units are offered at an affordable housing cost, as that cost is defined in state density bonus law and that the units are offered at an affordable housing cost, as that cost is defined in Health and Safety Code Section

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50052.5l; and shall contain other relevant provisions approved by the City Attorney. The City of Pacifica shall enforce an equity sharing agreement consistent with state density bonus law unless it is in conflict with the requirements of another public funding source or law. The affordable housing agreement shall require the continued affordability of the for-sale units for 99 years.
(2) For rental projects, the applicant shall enter into an affordable housing agreement with the City of Pacifica, running with the land, in a form approved by the City Attorney or their designee, to be executed by the City Manager, or their designee. The agreement shall require the continued affordability of all rental units that qualified the applicant for the receipt of the density bonus, waiver, or parking reduction for 55 years or a different period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. The agreement shall identify the type, size, and location of each affordable unit; shall specify the eligible occupants; shall specify phasing of the affordable units in relation to the market-rate units; and shall contain other relevant provisions approved by the City Attorney. Rents for the lower income density bonus units shall be set at an affordable rent as defined in state density bonus law.
(c) Where a density bonus, waiver or parking reduction is provided for a marketrate senior housing development, the applicant shall enter into an affordable housing agreement with the City of Pacifica, running with the land, in a form approved by the City Attorney or their designee, to be executed by the City Manager, or their designee, to require the housing development to be operated as “housing for older persons” consistent with state and federal fair housing laws.
(d) The executed affordable housing agreement or restrictive covenant shall be recorded against the housing development prior to issuance of building permit for any structure in a residential development project required to meet the provisions of this Article. The affordable housing agreement shall run with the land and bind all future owners and successors in interest for 99 years.

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9-4.4107. Density Bonus Calculations.
(a) In determining the total number of units to be granted, each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number. (b) When calculating the number of affordable units needed to qualify for a given density bonus, any fractions of affordable dwelling units shall be rounded up to the next whole number.
(c) Except where a housing development is eligible for an additional bonus pursuant to Government Code Section 65915(v), each housing development is entitled to only one density bonus. If a housing development qualifies for a density bonus under more than one category, the applicant shall identify the category under which the density bonus is requested to be granted. (d) In determining the number of affordable units required to qualify a housing development for a density bonus pursuant to state density bonus law, only base units are included in the calculations. Any on-site units that satisfy the City of Pacifica’s inclusionary housing requirements in Article 47 of the Code and are required to be constructed concurrently with the housing development may qualify the housing development for a density bonus if those units meet or exceed the requirements of state density bonus law. (e) Payment of fees in lieu of providing affordable units under Article 47 of the Code does not qualify a housing development for a density bonus. (f) The applicant may elect to accept a lesser percentage of density bonus than the housing development is entitled to, or no density bonus, but no reduction will be permitted in the percentages of affordable units required by state density bonus law. Regardless of the number of affordable units, no housing development shall be entitled to a density bonus greater than what is authorized under state density bonus law.
(g) Nothing in this Article requires the provision of direct financial incentives from the City of Pacifica for the housing development, including, but not limited to, the provision of financial subsidies, publicly owned land, no-interest or below

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market rate loans, fee waivers, or waiver of dedication requirements. The City of Pacifica, at its sole discretion, may choose to provide such direct financial incentives.
(a) 9-4.4108 Density Bonus Delivery and Design Standards. Any BMR Units created as a result of this Article shall be completed in accordance with the unit size, design, and construction phasing, set out in Section 9-4.4705 of the Code, and the implementation requirements set out in Section 9-4.4712 of the Code. 9-4.4109 Commercial Development Bonus
(a) A commercial development may be eligible for a development bonus where the commercial developer partners with an affordable housing developer to construct affordable housing on the commercial project site, or offsite elsewhere in the City of Pacifica located near schools and employment centers and within one-half mile of a major transit stop.
(b) The commercial developer may participate through the donation of land or funds for the affordable housing, or through direct construction of the housing units.
(c) To be eligible for a development bonus, at least 30 percent of the housing units must be set aside for lower-income households or 15 percent of the housing units must be set aside for very low-income households.

Sec 9-4.4110 Interpretation.

If any portion of this Article conflicts with state density bonus law or other applicable state law, state law shall supersede this Article. Any ambiguities in this Article shall be interpreted to be consistent with state density bonus law. Statutory references in this ordinance include successor provisions.

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Packet Pg. 441 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) Exhibit 1; Attachment B - 1
EXHIBIT 1; ATTACHMENT B:

ARTICLE 47 INCLUSIONARY AND BELOW

MARKET RATE HOUSING PROGRAM

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Packet Pg. 442 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) Exhibit 1; Attachment B - 2
Article 47. - Inclusionary and Below Market Rate Housing Program Sec. 9-4.4700. – Purpose and Intent.

Sec. 9-4.4701. – Applicability.

Sec. 9-4.4702. – Definitions.

Sec. 9-4.4703. – Inclusionary housing requirements—Onsite Construction of BMR Units Required.

Sec. 9-4.4704. – BMR unit size and design; construction phasing.

Sec. 9-4.4705. – Alternatives to onsite affordable residential units.

Sec. 9-4.4706. – Affordable housing plan for BMR units.

Sec. 9-4.4707. – For-sale BMR units.

Sec. 9-4.4708. – Rental BMR units.

Sec. 9-4.4709. – Eligibility requirements.

Sec. 9-4.4710. – Affordable housing agreement.

Sec. 9-4.4711. – Adjustments, waivers.

Sec. 9-4.4712. – Hillside preservation and B-Lot size overlay districts.

Sec. 9-4.4713. – Implementation.

Sec. 9-4.4714. – Enforcement.

Sec. 9-4.4700. – Purpose and Intent.

The purpose of this Article is to enhance the public welfare by establishing policies which require the development of housing affordable to households with very low, low, median, and moderate incomes to assure that residents have a diversity of housing options, to help meet the City's regional share of housing needs, and implement the goals and objectives of the general plan and housing element.

It is the intent of this article to establish requirements for the provision of income restricted housing units in residential and mixed-use residential development

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projects of a certain size, encourage construction of on-site affordable units, and provide alternatives to constructing inclusionary units on the same site as the market rate residential development project.

Sec. 9-4.4701 Applicability.
(a) Applicability. The requirements of this article shall apply to all residential development projects and mixed-use residential development projects of eight or more residential units, lots, or parcels, including any of the following:
(1) New construction of residential units;
(2) Addition of residential units to existing projects; (3) Addition of residential units to an existing multifamily dwelling; (4) Creation of residential lots;
(5) Conversion of existing dwelling units to condominium ownership; and (6) Conversion of an existing nonresidential building or floor area to residential use
(b) For purposes of determining the total number of units for applicability, accessory dwelling units and junior accessory dwelling units are not included. (c) Projects with one or more buildings or projects including multiple contiguous parcels under common ownership or control shall be considered as a sole residential development project and not as individual residential development projects.
(d) Exemptions. The requirements of this article do not apply to:
(1) The reconstruction of any structures that have been destroyed by fire, flood, earthquake, or other act of nature provided that the reconstruction takes place within three years of the date the structures were destroyed.
(2) Residential development projects that propose or will include the number and level of income restricted units required by this article and that generally meet the requirements set forth in this article, including but not limited to, term of affordability and size and unit amenities.

Sec. 9-4.4702. - Definitions.

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For the purposes of this article, unless otherwise apparent from the context, the following words and phrases are defined as set forth below. In the event of a conflict between the words and phrases defined in this article and the words and phrases defined Article 2 "Definitions" of this article the definitions in this article shall prevail with respect to implementation of this article.
(a) "Affordable housing agreement" means an agreement, running with the land that assures that a BMR unit will be maintained and sold or leased at an affordable housing cost as required by this Article and City policies. It may include a covenant, resale restriction and refinance limitation agreement, deed restriction, performance deed of trust, or such other document or documents as are satisfactory to the City Attorney.
(b) "Affordable housing cost" means an "affordable housing cost" as defined in Section 50052.5 of the California Health and Safety Code. (c) "Affordable rent" means "affordable rent" as defined in Section 50053 of the California Health and Safety Code.
(d) "Applicant” means the applicant for a residential development project, as set forth on the City’s General Planning Application form.
(e) "Area median income" (AMI) means the median household income for the San Francisco Primary Metropolitan Statistical Area (PMSA) as determined annually by the U.S. Department of Housing and Urban Development and published by the County of San Mateo.
(f) "Below Market Rate (BMR) unit" means any income-restricted dwelling unit created pursuant to and consistent with this Article.
(1) " BMR unit, For-sale " means a BMR unit offered for sale, including, but not limited to, single-family homes, condominiums, other common interest developments, and mutual housing associations. (2) "BMR unit, Rental" means a BMR unit offered for lease or rent. (g) "Compliance agreement" means an agreement between an Applicant and the City describing the terms and conditions under which the BMR unit

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requirement for a residential development project will be met. The compliance agreement shall be in a form satisfactory to the Community Development Director and City Attorney.
(h) "Density bonus" shall have the meaning as specified in Section 9-4.4101 of the Code.
(i) "Eligible household" means a very low-, lower-, 110% of AMI-, or moderateincome household approved by the City in accordance with this article. (j) “First Approval” means the first of the following approvals to occur with respect to a residential development project: any planning entitlement, discretionary or ministerial, or approval under the Zoning Ordinance, subdivision approval, or building permit for construction. (k) “Group living accommodation” means a residential development project that are occupied by individuals of separate households and are characterized by separate sleeping rooms without individual kitchen facilities, and containing congregate bath and/or dining facilities or rooms.
(l) "Household" means one person living alone or two or more persons sharing residency, regardless of relationship or dependent status, whose income is considered for housing payments.
(m) “Household Income” shall be the gross income of the household as calculated pursuant to Section 50079.5 of the California Health and Safety Code, as amended, or its successor. The household income categories addressed in this Article shall be defined as follows:
(1) "Very low-income household" means a household whose annual income does not exceed the qualifying limits set for "very low-income households" and is generally understood to be approximately 50 percent of area median income.
(2) “Lower-Income Household” means a household whose annual income does not exceed the qualifying limits set for "lower income households" and is generally understood to be approximately 80 percent of area median income.

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(3) “110% of Area Median Income Household” means a household whose annual income does not exceed 110 percent of area median income. (4) "Moderate-income household" means a household whose annual income does not exceed the qualifying limits set for "persons and families of low or moderate income" and is generally understood to be approximately 120 percent of area median income.
(n) "Market rate unit" means a dwelling unit where the rental rate or sales price is not restricted by this article.
(o) "Off-site" means located outside or in a location other than site of the residential development project.
(p) "On-site" means located within the residential development project. (q) "Residential development project" means any new construction of dwelling units, subdivision of property for housing development, conversion of rental projects to condominium or other common interest ownership under Article

24.5, conversion of non-residential buildings or floor area to residential, or any other creation of dwelling units or lots for housing that is authorized by a discretionary land use. Residential development projects include those that are part of a mixed-use residential project.
(r) “Residential unit" means any dwelling unit, live/work unit, or any bedroom of a group living accommodation in a residential development project. (s) "Residential Unit Floor Area" means, for the purpose of this article, the floor area of the residential unit(s) of a residential development project. (1) Residential Unit Floor Area shall be measured from the interior of the walls of each unit. The residential unit floor area shall exclude areas that are not habitable residential square footage such as:
i. Balconies, whether private or open to all residents
ii. Storage lockers not located within residential units

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iii. Vehicular (e.g., automobile or motorcycle) and bicycle parking areas that are separate areas from the residential unit iv. Other qualifying areas that are not associated with residential units, upon approval of the Planning Administrator.
(2) For residential units consisting of group living accommodations, residential unit floor area shall also include common rooms/lounges and supporting facilities such as kitchens and restrooms.

