California is moving forward with six new affordable housing developments that will create at least 843 homes on underutilized state-owned land, according to a state announcement on Wednesday, November 26, 2025.
The projects—located in Atascadero, Napa, Fontana, San Bernardino, and two sites in Stockton—are the latest additions to the state’s growing pipeline of housing built on excess public property. The sites were approved under Lease Option Agreements that allow developers to begin work on converting the land into housing.
Breakdown of the New Projects
Each project includes primarily affordable units, with a small number of market-rate units included at each site:
State Hospitals Atascadero: 87 affordable units + 1 market-rate
State Hospitals Napa: 183 affordable units + 2 market-rate
DMV Fontana: 127 large-family affordable units + 1 market-rate
DGS San Bernardino: 203 affordable units + 2 market-rate
DMV Stockton: 108 affordable units + 2 market-rate
DGS Stockton: 132 affordable units + 2 market-rate
Together, these developments represent more than 840 new homes for families, seniors, and individuals with high housing needs.
Faster Construction Through Streamlined State Process
The state agencies overseeing the program—the Department of General Services (DGS) and the Department of Housing and Community Development (HCD)—have implemented a streamlined process that moves projects from application to approval in less than five months. Officials say the new system allows continuous proposal submissions, enabling faster starts on new housing construction.
Growing Housing Pipeline Across the State
The six new projects are part of a larger statewide effort to transform unused government property into homes. Since the program began, state officials report a pipeline of nearly 4,300 housing units across 32 sites in various stages of planning or construction.
Recent completed projects include:
Sonrisa in Sacramento: 58 units with mixed-use space, including a job training center.
Guardian Village in Fresno County: 48 units built on the former Reedley Armory site.
Sugar Pine Village in South Lake Tahoe: 68 units completed so far, eventually expanding to 248 units—one of the largest affordable housing developments in the region.
Housing Focus Remains on Creating Stability
State officials emphasized that the goal of the excess-land program is to expand housing options, create stable communities, and make publicly owned land more productive. With construction costs still among the highest in the nation, converting state land is seen as a way to reduce barriers and speed up the development of affordable homes.
The six newly approved sites are expected to move into development phases in the months ahead, adding hundreds of units to regions with some of the state’s most severe housing shortages.
Elsewhere, California Governor Gavin Newsom recently signed Assembly Bill 697, paving the way for major improvements to Highway 37 in the North Bay region.
Factsheet: New California Affordable Housing Projects
Total New Homes
843 affordable units
10 market-rate units
853 homes total
Locations & Unit Counts
Atascadero (State Hospitals)
87 affordable
1 market-rate
Napa (State Hospitals)
183 affordable
2 market-rate
Fontana (DMV)
127 affordable (large-family units)
1 market-rate
San Bernardino (DGS)
203 affordable
2 market-rate
Stockton (DMV)
108 affordable
2 market-rate
Stockton (DGS)
132 affordable
2 market-rate
