Frequently Asked Questions for the Excess Sites Program

A: The Governor issued an executive order (EO-N-06-19) to identify and prioritize excess state-owned property for affordable housing development. Pursuant to Government Code 14671.2 DGS has authority to enter into long term ground leases with developers of qualifying projects at a low cost. In exchange, affordability covenants are attached to the housing project for the term of the lease.

A: After releasing several sites on an individual basis, it was determined that it would be more efficient to release all identified sites in one release. Developers may now submit more than one proposal.

A: No. The Developer Interest Portal requires that you identify the site for which you are submitting a proposal.

A: The website will be updated to communicate that at least one viable project has been received. Developers must monitor the website and map to check updated status of each site.

A: No, you must enter your information in the portal.

A: There is no “pre-registration” required to submit a proposal, please review the Submission Guidelines to submit a proposal via the Developer Interest Submission Portal. The portal will require submitters to input basic information about the interested party before the application materials become visible. For general updates to the programs, please subscribe to the Housing Policy and Planning Email List from HCD if you have not already done so.

A: Yes.

A: Yes, you must submit a complete package for each site.

A: There is no due date, however, the state may, at the state’s option, notify those that have started a proposal that at least one complete proposal has been submitted and the state may, at that time, post a deadline for that site on the website.

A: The selected developer will be notified if their proposal was accepted. All others must monitor the website for a change in status. If a site was awarded to a developer, the website will be updated.

A: The state reserves the right to request in-person or virtual interviews with respondents dependent upon the competitiveness amongst proposals, internal staffing resources, and other factors. However, in some cases the state may make an award without interviews.

A: No, there is no fee to apply and no deposit is required to enter into a Lease Option Agreement.

A: Yes, there are some reports on some sites, however, the reports are older in most cases. Developers are responsible for providing any updated reports needed to determine project feasibility. There is a hyperlink to reports available under “site documents” column in the map.

A: If a historic evaluation was completed, the report will be hyperlinked in the map, under the “site documents” column on site-specific listings. In some cases, the state Historic Preservation Officer has provided additional information regarding the historic evaluation..

PLEASE NOTE THAT IN SOME CASES, THE HISTORIC EVALUATION MAY BE FOR A LARGER PARCEL THAT INCLUDES THE PORTION OF THE PROPERTY FOR A PROPOSED AFFORDABLE HOUSING PROJECT.

Please be aware that the identified parcels and preliminary housing suitability determinations reflect a point-in-time analysis and are subject to change; the state expects sites to be added to the map periodically through additional screening and coordination with departments and local agencies.

There is no guarantee that housing will be developed on any particular site. The sites were not originally acquired or used for housing purposes. The sites are under the control of various state departments and will, in most circumstances, eventually transfer to HCD prior to execution of ground lease, to hold for housing uses.

A: No, but please refer to the scoring criteria and the minimum affordability requirements included in Government Code (GC) 14671.2. A reference to the Health and Safety Code that includes the definition of low income and very low incomes by county.

A: Yes, pursuant to Government Code 14671.2, at least 20% of all units must be affordable to Lower Income households, defined in Section 50079.5 of the Health and Safety Code (80% AMI and below) of which at least 10% of all units affordable to Very Low Income, defined in Section 50105 of the Health and Safety Code (50% AMI)

A: No. It is currently not the intent of the state to require specific development programs for specific sites. However, the state reserves the right to change its requirements as it deems necessary & prudent and if there is a population requirement, it would be posted on the site-specific listing on the website.

A: References are not required to be submitted; however, respondents should be able to provide references upon request for the both the lead respondent and other project team members (e.g. architect, engineers, general contractors, etc.)

A: Yes, but one entity must be the “Lead Respondent.”

A: Yes.

A: No draft or executed MOU or other formal documentation is not required at the time of proposal submission, however in all cases the roles & responsibilities of the individual development partners should be clearly described in the submission.

However, for joint ventures involving Emerging Developers, an executed preliminary MOU between the Emerging Developer and co-respondent must be submitted as part of the initial proposal in order to be considered for Emerging Developer bonus points. Please consult the Excess Sites Framework for further details.

A: Respondents are welcome to independently assess sites from publicly accessible vantage points. No authorization to physically enter a site will be given until after a developer is selected and a Right of Entry is signed by the developer and the state.