Sec. 9-4.4703. - Inclusionary housing requirements—Onsite Construction of BMR Units Required.
(a) Requirement to Construct Onsite BMR Units. Unless an alternative pursuant Sec 9-4.4704 is approved, and as otherwise provided in this section for fractional units, all BMR units must be constructed onsite. (b) General
(1) Fractional Units. In determining the number of BMR units required, any decimal fraction below 0.5 shall be paid as an in-lieu fee, in accordance with the in-lieu fee schedule. Any decimal fraction of 0.5 or above shall be rounded up to the nearest whole number.
(c) On-Site BMR Units
(1) Number of BMR units required. A minimum of 15 percent of all units, lots, or parcels in a residential development project subject to this article shall be on-site BMR units restricted for occupancy by, and affordable to, very low-, lower-, 110 percent of AMI, or moderateincome households. (2) A BMR Unit that is constructed to qualify for a density bonus under Government Code section 65915 that otherwise meets these inclusionary housing requirements shall also qualify as inclusionary housing and a density bonus unit.
(3) For projects with for sale units:

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i. At least 50 percent of the required BMR units shall be restricted to occupancy by lower-income households; and
ii. The remaining required BMR units shall be restricted to occupancy by moderate-income households.
iii. The Applicant has the right, but is not required, to increase the percentage of lower-income household BMR units.
(4) For projects with rental units:
i. At least 33.3 percent of the required BMR units shall be restricted to occupancy by very low-income households. Where there is only one BMR unit required, this unit shall be a very low-income unit; and
ii. 33.3 percent of the required BMR units shall be restricted to occupancy by lower income households; and
iii. The remaining required BMR units shall be restricted to occupancy by 110 percent of AMI households.
iv. The Applicant has the right, but is not required, to increase the percentage of very low- and lower-income household BMR units.

Sec. 9-4.4704. - BMR unit size and design; construction phasing. (a) BMR units shall meet the following requirements:
(1) Be distributed throughout the residential development project; (2) Have exterior design and appearance compatible with and substantially the same as market rate units within the residential development project, including landscaping;
(3) Have similar access from the exterior as market rate units; (4) Have access to all on-site common areas and amenities; (5) Have interior finishes, fixtures, and appliances that are comparable with the market rate units;

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i. An Applicant may propose the use of different interior unit amenities, such as floor covering, appliances, and other fixtures, but these differences shall be specified within the affordable housing plan submitted at the time of planning application, as required by Section 9-4.4706(a), but all amenities must at a minimum be Underwriters Laboratories (UL) or American Gas Association (AGA) listed;
ii. The Zoning Administrator shall approve the proposed use of different interior unit amenities provided the proposal meets the requirements of this section.
(6) Have the same proportion of unit types (i.e., number of bedrooms) and average size as the market rate units;
i. An Applicant may propose an alternative mix of unit-types to comply with this section by providing BMR Units that comprise at least 15 percent of the residential unit floor area of the residential development project where the alternative mix benefits the City by meeting either of the two following conditions:
a. the Applicant is creating units greater than 2,000 square feet, and by creating smaller units, more BMR units will be created; or b. the Applicant is creating mostly studio and one-bedroom units, and by providing BMR units with two or three bedrooms, fewer units are created, but meet the needs of families.
ii. The Zoning Administrator shall approve the proposed alternative mix of unit types that meet the requirements of this section.
(7) Be constructed prior to or concurrently with market rate units in the residential development project or applicable phase of the residential development project.

Sec. 9-4.4705. – Alternatives to onsite affordable residential units. (a) An Applicant may comply with this Article through one or more of the following alternatives approved in accordance with this section.

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(1) Unless otherwise provided in this section, the use of an alternative or combination of alternatives shall be subject to approval by the designated review authority for the overall residential development project, as set forth in “Title 9 Planning and Zoning,” Chapter 4 “Zoning,” including ministerial review by the Zoning Administrator, and nonministerial approvals by the Planning Commission or City Council. The alternative shall be approved if the review authority finds that the applicable provisions of this section are satisfied.
(2) Alternatives shall be based on a minimum of 20 percent of all units, lots, or parcels in a residential development project seeking alternative compliance. For purposes of determining the total number of BMR units required, density bonus units, accessory dwelling units, and junior accessory dwelling units are not included.
(3) In accordance with state density bonus law, these alternatives are not available for BMR units that serve to qualify for a density bonus under Government Code Section 65915(g), unless the dedication of land conforms to the provisions of Government Code Section 65915(g). (b) Alternatives
(1) Payment in lieu of providing a unit. The Applicant may propose to pay the City an amount of money in lieu of providing a BMR unit, which shall be based on 20 percent of the residential development project’s units.

The in-lieu payment for each BMR unit shall be set forth in a resolution adopted by the City Council.
(2) In-Lieu Fees shall be paid prior to the issuance of the first building permit for the residential development project at the rate in effect at time of payment. Where an applicant will be creating custom lot subdivisions and selling the lots to individual purchasers, the applicant shall pay the in-lieu fee prior to the sale of the first lot. (3) In-lieu payments collected under this article shall be deposited into a housing trust fund and shall be used only for the purpose of providing funding assistance for the provision of affordable housing, inclusionary monitoring costs, and reasonable administration costs, with a maximum of 15 percent. Such funds may also be used for a homebuyer's assistance program, for eligible households.

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(4) The review authority shall approve the in-lieu fee alternative if all of the above requirements are satisfied. In the event of approval, the residential development project shall be conditioned to require compliance with all of the above requirements.
(c) Off-site construction. When this off-site option is allowed, the Applicant must provide 20 percent of the residential unit floor area of the residential development project as BMR units, at affordability levels that meet or exceed the applicable on-site requirements in this article.
(1) Off-site BMR units shall be constructed within the City of Pacifica and shall receive Certificate of Occupancy prior to the issuance of any Certificate of Occupancy of the residential development project. (2) Off-site BMR units shall be consistent and comply with the standards and requirements specified in this Article, expect that the size and number of BMR units may differ from what the Applicant would have provided on-site.
(3) BMR units shall be located on sites that are appropriately designated in the general plan, zoned for the intended residential development, have access to similar availability of services to the on-site units, and be accessible by paved roads.
(4) The review authority shall approve the off-site construction alternative provided all of the above requirements are satisfied. In the event of approval, the residential development project shall be conditioned to require compliance with all of the above requirements.
(d) Off-site preservation. In lieu of building BMR units, the Applicant may request to create off-site BMR units through the purchase and conversion of existing market-rate units to affordable units, either by the Applicant or by a not-forprofit entity. When this off-site option is allowed, the Applicant must provide 20 percent of the residential unit floor area of the residential housing development as BMR units, at affordability levels that meet or exceed the applicable on-site requirements of this article.
(1) The off-site preservation units must be located within the City of Pacifica.
(2) The size and number of BMR units may differ from what the Applicant would have provided on-site.

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(3) If a not-for-profit is involved, they must be approved by the City Manager.
(4) The off-site preservation units must be purchased prior to the issuance of a building permit for the residential development project. The Community Development Director may set out requirements related to the rehabilitation and condition of the property and the protection and/or temporary relocation of existing tenants. The Community Development Director may require that rehabilitation of the property and/or temporary relocation of existing tenants be completed before the issuance of a building permit for the residential development project.
(5) The review authority shall approve the off-site preservation alternative provided all of the above requirements are satisfied. The project approval shall be conditioned to require compliance with all of the above requirements.
(e) Land dedication. In lieu of building BMR units, the Applicant may propose to dedicate land to the City or to an affordable housing developer. (1) This land must be of equivalent or greater value than the amount of the required in-lieu fee. The valuation of any land offered in-lieu shall be determined by an appraisal made by an appraiser mutually agreed upon by the City and the Applicant. Costs associated with the appraisal shall be borne by the Applicant.
(2) The timing of the land dedication shall be at or before issuance of a building permit of the. Marketable title to the site is transferred to the City, or an affordable housing developer approved by the City, prior to issuance of building permit of the residential development project pursuant to an agreement between the Applicant and the City. (3) Approval of land dedication.
i. Land proposed to be dedicated to the City requires approval of the City Council, at its sole discretion. Factors considered for the approval may include, but are not limited to, general location, access to transit, buildability, current General Plan and zoning designations, availability utilities and other services, and the number of units that could be built at the location.

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ii. Land dedicated to an affordable housing developer shall be reviewed by the Planning Commission for the project, and the affordable housing developer must be approved by the City Manager. The Planning Commission shall approve the alternative to dedicate land to an affordable housing developer provided:
a. The site has a General Plan designation that authorizes residential uses and is zoned for residential development at a density to accommodate at least the number of
Affordable Units that would otherwise be required under Paragraph A.
b. The site is suitable for development of the BMR units, taking into consideration its configuration, physical
characteristics, location, access, adjacent uses, and
applicable development standards and other relevant
planning and development criteria including, but not
limited to, factors such as the cost of construction or development arising from the nature, condition, or
location of the site.
c. Infrastructure to serve the dedicated site, including, but not limited to, streets and public utilities, are available at the property line and have adequate capacity to serve the maximum allowable residential density permitted under
zoning regulations.
d. The site has been evaluated for the presence of hazardous materials and for the presence of geological hazards and all such hazards are or will be mitigated to the satisfaction of the City prior to acceptance of the site by the City. e. The value of the site upon the date of dedication is equal to or greater than the in-lieu fee that would otherwise be required under Paragraph A. The value of the site shall be determined pursuant to the program guidelines approved
by the City Manager or their designee.

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(f) Combination. The Applicant may propose any combination of on-site construction, off-site construction, off-site preservation, land dedication, and/or in-lieu payments.

Sec. 9-4.4706. - Affordable housing plan for BMR units. (a) An affordable housing plan for BMR units shall be submitted as part of the application for first approval of any residential housing development. An application cannot be deemed complete unless an affordable housing plan conforming to the provisions of this article is submitted. (b) If the applicant has requested a density bonus pursuant to Article 41 of this Code, the affordable housing plan required under this Section shall be combined with the affordable housing plan for BMR units required pursuant to Article 41 of this Code.
(c) The affordable housing plan for BMR units shall include the following information:
(1) For residential housing development projects proposing to construct the BMR units on-site within the development, the affordable housing plan shall specify, at the same level of detail as the application for the residential development project:
i. Calculations for compliance with this Article. This includes the number of required and proposed BMR units, calculation of in-lieu fee, if applicable, and/or residential unit floor area, based on the specifics of the proposed residential development project.
ii. The number, type, tenure, household income categories, number of bedrooms and baths, approximate location, size, and design (including finishes and features) of all BMR units.
iii. A tentative map or preliminary site plan, drawn to scale, showing the number and location of all proposed units, and designating the location of proposed BMR units.
iv. The zoning and general plan designations and assessor’s parcel number(s) of the residential development project site.

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v. If the residential development project is to be constructed in phases, an outline of the proposed phases and how the Applicant intends to construct the BMR units concurrently with the market-rate units.
vi. A preliminary marketing plan indicating the general approach to marketing BMR units, including the manner in which the BMR units will be offered to the public in a nondiscriminatory and equitable manner. The final marketing plan must be approved prior to first building permit issuance and shall be subject to approval by the Community Development Director or their designee.
vii. If the applicant requests the use of different finishes and features than market-rate units as addressed in Section 9-4.4705, the affordable housing plan shall describe this request.
(2) If an Applicant requests approval of alternatives to constructing the BMR units within a residential development project pursuant to subsection Section 9-

4.4705 of this Article, the affordable housing plan shall describe the requested alternatives, and any in-lieu fee calculations.
(d) The affordable housing plan for BMR units shall be reviewed simultaneously with any other permit applications associated with the first approval for the residential housing development.

Sec. 9-4.4707. - For-sale BMR units.
(a) Price of units. The maximum sales price of a for-sale BMR unit shall be set by the City, based on the affordable housing cost for each income category, and as established in guidelines approved by the Community Development Director.
(b) Deed and resale restrictions.
(1) For-sale BMR units shall remain available at an affordable housing cost to an eligible household for 99 years. Resale controls shall be by affordable housing agreements approved as to form by the City Attorney or their designee. Such documents shall provide that the City has an option to purchase the for-sale BMR unit(s). The City's option to purchase may be

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assigned to a qualifying eligible household, a nonprofit housing organization, other government entity, or other entity that will ensure the continuation of the affordability of the BMR units.
(2) Occupancy restrictions. For-sale BMR units shall only be occupied by their owners. Renting, leasing, subleasing, or subletting shall not be permitted for more than two months in any year. Violation of these occupancy restrictions will be grounds for termination of the occupancy. (3) In order to maintain the affordability of the for-sale BMR units constructed pursuant to this article, the maximum purchase price paid by each subsequent purchaser shall be limited to the original purchase price, plus the percentage increase in area median income from the date of original purchase, plus the depreciated cost of any capital improvement expenditures greater than one percent of the original purchase price, minus any costs necessary to bring the unit into conformity with City building regulations in the event that the occupant has allowed the unit to deteriorate due to deferred maintenance.
i. Formula for Maximum Purchase Price: Original Maximum Purchase Price + Percentage Increase in area median income from date of Original Purchase + Depreciated Cost of any Capital Improvement Expenditures > 1 Percent of Original Purchase Price – Any Costs Necessary to bring the unit into City building regulations due to deferred maintenance
(c) Administration. The City may contract with an outside agency, which shall be responsible for selection and qualification of buyers in accordance with Cityapproved policies. The Applicant or subsequent seller shall pay all costs associated with this service for the for-sale BMR unit. The City also may contract with an outside agency to assist with monitoring the ongoing compliance of forsale BMR units.

