The sight of empty storefronts and dormant commercial properties has become an all-too-common feature in urban landscapes, often signaling economic distress and contributing to community decline. In an effort to reverse this trend, the City of Citrus Heights is implementing a novel strategy designed to confront the issue head-on. The city’s new Commercial Property Reoccupancy Ordinance introduces a system of fees and incentives aimed at motivating property owners to either maintain their vacant buildings to a high standard or actively seek new tenants. This legislative tool represents a calculated shift from reactive code enforcement to a proactive framework intended to prevent blight, enhance public safety, and ultimately restore economic vibrancy to the city’s key commercial corridors, setting a potential precedent for other municipalities facing similar challenges.
A Proactive, Not Punitive, Approach
Incentivizing Good Stewardship
The core philosophy of the Citrus Heights ordinance is built on encouraging responsible property ownership rather than simply penalizing neglect. A central provision offers a complete waiver of all annual fees for owners who voluntarily register their vacant properties within a 60-day grace period and consistently meet the city’s minimum standards for safety, security, and appearance. This grace period, which was extended from an initial 30-day proposal following stakeholder feedback, signals the city’s willingness to collaborate with property owners who demonstrate good faith. The incentive structure is designed to reward proactive engagement and responsible management, framing the ordinance as a partnership for community improvement. By offering a clear financial benefit for compliance, the city aims to foster a culture of stewardship among commercial property holders, making it more economically advantageous to maintain a property than to let it fall into disrepair.
Further reinforcing this cooperative approach, the program includes provisions that reward successful reoccupation efforts. Owners who manage to secure a new tenant for a previously vacant property within one year are eligible for partial credits on their monitoring fees. This measure directly ties financial incentives to the ultimate goal of the ordinance: reducing commercial vacancy rates. This system contrasts sharply with more punitive models that focus solely on levying fines without offering a clear path back to productive use. The multifaceted incentive program is intended to address the root causes of vacancy by altering the financial calculations for property owners. It creates a compelling business case for investing in property upkeep and actively marketing empty spaces, aligning the private interests of landlords with the public’s interest in a thriving, safe, and aesthetically pleasing commercial environment.
Establishing a Financial Backstop
For properties that do not qualify for the incentive-based waivers, the ordinance establishes a straightforward, two-tiered annual fee structure designed to cover the city’s costs for administration and monitoring. Owners of parcels that are one acre or smaller will be subject to a total annual cost of $2,220, which is composed of a $1,092 registration fee and a $1,128 monitoring fee. For larger properties that exceed one acre, the total annual fee increases significantly to $6,600. This tiered system ensures that the financial responsibility is scaled relative to the property’s size and potential impact on the surrounding area. However, the program maintains a degree of flexibility, allowing owners to request a reduction in monitoring fees if they can demonstrate that their properties have remained in good condition, have not generated nuisance activity, and have not required significant responses from code enforcement or public safety officials.
The ordinance also includes carefully defined exemptions to ensure that it targets only problematic, long-term vacant properties. Buildings that are undergoing active construction with valid permits and are showing diligent progress toward completion are exempt from the fees. This clause prevents the penalization of owners who are actively investing in and improving their properties. Additionally, the ordinance exempts partially vacant office buildings, provided they maintain at least 50 percent occupancy and are free of recent code violations. This specific provision protects landlords of larger commercial complexes who may be struggling with partial vacancies but are otherwise actively managing their properties and contributing to the local economy. These targeted exemptions underscore the city’s intent to focus its resources on addressing chronic neglect rather than creating obstacles for legitimate business and development activities.
Defining Responsible Ownership
Clear Mandates for Maintenance and Security
The ordinance sets forth specific and detailed operational requirements that clearly define the city’s expectations for the management of vacant commercial properties. Owners of registered buildings are required to provide the city with up-to-date contact information for a responsible manager, submit proof of current liability insurance, and confirm the presence of an active security monitoring system. These foundational measures are designed to ensure that the city can quickly reach a responsible party in case of an emergency and that the properties are adequately protected against financial liability. The maintenance standards are equally explicit, mandating that properties must be kept free of trash, debris, and graffiti. All buildings must be securely boarded or otherwise protected to prevent unauthorized access, and clear contact information for the owner or property manager must be visibly posted on-site for public and official reference.
