Presentations — Vallejo City Council, December 30, 2024

Vallejo
Housing Element
Update
City Council
December 30, 2024

Vallejo 2023-2031 Housing Element Update | 2
Team Introductions
▪ City of Vallejo
»Kristin Pollot, AICP , Planning & Development Services Director »Hector Rojas, Long-Range Planning Manager
▪ PlaceWorks
»Jennifer Gastelum, Principal
»Amy Sinsheimer, Senior Associate
Vallejo 2023-2031 Housing Element Update | 3
Presentation Outline

1. Housing Element Background

2. Regional Housing Needs Allocation

3. Housing Goals & Policies

4. Noteworthy Housing Programs

5. Recommended Actions & Next Steps
1 Housing Element
Background
Vallejo 2023-2031 Housing Element Update | 5
What is the Housing Element?
It is a required section of the City’s General
Plan. It must:
▪ Be updated every 8 years and certified by
the State
▪ Assess community housing needs and
conditions
▪ Show how the City will plan for its fair
share of regional housing
▪ Set housing-related goals, policies, and
programs

Vallejo 2023-2031 Housing Element Update | 6
Housing Element Components
Housing Needs
Assessment
(App. 2)
Fair Housing
Assessment
(App. 3)
Housing Sites
Inventory
(Ch. 4)
Constraints
Analysis
(Ch. 4)
Evaluation of Past
Performance
(Ch. 3)
Goals, Policies,
Programs
(Ch. 5)
Vallejo 2023-2031 Housing Element Update | 7
Housing Element Process
Public
Engagement
Dec. 2021 –
Jun. 2022
Initial Draft
HEU
Sept. 2023
Subsequent
Drafts
Jul. 2024
Sept. 2024
Nov. 2024
HCD Submittal
Nov. 21, 2024
Planning
Commission
Hearing
Dec. 11, 2024
City Council
Hearing
Dec. 30, 2024
Ongoing communication w/HCD staff
Vallejo 2023-2031 Housing Element Update | 8
Stakeholder Engagement
▪ North Bay Housing Coalition – 12/9/21
▪ Community Action Partnership Solano JPA –
12/14/21
▪ Legal Services of Northern California –
12/22/21
▪ Fair Housing Advocates of Northern
California – 1/6/22
▪ Fighting Back Partnership – 1/12/22
▪ Solano-Napa Habitat for Humanity – 1/28/22
▪ Agency on Aging – 1/24/22
▪ Urban Habitat – 2/16/22
▪ North Bay Regional Center – April 2022
▪ Local Historian Brendan Reiley – 4/25/22
▪ Community Workshop – 1/26/22
▪ Community Workshop – 1/27/22
▪ Housing Needs Assessment Workshops –
3/30/22 (AM & PM)
▪ Fair Housing Workshops – 6/1/22 (AM & PM)
▪ Focus Group Meeting – 7/21/22
▪ Housing Survey – 3/17/22 to 6/16/22
▪ Pop-Up Events – Multiple dates in 2022
2 Regional Housing
Needs Allocation
Vallejo 2023-2031 Housing Element Update | 10
2024 Income Limits for Solano County
Income Category: Income Limits (for Family of Four):

Very Low-Income 31-50% of AMI $37,750 to $62,900
Low-Income 51-80% of AMI $62,900 to $100,650
Moderate-Income 81-120% of AMI $100,650 to $135,850
Above Moderate-Income >120% of AMI Greater than $135,850 Notes: The 2024 Area Median Income (AMI) for Solano County is $113,200. As of 2021, Vallejo had the highest proportion of Extremely low-, very low-, and low-income households (43.9%) among all jurisdictions in Solano.

Vallejo 2023-2031 Housing Element Update | 11
6th Cycle Remaining RHNA
Income Category: Total RHNA:

Units Permitted &
Constructed:
(since 6/30/22)
Remaining RHNA:

Very Low-Income 690
151 908
Low-Income 369
Moderate-Income 495 15 480
Above Moderate-Income 1,346 286 1,060
Total 2,900 452 2,448
Vallejo 2023-2031 Housing Element Update | 12
6th Cycle Residential Capacity
Income Category: Remaining
RHNA:

Vacant and
Non-Vacant
Site Capacity:

Submitted/Ap
proved
Development
Applications:

Anticipated
ADU
Construction:

Total
Capacity: Total Surplus:

Very Low-Income
908 820 107 113 1,040 132
Low-Income
Moderate-Income 480 842 0 56 898 418
Above Moderate-Income 1,060 1,525 1,033 19 2,577 1,517
Total 2,448 3,187 1,140 188 4,515 2,067
Vallejo 2023-2031 Housing Element Update | 13
City-Owned Parcels
Sites 62 and 63
▪ Used for public parking
▪ Both declared surplus
▪ Neighborhood Mixed Use (NMX)
zoning
▪ Capacity for 11 very low/low-
income units

