In this funding round, the California Department of Housing and Community Development (HCD) is allocating over $63 million from the Excess Sites Local Government Matching Grants (LGMG) program for the development of new affordable housing. These investments will, in turn, match more than $80 million in collaborative funding committed by cities, counties, and public housing authorities where the new projects are located.
“The Excess Sites program allows for a unique collaboration with our local government partners, to build affordable housing on underutilized sites and optimize limited fiscal resources through matching grants,” said HCD Director Gustavo Velasquez. “These sites largely have easy access to transit and proximity to critical amenities, providing Californians with housing stability and connecting them to opportunity.”
In 2019, Governor Gavin Newsom issued an executive order calling on HCD and the Department of General Services to address the state’s affordable housing crisis by identifying underutilized state-owned sites for the development of affordable housing, taking into account factors such as proximity to job centers, amenities, and public transit. Excess sites projects, by virtue of being on state land, are subject to a simpler and more streamlined approval process than projects on locally controlled land. This expedites the approval process and avoids the exhaustive maneuvers used by some groups and local officials to prevent projects from moving forward.
To support and accelerate implementation of the Governor’s excess sites order, HCD established LGMG to provide grant-based funding to match certain local government funding for selected developers to support predevelopment and development of affordable housing on excess state sites.
This collaboration between the state and local governments helps to expedite the delivery of affordable housing across the state to meet the goal of developing 2.5 million new homes by 2030, with one million homes being affordable for lower income levels.
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