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.
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.
*****
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