Vallejo 2023-2031 Housing Element Update | 14
City-Owned Parcels
Sites 86 to 89
▪ 16 acres excess surface parking
▪ Waterfront Mixed Use (WMX)
zoning
▪ Site 86 declared surplus
▪ Capacity for 335 very low/low-
income, 293 moderate-income,
and 209 above moderate-income
units
Vallejo 2023-2031 Housing Element Update | 15
Upzone Parcel
Site 41
▪ GP designation to Primarily Multi-
Family (R-MF)
▪ Rezone to Residential High
Density (RHD)
▪ Will increase max density from 25
du/ac to 40 du/ac
▪ Will provide capacity for 31 very
low/low-income units
Vallejo 2023-2031 Housing Element Update | 16
Upzone Parcel
Site 42
▪ GP designation to Primarily Multi-
Family (R-MF)
▪ Rezone to Residential High
Density (RHD)
▪ Will increase max density from 25
du/ac to 40 du/ac
▪ Will provide capacity for 17 very
low/low-income units
Vallejo 2023-2031 Housing Element Update | 17
Upzone/Repeat Parcel
Site 55
▪ GP designation to Primarily Multi-
Family (R-MF)
▪ Rezone to Residential High
Density (RHD)
▪ Will increase max density from 25
du/ac to 40 du/ac
▪ Will provide capacity for 75 very
low/low-income

Vallejo 2023-2031 Housing Element Update | 18
Special Provisions for Upzone/Repeat Sites
▪ By-Right Development: Upzone and repeat sites must allow multifamily residential uses without discretionary action. ▪ Income Targeting: At least 20% of units must be reserved for very low- or low-income households.
▪ Programs A 1.1.6 and A 1.1.7: These housing programs call for the City to amend its zoning code to implement these special provisions for its three upzone and repeat sites.
3 Housing Goals &
Policies
Vallejo 2023-2031 Housing Element Update | 20
Housing Goals & Policies
Goal A: Facilitate
production of housing
to accommodate
Vallejo’s fair share of
the regional housing
demand
Policy A.1: The City of Vallejo strives to provide opportunities for the development of new housing adequate to meet its share of the increasing regional demand for households at all income levels.

Policy A.2: Convert vacant infill land and surplus, vacant nonresidential properties to housing and mixed use where feasible, economically desirable, and compatible.

Policy A.3: Monitor, remove, or mitigate governmental constraints to the production of housing within the City of Vallejo.

Policy A.4: Promote a variety of housing types, including rental and ownership opportunities for moderate- and above-moderate income households.

Vallejo 2023-2031 Housing Element Update | 21
Housing Goals & Policies
Goal B: Increase the
range of affordable
housing opportunities.

Policy B.1: Continue to strive to increase the range of housing opportunities for all residents, including those unable to afford market-rate housing within the community.

Policy B.2: Provide financial or other forms of assistance for the development of affordable housing units.

Goal C: Improve and
preserve the City’s
existing supply of
affordable housing.

Policy C.1: Cooperate with other governmental, for-profit, and nonprofit entities to discourage and attempt to prevent loss of existing affordable housing projects to market-rate rents.

Vallejo 2023-2031 Housing Element Update | 22
Housing Goals & Policies
Goal D: Increase
homeownership
opportunities.

Policy D.1: Increase the ability of lower- and moderate-income households to become homeowners.

Goal E: Encourage
housing to meet the
City’s special-needs
population.

Policy E.1: On a citywide basis, expand the supply of housing for senior citizens, persons who are disabled (including those with developmental disabilities), large households, veterans, single-parent households, lower-income teachers employed by the Vallejo City Unified School District, the homeless, and low- income residents.

Vallejo 2023-2031 Housing Element Update | 23
Housing Goals & Policies
Goal F: Improve housing
choice and access to
opportunities for
Vallejo residents.

Policy F.1: The City of Vallejo will work to ensure that all population groups have equal access to housing opportunities and will facilitate housing options for a range of income levels, at various densities, and in different styles to meet the diverse needs and preferences of the community.

Goal G: Build and
maintain the City’s
quality residential
environments and
where necessary
substantially
rehabilitate the City’s
aging housing stock.

Policy G.1: The City of Vallejo will undertake a range of efforts to assist the private sector in maintaining and improving the condition of existing housing units and also to maintain and improve the living environments within the city's neighborhoods.