Sec. 9-4.4708. - Rental BMR units.
(a) Rental rates. The maximum rent of a rental BMR unit shall be an affordable rent approved by the City based on CA Health & Safety Code § 50052.5 or County of

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San Mateo County published rents. These rents shall include a utility allowance, in accordance with the utility allowance schedule published by the County of San Mateo Department of Housing.
(b) Rental restrictions. Rental BMR units shall remain available at an affordable rent to an eligible household for 99 years. The rents shall be regulated by affordable housing agreements approved as to form by the City Attorney or their designee. (c) Administration. The rental of rental BMR units shall be administered according to City-approved policies by the Applicant or a nonprofit housing organization, government entity, or other entity approved by the City. The City may charge fees to cover the costs of administration of this program, in an amount set from time to time by City Council resolution.

Sec. 9-4.4709. - Eligibility requirements.

Only eligible households may occupy BMR units. No household may occupy a BMR unit unless the City or its designee has approved the household's eligibility in accordance with City-approved policies. Preference shall be given to persons residing or working within Pacifica. Eligibility requirements may be further defined in guidelines approved by the Community Development Director.

Sec. 9-4.4710. - Affordable housing agreement.
(a) Applicability. Recordation of an affordable housing agreement shall be made prior to issuance of a building permit for any structure in a residential housing development. The affordable housing agreement shall run with the land and bind all future owners and successors in interest.
(b) The affordable housing agreement shall be in a form approved by the City Attorney or their designee and shall include the following, without limitation:
(1) All information provided in the affordable housing plan pursuant to Section 9-4.4704 of this Article.
(2) The household income categories of the BMR units, consistent with the requirements of Section 9-4.4702 of this Article or any alternative requirements pursuant to Section 9-4.4703 of this Article.

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(3) Continued affordability of the BMR units, as follows:

I. For-Sale Inclusionary Units. The affordable housing agreement shall require that a resale restriction agreement, in a form approved by the City Attorney or their designee, be recorded against each for-sale BMR unit when the unit is first transferred to an eligible purchaser. The resale restriction agreement shall provide that BMR units in for-sale housing developments shall remain affordable for 99 years and that the affordability provisions be applicable to any subsequent transferees or successors in interest. The resale restriction agreement shall also provide that the for-sale BMR unit shall not be rented, except as allowed in Section 9-4.4706 of this Article.

II. Rental BMR Units. The affordable housing agreement, in a form approved by the City Attorney or their designee, shall be recorded against each residential housing development containing rental units to ensure that the BMR units remain affordable for 99 years. Rental BMR units that are later converted to for-sale units, e.g., converted to condominiums, and then sold shall be sold as for-sale BMR units, in accordance with Chapter 4, Article 24.5 of the Municipal Code and any regulations implementing this section approved by the Community Development Director.
(4) The affordable housing agreement shall specify that no household shall be permitted to begin occupancy of a BMR unit unless the City Community Development Director or the City Community Development Director’s designee has approved the household’s eligibility.
(5) Affordable housing agreements for residential Development projects intended to be occupied by special populations or households with special needs, such as those with a physical or mental disability, or for those who were formerly unhoused, or with one or more members who are 62 years of age or older shall provide that dwelling units in the residential development project shall be occupied by persons eligible to reside in such a project.

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(6) The affordable housing agreement shall include provisions requiring maintenance of records to demonstrate compliance with this Article. (7) The affordable housing agreement shall include a description of remedies for breach of the agreement by either party. The City may identify tenant households or qualified purchaser households as third party beneficiaries under the agreement.
(8) The affordable housing agreement shall include any other provisions determined necessary by the City Attorney or their designee to ensure implementation and compliance with this Article.

Sec. 9-4.4711. - Adjustments, waivers.
(a) Process. The requirements of this article may be waived, adjusted, or reduced if the Applicant shows that applying the requirements of this article would take property in violation of the United States or California Constitutions. Such a request shall be made in writing and filed with the City Manager at the time of submittal of an initial application for approval of the residential development project and/or as part of any appeal that the city provides as part of the process of approval. The request shall state completely and in detail: (i) the requested waiver, adjustment, or reduction of the requirements, (ii) the factual basis for the request, and (iii) the legal basis of this request. In making a determination on an application for waiver, adjustment, or reduction, the Applicant shall bear the burden of presenting substantial evidence to support the claim. The City Manager, in consultation with the City Attorney, shall consider the request and render a decision in writing within 30 days. If the City Manager determines that those requirements constitute a taking in violation of the United States or California Constitutions, the requirements of this article shall be modified, adjusted, or waived to the extent necessary to avoid an unconstitutional result or illegal outcome. If the City Manager determines that no violation of the United States or California Constitutions would occur through application of this article, the requirements of this article shall remain applicable unless the City Manager's determination is overruled or modified by the City Council on appeal.

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(b) Appeal procedure. A decision of the City Manager on a request for a reduction or waiver pursuant to subsection (a) above shall be appealable in accordance with this section. A person seeking judicial review of a decision shall first complete an appeal under this section. Any person wishing to appeal a decision of the City Manager shall file an appeal to the City Council in writing with the City Clerk not later than ten days from the date of the written decision of the City Manager. The written appeal shall state completely and in detail the factual and legal grounds for the appeal. The City Council shall consider the appeal at a public hearing within sixty days after the filing of the request. The decision of the City Council is final.
(c) Fee for adjustment request or appeal. The cost of the request for adjustment or waiver of the requirements of this article and appeal shall be borne by the applicant in an amount set forth in a resolution adopted by the City Council.

Sec. 9-4.4712. - Hillside preservation and B-Lot size overlay districts.

Nothing in this article is intended to nor shall it supersede the provisions of the Hillside Preservation District (HPD) or B-lot size overlay district (B-district). Residential development projects located within HPD and/or B-district land that provide BMR units in accordance with this article shall be subject to all regulations and standards of Article 22.5, regarding the HPD district, including applicable lot coverage limitations, and Article 20, regarding the B-district.

Sec. 9-4.4713. - Implementation.
(a) No permit, license, subdivision map, or other approval or entitlement for an residential development project shall be issued, including without limitation a final inspection for occupancy, until all requirements applicable to the residential development project have been satisfied.
(1) No building permit shall be issued for any market-rate unit until the permittee has obtained permits for BMR units sufficient to meet the requirements of Section 9-4.4702 of this Article, and, if a density bonus has been requested pursuant to Article 41 of this Code. No final inspection for occupancy for any market-rate unit shall be completed

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until or simultaneously with construction of the BMR units required by Section 9-4.4702 of this Article.
(2) The time requirements set forth in this Section for issuance of building permits for market-rate units and for final inspections for occupancy for market-rate units may be modified to accommodate phasing schedules, model variations, or other factors in a residential development project within the submitted affordable housing plan pursuant to Section 9-

4.4704 of this Article, if the City determines this will provide greater public benefit and an affordable housing agreement pursuant to Section 9-4.4703 of this Article has been accepted by the approval body with the authority to approve the development.
(b) Conditions to carry out the purposes of this Article shall be imposed on the first approval for an residential development project and any subsequent approvals. (c) The City Manager is authorized to execute the affordable housing agreements following approval by the Community Development Director and the City Attorney or their designee.
(d) The Community Development Director shall promulgate guidelines to further implement this ordinance. These guidelines shall include, but are not limited to, the following:
(1) The form and contents of the affordable housing agreements, including provisions for successors in interest and other ownership transfers; (2) The form and contents of the final marketing plan and resident selection process;
(3) Procedures for setting rents and sales prices for the BMR units; (4) Procedures for qualifying tenant households and prospective purchaser households of BMR units, including any preferences;
(5) Compliance and monitoring procedures to assure that affordability restrictions are maintained; and
(6) Resale and subordination procedures for BMR for-sale units.

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(e) The City Council, as part of its master fee schedule, may establish fees to recover the City’s costs for the ongoing administration and monitoring of the affordability provisions of the BMR units, except where prohibited by State law.

Sec. 9-4.4714 - Enforcement.
(a) The City Attorney is authorized to enforce the provisions of this Article and all affordable housing agreements, including without limitation, regulatory agreements, resale controls, deeds of trust, or similar documents placed on the BMR units, by civil action and any other proceeding or method permitted by law. (b) Failure of any official or agency to fulfill the requirements of this Article shall not excuse any applicant or owner from the requirements of this Article. (c) The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the City from any other remedy or relief to which it otherwise would be entitled under law or equity.
(d) Penalty for violation. It shall be a misdemeanor to violate any provision of this article. Without limiting the generality of the foregoing, it shall also be a misdemeanor for any person to sell or rent to another person a BMR unit under this article at a price or rent exceeding the maximum allowed under this article or to sell or rent a BMR unit to a household that does not qualify under this article.

It shall further be a misdemeanor for any person to provide false or materially incomplete information to the City or to a seller or lessor of a BMR unit to obtain occupancy of housing for which he or she is not eligible. The City maintains the right to withhold Certificates of Occupancy in the case that violations are discovered.
(e) Legal action. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this article. Failure of any official or agency to fulfill the requirements of this article shall not excuse any person, owner, household, or other party from the requirements of this article.

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Packet Pg. 463 Attachment: Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 (6296 : Density Bonus + Inclusionary Ord) 4912-0439-8013 v1
RESOLUTION NO. 2026-005

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
PACIFICA INITIATING TEXT AMENDMENT TA-129-26 AND

RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE TO REPEAL AND REPLACE ARTICLE 41 (“DENSITY BONUS PROGRAM”) OF CHAPTER 4, TITLE 9 OF THE PACIFICA MUNICIPAL CODE AND ARTICLE 47 (“CITY OF PACIFICA BELOW MARKET RATE (INCLUSIONARY)
PROGRAM”) OF CHAPTER 4, TITLE 9 OF THE PACIFICA MUNICIPAL

CODE, AND FINDING THE TEXT AMENDMENT EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
(FILE NO. 2026-006; TEXT AMENDMENT TA-129-26)
________________________________________________________________________ Initiated by: City of Pacifica
WHEREAS, the City’s Density Bonus Ordinance, codified as Article 41 of Chapter 4 of Title 9 of the Pacifica Municipal Code and based on California State Density Bonus law, was adopted on May 23, 1984, repealed and replaced on December 10, 1986, and last updated on February 12, 1992; and
WHEREAS, the City of Pacifica adopted a below market rate (“BMR”) inclusionary program pursuant to the General Plan and the City’s Five-Year Vision Statement, adding Article 47 to Title 9, Chapter 4 of the Pacifica Municipal Code on May 9, 2007, which has not been amended since; and
WHEREAS, significant changes to state housing and planning laws, federal requirements, and best practices have occurred since these updates, and amendments are needed to bring the City of Pacifica’s ordinances into alignment with these changes; and WHEREAS, the City’s adopted and certified 2023-2031 Housing Element includes three implementation programs related to the current density bonus and inclusionary requirements in the Zoning Ordinance that represent commitments to action by the City: HE-I-5 Fund a Housing Action Fund; HE-I-6 Strengthen Inclusionary Housing; and HE-I-14 State and Federal Law Conformance; and
WHEREAS, on May 4, 2026, the Planning Commission held a hearing to receive a presentation from The Housing Endowment and Regional Trust of San Mateo County (“HEART”) and City staff regarding the Density Bonus Ordinance and Inclusionary Housing Ordinance; and WHEREAS, during that hearing HEART and City Staff identified several amendments necessary to bring the Density Bonus Ordinance and Inclusionary Housing Ordinance into alignment with current state housing and planning law requirements and regional best practices; and
WHEREAS, at the conclusion of that hearing, the Planning Commission continued the hearing to June 1, 2026, and directed staff to make a number of revisions to the ordinance and address comments submitted by the California Coastal Commission; and WHEREAS, on June 1, 2026, the Planning Commission held a duly noticed public hearing on the revised proposed amendments contained in Text Amendment TA-129-26 (File No. 2026- 006).

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Packet Pg. 464 Attachment: Attachment D - Planning Commission Resolution No. 2026-005 (6296 : Density Bonus + Inclusionary Ord) Attachment A - 2
NOW, THEREFORE BE IT RESOLVED by the Planning Commission of the City of Pacifica as follows:

1. The above recitals are true and correct and material to this Resolution.

2. In making its findings, the Planning Commission relied upon and hereby incorporates by reference all correspondence, staff reports, and other related materials.

3. The Planning Commission finds that the text amendment is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to the commonsense exemption, CEQA Guidelines § 15061(b)(3), because CEQA applies only to projects that have the potential for causing a significant effect on the environment. It can be seen with certainty that there is no possibility that this Ordinance will have a significant effect on the environment. This Ordinance will not result in direct or indirect physical changes in the environment and is exempt under CEQA.

