Attachment C - Planning Commission 1st Staff Report, dated May 4, 2026 — Pacifica City Council, September 14, 2026

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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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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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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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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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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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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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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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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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
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).

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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing 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

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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing 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.

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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing 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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing ATTACHMENT A; EXHIBIT 1
:

DRAFT ORDINANCE

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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing 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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Attachment A – Exhibit 1 – 3
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.

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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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment A - 1
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.

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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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 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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 4
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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 5
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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 6
(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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 7
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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 8
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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 10
(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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 11
(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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 12
(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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 13
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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 14
(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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 15
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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 17
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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing Exhibit 1; Attachment B - 22
(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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Attachment: Attachment A-PC Draft Resolution+Ordinance_DBO-IHO (6205 : Text Amendments - Density Bonus + Inclusionary Housing

Pacifica City CouncilSeptember 14, 2026

Pacifica City Council
September 14, 2026