California housing roundup: State land, Palisades and SROs

Let’s jump into some California housing news:

• Housing projects on state land: Gov. Gavin Newsom’s office last week unveiled six affordable housing projects that are planned to be built on state property, including on former DMV sites in Fontana and Stockton. The projects include at least 840 affordable housing units in total and stem from a 2019 executive order directing state agencies to review state-owned property that could be used for housing. All six sites entered into lease option agreements by Nov. 13, according to a spokesperson for the state’s Department of General Services.

• ‘Milestone’ for LA-area wildfire recovery?: In November Los Angeles Mayor Karen Bass touted the first single-family home in Pacific Palisades to receive the city’s approval for occupancy, after the Palisades Fire destroyed thousands of buildings and claimed 12 lives in January. In a statement Bass said the “major milestone” marked “an important moment of hope,” but a homebuilding company, not a family, owns the house, reports Politico. The company, Thomas James Homes, bought the property located on 915 N Kagawa Street in November 2024 and began the permitting process before the wildfire. Bass received backlash from critics who argued the praise was misleading.

• Low-cost housing study: A new study by the nonprofit Enterprise analyzed 39 single-room occupancy properties in California owned by nonprofit operators. Viewed by housing advocates as a critical component of housing for low-income tenants, the study looked at more than 3,000 SRO units and found that most are “inherently quite old,” with an average build year of 1928 — a year before the Great Depression. Ninety-five percent of the projects also operated on a deficit, compelling housing providers to contribute more than $24 million of their money to keep the properties open. These housing units also had an average 20% vacancy rate.

At least 10 candidates are running in 2026 to succeed Newsom as the next California governor and the race remains wide open: In a poll released by UC Berkeley last month, 44% of surveyed voters did not have a preference for governor, and no candidate polled above 15%. 

To keep track of the revolving door of candidates, CalMatters’ Jeanne Kuang has a guide with details of each of the top candidates, which include:

• Xavier Becerra: The former U.S. Health and Human Services Secretary was associated with a scandal recently after the FBI revealed that Newsom’s former chief of staff and other political consultants conspired to steal money from a dormant campaign account held by Becerra.

• Katie Porter: Last month the former Orange County congressmember received some bad press after she was caught on camera trying to walk out of a TV interview, and another video showed Porter berating a staff member during a Zoom call.

• Chad Bianco: The pro-Trump Riverside County Sheriff wants to loosen regulations on businesses and overturn California’s sanctuary laws. Though he is neck-and-neck with Porter in the polls, no GOP candidate has won a statewide seat in nearly 20 years.

Read more here.

From CalMatters editor-in-chief Kristen Go:

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