A critical component of the new regulations is a stringent security mandate intended to prevent the type of interior damage that can render a building unusable, as was the case with a former local restaurant. Any registered vacant property that lacks a functional, modern fire and burglar alarm system must employ continuous, on-site physical monitoring provided by a licensed security service. This requirement places the onus on the property owner to prevent trespassing, vandalism, and other illicit activities that frequently occur in abandoned structures. To ensure these standards are met, the city will conduct ongoing inspections of all registered properties. Persistent violations will trigger enforcement actions, escalating from notices to potential administrative penalties, thereby creating a robust system of oversight and accountability to compel compliance and safeguard community welfare.
A Carefully Crafted Policy
The unanimous approval of the ordinance by the Citrus Heights City Council on its first reading on January 28, 2026, was the culmination of a deliberate and collaborative development process. Over a period of approximately six months, the proposed legislation underwent three significant revisions, each one shaped by extensive feedback gathered from a diverse group of community stakeholders. City staff actively engaged with the Sunrise MarketPlace business improvement district, the Citrus Heights Chamber of Commerce, and numerous local property and business owners to refine the policy’s details. This iterative approach ensured that the final draft reflected the practical concerns of the business community while still achieving the city’s primary objectives of reducing blight and improving public safety. The city’s commitment to this inclusive process was a key factor in building the consensus needed for the council’s unified support.
To ensure the ordinance was both effective and legally sound, city staff conducted thorough research into similar programs implemented in other jurisdictions. By examining the ordinances and implementation strategies of at least five other cities, they were able to identify best practices and avoid common pitfalls. This comparative analysis informed the development of a robust framework that balanced incentives, fees, and clear standards for property maintenance. The result is a policy that is not a theoretical exercise but is grounded in the practical experiences of other municipalities that have faced similar challenges with commercial vacancy. This foundation of research and extensive local outreach has produced a carefully tailored ordinance that is positioned to be a sustainable and effective tool for community revitalization in Citrus Heights.
Challenges on the Horizon
The Unresponsive Owner Problem
Despite the strong support from the city council and the careful planning by city staff, officials acknowledge that the implementation phase will present significant challenges. One of the most daunting hurdles is dealing with property owners who are absent, unidentifiable, or simply unresponsive. Councilmember Schaefer, while commending the staff’s outreach efforts in late 2025, noted that the execution of the ordinance will require “a lot of work,” particularly when it comes to tracking down and compelling compliance from neglectful landlords. This concern is not merely speculative; it is based on the city’s direct experience during the ordinance’s development. The initial attempt to inform property owners of the proposed changes highlighted the scale of the communication challenge that lies ahead.
The city’s outreach campaign starkly illustrated the difficulty of engaging this target group. Over 400 letters were sent to the last known addresses of commercial property owners, yet the response was minimal. Only three owners replied to the city’s correspondence, and more than 20 letters were returned as undeliverable, indicating outdated or incorrect contact information. Councilmember Jayna Karpinski-Costa expressed that this extremely low response rate “really bothers me,” as it suggests a profound disconnect between a segment of property owners and their responsibilities to the community. Of the three owners who did respond, Economic Development and Community Engagement Director Meghan Huber reported that only one voiced support for the ordinance, further underscoring the potential for resistance or indifference during the implementation phase.
A Phased and Measured Rollout
The ordinance was not designed to take immediate effect following its initial approval. Instead, the city was set to enter a carefully planned implementation phase projected to last several months. During this preparatory period, city staff were tasked with establishing the internal procedures and systems necessary for the program’s success. This included developing a robust system for tracking registered properties, creating a mechanism for fee collection and processing, and finalizing the protocols for conducting inspections and enforcing compliance. This phase also involved conducting further outreach to ensure that all affected property owners and other stakeholders were fully informed of their new obligations and the resources available to them. This deliberate, phased approach was intended to ensure a smooth and orderly rollout, minimizing confusion and administrative friction once the program was officially launched.
The city built in a long-term review process to monitor the ordinance’s effectiveness and make any necessary adjustments. Six months after the program was officially launched, city staff were scheduled to return to the City Council to provide a comprehensive report on its progress, detailing data on registrations, compliance rates, and any challenges encountered. The final step for the ordinance to become law was a successful second reading and final approval by the City Council at a future meeting. This structure ensured ongoing oversight and public accountability. By proceeding with a measured and data-driven implementation, the city aimed to maximize the program’s potential for revitalizing its vacant commercial buildings while remaining responsive to the realities of its execution.