Vallejo 2023-2031 Housing Element Update | 24
Housing Goals & Policies
Goal G: Build and
maintain the City’s
quality residential
environments and
where necessary
substantially
rehabilitate the City’s
aging housing stock.

Policy G.2: Preserve and improve historical and architectural resources by providing appropriate incentives for historic preservation.

Policy G.3: Enforce existing housing codes and regulations to correct code violations in the most expeditious manner to protect the integrity of the housing while minimizing the displacement of residents. Support demolition of all dwelling units that cannot be rehabilitated so that hazards will be eliminated, and land will become available for new housing.

Policy G.4: Replace infrastructure as needed to conserve older neighborhoods.

Policy G.5: The City will develop and enforce a program that will ensure that all rental properties are free of health and safety violations and maintained in sound condition.

Vallejo 2023-2031 Housing Element Update | 25
Housing Goals & Policies
Goal H: Guide
development of
balanced
neighborhoods.

Policy H.1: Provide convenient access to schools, parks, shopping, transportation, and services within neighborhoods.

Policy H.2: The City will facilitate mixed-use development and the promotion of live/work units through adoption of the Sonoma Boulevard Specific Plan and the Zoning Ordinance update.

Policy H.3: Protect the character of the existing neighborhoods by developing objective standards to facilitate infill projects to be compatible with the existing neighborhoods.

Policy H.4: Promote a healthy balance of housing within neighborhoods by encouraging a mix of affordable and market-rate housing.

Vallejo 2023-2031 Housing Element Update | 26
Housing Goals & Policies
Goal I: Promote energy
efficiency.

Policy I.1: The City of Vallejo will promote energy efficiency in residential development within the city, including reduction of energy use through better design and construction in individual homes and through energy-efficient urban design.
4 Noteworthy Housing
Programs
Vallejo 2023-2031 Housing Element Update | 28
Program B 2.1.1: Inclusionary Housing Ordinance
Would require the City to develop an inclusionary housing ordinance and seek City Council adoption. Inclusionary ordinances require developers to include affordable units in their projects. Compliance options typically include constructing units off-site, paying in-lieu fees, or donating land for affordable housing.

Implementation Timeframe:

Seek Council adoption by Q3 2025
Vallejo 2023-2031 Housing Element Update | 29
Program B 2.1.2: Commercial Linkage Fee
Would require the City to explore implementing a commercial linkage fee. A linkage fee is a charge imposed on new commercial projects (e.g. new office buildings, retail centers, hotels, or industrial facilities) to address the housing demand generated by these developments. The fees fund construction, preservation, or rehabilitation of affordable housing.

Implementation Timeframe:

Consider a Jobs/Housing Nexus Study by Q3 2025
Vallejo 2023-2031 Housing Element Update | 30
Program F 1.1.3: Renter Protection & Housing Stability
Would require the City to consider ordinances establishing regulations for rent stabilization and just cause for eviction that go beyond those provided under State law. Rent stabilization ordinances limit annual rent increases, preventing sudden, excessive rent hikes. Just cause protections require landlords to provide legally valid reasons for tenant evictions.

Implementation Timeframe:

Council consideration by September 2025 (Planning Commission recommendation). Staff recommended deadline was June 2026.

Vallejo 2023-2031 Housing Element Update | 31
Program G 5.1.1: Rental Property Inspection
Would require the City to adopt a residential rental inspection program to help ensure rental properties meet health and safety standards. The program could involve periodic inspections to identify and address code violations, safeguarding tenants’ well-being and preserving the quality of the housing stock.

Implementation Timeframe:

Council adoption by December 2027
Vallejo 2023-2031 Housing Element Update | 32
AFFH-Related Programs
▪ Assembly Bill 686 (2018) mandates that jurisdictions incorporate programs in their housing elements to affirmatively further fair housing (AFFH).
▪ This requires taking meaningful actions to combat discrimination, eliminate segregation, and foster inclusive communities without barriers to opportunity.
▪ Twenty-two of the 38 housing programs in the HEU are directly tied to AFFH.
5 Recommended
Actions & Next Steps
Vallejo 2023-2031 Housing Element Update | 34
Urgency of this Item
▪ State certification deadline for was January 31, 2023. ▪ Vallejo only city left in Solano w/o a certified element. ▪ Failure to achieve certification by end of this year:
»Risks loss of previously awarded $850,000 OBAG 3 grant for the Sacramento Street Road Diet Project.
»Cannot begin grant-funded work related to downtown and waterfront specific plans.
»Additional consequences could include lawsuits, fines, and loss of local land use control.