4. The Planning Commission finds that the proposed amendments to Article 41 and Article 47 are consistent with the City’s General Plan and Housing Element, as well as the Local Coastal Land Use Plan as follows:
a) General Plan LU-I-1 Zoning Consistency. Update the Zoning Ordinance and zoning map and apply zoning to all land within the City, consistent with General Plan and LCLUP policies and land use designations.

The proposed amendments will apply to residential and mixed-use residential development, and commercial development eligible to use state density bonus law, throughout the City, support and further General Plan policies and Housing Element programs and be consistent with the LCLUP by facilitating the provision of affordable housing in compliance with state and local laws. b) General Plan LU-I-16 Density Bonus. Continue to facilitate housing affordable to moderate-, low- and extremely-low-income households by providing a density bonus of up to 50 percent over the maximum allowed by zoning, consistent with State Government Code Sections 65915-65918
The proposed amendments will facilitate the provision of affordable housing to moderate-, low-, and extremely-low-income households by aligning Pacifica’s regulations with current state density bonus law, as well as clarifying the application, processing, and implementation requirements. c) General Plan LU-I-16.1 Inclusionary Zoning Update. Consider an update to the City’s below-market rate (BMR) inclusionary zoning ordinance as an action program in a future Housing Element update to study an increase in the inclusionary requirement to 20 percent consistent with the requirements of state law, to evaluate longer terms of affordability, and other opportunities to expand the applicability of inclusionary zoning requirements to more projects.

The proposed amendments will require that alternatives to on-site construction of affordable units are based on a higher percentage (20 percent) to continue to encourage on-site affordable units, ensuring compliance with current state housing and planning laws as well as best practices. The proposed amendments would also

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require that the 45-year affordability term be reset upon resale or transfer to a new owner and extend affordability terms for rental BMR units from 55 years to 99 years.
d) Housing Element HE-I-5 Fund a Housing Action Fund. Fund a Housing Action Fund to support housing projects or other supportive activities to remove constraints on housing production and promote development of multi-family rental and for-sale housing.

The proposed amendments, specifically changes to the provision of in-lieu fees, will create additional funding sources for the City’s Housing Action Fund by requiring fractional affordable units below 0.5 to pay the fee. e) Housing Element HE-I-6 Strengthen Inclusionary Housing. Commission a study to evaluate revisions to current Below Market Rate (inclusionary zoning) program to increase the minimum required proportion of affordable units and incentivize production of units with deeper affordability than the current program.

The proposed amendments will strengthen the inclusionary housing program by ensuring alignment with current state housing and planning laws and best practices, clarifying application and implementation, increasing the length of time units must remain affordable, adding provisions for rental housing affordable to 110 percent AMI households, and increasing the requirements for alternatives to on-site construction. Although a comprehensive multi-jurisdictional Affordable Housing Study is underway that will look at more substantive changes, the proposed amendments are necessary to strengthen and clarify the program in the interim, especially in light of the framework established by the rezoning program (HE-I-1) has increased development opportunities across the City. f) Housing Element HE-I-14 State and Federal Law Conformance. Amend the zoning ordinance and other local policies to remove any inconsistencies between local policies and State and Federal law.

The proposed amendments will update the density bonus and inclusionary housing and BMR program requirements in conformance with current state housing and planning law, including state density bonus law.
g) LCLUP LD-I-1 Zoning Consistency. Update the Zoning Ordinance and zoning map and apply zoning to all land within the City, consistent with General Plan and LCLUP policies and land use designations.

See General Plan LU-I-1 Zoning Consistency, above.
h) LCLUP LD-I-3 Coastal Development Permit Findings. For all development that requires a coastal development permit, continue to require written findings that are consistent with all LCLUP policies and Implementation Plan provisions of the City’s certified Local Coastal Program.

The proposed amendments will not supersede the California Coastal Act, and individual projects that require a Coastal Development Permit would be subject to the applicable findings of the General Plan, LCLUP, and Zoning Ordinance.

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5. The Planning Commission also finds that adoption of the Draft Ordinance is in the public interest in that adopting updates will avoid defaulting to state law provisions that do not account for Pacifica’s unique local conditions.

BE IT FURTHER RESOLVED that the Planning Commission of the City of Pacifica does hereby intend to initiate an amendment to Article 41 and Article 47 of Chapter 4 of Title 9 of the Pacifica Municipal Code to make revisions to the existing regulations to implement various actions pertaining to affordable housing of the 2023-2031 Housing Element programs HE-I-5 Fund a Housing Action Fund, HE-I-6 Strengthen Inclusionary Housing, and HE-I-14 State and Federal Law Conformance, regional best practices, and current state housing and planning law, and include restructuring for ease of use.

BE IT FURTHER RESOLVED that the Planning Commission of the City of Pacifica does hereby recommend that the City Council of the City of Pacifica adopt the Ordinance attached as Exhibit A to this resolution.
* * * * *
PASSED AND ADOPTED at a regular meeting of the Planning Commission of the City of Pacifica, California, held on the 1st day of June 2026.

AYES, Commissioners: Hauser, Berman, Redfield, Davis, Sanchez, Fisher NOES, Commissioners:

ABSENT, Commissioners: Ferguson
ABSTAIN, Commissioners:
______________________________
Samantha Hauser, Chair
ATTEST: APPROVED AS TO FORM:
_____________________________ ______________________________ Samantha Updegrave,
Community Michelle Kenyon, City Attorney
Development Director

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Packet Pg. 467 Attachment: Attachment D - Planning Commission Resolution No. 2026-005 (6296 : Density Bonus + Inclusionary Ord) Attachment A - 5
ATTACHMENT A; EXHIBIT 1:

DRAFT ORDINANCE

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Packet Pg. 468 Attachment: Attachment D - Planning Commission Resolution No. 2026-005 (6296 : Density Bonus + Inclusionary Ord) Attachment A - 6
ORDINANCE NO. ###-##.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFICA REPEALING AND REPLACING ARTICLE 41 (“DENSITY BONUS
PROGRAM”) OF CHAPTER 4, TITLE 9 OF THE PACIFICA MUNICIPAL CODE AND ARTICLE 47 (“CITY OF PACIFICA BELOW MARKET RATE (INCLUSIONARY) PROGRAM”) OF CHAPTER 4, TITLE 9 OF THE PACIFICA

MUNICIPAL CODE, AND FINDING THE ORDINANCE EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
________________________________________________________________________ Initiated by: City of Pacifica
WHEREAS, the City’s Density Bonus Ordinance, codified as Article 41 of Chapter 4 of Title 9 of the Pacifica Municipal Code and based on California State Density Bonus law, was adopted on May 23, 1984, repealed and replaced on December 10, 1986, and last updated on February 12, 1992; and
WHEREAS, the City of Pacifica adopted a below market rate (“BMR”) inclusionary program pursuant to the General Plan and the City’s Five-Year Vision Statement, adding Article 47 to Title 9, Chapter 4 of the Pacifica Municipal Code on May 9, 2007, which has not been amended since; and
WHEREAS, significant changes to state housing and planning laws, federal requirements, and best practices have occurred since these updates, and amendments are needed to bring the City of Pacifica’s ordinances into alignment with these changes; and WHEREAS, the City’s adopted and certified 2023-2031 Housing Element includes three implementation programs related to the current density bonus and inclusionary requirements in the Zoning Ordinance that represent commitments to action by the City: HE-I-5 Fund a Housing Action Fund; HE-I-6 Strengthen Inclusionary Housing; and HE-I-14 State and Federal Law Conformance; and
WHEREAS, on May 4, 2026, the City Council and Planning Commission held a hearing to receive a presentation from The Housing Endowment and Regional Trust of San Mateo County (“HEART”) and City staff regarding the Density Bonus Ordinance and Inclusionary Housing Ordinance; and
WHEREAS, during that hearing HEART and City Staff identified several amendments necessary to bring the Density Bonus Ordinance and Inclusionary Housing Ordinance into alignment with current state housing and planning law requirements and regional best practices; and
WHEREAS, at the conclusion of that study session, the City Council provided direction on amendments and directed the City Manager to prepare draft ordinances for consideration; and WHEREAS, on May 4, 2026, the Planning Commission held a duly noticed public hearing on the proposed amendments contained in Text Amendment TA-129-26 (File No. 2026-006) and at the conclusion of that hearing, the Planning Commission continued the hearing to June 1, 2026

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Packet Pg. 469 Attachment: Attachment D - Planning Commission Resolution No. 2026-005 (6296 : Density Bonus + Inclusionary Ord) Attachment A - 7
and directed staff to make a number of revisions to the ordinance and address comments submitted by the California Coastal Commission; and
WHEREAS, on June 1, 2026, the Planning Commission held a duly noticed public hearing on the revised proposed amendments and adopted Resolution No. 2026-005 by a vote of 6 to 0 with 1 absence, initiating Text Amendment TA-129-26 (File No. 2026-006) and recommending adoption of the proposed ordinance; and
WHEREAS, on Month Day, Year, the City Council held a duly noticed public hearing on the proposed ordinance.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica does ordain as follows:

Section 1. Recitals. The City Council of the City of Pacifica does hereby find that the above referenced recitals are true and correct and material to the adoption of this Ordinance.

Section 2. Compliance with CEQA. The City Council hereby finds that the action to adopt this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.), including without limitation under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility the adoption of this Ordinance may have a significant effect on the environment. The City Clerk shall file a Notice of Exemption with the San Mateo County Clerk.

Section 3. Findings.

1. The Planning Commission finds that the proposed amendments to Article 41 and Article 47 are consistent with the City’s General Plan and Housing Element, as well as the Local Coastal Land Use Plan as follows:
a) General Plan LU-I-1 Zoning Consistency. Update the Zoning Ordinance and zoning map and apply zoning to all land within the City, consistent with General Plan and LCLUP policies and land use designations.

The proposed amendments will apply to residential and mixed-use residential development, and commercial development eligible to use state density bonus law, throughout the City, support and further General Plan policies and Housing Element programs and be consistent with the LCLUP by facilitating the provision of affordable housing in compliance with state and local laws. b) General Plan LU-I-16 Density Bonus. Continue to facilitate housing affordable to moderate-, low- and extremely-low-income households by providing a density bonus of up to 50 percent over the maximum allowed by zoning, consistent with State Government Code Sections 65915-65918
The proposed amendments will facilitate the provision of affordable housing to moderate, low-, and extremely-low-income households by aligning Pacifica’s regulations with current state density bonus law, as well as clarifying the application, processing, and implementation requirements.

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Packet Pg. 470 Attachment: Attachment D - Planning Commission Resolution No. 2026-005 (6296 : Density Bonus + Inclusionary Ord) Attachment A - 8
c) General Plan LU-I-16.1 Inclusionary Zoning Update. Consider an update to the City’s below-market rate (BMR) inclusionary zoning ordinance as an action program in a future Housing Element update to study an increase in the inclusionary requirement to 20 percent consistent with the requirements of state law, to evaluate longer terms of affordability, and other opportunities to expand the applicability of inclusionary zoning requirements to more projects.

The proposed amendments will require that alternatives to on-site construction of affordable units are based on a higher percentage (20 percent) to continue to encourage on-site affordable units, ensuring compliance with current state housing and planning laws as well as best practices. The proposed amendments would also require that the 45-year affordability term be reset upon resale or transfer to a new owner and extend affordability terms for rental BMR units from 55 years to 99 years.
d) Housing Element HE-I-5 Fund a Housing Action Fund. Fund a Housing Action Fund to support housing projects or other supportive activities to remove constraints on housing production and promote development of multi-family rental and for-sale housing.

The proposed amendments, specifically changes to the provision of in-lieu fees, will create additional funding sources for the City’s Housing Action Fund by requiring fractional affordable units below 0.5 to pay the fee, as well as increasing the percentage requirement.
e) Housing Element HE-I-6 Strengthen Inclusionary Housing. Commission a study to evaluate revisions to current Below Market Rate (inclusionary zoning) program to increase the minimum required proportion of affordable units and incentivize production of units with deeper affordability than the current program.

The proposed amendments will strengthen the inclusionary housing program by ensuring alignment with current state housing and planning laws and best practices, clarifying application and implementation, increasing the length of time units must remain affordable, adding provisions for rental housing affordable to 110 percent AMI households, and increasing the requirements for alternatives to on-site construction. Although a comprehensive multi-jurisdictional Affordable Housing Study is underway that will look at more substantive changes, the proposed amendments are necessary to strengthen and clarify the program in the interim, especially in light of the framework established by the rezoning program (HE-I-1) has increased development opportunities across the City. f) Housing Element HE-I-14 State and Federal Law Conformance. Amend the zoning ordinance and other local policies to remove any inconsistencies between local policies and State and Federal law.