A: Sites are delivered “as-is”. It is not necessary to verify utility capacity or delivery routes prior to submitting a proposal. Developers are responsible for obtaining “will serve” letters from utility providers during the Lease Option period. The presence of existing state buildings is not an assurance of utility capacity. Developers shall pay all fees for obtaining “will serve” letters. Pursuant to recently enacted legislation, these fees may not be due until completion of the project, but physical improvements costs are not typically deferred.

A: It is not necessary to provide an analysis of off-site easements needed to submit a proposal. However, the state has no jurisdiction outside of the state’s property and therefore, any easement needed for utilities or access will be the responsibility of the selected developer. The state does not represent that access is guaranteed for state owned sites. Moreover, access must meet applicable fire and life safety requirements. During the lease option period, the selected developer must negotiate off-site easements with the appropriate party, but the easements are not entered into, until after the ground lease is signed.

A: The state will write all on-site easements for utilities and access.

A: Yes, developers are free to conduct their own independent due diligence prior to submitting a proposal, but it is not scored, and it is not required. While it is not necessary, it is encouraged to discuss your proposal with the appropriate local agencies. For example, checking with local housing funding organizations about the availability of capital or operating subsidy, or confirming preliminary access or utility plans with the relevant Authorities Having Jurisdiction. Please note that due to state sovereignty, local zoning does not apply. Conversations with planning departments should not include zoning, local ordinances, architectural review, etc.

A: No, there are no set-asides for state owned sites in any state funding program. However, many HCD financing programs prioritize State Excess Sites in scoring. A past dedicated source of funding, the Local Government Matching Grant (LGMG) Program, is not available for the new sites.

A: No. As the sites are owned by the state, State Sovereignty applies. Local zoning does not apply, the sites are not limited to zoning and/or density bonus. There is no maximum or minimum unit count. There is no local architectural design approval.

A: There is no density limit imposed by the state; however, respondents should consider financial feasibility, constructability, etc. when formulating the density & scale of their proposal.

A: Due to State Sovereignty local impact fees are not applicable. However, because all projects impact local schools, transportation and other systems awarded developers typically pay these fees, or work with the local agency to pay a reduced or deferred fee.

A: DGS is the Lead Agency for CEQA. The developer is responsible for submitting the CEQA strategy (type of environmental process) to DGS for DGS’s review and approval.

If federal funding is anticipated, developer shall also comply with the National Environmental Protection Act (NEPA). DGS is not the lead agency for NEPA. Refer to the appropriate Responsible Entity for guidance on NEPA.

A: Not necessarily, however, most developers have hired consultants in the past. If a developer has qualified environmental staffing, that is acceptable. The developer is responsible for submitting the proposed CEQA path to DGS at the developers cost. DGS retains final authority over determining the level of CEQA review necessary. CEQA clearance is done during the Lease Option period, prior to executing a ground lease.

1. Steps to clear CEQA include, but are not limited to the following:
1. Site review: developers’ environmental staff or environmental consultant(s) must make a physical inspection of the site.
2. The developer shall make the determination of the level of review required based on state environmental laws and submit the justification for same to the Department of General Services (DGS), Environmental Services Section (ESS).
3. If SB 423 or AB 1449 are considered, the developer shall submit documentation of requirements to support a Notice of Exemption or other applicable determination. See the AB 1449 checklist under “Documents”

A: Such a determination shall be provided by the DGS Environmental Services Section.

A: The state understands that projects may need to be altered from the original proposal based on advancing design, due diligence, and financial feasibility. However, all significant changes from the original proposal must be approved by the state. The state reserves the right to terminate an award if parties are not able to reach resolution on a change to the proposal. See Lease Option Agreement (LOA) Template for more details.

A: To exercise the Lease Option and advance to the ground lease process, developers must submit 100% of all approved financing commitments. No ground lease will be entered into unless all financing has been obtained and confirmed by HCD.

A: The program was designed to facility local building authorities taking in building plans, but the official authority to construct is always issued by the Department of General Services. In some cases, local building officials lack capacity and building plans may be submitted to DGS. It is the state’s desire for developers to work with the local fire marshal even if the plans are submitted to DGS.

A: No.

A: No, the DSA is not generally involved in Excess Sites projects, unless the project includes the rebuilding of a state facility on the same site. As of the February 2025 release of twenty-three (23) sites, there are no such plans. This is subject to change if a site is later identified as such.

