California's Excess Sites Program Is a National Model for Affordable Housing Success

A forgotten warehouse in Sacramento once stood as a relic of wasted potential on state-owned land. Now, that same site is becoming Monarch, a vibrant affordable housing community for 241 families. Governor Gavin Newsom’s initiative to repurpose excess state land is transforming lives, offering homes to low-income residents and 20 units for those escaping homelessness. This project signals a powerful commitment to housing justice.

Monarch represents more than bricks and mortar; it restores dignity. Families drowning in unaffordable rent, seniors pushed out by rising costs, and individuals facing homelessness deserve real solutions. California’s Excess Sites Program, launched in 2019, delivers by converting underused state properties into thriving communities. As Sacramento’s third such development, Monarch proves that bold leadership can turn vision into reality.

Why does this resonate? California’s housing crisis is relentless. Median rents have surged 40 percent since 2000, while incomes stagnated, forcing 79 percent of extremely low-income households to spend over half their earnings on rent. Monarch provides relief, with Lutheran Social Services offering support to ensure residents build stable, fulfilling lives. This is policy that breathes humanity, and it’s a game-changer.

The Excess Sites Program sets a national standard. Since Newsom’s 2019 executive order, the state has evaluated over 44,000 parcels, pinpointed 23 new sites for housing, and created a pipeline of 4,300 homes. A Developer Interest Submission Portal, introduced in February 2025, has cut approval times by up to 50 percent, streamlining proposals for developers. This is government responding with urgency to a crisis.

Monarch showcases collaboration at its best. Funded by $10 million from the state’s Local Government Matching Grant program, $3.3 million from Sacramento, and an $8 million loan from the Capitol Area Development Authority, it blends resources for impact. By prioritizing units for those at risk of homelessness and placing homes near transit and amenities, Monarch connects residents to opportunity and community.

Some argue that markets, not government, should solve housing shortages, pushing for tax credits or private partnerships over public investment. But markets haven’t closed California’s 1.5-million-home gap for low-income renters; they’ve driven rents higher and displaced communities. Monarch demonstrates that targeted public action, not unchecked deregulation, builds homes where they’re needed most.

Monarch creates more than housing; it fosters connection. With 3,428 square feet of retail space, 264 bicycle parking spots, and access to Sacramento’s bustling downtown, it’s built for engagement. Infill development like this increases walkability by 15–25 percent, revitalizes neighborhoods, and supports local jobs. Monarch proves affordable housing can spark urban renewal.

Supportive housing, a key feature of Monarch, changes lives. Rooted in the Housing First model, these programs achieve 80–98 percent retention rates after a year, saving $23,000–$31,500 per person by reducing reliance on shelters and hospitals. For Monarch’s 20 residents transitioning from homelessness, voluntary services offer a path to stability. Private markets rarely deliver such outcomes.

Scaling up isn’t easy. Infill projects face steep land costs and risks of displacement without anti-gentrification safeguards. Monarch addresses this with affordability requirements, but broader progress demands more resources. The state’s $123 million in matching grants has jumpstarted 1,876 homes, yet 44,723 units remain stalled, needing $1.79 billion. Federal proposals to slash programs like CDBG by 43 percent jeopardize this momentum, ignoring the human toll of delay.

Monarch embodies a promise kept. From Tahoe’s Sugar Pine Village to Riverside’s Mulberry Gardens, Newsom’s Excess Sites Program is turning underused land into lifelines. With 234 homes occupied and 424 under construction, California is on pace to deliver over 5,550 homes by 2025. This is leadership that refuses to accept defeat.

The path forward faces resistance. Some policymakers advocate for fiscal cuts, favoring vouchers or phased-out subsidies over robust public investment. But housing is a fundamental right, and Monarch shows that public land, paired with courageous policy, can deliver it. Why accept half-measures when we can create lasting change?

As Monarch takes shape in Sacramento, it’s a testament to what’s possible. This is about families finding security, seniors aging with dignity, and communities growing stronger. California is paving the way, and the nation must follow. Together, we can build a future where everyone has a home.