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Packet Pg. 471 Attachment: Attachment D - Planning Commission Resolution No. 2026-005 (6296 : Density Bonus + Inclusionary Ord) Attachment A - 9
The proposed amendments will update the density bonus and inclusionary housing and BMR program requirements in conformance with current state housing and planning law, including state density bonus law.
g) LCLUP LD-I-1 Zoning Consistency. Update the Zoning Ordinance and zoning map and apply zoning to all land within the City, consistent with General Plan and LCLUP policies and land use designations.

See General Plan LU-I-1 Zoning Consistency, above.
h) LCLUP LD-I-3 Coastal Development Permit Findings. For all development that requires a coastal development permit, continue to require written findings that are consistent with all LCLUP policies and Implementation Plan provisions of the City’s certified Local Coastal Program.

The proposed amendments will not supersede the California Coastal Act, and individual projects that require a Coastal Development Permit would be subject to the applicable findings of the General Plan, LCLUP, and Zoning Ordinance.

2. The Planning Commission also finds that adoption of the Draft Ordinance is in the public interest in that adopting updates will avoid defaulting to state law provisions that do not account for Pacifica’s unique local conditions.

Section 4. Amendment. Article 41 (“Density Bonus Program”) of Chapter 4 of Title 9 of the Pacifica Municipal Code is hereby repealed and replaced with Article 41 in the form set forth in Attachment A:

Section 5. Amendment. Article 47 (“City of Pacifica Below Market Rate (Inclusionary) Program”) of Chapter 4 of Title 9 of the Pacifica Municipal Code is hereby repealed and replaced with Article 47 in the form set forth in Attachment B:

Section 6. Severability. If any section, subsection, sentence, clause, or phase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentence, clauses or phrases be declared unconstitutional.

Section 7. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance by the City Council of the City of Pacifica, California, and cause the same to be published in accordance with State law.

Section 8. Effective Date. This Ordinance shall be in full force and effective 30 days after its adoption and shall be published and posted as required by law. For areas within the Coastal Zone, this Ordinance shall not become effective until the California Coastal Commission certifies an amendment to the City’s local coastal program pursuant to Section 30514 of the Public Resources Code.

Section 8. PASSED AND ADOPTED this ____ day of ________, 2026 by the following vote:

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AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Christine Boles, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney

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EXHIBIT 1; ATTACHMENT A:

ARTICLE 41 DENSITY BONUS PROGRAM

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Article 41. - Density Bonus Program
Sec. 9-4.4100. – Purpose and Intent.

Sec. 9-4.4101. – Definitions.

Sec. 9-4.4102. – Applicability.

Sec. 9-4.4103. – Application Requirements
Sec. 9-4.4104. – Local coastal program consistency.

Sec 9-4.4105 – Application review process.

Sec. 9-4.4106. – Density Bonus Housing Agreement.

Sec. 9-4.4107. – Density Bonus Calculations.

Sec. 9-4.4108. – Density Bonus Delivery and Design Standards.

Sec 9-4.4109. – Commercial Density Bonus
Sec 9-4.4110. – Interpretation.

Sec. 9-4.4100. – Purpose and Intent.

In accordance with California Government Code Sections 65915, et seq., this Article specifies how compliance with state density bonus law will be implemented. Specifically, the purpose of this Article is to provide density bonuses, incentives, concessions, and waivers of development standards for the production of housing for very low-, low-, and moderate-income households, senior households, provision of daycare facilities, student housing, and donations of land, and for other housing types as provided by and consistent with state law. In enacting this Article, it is also the intent of the City of Pacifica to implement the goals, objectives, and policies of the City of Pacifica’s Housing Element of the General Plan. In the event of a conflict with this article and state law, state law shall govern.

Sec. 9-4.4101. - Definitions.

The following terms are defined for purpose of this Article. In the event of a conflict between the words and phrases defined in this article and the words

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and phrases defined in Title 9 "Planning and Zoning, Chapter 4 "Zoning", Article 2 "Definitions", the definitions in this Article shall prevail. (a) "Base units" means the total number of units in a housing development, not including units added through a density bonus pursuant to this Article.
(b) "Below Market Rate (BMR) unit" means any income-restricted dwelling unit created pursuant to and meeting the requirements of this Article. (c) "Concession" shall have the same meaning as the term "concession or incentive" pursuant to the state density bonus law, as defined in Government Code section 65915 subdivision (k), as may be amended. (d) "Cost reduction" means a cost reduction that would be achieved for a housing development through a concession.
(e) "Density bonus" means a density increase over the otherwise maximum allowable residential density for a housing development as of the date the application is deemed complete, as prescribed by Government Code section 65915, as may be amended, or, if elected by the applicant, a lesser percentage of density increase, including, but not limited to, no increase in density.
(f) "Housing development" shall have the same meaning as the term "housing development" pursuant to the state density bonus law, as defined in Government Code section 65915 subdivision (i), as may be amended.
(g) "Maximum allowable residential density" means the maximum residential density allowed for a residential housing development under the Zoning Chapter and the land use element of the general plan. If the density allowed under the Zoning Chapter is inconsistent with the density allowed under the land use element of the general plan, the general plan density shall prevail. For purposes of this definition, residential density shall be calculated based upon the gross acreage of a residential housing development.
(h) "State Density Bonus Law" means California Government Code Section 65915, et seq, as the same may be renumbered or amended.

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(i) “Waiver” is a reduction or modification of any “development standards” and other regulations when those requirements potentially make the construction of the project physically infeasible if not approved, pursuant to state density bonus law, as defined in Government Code section 65915 subdivision (e).

Sec. 9-4.4102 Applicability.
(a) A housing development shall be eligible for a density bonus and other regulatory benefits that are provided by state density bonus law when the applicant seeks and agrees to provide housing as specified in Government Code Section 65915(b), (c), (f), (g), (h) and (v) or in Government Code Section 65195.5, or successor provisions. The density bonus calculations shall be made in accordance with state density bonus law.
(b) The granting of a density bonus, waiver, or concession, pursuant to this Article, shall not be interpreted, in and of itself, to require a general plan amendment, zoning ordinance text amendment, zoning change, or other discretionary approval, or any additional CEQA studies for bonus units above the site's maximum density.
(c) The provisions of this article are not applicable within the Coastal Zone until such time that the City adopts, and the Coastal Commission certifies, amendments to the density bonus provisions. For a housing development project within the coastal zone, any requested density bonus, concession, waiver, or parking reduction shall be consistent with all applicable requirements of the certified City of Pacifica Local Coastal Program.
(d) Application of this Article does not waive application of other provisions of the City of Pacifica Municipal Code.

Sec. 9-4.4103 Application Requirements.
(a) All requests for density bonuses, concessions, and waivers for a housing development shall be submitted as part of the application for approval of the housing development. No application for a housing project

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seeking a density bonus, concession or waiver may be deemed complete unless an affordable housing plan is submitted in accordance with the provisions of this Article.
(b) An application for a density bonus shall include any required fees and the following minimum information as part of the Affordable Housing Plan required under Section 9-4.4706 of the Municipal Code:
(1) For a requested density bonus, the following information shall be required, in addition to any information required under Article 47, Section 9-4.4706 of the Municipal Code:
i. Summary table showing the maximum number of dwelling units permitted by the zoning and general plan excluding any density bonus units, proposed number of BMR units
and income level, proposed bonus percentage, number of
density bonus units proposed, total number of dwelling
units proposed on the site, and resulting density in units per acre.
ii. The Subparagraph of Government Code Section
65915(b)(1) under which the housing development
qualifies for a density bonus and reasonable
documentation demonstrating that the housing
development is eligible for a bonus under that
subparagraph.
iii. Where the housing development is seeking an additional bonus, the subparagraph of Government Code Section
65915(v)(1) under which the housing development
qualifies for an additional density bonus and reasonable documentation demonstrating that the housing
development is eligible for the additional bonus under that subparagraph.
iv. A description of all dwelling units existing on the site in the five-year period preceding the date of submittal of the

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application, including number of bedrooms, and
identification of any units rented in the five-year period; and whether any are/were subject to any form of rent
control through a public entity’s valid exercise of its police power; or subject to a recorded covenant ordinance, or law restricting rents to levels affordable to households of lower or very low income.

1. number of bedrooms; and

2. identification of any units rented in the five-year
period; and

3. whether any of the units are/were subject to any
form of rent control through a public entity’s valid
exercise of its police power;, or subject to a recorded covenant ordinance, or law restricting rents to levels
affordable to households of lower or very low
income.
v. If dwelling units on the site are currently rented, income and household size of all residents of currently occupied units, if known. If any dwelling units on the site were rented in the five-year period but are not currently rented, the income and household size of residents occupying the
dwelling units when the site contained the maximum
number of dwelling units, if known.
vi. If a density bonus is requested for a land donation, the location of the land to be dedicated, proof of site control, and reasonable documentation that each of the
requirements included in Government Code Section 65915
(g) can be met.
(2) Concessions. The number of concessions that may be requested shall be the number the applicant is entitled to pursuant to state

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density bonus law. The application shall include the following minimum information for each concession requested:
i. The regulation from which the applicant is requesting a concession and the description of the proposed cost
reduction.
(3) Waivers. For each waiver requested the applicant shall describe each waiver requested and how the requested waiver deviates from the City of Pacifica’s required development standard. (4) Parking reductions. If a housing development is eligible for a density bonus pursuant to state density bonus law, the applicant may request an on-site vehicular parking reduction specified in Government Code Section 65915(p). An applicant may request this parking reduction in addition to the concessions and waivers permitted by paragraphs (2) and (3) of this subsection. The application shall include a table showing parking required by the zoning regulations, parking proposed under state density bonus law, the paragraph under Government Code Section 65915(p) (or other statute) under which the project qualifies for the parking reduction, and reasonable documentation that the project is eligible for the requested parking reduction
(5) Density bonus or concession for a childcare facility in a housing development. The application shall include reasonable
documentation that all of the requirements included in
Government Code Section 65915(h) can be met.
(6) Density bonus or concession for a condominium conversion. The application shall include reasonable documentation that all of the requirements included in Government Code Section 65915.5 can be met.

Sec. 9-4.4104 – Local coastal program consistency.

See Section 9-4.4102 Applicability.

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Sec 9-4.4105 – Application review process.
(a) All requests under state density bonus law shall be reviewed, and acted upon concurrently with the housing development planning application by the approval body with authority to approve the housing development, within the timelines prescribed by California Government Code Section 65950. Appeals of any decision on planning application shall include the appeal of all requests under state density bonus law. (b) To ensure that an application for a housing development conforms with the provisions of state density bonus law and the Coastal Act, if applicable, the decision-making body must make the following findings, as applicable, to approve a requested density bonus:
(1) The housing development provides the housing required by state density bonus law to be eligible for a density bonus and any concessions, parking reduction, or waivers requested
(2) If an additional bonus is requested, the housing development provides the housing required by state density bonus law to be eligible for an additional density bonus under Government Code Section 65915(v)(1).
(3) If the housing development requires the demolition of one or more residential dwelling units, the housing development will create replacement units as required by California Government Code Sections 65915(c)(3) and 66300.6(a).
(4) If a waiver is requested, the development standards for which a waiver is requested would have the effect of physically precluding the construction of the housing development at the densities or with the concessions permitted.
(5) If a parking reduction is requested, the housing development is eligible for any requested parking reductions under Government Code Section 65915(p) or other statute.

