Report 2021-114 Recommendation 5 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 #5 To: General Services, Department of

To determine whether additional viable properties exist for affordable housing development, by September 2022 DGS should contact the related agencies for the remaining properties it identified as potentially viable but for which it has not yet gathered additional information and make a determination as to the viability of the parcels those agencies possess.

1-Year Agency Response

DGS and CDFA have tentatively identified six District Agricultural Associations (DAA) that may have excess property that would be suitable for development of affordable housing. CDFA is continuing their outreach to the respective DAA's to determine the availability of excess property. DGS is continuing to follow up with CSU on the status of their review of potential excess property and expects the process to be complete in March 2023.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

We are pleased that DGS has continued to work in partnership with other state agencies to identify additional property that may be suitable for development.

6-Month Agency Response

At present, DGS has conferred with the CSU, UC, and JCC, as well as the DAAs (by way of CDFA). As indicated in DGS' 60-Day Response, there is no viability for JCC sites and the program. The University of California Office of the President (UCOP), Real Estate Services and Strategies reviewed DGS' original 2019 list of potential sites. UCOP provided notes that indicated that either a) the sites were unsuitable for housing in their opinion, b) the sites were not under their jurisdiction (or in the process of being sold), c) the sites had future plans, or d) those sites that were suitable for affordable housing would be developed by the UC as faculty and/or student housing (and not through DGS). CDFA is still working with the District Agricultural Associations on excess possibilities, and DGS is awaiting a response from the CSU.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

We look forward to DGS reviewing responses from the remaining agencies.

60-Day Agency Response

DGS has engaged in discussions with the Judicial Council (JCC), California State University System (CSU), and the University of California system. Discussions with the District Agricultural Associations will require more time. All three entities were asked to review the properties flagged in DGS' 2019 review of state properties. To date, the JCC has responded that all of their flagged properties are not excess, nor available for redevelopment as housing, while the CSU/UC are still reviewing the list of flagged properties. Additionally, while all three entities expressed a pro-housing stance on redevelopment of state properties, initial discussions indicated that DGS was correct in its assessment in 2019 that the properties of these entities were restricted or otherwise encumbered such that redevelopment into housing would be very difficult (JCC) or that DGS lacks - absent statutory changes - the authority to include these properties in the Executive Order program.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

All Recommendations in 2021-114

Agency responses received are posted verbatim.