Redevelopment was a process created by the State of California to assist city government in eliminating blight from a designated area and to achieve desired development, reconstruction, and rehabilitation. Redevelopment included, but was not limited to: residential, commercial, industrial, and retail development and was accomplished through capture of property tax increases from new development within the two redevelopment areas in Vacaville. Additionally, twenty percent of all property tax amounts collected were required to be used for creating, improving, or preserving affordable housing.

Since the creation of the redevelopment areas in 1982 and 1983, the Vacaville Redevelopment Agency was able to breathe new life into deteriorated areas plagued by social, physical, environmental, and/or economic conditions that were barriers to new investment. Redevelopment projects brought jobs, homebuyers as well as increased property and sales tax revenues to Vacaville which in turn improved the community’s quality of life. Key projects included:

• Revitalization of the Downtown
• Town Square Library and Senior Center
• Basic Food Site Development
• Genentech
• Nut Tree Shopping Center
• Ulatis Cultural Center
• Police Building
• Infrastructure improvements: overpasses, street widening, and sewer and water line upgrades

Twenty percent of the property tax revenue collected and required for creating, improving, or preserving affordable housing provided loans to non-profit developers for acquisition and rehabilitation of 592 affordable housing units and for new construction of 679 affordable housing units. 53 loans were provided to private owner investors and low-income households for rehabilitation of 375 units. In addition, these funds provided loans to assist 901 households in purchasing their first home. Examples of affordable housing projects in Vacaville include:

• Vacaville Senior Manor
• Opportunity House Homeless Facility 
• Lincoln Corner
• Saratoga Senior
• Habitat for Humanity

Assembly Bill 1x26 (AB1x26), effective June 28, 2011, dissolved all redevelopment agencies in California and provided a process for all existing redevelopment business to be terminated. A lawsuit was filed to litigate the constitutionality of this legislation which delayed the dissolution date. However, on December 29, 2011, the California Supreme Court upheld AB1x26 and mandated the dissolution of redevelopment agencies effective February 1, 2012. A Successor Agency was created to wind down Vacaville Redevelopment Agency affairs and a Successor Housing Agency became responsible for all Vacaville Redevelopment Agency affordable housing assets and functions.