Vallejo’s City Council voted to provide notice of intent to amend the FY25‑26 budget to allocate $642,860.94 in opioid‑litigation settlement funds toward the Broadway permanent supportive housing project, a 47‑unit studio complex at 2441 Broadway. Council also voted to direct staff to hold a special council meeting before the next regular session so the second step of the budget amendment — appropriation and approval of the related agreements — can be completed without a month‑long delay.

Scope and uses: staff said the opioid funds would pay for items tied to move‑in and operational start‑up: furniture and window coverings, laundry machines and related equipment, security cameras and phone lines for emergency systems, a limited period of 24‑hour security required by settlement conditions, insurance and up‑staffing costs during lease‑up, and a small construction gap and short operational bridge until project‑based vouchers are activated. Assistant to the city manager Madeline Peterson presented an itemized breakdown and noted some equipment and services remain being solicited as donations; if donations reduce costs, the unspent opioid dollars would remain in the city’s opioid fund for future allocation.

Funding timing questions and public comments: members of the public and some council members raised concerns that supporting attachments were not available in the initial packet and that certain grants (county ARPA, HCD IIG) release funds only after construction milestones such as Temporary Certificate of Occupancy (TCO). A public speaker said required attachments were posted only the afternoon of the meeting. Staff confirmed they had initiated the two‑step appropriation earlier in June but needed to restart step‑1 because the item could not be finalized in the prior fiscal year; they advised that some reimbursements can be made on a look‑back basis once required HCD checklist items are submitted.

Council direction and amendments: Councilmembers urged staff to avoid routing any of the opioid dollars to developer fees. The council accepted a friendly amendment — added in the motion — that developer fees for the project not be paid from this allocation. Several councilmembers pressed for a special meeting date to avoid delaying move‑ins further; council instructed staff to try to set a special meeting (a tentative date discussed was Tuesday the 12th) and approved the notice of intent to amend the budget. The motion as amended carried with Mayor Sours opposing and the vice mayor absent.

Why it matters: Broadway is framed as immediate housing capacity for people who are unhoused and includes wraparound services; the payment source (opioid‑litigation funds) carries eligibility requirements and public scrutiny over allowable uses. Council members who spoke said they wanted clearer attachments, stronger reporting on the project’s move‑in timeline, and assurance that city direction provided earlier (no payment of certain developer fees) remained in effect.

Next steps: staff will return for final budget amendment and contract execution at a specially scheduled council meeting before the next regular meeting; staff also will pursue HCD reimbursement checklist submittals and continue outreach to potential donors for furniture and other move‑in needs.