CA launches portal to expedite conversion of state buildings to housing, businesses
The state’s property manager unveiled a new dashboard Monday designed to speed up California’s efforts to sell excess government property that can be turned into commercial projects.
The portal is designed to reduce how long it takes for developers to begin construction on state-owned surplus property, the state’s Department of General Services announced in a Monday news release.
“By modernizing how we engage with developers, California is unlocking new opportunities for job creation and economic growth. This portal ensures that state land is put to its best use while supporting diverse and emerging developers across the state,” DGS Director Ana Lasso said in a statement.
For each of the available sites, developers can submit proposals to DGS, which are evaluated according to the state’s goals: “The state’s goals for the sites include successful implementation of the plan, financial return to the state, and local regional impact,” said a DGS spokesperson.
The developer is then responsible for constructing what they proposed on the site if selected.
This step is the latest development in the Newsom administration’s effort to turn government properties into affordable housing or other commercial properties. Last November, the state announced six new projects across California where over 800 new homes will be built on state land.
One year ago, the state launched a similar map of state properties to track which government sites were in the process, or available, to be converted to state property. Monday’s announcement was targeted on properties that can be used for commercial or residential uses.
The new portal allows developers to look through the state’s commercial opportunities. As of Monday, there were 19 properties listed, none of which were in the Sacramento region. Fifteen of those sites are available for proposal and one is already under agreement. The new process relies on more simple submission requirements for developers and allows DGS to review proposals on a rolling basis, so projects can move forward more quickly.
One of Newsom’s first announcements as governor was a proposal to address California’s dire need for more affordable housing by converting state property to homes for low-income residents. Seven years later, Newsom touted that his administration had 32 projects in “various phases of development” that would eventually result in nearly 4,300 housing units.
Securing a developer who is willing and able to convert state government buildings into housing can be difficult. In 2024, St. Louis-based developer McCormack Baron Salazar withdrew from an arrangement to transform three buildings in and around the Capitol Mall — the Employment Development Department headquarters building, the EDD Solar Building and the State Personnel Board Building — into nearly 700 residential units. The developer parted ways with the state over the project after unsuccessfully requesting money from California for an adaptive reuse study.
Last year, DGS and Sacramento State University announced that the state had provided the university with exclusive rights to evaluate this real estate. The agreement, in its concept stage, would potentially result in these three buildings being transferred to CSU Sacramento to build a new center for the university.
