Governor Newsom and Meta announced a $50M project to transform underused state buildings into affordable housing and campus facilities for Sacramento State.
SACRAMENTO, Calif. — Governor Gavin Newsom and Meta announced a $50 million investment to redevelop three underused state-owned buildings on Capitol Mall into a mixed-use district for California State University, Sacramento (CSUS) students, faculty and staff.
The project will repurpose the Employment Development Department headquarters at 800 Capitol Mall, the EDD Solar Building at 751 N Street and the State Personnel Board Building at 801 Capitol Mall.
Meta’s contribution will fund preliminary work, including abatement, demolition and entitlement processes, to prepare the sites for development.
“This project helps build a vibrant downtown district that supports students, businesses, and economic growth,” Newsom said. “Making sure students can afford to live where they learn is essential.”
The redevelopment is expected to include:
Affordable housing for CSUS students, faculty and staff, alongside market-rate units to support downtown revitalization
New campus facilities, including a School of Public Affairs, classrooms, educational spaces and an Artificial Intelligence Center for a new bachelor’s degree in AI Business Management.
Cultural amenities, such as a performing arts and music venue serving both the university and the broader community.
A boutique hotel to host visiting students, faculty, research partners and families, supporting downtown tourism
Meta CEO Mark Zuckerberg said the company is “excited to work with Governor Newsom and Sacramento State to drive innovation in our state capital” and noted the project will help strengthen communities while supporting the next generation of leaders.
The project is still in its early master planning phase. Next steps include design development, building testing and an environmental review under the California Environmental Quality Act (CEQA).
DGS Director Ana M. Lasso emphasized that the public-private partnership will stimulate economic growth and convert underutilized state assets into a hub for education, arts and affordable housing.
Government Operations Agency Secretary Nick Maduros highlighted the long-term goal of expanding housing options for students in downtown Sacramento.
Sacramento State President Dr. Luke Wood called the project “catalytic and transformational,” noting it positions the university as a central driver of economic vitality and community development in the city.
The redevelopment is part of a broader state initiative launched by Newsom’s 2019 executive order to repurpose underused state properties for housing and community projects.
Similar efforts have already delivered affordable housing in Sacramento, Fresno County, and South Lake Tahoe, with nearly 4,300 housing units in development across California.
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