DGS - California Department of General Services

05/06/2026 | Press release | Distributed by Public on 05/06/2026 17:16

Lake County Breaks Ground on Latest Affordable Housing Community

What you need to know: Utilizing Governor Newsom's executive order to encourage development of housing on underutilized state land, 80 new affordable homes have broken ground in Lake County's Clearlake. The California Department of the Military, working through the Department of General Services, negotiated an exchange of the former Lakeport Armory site in Lakeport for approximately 15 acres of unimproved land in the City of Clearlake. Half of that site will be developed into the Valley Vista Apartments.

SACRAMENTO - Today, state leaders broke ground on a new affordable housing community in the City of Clearlake named Valley Vista Apartments. Through Governor Gavin Newsom's executive order on Excess Sites, 79 homes for low- to extremely-low-income residents plus one manager unit will be built on roughly 7.7 acres of approximately 15 acres at the heart of a recent land swap negotiated by the California Department of General Services (DGS).

"We're not just pushing local government to build more housing - we're putting state land to work and creating new homes ourselves," said Governor Gavin Newsom. "It's a groundbreaking strategy, and as the Trump administration turns its back, California is leading with real solutions to tackle the national housing crisis head-on. As we convert state properties, we're moving faster to tackle homelessness and open up opportunities for families and seniors who need a safe, stable place to call home."

The California Department of the Military, working through DGS, negotiated an exchange of the former Lakeport Armory site at 1431 Hoyt Avenue in the City of Lakeport for approximately 15 acres of unimproved land located at the intersection of 18th Avenue and the newly constructed Dam Road Extension in the City of Clearlake. This is the latest site to be transformed from excess and underutilized state-owned land into affordable housing under Governor Newsom's Executive Order N-06-19.

The other half of the site, east of Dam Road Extension and south of 18th Avenue, is intended to be sold to the City of Clearlake for use as "open space." The former Lakeport Armory is currently being remodeled to become the new Lake County Sheriff's Office.

The Excess Sites program is administered in partnership by DGS and the California Department of Housing and Community Development (HCD). The program identifies state-owned land available and suitable for housing and creates a digital inventory of those properties available through a Developer Interest Submission Portal. The community is being developed by Chelsea Investment Corporation.

Project details

Valley Vista Apartments, located at 15837 Dam Road Extension (near the intersection 18th Avenue and Dam Road Extension), will bring a total of 80 new affordable rental homes to Lake County. The Valley Vista community is located near established neighborhoods, the community's largest shopping center, a hospital, and Woodland Community College's Lake County campus.

"Today marks an exciting new milestone in California's push to expand affordable housing," said DGS Director Ana M. Lasso. "This groundbreaking propels us closer to delivering safety, stability, and opportunity for more residents, as we remain unwavering in our commitment to equitable and efficient housing across the state."

"This project demonstrates the creativity and flexibility unlocked by Governor Newsom's executive order to prioritize affordable housing on underutilized state lands," said HCD Director Gustavo Velasquez. "Through this land swap, we are able to expand access to vital affordable housing Lake County residents with extremely limited income."

From underutilized state land to affordable housing

In 2019, Governor Gavin Newsom issued an Executive Order N-06-19, which tasked HCD and DGS with tackling the state's affordable housing crisis by identifying underutilized state-owned land that could be converted into affordable housing, with consideration to factors such as proximity to job centers, amenities, and public transit. The order has since been utilized to create hundreds of affordable homes, including:


The Department of General Services acts as the business manager for the state of California. DGS helps state government better serve the public by providing services to state agencies, including procurement and acquisition solutions, real estate management, leasing and design services, environmentally friendly transportation, and architectural oversight and funding for the construction of safe schools.

The California Department of Housing and Community Development is dedicated to the preservation and expansion of safe and affordable housing so more Californians have a place to call home. Our team works to ensure an adequate supply of housing for Californians and promotes the growth of strong communities through its leadership, policy, and program development.

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