Daly City approves urgency rezones to certify housing element despite hospital staff objections

Daly City’s City Council voted to adopt a certification resolution for the city’s housing element and a package of urgency rezoning ordinances on Nov. 12, approving measures the city says are necessary to secure state acceptance of its housing element by the end of the year.

The items passed after extended discussion and public comment, with one council member dissenting. City Attorney Toni Zimmerman told the council the attorney‑general lawsuit against AHMC focuses on alleged breaches of service commitments under an asset purchase agreement and “had nothing to do with property” or rezoning, and she warned that failing to adopt the housing element risks state enforcement, fines and the so‑called builder’s remedy.

The council’s action will change zoning on several parcels the staff identified as part of the housing‑element strategy, including properties around Seton Medical Center that developers AHMC Healthcare and AGI have proposed to use for a mixed‑use ‘wellness village.’ City planning staff said some of the rezones are required as urgency ordinances and therefore need four‑fifths council approval for immediate effect.

Why it matters: Daly City is out of compliance on its housing element and city officials and staff said certification is necessary to avoid escalating monthly penalties…