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(6) If the density bonus is based all or in part on donation of land, the requirements of Government Code Section 65915(g) have been met. (7) If the density bonus or concession is based all or in part on the inclusion of a childcare facility or condominium conversion, the requirements included in Government Code Section 65915(h) or 65915.5, as appropriate, have been met.
(8) If the housing development is in the coastal zone, the requested density bonus and any requested concession, waiver or parking reduction is consistent with all applicable requirements of the certified Local Coastal Program.
(c) The decision-making body shall grant a concession requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:
(1) The proposed concession would be contrary to state or federal law; or
(2) The proposed concession would have a specific, adverse impact upon the public health or safety or on any real property that is listed in the California Register of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low- and moderate-income households. For the purpose of this subsection, “specific adverse impact” means a significant, quantifiable, direct and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the housing development was deemed complete as defined in Government Code Section 65589.5.
(3) The concession would not result in a cost reduction. (d) The decision-making body shall grant the waiver of development standards requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:

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(1) The proposed waiver would be contrary to state or federal law; or (2) The proposed waiver would have an adverse impact on any real property listed in the California Register of Historic Resources; or (3) The proposed waiver would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low- and moderate-income households. For the purpose of this subsection, “specific, adverse impact” means a significant, quantifiable, direct and unavoidable impact, based on objective written public health or safety standards, policies or conditions as they existed on the date that the application for the housing development was deemed complete as defined in Government Code Section 65589.5
(e) If a child care center complies with the requirements of the Government Code Section 65915 (h), the decision-making body may deny a density bonus or concession that is based on the provision of child care facilities only if it makes a written finding, based on substantial evidence, that the City already has adequate child care facilities
(f) A request for a minor modification of an approved density bonus housing plan may be granted by the Community Development Director, or their designee, if the modification substantially complies with the original density bonus plan and conditions of approval. Other modifications to the density bonus housing plan shall be approved in the same manner as the original plan
9-4.4106 Density Bonus Housing Agreement.
(a) If a density bonus, concession, parking reduction, or waiver is approved pursuant to this Article, the applicant shall enter into a affordable housing agreement, as outlined in Article 47 Section 9-4.4710, with the following additional provisions for density bonus projects, which sets forth the conditions and guidelines to be met in the implementation of the state density bonus law and that ensures compliance with all

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provisions of this Article. The agreement will also establish specific compliance standards and remedies available to the City of Pacifica upon failure to comply with state density bonus law, this Article, or the affordable housing agreement.
(1) For for-sale projects, the applicant shall enter into an affordable housing agreement with the City of Pacifica, running with the land, in a form approved by the City Attorney or their designee, to be executed by the City Manager, or their designee. The agreement shall require that the initial purchasers of those for-sale units that qualified the applicant for the receipt of the density bonus, waiver, or parking reduction are persons and families of lower or moderate income, as applicable, or if any for-sale unit is not purchased by an income-qualified household within 180 days after the issuance of the certificate of occupancy, then the unit(s) must be sold pursuant to a contract that satisfies the requirements of the Revenue and Taxation Code Section 402.1(a)(10) to a qualified non-profit housing corporation as defined in state density bonus law, unless otherwise allowed by the City, and that the units are offered at an affordable housing cost, as that cost is defined in state density bonus law and that the units are offered at an affordable housing cost, as that cost is defined in Health and Safety Code Section 50052.5l; and shall contain other relevant provisions approved by the City Attorney. The City of Pacifica shall enforce an equity sharing agreement consistent with state density bonus law unless it is in conflict with the requirements of another public funding source or law. The affordable housing agreement shall require the continued affordability of the for-sale units for 45 years, resetting for each purchase or transfer to a new owner.
(2) For rental projects, the applicant shall enter into an affordable housing agreement with the City of Pacifica, running with the land, in a form approved by the City Attorney or their designee, to be executed by the City Manager, or their designee. The agreement shall require the continued affordability of all rental units that

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qualified the applicant for the receipt of the density bonus, waiver, or parking reduction for 55 years or a different period of time if required by Article 47 regarding the City’s Inclusionary and Below Market Rate Program or the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. The agreement shall identify the type, size, and location of each affordable unit; shall specify the eligible occupants; shall specify phasing of the affordable units in relation to the market-rate units; and shall contain other relevant provisions approved by the City Attorney. Rents for the lower income density bonus units shall be set at an affordable rent as defined in state density bonus law. (c) Where a density bonus, waiver or parking reduction is provided for a market-rate senior housing development, the applicant shall enter into an affordable housing agreement with the City of Pacifica, running with the land, in a form approved by the City Attorney or their designee, to be executed by the City Manager, or their designee, to require the housing development to be operated as “housing for older persons” consistent with state and federal fair housing laws.
(d) The executed affordable housing agreement or restrictive covenant shall be recorded against the housing development prior to issuance of building permit for any structure in a residential development project required to meet the provisions of this Article. The affordable housing agreement shall run with the land and bind all future owners and successors in interest for the period of time set forth in this Article. 9-4.4107. Density Bonus Calculations.
(a) In determining the total number of units to be granted, each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number.
(b) When calculating the number of affordable units needed to qualify for a given density bonus, any fractions of affordable dwelling units shall be rounded up to the next whole number.

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(c) Except where a housing development is eligible for an additional bonus pursuant to Government Code Section 65915(v), each housing development is entitled to only one density bonus. If a housing development qualifies for a density bonus under more than one category, the applicant shall identify the category under which the density bonus is requested to be granted.
(d) In determining the number of affordable units required to qualify a housing development for a density bonus pursuant to state density bonus law, only base units are included in the calculations. Any on-site units that satisfy the City of Pacifica’s inclusionary housing requirements in Article 47 of the Code and are required to be constructed concurrently with the housing development may qualify the housing development for a density bonus if those units meet or exceed the requirements of state density bonus law.
(e) Payment of fees in lieu of providing affordable units under Article 47 of the Code does not qualify a housing development for a density bonus. (f) The applicant may elect to accept a lesser percentage of density bonus than the housing development is entitled to, or no density bonus, but no reduction will be permitted in the percentages of affordable units required by state density bonus law. Regardless of the number of affordable units, no housing development shall be entitled to a density bonus greater than what is authorized under state density bonus law. (g) Nothing in this Article requires the provision of direct financial incentives from the City of Pacifica for the housing development, including, but not limited to, the provision of financial subsidies, publicly owned land, no-interest or below market rate loans, fee waivers, or waiver of dedication requirements. The City of Pacifica, at its sole discretion, may choose to provide such direct financial incentives. 9-4.4108 Density Bonus Delivery and Design Standards.

Any BMR Units created as a result of this Article shall be completed in accordance with the unit size, design, and proportional construction phasing,

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set out in Section 9-4.4704 of the Code, and the implementation requirements set out in Section 9-4.4713 of the Code.
9-4.4109 Commercial Development Bonus
(a) A commercial development may be eligible for a development bonus where the commercial developer partners with an affordable housing developer to construct affordable housing on the commercial project site, or offsite elsewhere in the City of Pacifica located near schools and employment centers and within one-half mile of a major transit stop. (b) The commercial developer may participate through the donation of land or funds for the affordable housing, or through direct construction of the housing units.
(c) To be eligible for a development bonus, at least 30 percent of the housing units must be set aside for lower-income households or 15 percent of the housing units must be set aside for very low-income households.

Sec 9-4.4110 Interpretation.

If any portion of this Article conflicts with state density bonus law or other applicable state law, state law shall supersede this Article. Any ambiguities in this Article shall be interpreted to be consistent with state density bonus law.

Statutory references in this ordinance include successor provisions.

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EXHIBIT 1; ATTACHMENT B:

ARTICLE 47 INCLUSIONARY AND BELOW

MARKET RATE HOUSING PROGRAM

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Article 47. - Inclusionary and Below Market Rate Housing Program Sec. 9-4.4700. – Purpose and Intent.

Sec. 9-4.4701. – Applicability.

Sec. 9-4.4702. – Definitions.

Sec. 9-4.4703. – Inclusionary housing requirements—Onsite Construction of BMR Units Required.

Sec. 9-4.4704. – BMR unit size and design; construction phasing.

Sec. 9-4.4705. – Alternatives to onsite affordable residential units.

Sec. 9-4.4706. – Affordable housing plan for BMR units.

Sec. 9-4.4707. – For-sale BMR units.

Sec. 9-4.4708. – Rental BMR units.

Sec. 9-4.4709. – Eligibility requirements.

Sec. 9-4.4710. – Affordable housing agreement.

Sec. 9-4.4711. – Adjustments, waivers.

Sec. 9-4.4712. – Hillside preservation and B-Lot size overlay districts.

Sec. 9-4.4713. – Implementation.

Sec. 9-4.4714. – Enforcement.

Sec. 9-4.4700. – Purpose and Intent.

The purpose of this Article is to enhance the public welfare by establishing policies which require the development of housing affordable to households with very low, low, median, and moderate incomes to assure that residents

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have a diversity of housing options, to help meet the City's regional share of housing needs, and implement the goals and objectives of the general plan and housing element.

It is the intent of this article to establish requirements for the provision of income restricted housing units in residential and mixed-use residential development projects of a certain size, encourage construction of on-site affordable units, and provide alternatives to constructing inclusionary units on the same site as the market rate residential development project.

Sec. 9-4.4701 Applicability.
(a) Applicability. The requirements of this article shall apply to all residential development projects and mixed-use residential development projects of eight or more residential units, lots, or parcels, including any of the following:
(1) New construction of residential units;
(2) Addition of residential units to existing projects; (3) Addition of residential units to an existing multifamily dwelling; (4) Creation of residential lots;
(5) Conversion of existing dwelling units to condominium ownership; and
(6) Conversion of an existing nonresidential building or floor area to residential use
(b) For purposes of determining the total number of units for applicability, accessory dwelling units and junior accessory dwelling units are not included.
(c) Contemporaneous construction of eight (8) or more primary dwelling units on a lot, or on contiguous lots for which there is evidence of common ownership or control, even though not covered by the same city land use approval, shall also be considered a single residential development. Construction shall be considered contemporaneous if any building permits are issued within five (5) years following the date of completion of any earlier construction.
(d) Exemptions. The requirements of this article do not apply to:

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(1) The reconstruction of any structures that have been destroyed by fire, flood, earthquake, or other act of nature provided that the reconstruction takes place within three years of the date the structures were destroyed.
(2) Residential development projects that will contain sufficient BMR units to meet or exceed the requirements of this article.

Sec. 9-4.4702. - Definitions.

For the purposes of this article, unless otherwise apparent from the context, the following words and phrases are defined as set forth below. In the event of a conflict between the words and phrases defined in this article and the words and phrases defined Article 2 "Definitions" of this article the definitions in this article shall prevail with respect to implementation of this article. (a) "Affordable housing agreement" means an agreement, running with the land that assures that a BMR unit will be maintained and sold or leased at an affordable housing cost as required by this Article and City policies.

It may include a covenant, resale restriction and refinance limitation agreement, deed restriction, performance deed of trust, or such other document or documents as are satisfactory to the City Attorney. (b) "Affordable housing cost" means an "affordable housing cost" as defined in Section 50052.5 of the California Health and Safety Code. (c) "Affordable rent" means "affordable rent" as defined in Section 50053 of the California Health and Safety Code.
(d) "Applicant” means the applicant for a residential development project, as set forth on the City’s General Planning Application form. (e) "Area median income" (AMI) means the median household income for the San Francisco Primary Metropolitan Statistical Area (PMSA) as determined annually by the California Department of Housing and Community Development (“HCD”) and published by the County of San Mateo.

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(f) "Below Market Rate (BMR) unit" means any income-restricted dwelling unit created pursuant to and consistent with this Article. (1) " BMR unit, For-sale " means a BMR unit offered for sale, including, but not limited to, single-family homes, condominiums, other common interest developments, and mutual housing
associations.
(2) "BMR unit, Rental" means a BMR unit offered for lease or rent. (g) "Density bonus" shall have the meaning as specified in Section 9-4.4101 of the Code.
(h) "Eligible household" means a very low-, lower-, 110% of AMI-, or moderate-income household approved by the City in accordance with this article.
(i) “First Approval” means the first of the following approvals to occur with respect to a residential development project: any planning entitlement, discretionary or ministerial, or approval under the Zoning Ordinance, subdivision approval, or building permit for construction. (j) “Group living accommodation” means a residential development project that is occupied by individuals of separate households and are characterized by separate sleeping rooms without individual kitchen facilities, and containing congregate bath and/or dining facilities or rooms.
(k) "Household" means one person living alone or two or more persons sharing residency, regardless of relationship or dependent status, whose income is considered for housing payments.
(l) “Household Income” shall be the gross income of the household as calculated pursuant to Section 50079.5 of the California Health and Safety Code, as amended, or its successor. The household income categories addressed in this Article shall be defined as follows:
(1) "Very low-income household" means a household whose annual income does not exceed the qualifying limits set for "very lowincome households" and is generally understood to be

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approximately 50 percent of area median income, as defined by HCD.
(2) “Lower-Income Household” means a household whose annual income does not exceed the qualifying limits set for "lower income households" and is generally understood to be approximately 80 percent of area median income, as defined by HCD.
(3) “110% of Area Median Income Household” means a household whose annual income does not exceed 110 percent of area median income, based on HCD published income limits.
(4) "Moderate-income household" means a household whose annual income does not exceed the qualifying limits set for "persons and families of low or moderate income" and is generally understood to be approximately 120 percent of area median income, as defined by HCD.
(m) "Market rate unit" means a dwelling unit where the rental rate or sales price is not restricted by this article.
(n) "Off-site" means located outside or in a location other than site of the residential development project.
(o) "On-site" means located within the residential development project. (p) "Residential development project" means any new construction of dwelling units, subdivision of property for housing development, conversion of rental projects to condominium or other common interest ownership under Article 24.5, conversion of non-residential buildings or floor area to residential, or any other creation of dwelling units or lots for housing that is authorized by a ministerial or discretionary land use. Residential development projects include those that are part of a mixed-use residential project.
(q) “Residential unit" means any dwelling unit, live/work unit, or any bedroom of a group living accommodation in a residential development project.

