About this Service

Find surplus property based on availability to local agencies, affordable housing sponsors, and the public.

Find Surplus Real Property Available to Local Agencies

Local Agencies are provided with priority buyer status to acquire surplus state-owned real property prior to the property being offered for sale to the general public.  Eligible uses include locally-owned government facilities, parks, open space, and affordable housing. 

Local agencies receive notification of the availability of surplus real property from the  Asset Enhancement/Surplus Sales (AE/SS) Unit Local agencies are required to provide notice of their interest with ninety (90) days of receipt of the notice and are required to execute a purchase and sale agreement within sixty (60) days of being notified that they have been selected to acquire the property.  Close of escrow must occur within sixty (60) days of DGS executing the purchase agreement.  The property is sold at fair market value as determined by a DGS approved appraisal.  Property that is intended to be used for parks, open space or affordable housing may be sold at a discounted price at the discretion of the Director of DGS.

Find Surplus Real Property Available to Affordable Housing Sponsors

Affordable housing sponsors are provided with priority buyer status to acquire surplus state-owned real property prior to the property being offered for sale to the general public.  “Nonprofit affordable housing sponsor” means any of the following:

(i) A nonprofit corporation incorporated pursuant to Division 2 (commencing with Section 5000) of Title 1 of the Corporations Code.

(ii) A cooperative housing corporation which is a stock cooperative, as defined by Section 11003.2 of the Business and Professions Code.

(iii) A limited-dividend housing corporation. Affordable housing sponsors receive notification of the availability of surplus real property from the Asset Enhancement/Surplus Sales (AE/SS) Unit.

Affordable housing sponsors are required to provide notice of their interest with ninety (90) days of receipt of the notice and are required to execute a purchase and sale agreement within sixty (60) days of being notified that they have been selected to acquire the property.  Close of escrow must occur within sixty (60) days of DGS executing the purchase agreement.  The property is sold at fair market value as determined by a DGS approved appraisal. 

Notwithstanding any other provision of law, the department may sell surplus state real property, or a portion of surplus state real property to a nonprofit affordable housing sponsor for affordable housing projects at a sales price less than fair market value if the department determines that such a discount will enable the provision of housing for persons and families of low or moderate income. Transfer of title to the surplus state real property for affordable housing shall be conditioned upon continued use of the surplus state real property as housing for persons and families of low and moderate income for at least 40 years and the department shall record a regulatory agreement that imposes affordability covenants, conditions, and restrictions on the surplus state real property.

Find Surplus Real Property Available to the Public

Property not acquired by a local agency or affordable housing sponsor is offered for sale on the open market pursuant to a public bidding process designed to obtain the highest and most certain return which is deemed to be the fair market value. Buyers would work with the Asset Enhancement/Surplus Sales (AE/SS) Unit to purchase the state-owned surplus real property.

The state receives the highest return from the sale of high-value urban properties by implementing an asset enhancement process. The asset enhancement process is a proven method of securing development entitlement approvals. By reducing entitlement risk for the buyer the state is in the position to realize the highest return from the sale of the property.  Smaller parcels that limited value enhancement potential are sold on an “as-is” basis by public bid. Requests for Proposals and Requests for Written Offers are posted on the surplus property web page as properties become available.

Resources

Surplus Sales Process Overview
• Asset Enhancement Brochure Published2014
Government Code 11011

More Information

Information on excess state-owned real property is posted on the Surplus Property Web Page:

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