McMillan, Acquanette (Netta)
From:
Sent:
To:
Robles, Sandra
Monday, February 9, 2026 1 :09 PM
McMillan, Acquanette (Netta); Iraheta, Alba
Subject: FW: Argument for the Transfer of Caltrans-Owned Houses to the City of Pasadena
Sandra S. Robles, Sr. Assistant City Clerk I Office of the City Clerk D 626.744.7398 E [email protected].
100 N. GARFIELD AVENUE I PO BOX 7115 I PASADENA, CA 91109-7215 From: Kelly Brinkman
Sent: Friday, February 6, 2026 12:49:56 PM
To: Jomsky, Mark <[email protected]>
Cc: Chapman, Justin <[email protected]>; Timothy lvison •; Christopher Sutton· >
Subject: Argument for the Transfer of Caltrans-Owned Houses to the City of Pasadena ; Roberto Flores
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ATTENTION: CITY CLERK
Hello Mark,
I was advised to send this to you and ask that you distribute to the Council for closed session and as part of the record:
Argument for the Transfer of Caltrans-Owned Houses to the City of Pasadena Overview
The City of Pasadena should assume ownership and control of Caltrans-owned residential properties within its jurisdiction in order to advance affordable housing goals, stabilize neighborhoods, and ensure transparent, community-centered disposition of public land. Transferring these homes to city control would allow Pasadena to sell properties directly to affordable and market-rate owner-occupants using FHA 203(k) rehabilitation mortgages, while also collecting interim rental revenue. This approach would eliminate unnecessary intermediaries, including Veterans Realty Group, reduce costs, and align housing outcomes with local priorities rather than state-level asset liquidation goals. 1 2/9/2026
Item E
1. Local Control Ensures Better Housing Outcomes
Caltrans is a transportation agency, not a housing authority. Its mandate is infrastructure, not long-term neighborhood stewardship. As a result, Caltrans' property disposition process prioritizes expediency and liability reduction over community stability.
By contrast, the City of Pasadena:
Has direct accountability to residents
Understands neighborhood-specific housing needs
Is already tasked with meeting state-mandated housing production goats (RHNA) h-las existing housing, planning, and code enforcement infrastructure Local control ensures these homes are treated as housing assets, not surplus land.
2. Elimination of Middlemen Reduces Cost and Increases Transparency The current involvement of Veterans Realty Group introduces:
Additionaltransaction costs
Reduced transparency
Profit extraction from publicly owned assets
Limited accountability to local residents
Removing Caltrans and third-party brokers from the sales process would:
Preserve more value for the public
Reduce administrative and marketingfees
Allow sales pricing to reflect community goals rather than investor demand Ensure ethical, transparent transactions governed by city oversight Public land should not be monetized through private intermediaries when municipalities can manage sales directly and more responsibly.
3. FHA203(k) Mortgages Enable Equitable Homeownership
Many Caltrans homes require rehabilitation, making them inaccessible to traditional buyers. The FHA 203(k) program solves this problem by allowing buyers to:
Finance purchase and rehabilitation in a single mortgage Bring properties up to code and modern standards
Build equity through sweat equity and renovation
Access homeownership opportunities otherwise limited to investors The City of Pasadena is better positioned than Caltrans to:
Structure sales compatible with 203(k) requirements
Coordinate inspections and compliance
Prioritize owner-occupants over speculators
Support first-time and moderate-income buyers
This approach converts deteriorating public assets into stable, owner-occupied housing.
4. Mixed Affordable and Market-Rate Sales Promote Financial Sustainability A blended strategy—selling some homes as affordable units and others at market rate—allows the city to:
Cross-subsidize affordability without relying solely on grants 2 Recover public investment
Fund future housing programs
Maintain fiscal responsibility
This balanced model ensures affordability goals are met without burdeningtaxpayers.
5. Neighborhood Stabilization and Anti-Speculation Benefits City-led sales can include:
Owner-occupancy requirements
Resale restrictions
Anti-flipping provisions
Local buyer preferences
These protections are difficult to enforce when sales are handled by a state agency or private broker but are standard tools for municipalities committed to long-term stability.
Conclusion
Transferring Caltrans-owned homes to the City of Pasadena is a pragmatic, fiscally responsible, and community-focused solution. It removes unnecessary intermediaries, maximizes public benefit, expands access to homeownership through 203(k) financing, and ensures these homes serve residents—not investors.
Public land should be leveraged to solve public problems. Pasadena is best equipped to do exactly that.
Respectfully,
Kelly Brinkman
Pasadena, CA. 91105
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