Pasadena Rental Housing Department Underspends Budget by 45%

The Pasadena Rent Stabilization Department is running significantly under budget with 45% of its annual funds still available as of March 31, according to a quarterly update to be presented to the Rental Housing Board on Thursday.

Executive Director Helen Morales will report that the department has spent just $2.6 million of its $4.76 million revised fiscal year 2025 budget through the first nine months of the fiscal year.

The positive budget variance stems primarily from staff turnover in senior positions during the second quarter, according to the report prepared by Management Analyst Will Panza.

Personnel expense increased by 52%, or $464,000, from the reported total at the end of the second quarter due to the onboarding of two staff during the last month of the second quarter and three staff in the third quarter.

But personnel expenses are nonetheless 40% under budget, with $901,421 remaining of the $2.25 million allocated. The department has 17 authorized full-time positions, two contract temporary workers and Board compensation costs.

Services and supplies represent the area with the largest unspent funds, with 60% of its $1.64 million budget still available. The department reported a $321,000 increase in this category from the prior update to $649,082, attributed to invoicing for office technology infrastructure projects, lease payments and merchant transaction fees.

Capital outlay has 65% of its budget remaining after the department declined tenant improvements such as white noise soundproofing and window blind replacements that would have incur additional expenses.

Outside legal services from Goldfarb & Lipman have used 68% of their allocated budget, spending $152,971 of $225,000.

Meanwhile, legal and advertising expenses have only used 2% of the allocated $120,000 budget, with 98% remaining.

The only category exceeding its budget is miscellaneous expenditures at $117,829 versus $96,327 budgeted, creating a -$21,502 variance.

Internal services, comprised of Capital Allocation Plan and Department of Information Technology charges, have used 74% of its budget with only 26% remaining.

The department has collected $3.8 million in revenue so far this fiscal year, with potential for significant additional funds. The report identifies 187 properties pending payment, representing $183,000 in anticipated revenue, plus 350 properties requiring staff review that could generate up to $551,000.

Additionally, approximately 6,000 units are pending registration which could contribute up to $1.7 million in potential revenue.

Total department expenditures increased from $1.6 million to $2.6 million between the second and third quarters.

The report also notes other positions funded by the Rental Housing Fee, including a Deputy City Attorney position totaling $125,000.

The PHRB meeting will take place Thursday, May 1 at 6 p.m. in the Pasadena City Hall Council Chamber. The budget report is for information only, with Board members asked to consider whether to provide direction to staff.