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The planned sale of the first five CalTrans homes in South Pasadena, owned by the California Department of Transportation (Caltrans), hit an unexpected snag on June 14, 2024. Concerns arose when a city-contracted Realtor prematurely advertised these properties, leading to confusion about their availability.

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Background on the CalTrans Homes In South Pasadena

The CalTrans homes in South Pasadena were acquired over sixty years ago through eminent domain to facilitate the now-abandoned 710 freeway extension. This project resulted in significant displacement, affecting thousands of residents in South Pasadena, El Sereno, and Pasadena, particularly in predominantly Black and low-income neighborhoods. The freeway project was ultimately scrapped in 2018, leaving behind many historic homes, some still occupied by tenants who rent from Caltrans.

Current Status of the Sale

Caltrans clarified that it retains ownership of the CalTrans homes in South Pasadena and is currently in escrow with the City of South Pasadena. “The sale is awaiting approval from the California Transportation Commission,” explained Caltrans spokesperson Eric Menjivar. He noted that the sale, which entered escrow in late May, is expected to conclude by late summer, pending the commission’s approval.

Menjivar expressed frustration over the Realtor’s announcement, stating, “That was not an appropriate announcement to make.” The Realtor team, led by Dave Knight, had issued a press release promoting the homes for sale starting June 14, framing it as a unique opportunity for buyers to help restore these historic properties.

Complications and Future Plans

On the Realtor’s website, a message indicated that delays were expected due to the involvement of multiple government entities. Further updates are anticipated soon.

City officials confirmed that they remain in escrow with Caltrans and are awaiting the California Transportation Commission’s approval, expected in August. Once approved, the sale will be finalized, followed by a transaction to a third-party buyer. City Manager Arminé Chaparyan highlighted the collaboration with the Dave Knight Real Estate Team to promote these properties effectively.

This initiative is part of SB 381, a law authored by Senator Anthony Portantino, allowing the homes to be sold at market rate. The city aims to restore these historic properties to the tax rolls and use the proceeds for affordable housing initiatives, in alignment with the Roberti Act.

caltrans-homes-in-south-pasadena
225 Fremont Ave, South Pasadena, 91030, was scheduled to go to market Friday, June 14, 2024 (Courtesy of The Dave Knight Real Estate Team).
Broader Implications

This effort is part of a broader struggle by South Pasadena and neighboring communities in the San Gabriel Valley. In July 2023, Pasadena considered acquiring 17 vacant homes under SB 959, legislation aimed at facilitating the return of unoccupied properties to the city for affordable housing development.

Menjivar noted that while the process is complex due to state laws governing the sale of these CalTrans homes in South Pasadena, Caltrans is optimistic about moving forward. Recently, on May 17, the first two homes in El Sereno were sold to San Gabriel Valley Habitat for Humanity, which plans to renovate and resell them for no more than $225,000.

Conclusion

As South Pasadena navigates this intricate sale process, the future of these CalTrans homes in South Pasadena remains a focal point for community revitalization and affordable housing efforts in the region. Stay tuned for further updates on this developing story.

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