Inclusionary Housing & Commercial Linkage

As part of Vallejo’s commitment to expanding housing opportunities and promoting equitable development, the City is undertaking two complementary studies to support the production of affordable housing.

Inclusionary Housing and In-Lieu Fee Feasibility Study: This study will evaluate the feasibility of adopting an Inclusionary Housing Ordinance that would require a portion of new residential development to be set aside as affordable units. It will analyze local market conditions, development economics, and policy alternatives — including potential in-lieu fee options — to determine inclusionary requirements and fee structures that balance affordable housing goals with project feasibility.

Commercial Linkage Fee Nexus Study: This study will examine the relationship between new commercial development and the demand for affordable housing in Vallejo. By analyzing employment generation, wage levels, and the housing needs associated with commercial growth, the study will establish a legally defensible fee structure to ensure that economic development contributes to the City’s affordable housing goals.

Resources

 

PROJECT STATUS

The City contracted with Economic & Planning Systems (EPS) to prepare the Inclusionary Housing and Commercial Linkage Fee studies. EPS completed the studies in June 2025 and presented the results at joint Planning Commission and City Council study sessions on July 7, 2025, and November 24, 2025. The studies concluded that the development prototypes analyzed are not currently financially feasible, even prior to the application of affordability requirements or additional impact fees. At the November 24, 2025 joint meeting, the Planning Commission and City Council directed staff to proceed with drafting ordinances to establish inclusionary housing requirements and a commercial linkage fee. On December 22, 2025, and January 15, 2026, staff met with the City Attorney’s Office to review inclusionary housing regulations from other jurisdictions and begin developing policy options for future consideration by the Planning Commission and City Council. Staff is scheduling a final meeting with the City Attorney's Office to complete the draft policy options.

Staff Contact
Hector Rojas, Long Range Planning Manager
(707) 553-7283
[email protected]

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