Public Land for Housing

What Is Public Land for Housing?

Public land for housing means using property owned by a city, county, state, school district, transit agency, or federal department as a site for homes. Governments hold large amounts of land: vacant lots, underused parking, closed schools and offices, and military or other federal property. When that land is no longer needed for its original purpose, it can become a site for housing.

How It Works

Most efforts follow similar steps:

1. Inventory. The agency identifies parcels it owns and determines which are surplus or underused. Under the 21st Century ROAD to Housing Act of 2026, states and localities that receive Community Development Block Grant funds must keep a public, searchable online database of the undeveloped land they own. That requirement took effect on October 1, 2026.
2. Offer. It invites proposals, often from affordable housing developers or nonprofits.
3. Transfer. It sells the land, or keeps ownership and grants a long-term ground lease.
4. Restrict. In exchange for a reduced price, the developer agrees to a recorded deed restriction or covenant that keeps some or all homes affordable.

Some laws create a formal process:

• California’s Surplus Land Act declares that surplus government land should be made available for low- and moderate-income housing before it is sold. Before disposing of surplus land, local agencies must send a notice of availability to affordable housing developers that have registered their interest with the state. If more than one party responds, the agency must generally give first priority to one that will make at least 25% of the units affordable to lower-income households. Those restrictions last at least 55 years for rentals and 45 years for ownership homes.
• Federal surplus property. Under the McKinney-Vento Act, HUD screens unused and surplus federal property for suitability to assist people experiencing homelessness. Those uses generally get priority of consideration when surplus federal property is disposed of.

Why It Matters for Workforce Housing

Public employers are often major landowners. California’s Teacher Housing Act of 2016, for example, permits affordable rental housing on land owned by school districts to be reserved or prioritized for teachers and district employees. Removing or reducing land cost can help a project serve households who earn too much for deep subsidies but cannot afford market rents near their jobs.

Criticisms and Limitations

• Many public parcels are small, oddly shaped, contaminated, or far from services.
• Disposal rules, public hearings, and environmental reviews can add time.
• Selling land below market value means giving up revenue the agency could use for other purposes, which is a real budget tradeoff.
• Proposals on public land can still face neighborhood opposition.