State Senator Sasha Renée Pérez and a group of local officials gathered Friday in front of a Caltrans-owned house in South Pasadena to turn up the heat on the state agency’s long-troubled real estate portfolio. Standing outside one of the properties purchased decades ago for the now-defunct State Route 710 extension, Pérez joined Assemblymember Mike Fong and South Pasadena Mayor Sheila Rossi in calling for an independent state audit of how Caltrans has managed the homes. The coalition cited reports of deferred maintenance, long-standing vacancies, and deeply discounted rents that they say have blighted neighborhoods and hurt taxpayers. Organizers chose a Caltrans house on Alpha Avenue as their backdrop and framed an audit as the first step toward accountability and a clearer plan for selling or rehabilitating the properties.
According to The South Pasadenan, the press conference was set for 10:30 a.m. at 2042 Alpha Ave and was designed to give tenants and nearby residents a chance to present on-the-ground evidence of neglected upkeep and policy failures. The local announcement stated that the coalition is formally pushing for an “independent state audit” to investigate Caltrans’ oversight of properties purchased for the SR-710 corridor.
Why leaders want an audit
Advocates pointed out that problems with the Caltrans portfolio are hardly breaking news. A statewide review more than a decade ago found major gaps in oversight and recordkeeping that had already cost the state millions. In a 2012 report, The California State Auditor concluded that Caltrans often spent more on repairs than it recovered in rent, charged many tenants significantly below-market rates, and in some cases could not justify why certain work was necessary or cost-effective. Local officials at Friday’s event pointed to that report as a cautionary blueprint and argued that recent sales and lingering vacancies suggest the same underlying issues are still playing out.
Sales, vacancies and the current push
In recent years, Caltrans has started shedding parts of its inventory, and cities such as Pasadena and South Pasadena have begun listing former 710-corridor houses for sale. Even so, many units remain empty or in disrepair. As reported by LAist, a group of former Caltrans homes in Pasadena drew intense interest and sold for thousands over the asking price when they hit the market last fall. Caltrans’ District 7 webpages also show dozens of SR-710 properties now moving through a sales program. Organizers at Friday’s briefing argued that this mix of hot-ticket sales and slow-moving dispositions is exactly why a fresh, independent review of Caltrans’ stewardship is needed.
Policy context and next steps
The SR-710 properties sit inside a complicated legal framework that includes the Roberti provisions, which restrict how surplus parcels can be sold or transferred. Previous audits urged the state to either clarify the rules or consider shifting day-to-day management to local governments or private entities. In its earlier work, The California State Auditor recommended exploring options such as a joint powers authority or contractor management to help stop further losses. Speakers at the South Pasadena event said they now plan to press lawmakers and relevant oversight bodies to request a new, formal independent review that would update and build on those prior recommendations.
For now, organizers are pitching the audit as a starting line rather than the finish. They say an independent review is necessary to spell out how much Caltrans has spent on the portfolio, what obligations the agency still has to tenants, and what should ultimately happen to the remaining homes. The South Pasadenan reports that media RSVPs are being handled through the contacts listed by organizers and notes that any actual audit would likely require a formal request from legislative oversight or the State Auditor’s office. Longtime residents who have watched the 710 saga drag on for decades say they hope a new review finally forces a clear decision on the fate of these homes.
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