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2026-05-05-Legislative-Policy-Committee-Meeting-Correspondence-Item 2

Legislative Policy Committee
May 5, 2026

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2026-05-05-Legislative-Policy-Committee-Meeting-Correspondence-Item 2
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May 5, 2026
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Text extracted from the city's file for reading and search. Open the original on www.cityofpasadena.net. That file is the official record.

Tuesday May 5, 2026 To: Legislative Policy Committee, City of Pasadena Councilmember Steve Madison, City of Pasadena, District 6 Mayor Victor Gordo, City of Pasadena CC: Assemblymember Mike Fong, D49 Senator Sasha Renée Pérez, D25 Assemblymember John Harabedian, D41 Mayor Sheila Rossi, City of South Pasadena City Council, City of South Pasadena Hilda Solis, First District, Los Angeles County Esteemed Committee Members and Public Officials, On the occasion of the City of Pasadena’s consideration of AB2329 (Fong), please see below

a

set

of

legislative

proposals

recommended

by

Caltrans

tenants

in

Pasadena

and

the

wider

710

Corridor.

These proposals respond to specific issues raised by tenants, as well

as

the

input

of

former

state

HCD

staff

and

legislative

staff

with

experience

of

Roberti

Act

sales

successfully

conducted

under

the

direct

supervision

of

David

A.

Roberti.

The first proposal is a straightforward plan to supersede Caltrans with an alternative and better-suited

authority.

The

four

subsequent

sections

highlight

essential

changes

to

the

current

law,

regulations,

and

daily

practices

of

the

program,

which,

on

their

own,

would

represent

a

considerable

improvement

for

current

tenant-purchasers

in

Pasadena,

as

well

as

South

Pasadena

and

El

Sereno.

However,

the

scope

and

detail

of

these

changes

also

serves

to

illustrate

the

underlying

need

for

new

program

leadership,

and

the

crisis

caused

by

allowing

Caltrans

to

administer

the

710

Sales

Program

in

bad

faith.

1 When the Roberti Act was first created in 1979, Caltrans was intentionally excluded from the

Los

Angeles-area

sales

program

that

followed,

which

was

administered

through

a

Department

of

Housing

and

Community

Development

(HCD)

field

office

and

a

local

housing

corporation.

At

the

time,

it

was

simply

assumed

by

the

legislature

and

the

Governor

that

Caltrans

would

not

be

able

to

follow

the

law

as

it

was

written

or

intended.

More

recently,

the

State

Auditor’s

2012

audit

report

called

for

an

inquiry

into

whether

it

would

be

more

effective

for

Caltrans

to

hand

over

management

of

the

710

Corridor

to

a

Joint

Powers

Authority,

or

a

different

State

department.

In

2021,

the

Director

and

Commissioners

of

the

California

Transportation

Commission

openly

debated

the

same

question.

Caltrans

tenants

in

the

710

Corridor

do

not

need

to

debate

this

question:

our

experience

over

the

last

two

years

(and

the

wisdom

of

six

decades)

demands

the

replacement

of

Caltrans,

and

the

return

to

a

trustworthy

process

implemented

by

HCD,

or

a

joint

powers

authority,

with

a

clear

mandate

for

completion.

Caltrans has strenuously opposed the Roberti Act since its creation, and short of declaring

the

statutes

unenforceable

(which

itself

would

be

illegal

under

Article

III

§3.5

of

the

California

Constitution),

the

Department

has

mitigated

its

language

and

obfuscated

its

intent

to

the

point

of

dysfunction.

AB2329

is

an

opportunity

to

confront

this

corrosive

process,

and

finally

put

the

710

Sales

Program

on

the

right

track.

The

experience

of

Caltrans

tenants

has

demonstrated

(and

I

believe

that

the

2026

audit

will

find)

the

necessity

of

the

following

amendments.

Respectfully,
Timothy Ivison Caltrans Tenant, Pasadena Avenue Member, United Caltrans Tenants 2 AB2329 Proposals 1. REMOVE CALTRANS (and possibly CalHFA) - Empower the Department of Housing and Community Development (HCD) — or form a Joint

Powers

Authority

(JPA)

with

the

involvement

of

HCD,

the

cities

of

Pasadena,

South

Pasadena,

and

Los

Angeles

County

District

1 —

to

complete

the

710

corridor

sales

program.

