Golden State Today

Governor Gavin Newsom has announced a new project to transform a dated Department of Motor Vehicles (DMV) building in San Francisco into a mixed-use development. The site will feature a modern DMV office and 372 new homes, including units dedicated to low-income families. This initiative is part of an executive order from the Governor directing agencies to identify state properties for affordable housing development.

The current DMV site, built in 1960, does not meet updated health and safety codes or DMV requirements. Located at 1377 Fell Street, the redevelopment aims to create a transit-friendly complex with various affordability levels near city amenities and transportation.

Governor Newsom stated, "We will continue to use all our tools to create more affordable housing throughout California — including by converting underutilized state property into homes. I’m particularly proud of this site for bringing affordable housing to the heart of San Francisco in a diverse and thriving neighborhood."

This project is situated between the Lower Haight, NoPa, Buena Vista, and Alamo Square neighborhoods. It is close to residential, entertainment, and retail districts like Haight-Ashbury and Divisadero. The area is recognized as highly walkable by the EPA and is within half a mile of a major transit stop.

DGS Director Ana M. Lasso commented on the project's significance: “This first of its kind project, combining housing with a new DMV Field Office, represents a significant step forward in the state’s efforts to reimagine spaces for affordable housing.” The Department of General Services (DGS), Department of Housing and Community Development (HCD), and DMV have selected The Related Companies of California and Tenderloin Neighborhood Development Corporation for redevelopment.

HCD Director Gustavo Velasquez added, “This is a unique opportunity to transform and modernize a public-facing government facility while adding new, permanent affordable housing in a region with critical need.”

In 2019, Governor Newsom issued an executive order for HCD and DGS to address the state's affordable housing crisis by identifying underutilized sites for development. Since taking office, he has invested $40 billion in housing production and enacted several CEQA reforms into law.

The July 2024 executive order supports transforming undeveloped infill sites into housing near transportation hubs and job centers. Additionally, Governor Newsom established the Housing Accountability Unit at HCD to ensure compliance with legal responsibilities regarding housing planning.