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(r) "Residential Unit Floor Area" means, for the purpose of this article, the floor area of the residential unit(s) of a residential development project. (1) Residential Unit Floor Area shall be measured from the interior of the walls of each unit. The residential unit floor area shall exclude areas that are not habitable residential square footage such as:
i. Balconies, whether private or open to all residents
ii. Storage lockers not located within residential units iii. Vehicular (e.g., automobile or motorcycle) and bicycle parking areas that are separate areas from the residential unit
iv. Other qualifying areas that are not associated with residential units, upon approval of the Zoning
Administrator.
(2) For residential units consisting of group living accommodations, residential unit floor area shall also include common rooms/lounges and supporting facilities such as kitchens and restrooms.

Sec. 9-4.4703. - Inclusionary housing requirements—Onsite Construction of BMR Units Required.
(a) Requirement to Construct Onsite BMR Units. Unless an alternative pursuant Sec 9-4.4704 is approved, and as otherwise provided in this section for fractional units, all BMR units must be constructed onsite. (b) General
(1) Fractional Units. In determining the number of BMR units required, any decimal fraction below 0.5 shall be paid as an inlieu fee, in accordance with the in-lieu fee schedule. Any decimal fraction of 0.5 or above shall be rounded up to the nearest whole number.
(c) On-Site BMR Units

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(1) Number of BMR units required. A minimum of 15 percent of all units, lots, or parcels in a residential development project subject to this article shall be on-site BMR units restricted for occupancy by, and affordable to, very low-, lower-, 110 percent of AMI, or moderate-income households.
(2) A BMR Unit that is constructed to qualify for a density bonus under Government Code section 65915 that otherwise meets these inclusionary housing requirements shall also qualify as inclusionary housing and a density bonus unit.
(3) For projects with for sale units:
i. At least 50 percent of the required BMR units shall be restricted to occupancy by lower-income households; and ii. The remaining required BMR units shall be restricted to occupancy by moderate-income households.
iii. The Applicant has the right, but is not required, to increase the percentage of lower-income household BMR units.
(4) For projects with rental units:
i. At least 33.3 percent of the required BMR units shall be restricted to occupancy by very low-income households.

Where there is only one BMR unit required, this unit shall be a very low-income unit; and
ii. 33.3 percent of the required BMR units shall be restricted to occupancy by lower income households; and
iii. The remaining required BMR units shall be restricted to occupancy by 110 percent of AMI households.
iv. The Applicant has the right, but is not required, to increase the percentage of very low- and lower-income household
BMR units.

Sec. 9-4.4704. - BMR unit size and design; construction phasing. (a) BMR units shall meet the following requirements:

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(1) Be distributed throughout the residential development project; (2) Have exterior design and appearance compatible with and substantially the same as market rate units within the residential development project, including landscaping;
(3) Have similar access from the exterior as market rate units; (4) Have access to all on-site common areas and amenities; (5) Have interior finishes, fixtures, and appliances that are comparable with the standard market rate units;
i. An Applicant may propose the use of different interior unit amenities, such as floor covering, appliances, and other fixtures, but these differences shall be specified within the affordable housing plan submitted at the time of planning application, as required by Section 9-4.4706(a), but all amenities must at a minimum be Underwriters Laboratories (UL) or American Gas Association (AGA) listed;
ii. The Zoning Administrator shall approve the proposed use of different interior unit amenities provided the proposal meets the requirements of this section.
(6) Have the same proportion of units by number of bedrooms and average size as the market rate units;
i. An Applicant may propose an alternative mix of unit-types to comply with this section by providing BMR Units that comprise at least 15 percent of the total residential unit floor area of the residential development project where the alternative mix benefits the City by meeting either of the two following conditions:
a. the Applicant is creating units greater than 2,000 square feet, and by creating smaller units, more BMR units will be created; or
b. the Applicant is creating mostly studio and one-bedroom units, and by providing BMR units with two or three

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bedrooms, fewer units are created, but meet the needs of families.
ii. The Zoning Administrator shall approve the proposed alternative mix of unit types that meet the requirements of this section. (7) That a proportionate number of units be constructed prior to or concurrently with market rate units in the residential development project or applicable phase of the residential development project.

Sec. 9-4.4705. – Alternatives to onsite affordable residential units. (a) General - An Applicant may comply with this Article through one or more of the following alternatives approved in accordance with this section.
(1) Unless otherwise provided in this section, the use of an alternative or combination of alternatives shall be subject to approval by the City Council. The alternative will be considered by the City Council as set forth below.
(2) Alternatives shall be based on a minimum of 20 percent of all units, lots, or parcels in a residential development project seeking alternative compliance. For purposes of determining the total number of BMR units required, density bonus units, accessory dwelling units, and junior accessory dwelling units are not included.
(3) In accordance with state density bonus law, these alternatives are not available for BMR units that serve to qualify for a density bonus under Government Code Section 65915(g), unless the dedication of land conforms to the provisions of Government Code Section 65915(g).
(b) In-Lieu Fee Payment
(1) Payment in lieu of providing a unit. The Applicant may propose to pay the City an amount of money in lieu of providing a BMR unit, which shall be based on 20 percent of the residential development project’s units. The in-lieu payment for each BMR unit shall be set forth in a resolution adopted by the City Council.

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(2) In-Lieu Fees shall be paid prior to the issuance of the first building permit for the residential development project at the rate in effect at time of payment. Where an applicant will be creating custom lot subdivisions and selling the lots to individual purchasers, the applicant shall pay the in-lieu fee prior to the sale of the first lot.
(3) In-lieu payments collected under this article shall be deposited into the City’s housing trust fund and shall be used only for the purpose of providing funding assistance for the provision of affordable housing, inclusionary monitoring costs, and
reasonable administration costs, with a maximum of 15 percent.

Such funds may also be used for a homebuyer's assistance program for eligible households.
(4) The City Council shall approve the in-lieu fee alternative if all of the above requirements are satisfied. In the event of approval, the residential development project shall be conditioned to require compliance with all of the above requirements.
(c) Off-site construction. When this off-site option is allowed, the Applicant must provide 20 percent of the residential unit floor area of the residential development project as BMR units, at affordability levels that meet or exceed the applicable on-site requirements in this article. (1) Off-site BMR units shall be constructed within the City of Pacifica and shall receive Certificate of Occupancy prior to the issuance of any Certificate of Occupancy of the residential development project, unless being built in phases, in proportion to the phasing of the residential development project, as set forth in the Affordable Housing Agreement.
(2) Off-site BMR units shall be consistent and comply with the standards and requirements specified in this Article, except that the size and number of BMR units may differ from what the Applicant would have provided on-site.
(3) BMR units shall be located on sites that are designated in the general plan for the intended residential development, have

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access to similar availability of services to the on-site units, and be accessible by paved roads.
(4) The City Council may approve the off-site construction alternative provided all of the above requirements are satisfied. In the event of approval, the residential development project shall be conditioned to require compliance with all of the above requirements.
(d) Off-site preservation. In lieu of building BMR units, the Applicant may request to create off-site BMR units through the purchase and conversion of existing market-rate units to affordable units, either by the Applicant or by a not-for-profit entity. When this off-site option is allowed, the Applicant must provide 20 percent of the residential unit floor area of the residential housing development as BMR units, at affordability levels that meet or exceed the applicable on-site requirements of this article.
(1) The off-site preservation units must be located within the City of Pacifica.
(2) The size and number of BMR units may differ from what the Applicant would have provided on-site.
(3) If a not-for-profit is involved, they must be approved by the City Manager.
(4) The off-site preservation units used to qualify for this alternative must be purchased prior to the issuance of a building permit for the residential development project. The Community
Development Director may set out requirements related to the rehabilitation and condition of the property and the protection and/or temporary relocation of existing tenants. The Community Development Director may require that rehabilitation of the property and/or temporary relocation of existing tenants be completed before the issuance of a building permit for the residential development project.
(5) For five years prior to the preservation of the off-site units, the average market rents must have been higher than 100 percent of area median income rent limits.

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(6) The City Council may approve the off-site preservation alternative provided all of the above requirements are satisfied. The project approval shall be conditioned to require compliance with all of the above requirements.
(e) Land dedication. In lieu of building BMR units, the Applicant may propose to dedicate land to the City or to an affordable housing developer.
(1) This land must be of equivalent or greater value than the amount of the required in-lieu fee. The valuation of any land offered inlieu shall be determined by an appraisal made by an appraiser mutually agreed upon by the City and the Applicant. Costs associated with the appraisal shall be borne by the Applicant. (2) The timing of the land dedication shall be at or before issuance of a building permit of the. Marketable title to the site is transferred to the City, or an affordable housing developer approved by the City, prior to issuance of building permit of the residential development project pursuant to an agreement between the Applicant and the City.
(3) Approval of land dedication.
i. Land proposed to be dedicated to the City requires
approval of the City Council, at its sole discretion. Factors considered for the approval may include, but are not
limited to, general location, access to transit, buildability, current General Plan and zoning designations, availability utilities and other services, the number of units that could be built at the location, and the proposed affordable
housing developer.
ii. Land dedicated to an affordable housing developer must meet the following requirements:
a. The site has a General Plan designation that
authorizes residential uses and is zoned for
residential development at a density to
accommodate at least the number of Affordable
Units that would otherwise be required .

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b. The site is suitable for development of the BMR
units, taking into consideration its configuration,
physical characteristics, location, access, adjacent
uses, and applicable development standards and
other relevant planning and development criteria
including, but not limited to, factors such as the cost of construction or development arising from the
nature, condition, or location of the site.
c. Infrastructure to serve the dedicated site, including, but not limited to, streets and public utilities, are
available at the property line and have adequate
capacity to serve the maximum allowable
residential density permitted under zoning
regulations.
d. The site has been evaluated for the presence of
hazardous materials and for the presence of
geological hazards and all such hazards are or will
be mitigated to the satisfaction of the City prior to
acceptance of the site by the City.
e. The value of the site upon the date of dedication is equal to or greater than the in-lieu fee that would
otherwise be required under Subsection (b) above.

The value of the site shall be determined pursuant
to the program guidelines approved by the City
Manager or their designee.
(4) Transfer of the property. At the time the land is transferred to the city or to an affordable housing developer, the Applicant must have paid any outstanding property taxes, and the property must be free of any liens or encumbrances, unless otherwise approved by the City. (f) Combination. The Applicant may propose any combination of on-site construction, off-site construction, off-site preservation, land dedication, and/or in-lieu payments.

Sec. 9-4.4706. - Affordable housing plan for BMR units.

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(a) An affordable housing plan for BMR units shall be submitted as part of the application for first approval of any residential housing development. An application cannot be deemed complete unless an affordable housing plan conforming to the provisions of this article is submitted. (b) If the applicant has requested a density bonus pursuant to Article 41 of this Code, the affordable housing plan required under this Section shall be combined with the affordable housing plan for BMR units required pursuant to Article 41 of this Code.
(c) The affordable housing plan for BMR units shall include the following information:
(1) For residential housing development projects proposing to construct the BMR units on-site within the development, the affordable housing plan shall specify, at the same level of detail as the application for the residential development project:
i. Calculations for compliance with this Article. This includes the number of required and proposed BMR units, calculation of in-lieu fee, if applicable, and/or residential unit floor area, based on the specifics of the proposed residential development project. ii. The number, type, tenure, household income categories, number of bedrooms and baths, approximate location, size, and design (including finishes and features) of all BMR units.
iii. A tentative map or preliminary site plan, drawn to scale, showing the number and location of all proposed units, and designating the location of proposed BMR units.
iv. The zoning and general plan designations and assessor’s parcel number(s) of the residential development project site.
v. If the residential development project is to be constructed in phases, an outline of the proposed phases and how the Applicant intends to construct the BMR units concurrently with the market-rate units. vi. A preliminary marketing plan indicating the general approach to marketing BMR units, including the manner in which the BMR units

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will be offered to the public in a nondiscriminatory and equitable manner. The final marketing plan must be approved prior to first building permit issuance and shall be subject to approval by the Community Development Director or their designee.
vii. If the applicant requests the use of different finishes and features than market-rate units as addressed in Section 9-4.4704, the affordable housing plan shall describe this request.
(2) If an Applicant requests approval of alternatives to constructing the BMR units within a residential development project pursuant to subsection Section 9-4.4705 of this Article, the affordable housing plan shall describe the requested alternatives, and any in-lieu fee calculations.
(d) The affordable housing plan for BMR units shall be reviewed simultaneously with any other applications associated with the first approval of the residential housing development.