Exclude

Caltrans

from

the

daily

operation

of

the

sales

program.
[Problem:

Caltrans

regulations

and

daily

operations

are

causing

harm

to

tenants

throughout

the

corridor,

every

day.

See

below.]
- Empower the JPA/HCD to conduct household income verification, coordinate city and HUD

inspections,

hire

appraisers

and

contractors,

and

oversee

repairs.

Empower

the

JPA/HCD

to

set

“condition

adjusted

price”

(defined

in

AB2329)

according

to

appraisals,

for

all

occupied

properties.
[Problem: Caltrans has proven that it is not willing or able to effectively

manage

contractors

at

any

stage

of

the

sales

process.] - Empower the JPA/HCD to use existing HCD mortgage products or create a program-specific

mortgage

product,

and

access

the

710

Rehabilitation

fund

to

support

affordable

purchases

and

subsidize

repairs.

Allow

the

“silent

second”

to

be

subordinated

in

such

a

way

to

allow

for

limited

refinancing,

home

improvement

loans,

etc.,

for

tenant

purchasers.
[problem: CalHFA has an interagency agreement with Caltrans to fund affordable

price

sales.

A

new

agreement

could

be

signed

with

HCD

or

a

JPA,

but

HCD

also

has

its

own

loan

products,

and

the

CalHFA

loans

are

so

restrictive,

only

a

single

lender

(now

a

single

person)

in

the

state

of

California

has

been

willing

to

participate,

according

to

CalHFA.

This

suggests

the

need

for

a

review

of

the

CC&Rs.

The

current

“second

deed

of

trust”

is

not

conducive

to

wider

lender

participation

and

does

not

allow

for

later

refinancing

or

home

improvement

loans.]

2. RESOLVE ACCOUNTING DISPUTES - Remove by law or otherwise invalidate regulation §1481(b)(1)(E) regarding “positive dollar

value”

calculations.

Start

over

with

an

independent

income

verification

process.
[problem: Caltrans has illegally disqualified scores of tenants using an invented formula for

pre-screening,

rather

than

verifying

household

income.

Subject

of

current

lawsuit.]
- Establish statutory procedure for resolving disputed and illicit rental debts expediently, before

sales

negotiations.
[Problem: Caltrans has created illicit debts through accounting errors.

Caltrans

has

pursued

illicit

debt

beyond

the

statute

of

limitations,

amounting

to

harassment.

Under

§1481(l),

current

regulations

allow

for

debt

carry-over

in

affordable

price

sales,

meaning

that

some

illicit

debts

will

never

be

resolved.

Furthermore,

Caltrans

determines

which

tenants

are

allowed

to

carry-over,

causing

more

tenants

to

be

disqualified

from

purchase.]

3 3. ENFORCE CODE COMPLIANCE - Impose local code compliance for all occupied properties in the sales program. [Problem:

No

local

code

compliance

for

sales

to

current

tenants

required

under

current

regulations.

Substandard

housing

conditions

are

the

norm.]
- Impose uniform historic standards, and historic inspection/appraisal practices. [Problem:

Caltrans

has

an

alarming

lack

of

expertise

and

concern

for

historic

preservation

standards

in

each

city.

There

are

no

stated

historic

standards

for

inspection,

appraisal,

or

repair

in

either

affordable

or

market

rate

sales,

only

SB580

properties

sold

to

non-profits.]
- Specify that all rent paid by Caltrans tenants in the 710 Corridor should be directed to the

710

special

rehabilitation

fund.

Repairs

should

be

determined

by

either

city

or

HUD

inspectors.

Local

contractors

should

be

selected

by

a

JPA

or

HCD

authority.
[Problem:

Deferred

maintenance

on

the

corridor

requires

additional

resources.

Past

experiences

(and

audits)

make

it

clear

that

those

resources

should

not

be

entrusted

to

Caltrans,

nor

should

they

be

allowed

to

manage

contractors

or

evaluate

repairs.]
- Specify that each city should sign-off on property sales in their city, before Caltrans can bring

the

sale

to

the

CTC

for

final

approval.
[Problem: Caltrans has a habit of bringing
disputed

sales

to

the

CTC

as

“ready

for

approval,”

as

a

means

of

gaining

leverage

and

pushing

the

process

forward.

This

measure

would

provide

an

opportunity

to

resolve

lingering

tenant

disputes,

ensure

code

compliance,

and

to

prevent

illicit

displacement,

before

proceeding

to

CTC

approval.]

