Six State Properties Identified for Low-Income Housing

Sacramento – The California Department of General Services (DGS) and the California Department of Housing and Community Development (HCD) announced Monday they have identified six state properties suitable for low income housing and they may make them available for development in as soon four months.

The effort is part of Governor Gavin Newsom’s effort to spur housing development under the Excess Land for Affordable Housing Executive Order N-06-19. Under the order, the two departments are identifying and prioritizing excess state-owned properties for sustainable, innovative and cost-effective housing projects.

The sites announced Monday include former armories, a California Highway Patrol office, a former CAL FIRE office, and a buffer zone near San Quentin prison.  Developers will be encouraged to submit proposals for one or all six of the sites.  Together, the effort could result in more than 1,000 new housing units for low-income Californians.

“Obviously, the demand for affordable homes is there, but finding land that’s both affordable and located near the things people need in their everyday lives can be challenging,” said HCD Director Gustavo Velasquez. “The immediate response from developers interested in these state-owned properties shows this is an effective way to jumpstart affordable housing production, and our team at HCD is proud to be part of this effort.”

Monday’s announcement comes as the state moves forward developing housing in partnership with local governments at four sites in South Lake Tahoe and San Francisco.

The state has received five proposals from developers for the state’s housing project in South Lake Tahoe, located at 1860 Lake Tahoe Boulevard and 1029 Tata Lane, reflecting significant interest from the development community to address the housing shortage in the Lake Tahoe Basin. This solicitation has been a collaboration between the state, the City of South Lake Tahoe, and the Tahoe Regional Planning Agency. An award to develop the property is expected in July 2020.

In addition, in partnership with the City of San Francisco, the state has begun work on the development of state-owned properties located at 700 Golden Gate Street and 850 Turk Street. A solicitation for developer interest was issued on April 30, and DGS received four responses.

“California is proud to lead this effort to address a critical housing shortage using innovative strategies that will speed development,” said DGS Director Daniel Kim.  “At a time when housing is more vital than ever, this initiative will result in the creation of hundreds of units of affordable housing across the state, not to mention hundreds of jobs and unique business opportunities.”

Following the Governor’s Executive Order in January 2019, excess state properties were identified in an interactive map released by DGS and screened to determine potentially suitability for affordable housing development. Developing entities will receive a long-term ground lease from the state and will build, own and manage the housing they develop, subject to oversight from the state.

Developers interested in learning more and potentially submitting proposals for development are invited to review the Request for Qualifications, which is available at: https://www.dgs.ca.gov/RESD/Projects/Page-Content/Projects-List-Folder/Executive-Order-N-06-19-Affordable-Housing-Development.