Report 2021-114 Recommendation Responses

Report 2021-114: State Surplus Property: The State Should Use Its Available Property More Effectively to Help Alleviate the Affordable Housing Crisis (Release Date: March 2022)

Recommendation for Legislative Action

To ensure that the creation of affordable housing made available under the excess state property executive order continues, the Legislature should enact state laws to require that DGS and HCD carry out the duties prescribed in Executive Order N-06-19. Further, the Legislature should require the following:

- By September 2022, DGS should develop a set of criteria to consistently evaluate state parcels for suitability as affordable housing sites.

- By July 2023 and every four years thereafter, DGS should conduct a review of all state-owned property and identify parcels that are potentially viable for affordable housing based on the established criteria. Once this review is complete, follow up with all related agencies to determine property availability. After the completion of each review, DGS and HCD should prioritize the identified properties for development.

Description of Legislative Action

AB 2233 (Chapter 438, Statutes of 2022) requires DGS to develop, in consultation with HCD and no later than September 1, 2023, a set of criteria to consistently evaluate state-owned parcels for suitability as affordable housing sites. The bill also requires, on or before July 1, 2024, and every four years thereafter, DGS to, among other things, conduct a review of all state-owned property and identify state-owned parcels that are potentially viable for affordable housing based on those criteria. This bill requires DGS to contact all related agencies following each review to determine excess state land. On or before January 1, 2024, and annually thereafter, this bill requires DGS to report to the Legislature on the status of excess state properties.

This bill requires the DGS to update, on or before January 1, 2024, a digitized inventory of all excess state land. The bill requires DGS, and HCD no later than June 1, 2023 and annually thereafter, to evaluate and update the screening tools jointly developed pursuant to Executive Order N-06-19. This bill requires all state agencies to respond to requests for information from the DGS, as described, and to consider exchanging excess state land with local governments for other parcels for purposes of affordable housing development and preservation. The bill also requires all state agencies to use all existing legal and financial authority, subject to the direction of the Governor, to expedite and prioritize developments accepted pursuant to the request for proposal process described in the bill.

California State Auditor's Assessment of 6-Month Status: Legislation Enacted


Description of Legislative Action

AB 2233 (Quirk-Silva and C. Garcia, February 2022) would require DGS to develop, no later than September 1, 2023, a set of criteria to consistently evaluate state-owned parcels for suitability as affordable housing sites. The bill would require that DGS, on or before July 1, 2024, and every 4 years thereafter conduct a review of all state-owned property and identify state-owned parcels that are potentially viable for affordable housing based on those criteria. The bill would require DGS to issue a report on the results of each of its reviews.

Consistent with the duties prescribed in Executive Order N-06-19, the bill would require DGS to create, no later than April 30, 2024, a digitized inventory of all excess state land by conducting a comprehensive survey of all state-owned property. The bill would require DGS, HCD, and the California Housing Finance Agency to develop, no later than March 29, 2024, two new screening tools, to apply the screening tools to the digitized inventory, and for DGS to create a comprehensive map of excess state land. The bill would require all state agencies to respond to requests for information from DGS and to consider exchanging excess state land with local governments for other parcels for purposes of affordable housing development and preservation. The bill would require all state agencies to use all existing legal and financial authority to expedite and prioritize developments accepted pursuant to the RFP process, as described. The bill would require DGS, in consultation with HCD, to issue requests for proposals on individual state-owned parcels and accept proposals from developers of affordable housing interested in entering into low-cost, long-term ground leases of parcels on the comprehensive map. The bill would require the selection process for the proposals to be implemented no later than September 30, 2024. As of June 10, 2022, this bill is pending in the Senate.

California State Auditor's Assessment of 60-Day Status: Legislation Introduced

As of June 10, 2022, AB 2233 (Quirk-Silva and C. Garcia, February 2022) is pending in the Senate.


All Recommendations in 2021-114