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3 state buildings along Capitol Mall to turn into hundreds of affordable housing units

California turning 3 state buildings along Capitol Mall into hundreds of affordable housing units
California turning 3 state buildings along Capitol Mall into hundreds of affordable housing units 02:12

SACRAMENTO — The State of California is doing its part to help meet a goal of 2.5 million new housing starts by 2030. One plan is to turn empty office buildings into affordable housing.

Three state buildings standing tall along Capitol Mall in downtown Sacramento will see a new use in the next several years.

"Phase one is going to be going through the buildings with our architects and our general contractor, poke behind the walls, see the condition of it," said Adhi Nagraj, the chief development officer with McCormack Baron Salazar. "At the same time, do committee meetings around what are the needs of the local community."

The development company decided to perform the task of upgrading the buildings, which have housed the Employment Development Department and state personnel board, and turn them into 400 one-, two-, and three-bedroom apartments.

As part of the development, the EDD will move to the old natural resources building just a few blocks away.

It's a pioneering effort that comes at a pivotal time..The pandemic changed work patterns. Telework has left many office buildings empty. That's why the governor issued an executive order to repurpose, reimagine and remake empty spaces.

"It will be such a pioneering effort," Nagraj said.

State leaders say retrofitting the buildings with more environmentally sustainable materials will also be better for the environment.

"Residential market and office buildings combined account for up to 30 percent of the entire greenhouse gases in the country," said Gustavo Velasquez, the housing and community development director, said Wednesday during an announcement of the selected development team.

It's a pilot program to turn something old into something new to serve seniors, the homeless and disadvantaged communities.

"For every 100 low-income working households, there are only 30 affordable and available homes," said Lourdes Castro Ramirez, a secretary for the Consumer Services and Housing Agency.

It will be a process several years long. The developer needs to assess community needs from financing to what fits downtown. But state leaders say the proximity to transit and jobs is a start that will lead to an important end goal: "demonstrate what good stewardship and governmental property look like when we all work together."

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