By Los Angeles County Politics (LACP)
A coalition of state legislators, local officials and longtime tenants is calling for an independent state audit of the California Department of Transportation (Caltrans) over its handling of properties acquired decades ago for the now-abandoned State Route 710 freeway extension — homes that were supposed to offer a pathway to affordable homeownership but instead left residents dealing with neglect, mold, pest infestations and an opaque sales process.
State Sen. Sasha Renée Pérez (D-Pasadena) and Assemblymember Mike Fong (D-Alhambra) are leading the push, with backing from South Pasadena Mayor Sheila Rossi, Pasadena City Councilmember Steve Madison, and Assemblymember John Harabedian (D-Pasadena).
The audit demand comes as South Pasadena moves aggressively to acquire surplus Caltrans properties of its own. The City Council earlier this month finalized the purchase of 12 more properties for approximately $1.5 million, according to the South Pasadena Review — the second batch in a city initiative that has already yielded a first tranche reselling in the $1 million to $1.7 million range, with proceeds earmarked for affordable housing.
But tenants who were legally entitled to first purchase rights say Caltrans failed them long before any city deal was struck.
“My constituents have shared with me alarming examples of neglect and mismanagement, including ongoing pest issues, serious mold problems, and unresolved structural hazards,” said Pérez. “Residents have encountered a lack of transparency and inconsistent enforcement of policies that have severely impacted tenants’ health, financial stability, and access to affordable housing. I am calling for an independent state audit to fully understand the depth of these complaints and to hold Caltrans accountable.”
The properties were acquired by Caltrans for a freeway extension that was ultimately killed by community opposition. Legislation passed in 2021 and 2022 established a framework for occupied homes to be sold to existing tenants and unoccupied parcels to be offered to local governments. Caltrans operates an Affordable Sales Program meant to facilitate those transfers — but tenants say the agency has consistently fallen short.
“For too long, tenants along the 710 corridor have faced unsafe housing conditions, delayed maintenance, and a confusing, inconsistent path to homeownership,” said Fong. “The level of frustration from residents is undeniable — and our office shares that frustration after repeated attempts to get clear answers from Caltrans.”
South Pasadena resident Page Phillips, who has lived in her Caltrans-owned home for more than 30 years, said the process has been anything but fair. “We raised three children here and have been active, committed members of this community. We love our home, and we love South Pasadena. Unfortunately, the sales process has been anything but fair or equitable and now we fear we may lose our home.”
Rossi backed the audit call. “These are families who were promised stability and a pathway forward. Instead, they’ve been left with uncertainty and shifting rules. We owe them a process that is clear, accountable, and grounded in the public purpose these properties were meant to serve.”
Madison noted this is not the first time Caltrans has been found wanting on the 710 properties. “Previous audits by then-state Senator Adam Schiff in the early 2000s and then-state Senator Anthony Portantino in 2012 found widespread mismanagement,” he said. “Caltrans is a transportation agency, not a professional property manager. Enough is enough.”
Harabedian, whose committee will take up the audit request at a public meeting on March 24, said the bar should be simple. “The numerous tenants in SR 710 properties who have reached out to my office for help aren’t asking for much, just a safe and dignified place to live and a clear path to affordable homeownership they have been promised under the law,” he said.
