The Vallejo City Council voted 5-1 to introduce an inclusionary housing ordinance that would require many new housing projects to include affordable units, the Vallejo Sun reports. The council chose the Planning Commission's version over a weaker staff option.
What the ordinance requires
Under the commission's mid-range option, rental projects of 20 to 100 units would set aside 4% of units as affordable: 2% for very-low-income households and 2% for low-income households. For-sale projects of 20 to 100 units would need 7% affordable units, and projects above 100 units would need 10%. The commission also recommended lowering the threshold so the rules apply to projects of 10 or more units.
Developers could pay an in-lieu fee into a city affordable housing fund instead of building the units. The council shortened the waiting period before the rules take effect from 180 days to 90 days after final approval.
The debate
Councilmember Diosdado "J.R." Matulac voted no, saying staff may not have enough time to implement the rules. A Building Industry Association representative warned the ordinance would discourage new housing under current market conditions, while the Vallejo Housing Justice Coalition said only the commission's version would move the city toward compliance with state law.
Economic & Planning Systems, the city's consultant, presented the feasibility study to a joint council and Planning Commission session. The Sun says the consultant found that only single-family detached homes met its profit threshold, and it recommended a moderate or phased ordinance. Staff said 108 affordable units have been built since 2023, but the city still needs 1,446 to meet its 2031 regional housing target. A second vote is needed to formally adopt the ordinance.