State Announces Award of Downtown San Diego Affordable Housing Site
Two blocks of excess state property in Downtown San Diego to be transformed into affordable housing as one of the largest projects in the program to date.
SACRAMENTO—The California Department of General Services (DGS) and the California Department of Housing and Community Development (HCD) announced today that they have awarded a significant excess state property to be transformed into affordable housing.
As part of Governor Gavin Newsom’s effort to spur housing development under the Excess Land for Affordable Housing Executive Order N-06-19, The Michaels Organization will be partnering with the state to transform two blocks in Downtown San Diego to build a sustainable, innovative, and cost-effective housing project.
“This redevelopment project is a testament to what can be accomplished when the state and local governments work together to advance sorely needed housing,” said Ana Lasso, Director of DGS. “We expect this project to also embody the sort of shift from office to residential that thoughtful downtown development can achieve.”
The project is expected to be mixed-use, with office space, retail, and other commercial uses supporting the housing. The project will focus on affordable housing and will also include market-rate units. The state, the city, and the developer will spend the next few months developing the project concept.
Bordered by West Ash to the North, West A to the South, State Street to the West, and Front Street to the East, the property also contains an excess state office building located at 1350 Front Street, which is expected to be demolished to make way for the housing project.
“We are pleased to announce this milestone in partnership with the City of San Diego and DGS. Working to meet the state’s need of 2.5 million new housing units by 2030 requires commitment, creativity, and collaboration at every level of government and community,” said Gustavo Velasquez, Director of the Department of Housing and Community Development. “As we look to making the highest and best use of public lands, we must center affordable housing and climate solutions and this project does just that.”
DGS, in partnership with HCD and the City of San Diego, issued a Request for Qualifications in November of 2021 for the project.
“The City of San Diego has been proud to be a partner in selecting a developer to transform these two underused blocks of state property and create homes for San Diegans,” said San Diego Mayor Todd Gloria, who authored Assembly Bill 1164, a 2019 law to promote the use of these properties for housing. “Turning these blocks into hundreds of affordable homes as quickly as possible will help address our housing crisis and revitalize a part of our urban core that, frankly, has seen better days. I’m grateful to Governor Gavin Newsom for his commitment to using state property to improve San Diego and look forward to working with the state and the Michaels Organization to finalize and build this fantastic project.”
Developers interested in learning more and submitting proposals for development are invited to review the Request for Qualifications.
The Department of General Services acts as the business manager for the state of California. DGS helps state government better serve the public by providing services to state agencies including procurement and acquisition solutions, real estate management, leasing and design services, environmentally friendly transportation, and architectural oversight and funding for the construction of safe schools.
The California Department of Housing and Community Development is dedicated to the preservation and expansion of safe and affordable housing, so more Californians have a place to call home. Our team works to ensure an adequate supply of housing for Californians and promotes the growth of strong communities through its leadership, policy and program development. For more information, please visit www.hcd.ca.gov and follow us on Twitter, @California_HCD; Facebook, @CaliforniaHCD; and LinkedIn.