Vallejo 2023-2031 Housing Element Update | 35
Recommended Actions

1. Adopt a Resolution:
a) Making findings pursuant to the California Environmental Quality Act (CEQA) relating to an Addendum to the Vallejo General Plan 2040 EIR;
b) Repealing the existing General Plan Housing Element; c) Adopting amendments to Vallejo General Plan 2040 Land Use Map PF-6 to change land use designations for three (3) parcels commonly known as APNs 0051-250-230; 0052- 110-140; and 0069-032-240 (Identified Parcels); and
d) Adopting the Vallejo General Plan Housing Element for the 6th Cycle 2023-2031 planning period.

Vallejo 2023-2031 Housing Element Update | 36
Recommended Actions

2. Introduce an Ordinance:
a) Amending Vallejo Municipal Code (VMC) Section 16.301.01 – Land Use Regulations, to implement Housing Element Programs A 1.1.6 and A 1.1.7; and b) Amending the Zoning Map of the City of Vallejo as set forth in VMC Section 16.102.02 to rezone the Identified Parcels from Residential Medium Density (RMD) to Residential High Density (RHD).

Vallejo 2023-2031 Housing Element Update | 37
Next Steps…
City Council Hearing
Dec. 30, 2024
Submit Adopted
Element to HCD for
Certification
Dec. 31, 2024
HCD Certification Letter
Mar. 1, 2025
Program
Implementation!
2025-2031
Thank you!

CITY OF VALLEJO, CA

CODE ENFORCEMENT DIVISION

TOBACCO RETAIL LICENSE

USER FEE STUDY
December 2024
2 Agenda

1. Introduction

2. Background/Project History

3. Objectives

4. Study Methodology

5. Study Findings/Recommendations
3 INTRODUCTION
Fee Study Consultant: MGT
• Nationally recognized consulting firm
• Focus is on Government consulting
• 900+ Employees
• Mr. Rivas has 11 years of user fee/cost accounting
experience
• Mr. Rivas has worked with/for the City of Vallejo since 2015 • Mr. Rivas has conducted the following studies for the City of Vallejo since 2015:
• Police Department operations/fee comparison - 2015
• Citywide User Fee Study – 2016/2017
• Public Works Department fee study – 2022
• Code Enforcement fee study – 2024
• Fire Department fee study - Ongoing
4 BACKGROUND/PROJECT

HISTORY
• The City of Vallejo and MGT have a standing relationship.

MGT has conducted several fee studies for the City in the last decade.
• The last comprehensive, Citywide user fee study took place in 2016/2017 with adoption taking place in 2018.
• The City also hired MGT in 2021 to conduct a Public Works fee study update.
• In 2024, the City hired MGT to establish fees for the recently adopted Tobacco Retail License (TRL) Ordinance. • The study includes establishment of new fees to
recover the cost of TRL related services
• The study utilized Fiscal Year 2024 adopted budget
figures
• The study was conducted and completed between
MGT and Code Enforcement/City Attorney staff
5 OBJECTIVES
• Develop a catalog of fees
• Develop staff fully burdened hourly rates using the City’s FY24 adopted budget and personnel cost
• Define what it cost to provide fee-related services
• Assess levels of current cost recovery and evaluate
opportunities for adjustments
• Provide estimated revenue projections based on proposed fees
• Provide recommendations
• Ensure compliance with State law governing user fee cost recovery
6 STUDY METHODOLOGY
The analysis to determine the cost of providing fee-for-service activities is based on two basic elements:
➢ Hourly rates of staff providing the services
➢ Average time required to provide the services
The product of the hourly rate calculation multiplied by the time spent yields the cost of providing the service
7 STUDY METHODOLOGY
CONTINUED…
Cost Calculation:
• Interview department to identify staff members involved in each fee service and the average amount of time they spent providing the service
• Calculate direct labor cost
• Code Enforcement Staff
• Calculate indirect cost
• City Attorney & Planning Staff
• Apply fully burdened hourly rates to average time spent to provide the service
• Costs are then annualized by incorporating annual volume figures for each fee category

STUDY FINDINGS & RECOMMENDATIONS
Column A, User Fee Costs – $449,455 of the department’s costs are related to Tobacco Retail License (TRL) user fee services. It is this $449,455 that is the focus of this study and represents the total potential for TRL user fee-related revenues for the City. The annual cost was derived from using the current number of licensed retailers.

Column B, Current Revenues – The City does not currently generate any revenues for these services. These are new fees being implemented.

Column C, Current Subsidy – The City does not currently provide these services. There is no current subsidy.

Column D, Recommended Recovery – If fee recommendations are implemented, the City would generate TRL fee revenues to $449,455 annually.

