City of Pasadena Buying Caltrans Lots for Housing

A chunk of the vacant property in Pasadena owned by the California Department of Transportation will soon come under local government ownership.

The City of Pasadena is moving forward in its effort to acquire and sell 17 vacant Caltrans properties, Pasadena Now reported.

The Pasadena City Council first authorized the endeavor in June under SB 959, which requires three affordable units for every Caltrans unit purchased.

The City Council’s initiative is aimed at transforming homes that were once slated for demolition as part of the abandoned State Route 710 North project and replacing them with denser housing. The area, now known as the “710 stub,” was cleared in the 1970s as part of the planned highway extension, displacing many low-income and minority residents in the process. Caltrans seized 400 homes by eminent domain for this effort in the 1960s.

Getting movement on deals for the state-owned “Stub”–which comprises 400 parcels altogether– land has been a glacial process.

“We’re behind where we should be, without a question,” Pasadena City Council member Steve Madison told The Real Deal in July. “The bottleneck is the city council, and in particular, the mayor [Victor Gordo].”

The City is required to deploy the sales proceeds from the Caltrans properties toward affordable housing by Dec. 31, 2026.

Pasadena officials identified four smaller non-historic properties as potential sites for affordable homes for sale. The remaining 13 properties will be listed on the MLS for fair market value, according to an announcement from the city.

Brokers will begin marketing the first 10 properties this week, according to the City of Pasadena. Marketing for the other three addresses will begin this month. All properties will be sold as-is and will be subject to deed restrictions wherein the buyer would be required to repair the property and ensure it’s ready for occupancy within a reasonable timeframe.

Under Pasadena’s Housing Element, the city is required to plan for 9,429 units of new housing by October 2029. Of that, 2,747 must be very-low-income units, 1,662 units of low-income housing, 1,565 units of moderate-income housing and 3,455 units of above-moderate-income housing. In Los Angeles County, very-low-income is defined as a maximum annual income of $53,000 for one person, while low-income is generally defined as making less than $84,850 every year. Moderate income, meanwhile, sits at around $89,550.

DPP Compass, Sotheby’s International Realty and Mutual Realty Consultants have been charged with marketing the vacant Caltrans properties for sale. How much they fetch on the market remains to be seen.

— Chris Malone Méndez