Encinal Terminals, a 32-acre plot of land that formerly operated as a shipping terminal on the north side of Alameda, California, will be developed into a new housing development in an effort to bolster the supply of one of the most expensive areas in the country. This is according to reporting at the Mercury News and the Alameda Post.

In a deal brokered between the State of California’s Lands Commission and the City of Alameda, the 32-acre area situated on Alameda’s north shore is now planned to serve as a location for new communal spaces like parks, as well as 589 housing units — just under 15% of which, or 80 units, will be “affordable,” according to the reporting.

Chief sponsor Mia Bonta, a California assemblymember serving the 18th district that includes Alameda, announced the passage of the bill on social media, and presented information about the proposed measure to the Alameda city council in June. Gov. Newsom signed the bill into law on July 27.

“AB 1706 is an important bill for the City and the community,” Bonta said. “It’s so great that my first bill signed is one that will deliver for my district. With the signing of the bill, the City can move forward with plans to build 589 housing units, provide access to more than 4 acres of waterfront parks, and turn 13 acres of submerged lands into a marina. This is a win for everyone.”

The city itself is also looking forward to developing the land into spaces that have more utility for residents. The once-blighted property sat vacant for over a decade.

Other state governments have also engaged in arrangements to acquire more land for housing development. Last week, the State of Nevada entered into an agreement with the U.S. Department of Housing and Urban Development to acquire federal land in the Las Vegas metropolitan area at a per-acre rate well below the land’s market value with the intention of developing it into additional housing units.

Within Clark County – the area that contains the Las Vegas metro area – officials say that there is a shortage of approximately 85,000 housing units, echoing issues being faced across the country.