CalTrans is attempting to sell hundreds of homes in the path of the failed 710 Freeway extension, but is adding an inflationary increase in price, an increase that would raise the price of the properties up to 600 percent.
CalTrans is selling 460 houses in the cities of El Sereno, South Pasadena, and Pasadena, and of those 460 homes, only 10 have sold.
Seven tenants of these homes, who have been waiting to buy their homes under a special affordable housing law that was crated specifically for them, along with the United CalTrans Tenants group, have filed a lawsuit against the government agency, after having previously asked for relief and being denied. They say the increase is a violation of the law that was created to protect them.
As a response, Caltrans Deputy District Director Andrew Nierenberg stated that if the original purchase price was not adjusted, then the value the property gained would not be accounted for and lost, meaning the agency would then have used revenues from the gas tax for an unconstitutional purpose.
Christopher Sutton, the Pasadena attorney who is representing the tenants, says these gas tax revenues are used for highway development, and, to help provide affordable housing, meaning there should be no concern for unconstitutional use of this revenue, and that Caltrans can’t violate this law, since Brown ruled the law was constitutional and useful to these tenants. However, Nierenburg argues that even with the added increase, the properties are being priced far under their market value.
The hearing is set for December 21st.
