California Construction News staff writer
Sacramento’s Monarch affordable housing community is under construction, with a plan to transform a former state-owned storage warehouse into 241 homes for low- to extremely low-income residents. This development is the third project created on excess state land, a key initiative aimed at tackling California’s ongoing housing crisis.
Monarch is part of California’s Excess Sites Program, which repurposes underutilized state properties for affordable housing. The program has already awarded 32 projects, providing thousands of new affordable homes across the state.
The $110 million, all-electric building was designed by Kuchman Architects PC and the general contractor is Sunseri Construction, Inc.
“Repurposing excess state land into vibrant communities is a game-changer,” said Tomiquia Moss, Secretary of the Business, Consumer Services and Housing Agency. “The Excess Sites Program is helping create affordable housing in places that are close to transit and essential services, while also encouraging economic growth and sustainability.”
The program is the first of its kind, identifying state-owned properties suitable for housing development and making them available to developers through a public digital inventory. The program was streamlined in February 2025 with the launch of a Developer Interest Submission Portal, simplifying the process for developers to submit proposals for state excess sites.
“Thanks to the excess sites program, 20 underutilized state properties will be transformed into 4,300 housing units,” Moss said. “Monarch is a prime example of how the state is working to reduce the housing shortage and create more vibrant, inclusive communities.”
The Monarch project is located in a growing mixed-use neighborhood of downtown Sacramento, close to public transit, parks, restaurants, and shopping. The development will include 20 units set aside for people exiting homelessness, with supportive services provided by Lutheran Social Services.
“Monarch will offer a safe and stable home for hundreds of Sacramentans who need affordable housing,” said Nick Maduros, Secretary of the Government Operations Agency. “The project will support the continued revitalization of downtown Sacramento, providing residents with access to essential services and a strong sense of community.”
In addition to residential units, the project will include 3,428 square feet of retail space, 264 bicycle parking spaces, and 33 vehicle parking spots.
The Monarch project benefits from a combination of state, local, and private funding. It received $10 million from the California Department of Housing and Community Development’s (HCD) Local Government Matching Grant program, alongside $3.3 million from the City of Sacramento. The City and County of Sacramento also waived impact fees, while CADA, the site’s developer, provided an $8 million gap loan. Additionally, $4 million in funding came from the California Housing Finance Agency’s Mixed-Income Program.
“This project is a great example of how underutilized state land can be turned into much-needed housing that strengthens local communities,” said Ana M. Lasso, Director of the Department of General Services (DGS). “The transformation of these properties into homes helps address the affordable housing shortage and provides opportunities for more people to thrive.”
Since the launch of the Excess Sites Program, the state has awarded 32 projects that will provide a total of 4,300 homes. So far, 234 homes are completed and occupied, with another 424 homes currently under construction.
Launched in 2019, the Excess Sites Program directs the HCD and DGS to identify underutilized state properties for housing development, focusing on sites near job centers, public transit, and other essential services. To date, this initiative has resulted in several successful developments, including:
- 248 homes at Sugar Pine Village in the Tahoe region for families and workers
- 150 homes at Mulberry Gardens Senior Apartments in Riverside
- 124 homes under construction at a former military armory site in Sacramento
- 58 homes at Sonrisa in Sacramento
“These projects are a prime example of how unused state land can meet the housing needs of Californians,” said Gustavo Velasquez, Director of HCD. “By repurposing these sites, we’re creating sustainable, vibrant communities while addressing the state’s affordable housing shortage.”