Sec. 9-4.4707. - For-sale BMR units.
(a) Price of units. The maximum sales price of a for-sale BMR unit shall be set by the City, based on the affordable housing cost, as defined in Section 9-4.4702, for each income category, and as established in guidelines approved by the Community Development Director. (b) Deed and resale restrictions.
(1) For-sale BMR units shall remain available at an affordable housing cost to an eligible household for 45 years, which shall reset upon transfer or resale. Resale controls shall be by affordable housing agreements approved as to form by the City Attorney or their designee. Such documents shall provide that the City has an option to purchase the for-sale BMR unit(s), for the maximum resale price, as defined below. The City's option to purchase may be assigned to a qualifying eligible household, a nonprofit housing organization, other government entity, or other entity that will ensure the continuation of the affordability of the BMR units.

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(2) Occupancy restrictions. For-sale BMR units shall only be occupied by their owners. Renting, leasing, subleasing, or subletting shall not be permitted for more than two months in any year. Violation of these occupancy restrictions will be grounds for termination of the occupancy.
(3) Resale price. The resale agreement shall establish the following. In order to maintain the affordability of the for-sale BMR units constructed pursuant to this article, the maximum purchase price paid by each subsequent purchaser shall be limited to the original purchase price, increased by the percentage increase in area median income from the date of original purchase, plus the depreciated cost of any capital improvement expenditures greater than one percent of the original purchase price, minus any costs necessary to bring the unit into conformity with City building regulations in the event that the occupant has allowed the unit to deteriorate due to deferred maintenance.
i. Formula for Maximum Purchase Price: Original Maximum Purchase Price + Percentage Increase in area median income from date of Original Purchase + Depreciated Cost of any Capital Improvement Expenditures > 1 Percent of Original Purchase Price – Any Costs Necessary to bring the unit into City building regulations due to deferred maintenance
(c) Administration. The City may contract with an outside agency, which shall be responsible for selection and qualification of buyers in accordance with City-approved policies. The Applicant or subsequent seller shall pay all costs associated with this service for the for-sale BMR unit. The City also may contract with an outside agency to assist with monitoring the ongoing compliance of for-sale BMR units.

Sec. 9-4.4708. - Rental BMR units.
(a) Rental rates. The maximum rent of a rental BMR unit shall be an affordable rent approved by the City based on CA Health & Safety Code § 50052.5 or County of San Mateo County published rents. These rents shall include a

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utility allowance, in accordance with the utility allowance schedule published by the County of San Mateo Department of Housing. (b) Rental restrictions. Rental BMR units shall remain available at an affordable rent to an eligible household for 99 years. The rents shall be regulated by affordable housing agreements approved as to form by the City Attorney or their designee.
(c) Administration. The rental of rental BMR units shall be administered according to City-approved policies by the Applicant or a nonprofit housing organization, government entity, or other entity approved by the City. The City may charge fees to cover the costs of administration of this program, in an amount set from time to time by City Council resolution.

Sec. 9-4.4709. - Eligibility requirements.

Only eligible households may occupy BMR units. No household may occupy a BMR unit unless the City or its designee has approved the household's eligibility in accordance with City-approved policies. Preference shall be given to persons residing or working within Pacifica, in accordance with federal and state fair housing and other applicable laws. Eligibility requirements may be further defined in guidelines approved by the Community Development Director.

Sec. 9-4.4710. - Affordable housing agreement.
(a) Applicability. Recordation of an affordable housing agreement shall be made prior to issuance of a building permit for any structure in a residential housing development. The affordable housing agreement shall run with the land and bind all future owners and successors in interest.
(b) The affordable housing agreement shall be in a form approved by the City Attorney or their designee and shall include the following, without limitation:
(1) All information provided in the affordable housing plan pursuant to Section 9-4.4706 of this Article.

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(2) The household income categories of the BMR units, consistent with the requirements of Section 9-4.4702 of this Article or any alternative requirements pursuant to Section 9-4.4705 of this Article. (3) Continued affordability of the BMR units, as follows:

I. For-Sale Inclusionary Units. The affordable housing agreement shall require that a resale restriction agreement, in a form approved by the City Attorney or their designee, be recorded against each for-sale BMR unit when the unit is first transferred to an eligible purchaser. The resale restriction agreement shall provide that BMR units in for-sale housing developments shall remain affordable for 45 years, to be reset upon resale, and that the affordability provisions be applicable to any subsequent transferees or successors in interest. The resale restriction agreement shall also provide that the for-sale BMR unit shall not be rented, except as allowed in Section 9-4.4707 of this Article.

II. Rental BMR Units. The affordable housing agreement, in a form approved by the City Attorney or their designee, shall be recorded against each residential housing development
containing rental units to ensure that the BMR units remain affordable for 99 years. Rental BMR units that are later converted to for-sale units, e.g., converted to condominiums, and then sold shall be sold as for-sale BMR units, in accordance with Chapter 4, Article 24.5 of the Municipal Code and any regulations
implementing this section approved by the Community
Development Director.
(4) The affordable housing agreement shall specify that no household shall be permitted to begin occupancy of a BMR unit unless the City Community Development Director or the City Community
Development Director’s designee has approved the household’s eligibility.

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(5) Affordable housing agreements for residential Development projects intended to be occupied by special populations or households with special needs, such as those with a physical or mental disability, or for those who were formerly unhoused, or with one or more members who are 62 years of age or older shall provide that dwelling units in the residential development project shall be occupied by persons eligible to reside in such a project. (6) The affordable housing agreement shall include provisions requiring maintenance of records to demonstrate compliance with this Article. (7) The affordable housing agreement shall include a description of remedies for breach of the agreement by either party. The City may identify tenant households or qualified purchaser households as third party beneficiaries under the agreement.
(8) The affordable housing agreement shall include any other provisions determined necessary by the City Attorney or their designee to ensure implementation and compliance with this Article.

Sec. 9-4.4711. - Adjustments, waivers.
(a) Process. The requirements of this article may be waived, adjusted, or reduced if the Applicant shows that applying the requirements of this article would take property in violation of the United States or California Constitutions. Such a request shall be made in writing and filed with the City Manager at the time of submittal of an initial application for approval of the residential development project and/or as part of any appeal that the city provides as part of the process of approval. The request shall state completely and in detail: (i) the requested waiver, adjustment, or reduction of the requirements, (ii) the factual basis for the request, and (iii) the legal basis of this request. In making a determination on an application for waiver, adjustment, or reduction, the Applicant shall bear the burden of presenting substantial evidence to support the claim. The City Manager, in consultation with the City Attorney, shall consider the request and render a decision in writing

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within 30 days. If the City Manager determines that those requirements constitute a taking in violation of the United States or California Constitutions, the requirements of this article shall be modified, adjusted, or waived to the extent necessary to avoid an unconstitutional result or illegal outcome. If the City Manager determines that no violation of the United States or California Constitutions would occur through application of this article, the requirements of this article shall remain applicable unless the City Manager's determination is overruled or modified by the City Council on appeal.
(b) Appeal procedure. A decision of the City Manager on a request for a reduction or waiver pursuant to subsection (a) above shall be appealable in accordance with this section. A person seeking judicial review of a decision shall first complete an appeal under this section.

Any person wishing to appeal a decision of the City Manager shall file an appeal to the City Council in writing with the City Clerk not later than ten days from the date of the written decision of the City Manager. The written appeal shall state completely and in detail the factual and legal grounds for the appeal. The City Council shall consider the appeal at a public hearing within sixty days after the filing of the request. The decision of the City Council is final.
(c) Fee for adjustment request or appeal. The cost of the request for adjustment or waiver of the requirements of this article and appeal shall be borne by the applicant in an amount set forth in a resolution adopted by the City Council.

Sec. 9-4.4712. - Hillside preservation and B-Lot size overlay districts.

Nothing in this article is intended to nor shall it supersede the provisions of the Hillside Preservation District (HPD) or B-lot size overlay district (B-district).

Residential development projects located within HPD and/or B-district land that provide BMR units in accordance with this article shall be subject to all regulations and standards of Article 22.5, regarding the HPD district, including applicable lot coverage limitations, and Article 20, regarding the B-district.

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Sec. 9-4.4713. - Implementation.
(a) No building permit shall be issued for any market-rate unit until the permittee has obtained permits for a proportionate number of the BMR units required by this article. No final inspection for occupancy for any market-rate unit shall be completed until final inspection has been completed for a proportionate number of the BMR units required by this article.
(b) The time requirements set forth in this Section for issuance of building permits for market-rate units and for final inspections for occupancy for market-rate units may be modified to accommodate phasing schedules, model variations, or other factors in a residential development project within the submitted affordable housing plan pursuant to Section 9-

4.4707 of this Article, if the City determines this will provide greater public benefit and an affordable housing agreement pursuant to Section 9-4.4710 of this Article has been accepted by the approval body with the authority to approve the development.
(c) Conditions to carry out the purposes of this Article shall be imposed on the first approval for a residential development project and any subsequent approvals.
(d) The City Manager is authorized to execute the affordable housing agreements following approval by the Community Development Director and the City Attorney or their designee.
(e) The Community Development Director shall promulgate guidelines to further implement this ordinance. These guidelines shall include, but are not limited to, the following:
(1) The form and contents of the affordable housing agreements, including provisions for successors in interest and other ownership transfers;
(2) The form and contents of the final marketing plan and resident selection process;
(3) Procedures for setting rents and sales prices for the BMR units in accordance with this article and with state law;
(4) Procedures for qualifying tenant households and prospective purchaser households of BMR units, including any preferences;

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(5) Compliance and monitoring procedures to assure that affordability restrictions are maintained; and
(6) Resale and subordination procedures for BMR for-sale units. (f) The City Council, as part of its master fee schedule, may establish fees to recover the City’s costs for the ongoing administration and monitoring of the affordability provisions of the BMR units, except where prohibited by State law.

Sec. 9-4.4714 - Enforcement.
(a) The City is authorized to enforce the provisions of this Article and all affordable housing agreements, including without limitation, regulatory agreements, resale controls, deeds of trust, or similar documents placed on the BMR units, by civil action and any other proceeding or method permitted by law.
(b) Failure of any official or agency to fulfill the requirements of this Article shall not excuse any applicant or owner from the requirements of this Article.
(c) The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the City from any other remedy or relief to which it otherwise would be entitled under law or equity.
(d) Legal action. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this article. Failure of any official or agency to fulfill the requirements of this article shall not excuse any person, owner, household, or other party from the requirements of this article.

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PLANNING COMMISSION
Staff Report
Scenic Pacifica
Incorporated Nov. 22, 1957
DATE: June 1, 2026 FILE: TA-129-26
ITEM: 3

SUBJECT
File No. 2026-006 – Continued Public Hearing on Text Amendment TA-129-26, initiated by the City of Pacifica, to repeal and replace Article 41 Density Bonus Program and Article 47 City of Pacifica Below Market Rate (Inclusionary) Program of the City of Pacifica Zoning Regulations (Title 9, Chapter 4 of the Pacifica Municipal Code) relating to the implementation of state density bonus law and regulations for inclusionary housing and below market rate units, respectively.

PROJECT LOCATION
Citywide

PUBLIC NOTICE
A one-eighth page Notice of Public Hearing was published in the San Mateo Daily Journal on April 22, 2026. At the public hearing on May 4, 2026, the Planning Commission continued the item to a date certain of June 1, 2026. No additional public noticing is required pursuant to California Government Code Section 54955.1.

CEQA RECOMMENDATION
Exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b)(3) “General Rule” exemption.

REQUIRED APPROVALS
Government Code Section 65853 et seq. requires the Planning Commission to conduct a public hearing and provide a written recommendation to the City Council on any new zoning ordinance, amendment to a zoning ordinance, or change in a property’s zoning designation.

Pacifica Municipal Code Section 9-4.3501 et seq. similarly requires the Planning Commission to conduct a public hearing and to provide by resolution a recommendation to the City Council on any zoning text amendment or change in a property’s zoning 3 Packet Pg. 168

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Packet Pg. 511 Attachment: Attachment E - Planning Commission 2nd Staff Report, dated June 1, 2026 (6296 : Density Bonus + Inclusionary Ord) PC Staff Report
Text Amendments - Density Bonus + Inclusionary Housing Ordinance June 1, 2026