Column E, Increased Revenue – If recommendations are implemented, the Code Enforcement division would see estimated annual revenue increase of $449,455 related to TRL fees

Agency: City of Vallejo
Department: Tobacco Retail License (TRL)
Fiscal Year: 2024
Ord Service Name Fee
Descriptio
Annual
Volume
Current
Fee Full Cost Current
Recovery Annual Cost Annual
Revenue
Annual
Subsidy
Recovery
Level
Recommended
Fee
Annual
Revenue2
Increased
Revenue
1 Tobacco Retail License - Initial New Fee 96 -$ 2,998$ 0% 287,833$ -$ 287,833$ 100% 2,998.26$ 287,833$ 287,833$ 2 Tobacco Retail License - Renewal New Fee 96 -$ 543$ 0% 52,105$ -$ 52,105$ 100% 542.76$ 52,105$ 52,105$ 3 Tobacco Retail License - Annual Inspection New Fee 96 -$ 1,141$ 0% 109,517$ -$ 109,517$ 100% 1,141$ 109,517$ 109,517$ Total User Fees $449,455 $0 $449,455 $449,455 $449,455
% of Full Cost 0% 100% 100% 0%
Per Unit Annual Per Unit Annual
Current Recommendations

Thank you

CONSIDER

AMENDMENTS

RELATING TO

EXEMPTION FROM

DENSITY AND

LOCATION

REQUIREMENTS
12/30/2024 City Attorney’s Office

EXEMPTION FROM DENSITY AND LOCATION

REQUIREMENTS - CONFORMING CHANGE
Council request for additional discussion and possible
amendment to the TRL Ordinance relating to Section

5.10.050 H. relating to Existing Retailer Exemptions.

OPTION
Amend 5.10.050 H. 2. to add clarifying language and
conform timelines across the ordinance.

The tobacco retail store is not closed for business or has not otherwise suspended tobacco retailing for more than 60 90 consecutive days; however, such tobacco retailer may receive or renew a license, provided such retailer complies with the location and separation requirements set forth in Sections 5.10.050 (D) through (F) above.

EXEMPTION FROM DENSITY AND

LOCATION REQUIREMENTS - TRANSFER
OPTION 1
Allow Grandfathered Location and Density Exemptions to
Remain Forever if Business is Transferred
ACTION IF OPTION 1 DESIRED: Delete Section 5.10.050.H.3(a)

EXEMPTION FROM DENSITY AND

LOCATION REQUIREMENTS - TRANSFER
OPTION 2
Extend or Shorten the Exemption Period for Transfers of the Business
ACTION IF OPTION 2 DESIRED: Change the Date in Section

5.10.050.H.3 (a):

EXEMPTION FROM DENSITY AND

LOCATION REQUIREMENTS - LOCATION
OPTION 1
Allow both existing and future retailers to move to a new location regardless of where the new location is.

ACTION IF OPTION 1 DESIRED: Delete H. 5.10.050 H. 3.(b):

3.b. To a new location; or

EXEMPTION FROM DENSITY AND

LOCATION REQUIREMENTS - LOCATION
OPTION 2
Allow both existing and future retailers to move to a new location only if the new location is compliant with the separation requirements.

ACTION IF OPTION 2 DESIRED: Amend H. 5.10.050 H. 3.(b):
b. To a new location that does not comply with the
location requirements of Section 5.10.050 (D), (E), and/or (F); or

EXEMPTION FROM DENSITY AND

LOCATION REQUIREMENTS - VIOLATIONS
OPTION 1
Amend Language Regarding # of Violations Permitted before Loss of Exempt Status for Internal Consistency
ACTION IF OPTION 1 DESIRED: Revise Section 5.10.050.H.3(c) to read:

3. The tobacco retailer does not substantially change the business operation. A substantial change to the business operation includes, but is not limited to, the transferring of a business:
c. A substantial change in the business operations also includes a circumstance in which the location or Tobacco Retailer License holder has received 3 _____ or more violations of this chapter within any 5-year time period.

EXEMPTION FROM DENSITY AND

LOCATION REQUIREMENTS - VIOLATIONS
OPTION 2
Allow Retailer to Retain Exempt Status despite Violations, letting the penalty provisions of the ordinance control.

ACTION IF OPTION 2 DESIRED: Delete Section 5.10.050.H.3(c):

3. The tobacco retailer does not substantially change
the business operation. A substantial change to the business operation includes, but is not limited to, the transferring of a business:
c. Where the location or Tobacco Retailer License
holder has committed 3 or more violations of this chapter within a 1-year time period.

QUESTIONS?

Vallejo City CouncilDecember 30, 2024

Vallejo City Council
December 30, 2024