A: Yes. Commercial development, including retail is allowed under Government Code 14671.2, but the commercial uses must further the affordability aspect of the project and must be included in the developer’s proposal and must be approved by the state. Commercial components approved by the state on past Excess Sites projects include, but are not limited to, small-scale retail, childcare centers, community-serving spaces. To be clear, community rooms that are not rented out and serve the tenants are not considered commercial uses.

A: Yes. When a state agency offers land at below market rate, the project is considered a public works project and is therefore prevailing wages for the construction of the project apply.

A: No, the state has not prescribed any population for any site. Developers should understand the needs in the area served as well as funding opportunities for specific populations.

A: No.

A: The term “property tax” does not exist for state land. Possessory Interest taxes may be assessed by the county assessor. There are exemptions for low-income housing units. DGS does not approve welfare tax exemptions for low-income housing units. Please review to the California Board of Equalization regulations and guidelines for welfare tax exemptions and please note that developers must comply with county regulations for initial filings and annual renewals.

A: No.

A: No, the state does not impose parking minimums or bicycle storage. However, the state must be notified, and the state must approve changes from the awarded developer’s initial proposal.

A: Minimum accessibility requirements are established by the California Building Code. The Excess Sites program seeks to maximize access in balance with other objectives.

A: No.

A: The submission guidelines are located on HCD’s website at: Public Lands for Affordable Housing Development page.

A: To allow time for developers to orient to the new program guidelines and scoring framework, DGS and HCD will not begin to review submissions until June 9, 2025 and on a rolling basis thereafter.

A: No. The developer is expected to pay costs related to due diligence, including but not limited to surveys, title reports, environmental reports etc. The state will supply any reports that are on file, The state makes no representation as to the accuracy of reports supplied by third parties. Additionally, developers are responsible for all other costs, including but not limited to financing applications, architectural and building plans, and life safety site plans and approvals, utilities, etc.

A: The identified sites are those that have been declared excess by state departments and deemed potentially suitable for housing at this time based on land feasibility and financing competitiveness factors. Sites may contain easements, environmental issues, or other issues that are not known at time of publication. Developers are responsible for their own due diligence, including but not limited to the availability of utilities, adequate fire and life safety access, buildable area. Please be aware that the identified parcels and preliminary housing suitability determinations reflect a point-in-time analysis and are subject to change; the state expects sites to be added to the map periodically through additional screening and coordination with departments and local agencies. There is no guarantee that housing will be developed on any particular site. The sites were not originally acquired or used for housing purposes. The sites are under the control of various state departments and will, in most circumstances, eventually transfer to HCD prior to execution of ground lease, to hold for housing uses.

A: The identified sites are those that have been declared excess by state departments and deemed potentially suitable for housing at this time based on land feasibility and financing competitiveness factors. However, developers are responsible for their own due diligence, including but not limited to the availability of utilities, adequate fire and life safety access, buildable area, etc.

A: The term surplus lands is also used by local governments who fall under the Surplus Land Act, which is not a part of this program. When a state agency deems a state-owned site excess to their needs, HCD scores the site to determine if it is suitable for housing. If it is deemed suitable for housing, it is placed in the Excess Sites program. If the site is not suitable for housing, DGS then follows the state surplus sale process.

A: Expanding beyond major cities can be a strategic opportunity for developers, considering California’s diverse housing needs. With the Excess Sites program offering sites statewide, developers can submit proposals where they believe their expertise and goals align best. We encourage developers to research market demand, build local partnerships, and leverage available incentives.

A: The State is unable to disclose developer proposal submission information to the general public. We will begin to review submissions on June 9, 2025.

A: The “45 days” process starts the clock after the State receives at least one proposal that is complete and compliant with Government Code (GC) 14671.2 and meets the minimum scoring requirements. After 45 days has passed, the State may either issue a notice of selection based on an acceptable proposal or set a new submission deadline for that specific site.

A: As stated in the Submission Guidelines – Affordable Housing Proposals, Exhibit 3 a site is not “awarded” until the State and Respondent execute a lease option agreement (LOA) within 60 days of the State making a notice to the Respondent. Developers awarded an excess site must meet several performance milestones as outlined in Exhibit D of the Lease Option Agreement. A sample LOA can be located here Public Lands for Affordable Housing Development | California Department of Housing and Community Development:  The milestones for each LOA will be negotiated individually with the highest scoring Respondent and vary based on a variety of factors regarding site condition, proposed development type, financing conditions, and more.

