California Closes 2025 with Affordable Housing Wins

2025 Milestones: Building Momentum Across the State

The Excess Sites program proudly marked several milestones this year, celebrating groundbreaking ceremonies and grand openings.

• Reedley - Guardian Village: A ribbon-cutting ceremony marked the opening of 48 new affordable homes on a former armory site, providing housing for families and individuals in the Central Valley.
• Sacramento - Arden Way & Monarch Projects: Two major developments broke ground, converting former state facilities into 363 homes, including units for people exiting homelessness.
• San Francisco - Fillmore District: The state launched two new communities totaling 186 homes, with dedicated housing for local school district and community college employees, helping retain essential workers.
  • Stockton - La Passeggiata: A downtown revitalization project will deliver 93 energy-efficient homes, supporting seniors and families while boosting the local economy.
• Riverside - Mulberry Gardens: A former CAL FIRE site will become 207 affordable homes, including senior housing and family units, addressing critical needs in the Inland Empire.
• Los Angeles-Alveare: Construction has begun at 1405 S. Broadway in Downtown Los Angeles. Phase I will deliver 103 family apartments, the first step in a three-phase project creating over 301 affordable homes.

The program secured financing for three projects, and construction is currently underway.

• Truckee-Pacific Crest Commons: New 55-unit development will add 54 affordable homes, including 10 permanent supportive housing units.
• Clearlake-Valley Vista Apartments: Located near vibrant neighborhoods, a bustling shopping center, a hospital, and Woodland Community College, this project will bring 79 much-needed affordable housing units to the community.
• South Lake Tahoe - Sugar Pine Village is a 248-unit affordable housing development. It is being built in multiple phases. 126 of these homes opened and were fully occupied in 2025, with more currently under construction.

Exceeding Expectations: A Statewide Impact
Since the launch of the revamped Developer Interest Portal in early 2025, California has dramatically accelerated its housing pipeline:

• More than 5,100 homes are in development across 38 projects statewide.
• 23 new sites were released this year, 6 of which have already been awarded, while the remaining sites could support more than 1,200 additional homes.
• The state awarded $123 million in funding in order to leverage $152 million from local governments in support of these developments, demonstrating strong intergovernmental collaboration.

"California is the birthplace for innovative ideas and creative thinking," said DGS Director Ana M. Lasso. "Accordingly, these imaginative affordable housing projects reflect our joint efforts to relieve the housing insecurity that affects many Californians while reinvigorating communities by repurposing unneeded state properties."

"Addressing the homelessness crisis requires us using all the tools in our toolbox," said HCD Director Gustavo Velasquez. "The Excess Sites program is a vital part of that strategy. HCD's implementation of Governor Newsom's 2019 Executive Order N-6-19, has included prioritizing these housing sites in all our funding programs. We are excited to see many of these projects move along in the development process this year and look forward to many more homes on State owned property in the coming years."

A Foundation for the Future

California's approach to affordable housing is rooted in bold leadership, strategic partnerships, and a commitment to equity. By repurposing state land, streamlining development, and investing in communities, the state is delivering results that matter-faster, smarter, and more inclusively than ever before. As California enters 2026, the Administration remains committed to delivering housing, dignity, and opportunity to every resident. With thousands of units in development and a proven strategy in place, the state is building not just homes-but hope.
For more information on available excess sites and development opportunities, visit the DGS Affordable Housing website.

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.