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Frequently Asked Questions (FAQs) State Route 710 Sales Program Regulations

Frequently Asked Questions (FAQs)

June 2023
State Route 710 Sales Program Regulations

The Department of Transportation (Caltrans) is preparing to submit proposed emergency regulations with the Office of Administrative Law (OAL) to implement Senate Bill (SB) 959 (Portantino, 2022), which is specific to properties located in the City of Pasadena.  These FAQs address some of the more common questions regarding the State Route (SR) 710 Sales Program and the emergency regulatory process.

 

Question 1:  When will sales begin in Pasadena?

Caltrans began sales across the SR 710 corridor in late 2022 starting with sending Notices of Solicitation to occupants with tenancies exceeding 25 years.  Once the SB 959 emergency regulations are adopted, Caltrans will immediately offer unoccupied surplus residential properties to the City of Pasadena. 

 

Question 2:  When will Caltrans file the SB 959 emergency regulations with the Office of Administrative Law (OAL)?

SB 959 requires Caltrans to file emergency regulations by June 30, 2023.  An emergency rulemaking action provides OAL with a 10-calendar day review period.

 

Question 3:  Will the public have sufficient time to review the proposed emergency regulations? 

SB 959 declared that an emergency exists due to the state’s homelessness crisis and requires Caltrans to file emergency regulations.  The emergency rulemaking process requires Caltrans to mail a Notice of Proposed Emergency Rulemaking at least five working days prior to filing the rulemaking action with OAL.  Once the proposed emergency regulations are filed with OAL the public will have five (5) calendar days to submit comments.

 

Question 4:  Will the public have more time to provide public comments?

The Administrative Procedures Act requires a five (5) calendar day public comment period once an emergency action is filed with OAL.  This 5-day period is set by law and cannot be extended.

 

Question 5:  When can occupants of single-family properties in Pasadena expect to receive a Notice of Solicitation?

Occupants with tenancy exceeding 25 years began receiving Notices of Solicitation during late 2022.  Caltrans anticipates sending Notices of Solicitation to occupants with less than 25 years tenancy beginning in late summer 2023 in phases as indicated in the next question.

 

Question 6:  Will all occupants and tenants receive a Notice of Solicitation at the same time?

No.  Due to the number of properties in the SR 710 corridor it is not feasible to release all properties simultaneously.  Caltrans began releasing properties first to occupants and tenants with tenancies exceeding 25 years and to date, has released approximately 130 properties throughout the SR 710 corridor.  Each future release will contain approximately 20 properties spread throughout the corridor with properties being released every three to four weeks. 

 

Question 7:  How does SB 959 impact my priority status for purchasing my rental property?

SB 959 provides occupants and tenants residing in Pasadena the first opportunity to purchase the property they rent regardless of income and prior to the property being offered to Housing Related Entities (HRE).  Occupant’s meeting income and occupancy criteria specified in the regulations will be eligible to purchase at the Affordable Price, as calculated under the regulations and which is unique to each person’s circumstances.  Tenants who have occupied a home for five years or more and who are not eligible to purchase at the Affordable Price will be eligible to purchase at fair market value.  Properties not purchased by occupants or tenants will then be offered to the City of Pasadena and then to other housing related entities (HREs).  If a property is not purchased by an HRE, the current tenant (regardless of occupancy term) will have another opportunity to purchase the property prior to the property going to auction.

 

Question 8:  How do I obtain financing, and will I be required to make a down payment?

Typically, homes are financed through banks or mortgage companies.  Obtaining a loan requires verification of your income and an evaluation of your expenses to determine your ability to make the monthly mortgage payment.  Your credit score and credit history are also factors.  For low- and moderate‑income borrowers, once your eligibility to participate in the SR 710 Sales Program is determined, you will receive further information regarding available loan products that may be available through the California Housing Finance Agency (CalHFA).  While you may pursue your own financing, CalHFA is familiar with the SR 710 Sales Program and can answer questions regarding financing. More information from CalHFA will come soon.

Question 9:  If Caltrans determines that a tenant is eligible to receive a sales contract does that mean the tenant is qualified for a loan to purchase the home?

No.  Eligibility to participate in the SR 710 Sales Program is separate from a tenant’s ability to qualify for financing.

 

Question 10:  Does my credit score matter?

Yes.  There are many loan products on the market and each product may require a minimum credit score.  A knowledgeable loan officer can assess your financial situation and tell you what credit score you need to qualify for their specific loan products. 

 

Question 11:  What happens to occupants and tenants in Pasadena who are ineligible to buy at the Affordable Price, and cannot afford purchasing at fair market value?

Occupants and tenants who do not purchase will have first right of occupancy to continue renting the property if the property is sold to the City of Pasadena or an HRE.  If the buyer is a former tenant, or if the property is sold at public auction, an occupant or tenant may be required to move.  Caltrans will provide advance notice and relocation assistance to eligible displaced tenants.

 

Question 12:  Who has priority to purchase unoccupied properties in Pasadena?

Unoccupied properties in Pasadena—whether designated historic or not—will first be offered to the City of Pasadena.  If not purchased by the City, then the properties will next be offered to other HREs, followed by former tenants.  Any remaining properties will then be sold at auction pursuant to Streets and Highways Code §118. 

 

Question 13:  Where can I get more information?

For additional FAQs and more information please visit the SR 710 Sales Program website at https://dot.ca.gov/710homes, or call the SR 710 hotline at (213) 897‑8184.