The Vallejo City Council approved a funding transfer of $228,399 on Tuesday to facilitate the transition of the Broadway Project homeless facility from its operator, Shelter, Inc., to the developer, Firm Foundation Community Housing. The decision came with a new target date for the facility’s opening, aiming for 100 percent occupancy by December 31, 2025.
Assistant City Manager Gillian Haen informed the council that the facility, which was originally scheduled to open in 2023, has faced multiple delays, with projections shifting from 2024 to the first quarter of 2025, then to October 2025, and most recently to the first week of November 2025. The ongoing delays are costing the city approximately $18,000 per week, significantly impacting the city’s budget.
The project’s initial budget was set at $9 million, but it has now escalated to $27 million due to cost overruns. The funds being transferred are part of the opioid litigation funding, which Vallejo has received from various legal settlements related to the opioid crisis. As of August 2023, the city has received $1,293,818.94 from these settlements, as detailed in a staff report presented to the council.
During the public comment session, resident William Baker emphasized the necessity of the funding transfer, stating, “Go ahead, approve this change in budgets. You have to. The money has already been spent.” He also suggested that the city should hire a housing development officer to mitigate future issues.
The council voted 6-1 in favor of the budget transfer, with Mayor Andrea Sorce casting the sole dissenting vote. The funding will cover costs associated with holding the building until tenants can move in, and it will not impose additional costs on the city budget.
The Broadway Project is a 47-unit supportive housing facility located in north Vallejo. In her report, Natalie Peterson, assistant to the city manager, indicated that 18 individuals have been deemed “move-in ready,” with 51 packets currently undergoing verification processes, including background checks. Peterson previously reported that 30 participants were document-ready and awaiting referrals.
The timeline for moving residents into the facility has been affected by a leak in the manager’s unit, which was first reported on October 28, 2023. Peterson noted that the repair timeline extends through the end of the year and stated the intention to begin move-ins in early November, contingent upon resolving insurance matters.
Additionally, Peterson highlighted that while the city aims for a goal of 100 percent occupancy by the end of the year, a compliance requirement from the California Department of Housing and Community Development (HCD) mandates that 90 percent occupancy be achieved.
The council had anticipated a ribbon-cutting ceremony for the facility in October, which was to occur after the initial move-ins, but that event has yet to be announced. The ongoing efforts to manage the project reflect the city’s commitment to addressing homelessness and providing necessary support services.
As the situation develops, further updates are expected, including detailed coverage from local news sources.