4. CLARIFY DEFINITIONS AND PRIORITIES - The law should clarify the order of sales so that current occupants have priority over vacant

property.

Homes

currently

in

escrow

should

be

resolved

on

a

clear

and

reasonable

timeline.
[Problem: Caltrans is creating the mere appearance of progress by prioritizing

empty

lots

and

vacant

properties.

This

disguises

the

fact

that

there

are

substantive

disputes

over

nearly

every

single

occupied

property.

Tenant-purchasers

have

been

informed

that

they

will

be

waiting

between

2-7

years

in

escrow
.]
- Provide ironclad, standard definition of “single-family residence.” Delete superfluous and deviant

definition

in

the

regulations

under

§1476(a)(23).

Instruct

Caltrans

to

correct

their

internal

database

and/or

split

parcels

to

provide

as

many

affordable

purchase

opportunities

for

current

occupants

as

possible.
[Problem: Caltrans is exploiting
non-standard

interpretations

of

what

is,

and

is

not,

a

single

family

residence,

in

an

effort

to

disqualify

tenants

from

purchase.

They

are

also

cynically

claiming

that

they

must

do

this

in

order

to

provide

affordable

housing

(because

selling

to

the

city

triggers

the

3-unit

affordable

housing

clause).]
- Abolish regulation §1476(a)(17) (the “net equity maturity date”) by law (or abolish Caltrans

sales

regulations

and

replace

with

JPA/HCD

regulations).
[Problem: the
4 “maturity date” is a new regulation that effectively reverses the affordability goals of the program,

threatening

to

turn

a

sale

into

a

long-term

lease.

Caltrans

is

prominently

highlighting

the

"net

equity

to

be

returned"

in

each

of

the

affordable

parcels

being

presented

to

the

CTC,

as

if

to

brag

about

all

the

money

that

they

are

saving

the

state

(when

in

fact

they

are

only

able

to

do

this

by

stealing

housing

security

from

low

income

families).

This

regulation

should

be

removed

from

all

contracts,

now

and

in

the

future.]
- Clarify priority to purchase for multifamily occupants. Correct the contradictory statutory priorities

in

Pasadena

and

South

Pasadena

and

delete

copy/pasted

language

of

SB51’s

54239.1.

(a)

into

Pasadena's

54239.5

(a)

and

South

Pasadena’s

54239.6(a).
[Problem:

Portantino

imported

language

from

Durazo’s

SB51

into

his

amendments

for

both

Pasadenas

(SB381

&

SB959).

This

created

a

confusing

situation

where

individual

households

in

multifamily

dwellings

are

offered

the

entire

parcel

(duplex,

triplex,

apartment

complex,

etc)

at

fair

market

value,

ignoring

(and

contradicting)

the

tenant’s

preexisting

legal

right

under

54237(d)(A)(ii)

to

determine

the

feasibility

of

forming

a

limited

equity

cooperative

(support

for

which

is

not

provided).]

5. PROVIDE ADVOCACY & REPRESENTATION - Transfer control of the program to a JPA/HCD, or provide legal and/or real estate advocates

from

other

State

or

City

agencies

to

represent

tenant

purchasers.
[Problem:

Caltrans

deleted

legal

aid

provisions

from

their

regulations

in

“phase

II.”

Caltrans

also

hired

Veterans

Realty

Group,

which

claims

to

represent

tenants

interests

and

will

collect

the

buyer’s

fee,

but

in

practice,

they

defer

directly

to

Caltrans

on

any

substantive

issues.]
- Empower JPA/HCD to work with the California Center for Cooperative Development or similar

agency

to

provide

counseling

and

resources

for

cooperatives,

or

viable

alternatives

for

occupants

of

multifamily

housing.
[Problem: Cooperative development is
the

primary

mechanism

for

providing

multifamily

occupants

with

ownership

rights

commensurate

with

single

family

home

purchasers

under

the

Roberti

Act.

There

is

currently

no

guidance

on

co-op

formation.

Originally,

the

Roberti

Act

led

to

the

creation

of

a

dedicated

HRE,

The

Route

2 Community

Housing

Corporation

(RT2CHC),

staffed

by

HCD

and

local

stakeholders,

which

provided

this

service,

leading

to

no

less

than

four

successful

co-ops

in

Echo

Park

and

Silver

Lake.]

5

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