Required milestones include:

• Submitting an Excess Sites Data Reporting Tool update to HCD within 30 days of award and every six months thereafter.
• Establishing a Limited Partnership or ownership entity for the project.
• Providing will-serve letters for water and sewer or a status report on the timeline for obtaining services, locations of utility connections, and any required easements.
• Submitting a preliminary site plan addressing Fire and Life Safety, ingress/egress, and encroachment permits with the applicable agencies (City, County, or Caltrans).
• Completing and submitting the required CEQA package to DGS Environmental Services Section.
• Filing applicable environmental determinations with the Governor’s Office of Planning and Research (OPR) CEQA Clearinghouse.
• Submitting gap financing applications at various stages.
• Submitting CDLAC and/or CTCAC applications (or other permanent funding sources).
• Submitting final building plans to DGS.
• Receiving approval for an affirmative fair housing marketing plan from HCD.
• Receiving approval for a non-discrimination policy from HCD.
• Providing evidence of financing commitments to HCD and DGS before the end of the LOA term.
• Exercising the option to lease the site within 3. years.
• Closing on construction financing within 3.5 years from the Effective Date or before any public funder deadlines

A:Local agencies should follow Surplus Land Act (SLA) requirements, including notifying HCD before disposition.  Public agencies with excess land can transfer land to the state  for inclusion in the Excess Sites program, at the discretion of the State. Public agencies can replicate the methodology to determine housing feasibility using the methodology in the State Excess Sites – Affordable Housing Opportunities map viewer.

A: According to the Submission Guidelines – Affordable Housing Proposals for the Excess Sites Program: in accordance with the most recently published HCD Multifamily Housing Program (MHP) Guidelines, or as determined by the State at its reasonable discretion, an “Emerging Developer” refers to an entity, which can also be a Tribal Entity, with experience as the developer, owner, or operator of a minimum of one (1) but not more than four (4) Rental Housing Developments with unit types, project sizes, and occupancy comparable to the proposed project. This means that a service provider organization with a development arm can qualify only if it meets the project experience criteria and is not a government-controlled nonprofit.

A: There are performance milestones in the Lease Option Agreement (see above). During the Ground Lease term, the project must be compliant with Government Code 14671.2

A: Addressing both points to the question:

1. Lower submission barriers in the Excess Sites Program create opportunities for all developers by offering developers a low cost chance to compete to enter into long-term, nominal-cost ground leases with the State, reducing land acquisition costs.
2. The Emerging Developer criteria ensure that smaller, newer developers can gain access to State-owned land, experience real estate development firsthand, and build capacity. The program helps grow the number of developers equipped to deliver affordable housing projects, thereby increasing production capacity to meet California’s housing demands.

A: Review the Excess Sites Framework - Objectives, Scoring, Submission Requirements, and Reviewer Guidance Table and the Excel Submission Tool to calculate scoring.  A summary of the maximum possible points by category are provided below.  Please note there are also several non-scored submission items that are required for proposals.

A: Yes, a proposal can include other housing types if they comply with Government Code 14671.2.

A: The state will review resumes and narratives to assess experience for all respondents. However, the state reserves the right to request references as needed. Refer to the Scoring Framework.

A: First, check your internet connectivity, you may also check your organization’s DNS configuration. You may also access the webpage and the map through this link. The webinar is scheduled for March 28, 2025, and no webinar materials are currently available.

A: The state will not be providing one-on-one technical assistance to developers for proposal submissions. However, we encourage you to attend the upcoming public webinar on March 28, 2025, where we will provide comprehensive information on the new program and submission process.

A: Please refer to the Program Materials found on the Excess Sites page under “Excess Sites Program Guidance, Submission Materials, and Resources.”

A: Please refer to the Program Materials found on the Excess Sites page under “Excess Sites Program Guidance, Submission Materials, and Resources.”

A: Please refer to the Program Materials found on the Excess Sites page under “Excess Sites Program Guidance, Submission Materials, and Resources.”

A: Please refer to the Program Materials found on the Excess Sites page under “Excess Sites Program Guidance, Submission Materials, and Resources.”

A: Please refer to the Program Materials found on the Excess Sites page under “Excess Sites Program Guidance, Submission Materials, and Resources.”