Background Information

Generally, when a state department indicates that property under their jurisdiction is no longer needed, they formally declare that property as “excess” to their needs to the California Department of General Services (DGS). Upon receiving a declaration from a state department, DGS, through its Real Estate Services Division (RESD), begins the disposition process.

As a matter of priority, RESD – in partnership with the Department of Housing and Community Development – evaluates each excess property for suitability for redevelopment as affordable housing. Properties that are deemed suitable, or likely to be, are included in the Excess Sites Program, and made available for proposal for affordable housing. More information on that process and those properties can be found at the DGS website here: Executive Order N-06-19 Affordable Housing Development.

Historically, for properties that are excess and are preliminarily deemed not suitable for affordable housing, RESD would attempt to determine a suitable alternative non-residential reuse, issue a site-specific solicitation to lease the property to a developer, and then work with a successful respondent until the property was leased and the awarded project developed. In instances where a sale of the property (compared to a lease) was beneficial, RESD would work with the Legislature to secure approval to sell the property and would follow a similar process.

As this process was time and staff intensive, RESD has changed course. Instead of site-specific solicitations, all state excess sites under the purview of DGS are now listed in real time for interested parties to submit proposals.