Buying Caltrans-Owned Homes Along the Former 710 Corridor Extension Isn’t Easy

Since Caltrans announced it has begun the process of selling 42 State-owned homes in South Pasadena and Pasadena located along the former 710 corridor extension route  last Friday, many are wondering how they can buy some of this prime real estate. The process, it turns out, is complex and time-consuming.

“Caltrans expects the sales process to take about a year for each property, but that is just an estimate. Although if one buys at market rate, it could take less time. Each process is unique and will depend on the tenant’s situation,” said Caltrans District 7 Media Relations Chief Lauren Wonder.

The notices of conditional offers were mailed last Friday to the current occupants of the 42 residential properties that will be sold in accordance with the Affordable Sales Program regulations, according to the Caltrans website.

“It’s just the first Notice of Conditional Offer that needs to be responded to in 120 days. There are several parties that need to decline before a property goes to public auction,” said Wonder.

According to a document released by Caltrans, there are two separate prospective buyer priority lists for categories of single family residences and multi-family residences.

For example, a level 1 priority buyer for a single family residence must meet the criteria of being a current tenant and former owner of the property. If that criteria is not applicable and/or an individual who meets this criteria decides to not purchase the home, then the level 2 order of priority is next in line, which is a current occupant of two or more years with low or moderate income.

“This is a major step toward returning these properties to both the community and to the families who may have a chance at being a homeowner for the first time,” said Caltrans Director Malcolm Dougherty.

Among the program benefits, eligible occupants will have the opportunity to purchase their homes at affordable prices. Additionally the program provides for affordable rental options for eligible occupants and establishes a trust fund for future affordable housing programs.

However, Caltrans is not a residential lender and will not be providing financial assistance.
Veterans Realty Group has been selected as the contractor to manage the buying process and in the coming days, eligible residents will receive a package that outlines the process, details for the homebuyer education workshops, and includes the notice of offer to sell.

Veterans Realty Group declined to provide any comments about the buying process.

The new owner will have sole discretion to determine whether current tenants may continue to rent. Relocation assistance will be available to eligible tenants who are in occupancy within 90 days of the date of transfer.

Caltrans will provide eligible tenants relocation advisory assistance, actual and reasonable moving expenses, and up to $5,250 as a replacement housing payment that can be used to supplement rent at a new residence or applied as a down payment on the purchase of replacement housing.

For a full list of prospective buyer criteria and additional information, visit http://www.dot.ca.gov/hq/paffairs/news/pressrel/InformationFlyer.pdf.