SACRAMENTO — California Governor Gavin Newsom announced the groundbreaking of Monarch, an affordable housing development in Sacramento, as part of his administration’s initiative to transform excess and underutilized state-owned land into affordable housing. Located on the site of a former state-owned storage warehouse, the Monarch project will create 241 homes for low- to extremely low-income residents in Sacramento, including units specifically designated for individuals exiting or at risk of homelessness.
The Monarch community is the third such affordable housing project in Sacramento developed on surplus state property under Newsom’s 2019 executive order. The order directed the California Department of Housing and Community Development (HCD) and the Department of General Services (DGS) to identify unused state land suitable for housing and make it available to developers. Monarch represents one of 32 housing developments currently awarded under the program, which collectively will result in over 4,300 new homes across the state.
“Today’s groundbreaking in Sacramento illustrates the life-altering possibilities of converting excess and underutilized state lands into thriving local communities,” said Governor Newsom. “California’s Excess Sites program provides the innovative boost needed to help alleviate the state’s affordable housing shortage.”
The development is a collaborative effort by state and local agencies, private partners, and nonprofit organizations. Business, Consumer Services and Housing Agency Secretary Tomiquia Moss said Monarch is a clear example of how repurposing public land can provide lasting value to California residents. “Through continued investments in the Excess Sites Program, the state is encouraging infill development, building affordable homes, and promoting healthier communities for future generations of Californians,” Moss said.
The Monarch project will offer a mix of studio, one-bedroom, and two-bedroom apartments and feature 3,428 square feet of retail space, 264 secured bicycle parking spaces, and 33 parking spots for vehicles. The site is located in a mixed-use downtown area with access to transit, shopping, restaurants, and public parks. Twenty of the units will include wraparound supportive services delivered by Lutheran Social Services.
Nick Maduros, Secretary of the Government Operations Agency, emphasized the project’s transformative impact. “Monarch will ensure a safe haven for hundreds of Sacramentans whose access to secure housing is especially needed,” he said. “A stable home and proximity to amenities will allow Monarch’s residents to thrive and contribute to the renaissance taking place in this area of downtown.”
The project has secured financing through a combination of local, state, and developer resources. HCD awarded $10 million from its Local Government Matching Grant Program to pair with $3.3 million in City of Sacramento funding. Additional contributions include waived impact fees from the City and County of Sacramento, an $8 million gap loan from the Capitol Area Development Authority (CADA), and $4 million from the California Housing Finance Agency’s Mixed-Income Program.
Gustavo Velasquez, Director of HCD, praised the project as an example of how underused state property can be mobilized to create affordable housing in high-resource communities. “Projects like Monarch are helping to breathe new life into city centers,” Velasquez said. “It is extremely gratifying to help make the Governor’s vision for state lands a reality.”
The community is expected to be completed and open to residents by the spring of 2027. Once finished, it will join a growing list of developments launched under the state’s Excess Sites Program, including Sugar Pine Village in the Tahoe region, Mulberry Gardens Senior Apartments in Riverside, and Sonrisa in Sacramento. In total, 234 homes under the program are already completed and occupied, while another 424 are currently under construction.
Ana M. Lasso, Director of DGS, highlighted the momentum created by the public-private partnerships supporting these efforts. “This is yet another significant partnership between DGS and CADA to create an affordable housing project here in Sacramento under the Governor’s Executive Order,” Lasso said. “It is so inspiring to see excess state-owned property repurposed to create living spaces that strengthen the local community here in the capital city.”
In February 2025, the state launched a Developer Interest Submission Portal to streamline the application process and accelerate the timeline for bringing affordable housing projects to market. The online portal allows developers to easily propose new projects on excess state sites, enhancing transparency and access.
Governor Newsom’s 2019 executive order established the groundwork for the state’s push to address the housing crisis by encouraging infill development and prioritizing affordable housing construction on state-owned properties. Sites are selected based on proximity to public transit, job centers, and community amenities. In the years since, the program has helped redefine how public land can serve the public good, especially in tackling the severe lack of affordable housing across California.
As construction begins at Monarch, state leaders hope the development will serve as both a symbol and a model for future affordable housing initiatives. With continued state support and investment, the transformation of dormant government land into vibrant, inclusive communities continues to be a cornerstone of California’s housing strategy.
