California Excess Sites Housing Program Implementation

California Department of General Services

On January 15, 2019, California Governor Gavin Newsom issued Executive Order (EO) N-06-19 that directed the State to identify excess real estate holdings that can be leveraged for the development of workforce and affordable housing. The EO required that the Department of General Services (DGS) begin implementation of the EO by no later than September 30, 2019.

DGS used much of the intervening time to work with the various other State Departments to identify excess real estate holdings. With the deadline to begin implementation looming, DGS solicited qualifications from a select group of highly regarded real estate advisory firms in concert with the Department of Housing and Community Development (HCD) for assistance with implementation of the new State Excess Sites Program.

Due to our housing and real estate advisory experience and expertise, as well as our well-established working relationship with HCD, DGS selected BAE to assist with implementation of the Excess Sites program.

BAE’s scope of work for this assignment includes assisting with development of criteria that DGS and HCD can use to evaluate and prioritize the release of sites for housing development. BAE then conducted market research and financial feasibility analysis to support development of multiple request for proposals (RFPs) that DGS is using to solicit interest from real estate developers.

We are leveraging our considerable experience to provide DGS and HCD with clear guidance regarding the evaluation of developer proposals and identification of critical requirements for inclusion in developer RFPs, related ground leases, and disposition and development agreements that protect the public interest while allowing for innovation in project design and implementation.

DGS issued the first developer solicitation on September 30, 2019, for a site located in the City of Stockton and selected Visionary Home Builders as the preferred builder in early 2020.