South Pasadena Mayor Sheila Rossi is traveling to Sacramento this week to testify before the Assembly Housing and Community Development Committee on AB-2329 (Fong), even as the bill has been placed on the consent calendar and will not require formal presentation during the Wednesday, April 22, 2026, hearing at 9:30 a.m. in State Capitol Room 127.
The legislation, authored by Assemblymember Mike Fong, seeks to resolve long-standing frustrations with the sale of surplus residential properties owned by Caltrans along the former State Route (SR) 710 corridor. These properties, acquired decades ago for a canceled freeway extension, have left many South Pasadena families and the city navigating complex, often delayed processes for homeownership and property repurposing.
Decades-Long Struggle with 710 CalTrans Owned Homes
The struggle with the sale of State Route 710 homes has spanned decades, despite the Legislature’s clear intent to sell the homes back to former owners and current or former tenants, many of whom have lived on the properties for decades.
Constituents have increasingly expressed frustrations with the process, including lack of communication regarding requirements, inability to obtain historical information about the property, including appraisals, and inconsistent application of regulations.
Many of these single-family homes were purchased by the state in the 20th century as part of planning for the 710 freeway extension through the Pasadena and South Pasadena area. After the project was formally canceled in 2019, the properties remained under Caltrans ownership. Some have been rented to long-term tenants under maintenance programs, while others sat vacant. Years of deferred maintenance have resulted in significant repair needs, leading to disputes over valuations, required fixes, tenant eligibility, and access to property records.
Existing state law (including Government Code provisions and prior measures like the Roberti Act framework and SB 381) sets priority sales processes: offers typically go first to former owners or present occupants, then to present or former tenants at below-market prices, with proceeds often directed toward producing additional affordable housing units. South Pasadena has already purchased batches of these homes in recent years for rehabilitation, resale, or other housing purposes. However, challenges with “as-is” condition assessments, repair costs, and documentation have slowed progress and created barriers for both aspiring homeowners and the city.
What AB-2329 Would Do: Key Provisions Explained
AB-2329 addresses these concerns by setting a date in time for determining a sale price and adjusting the price by the condition of the property and the cost for rehabilitation to make the property safe.
The bill introduces the concept of “condition-adjusted fair market value” specifically for surplus residential properties in the City of South Pasadena. This is defined as the fair market value of the property as of October 13, 2019 (tied to the formal cancellation of the 710 project), adjusted downward to reflect its current “as-is” condition and the estimated costs of necessary repairs and capital improvements needed to make it safe and habitable.
Under the bill:
- Priority offers to present tenants (and certain former occupants) would use this condition-adjusted value instead of standard fair market value calculations.
- If a sale at fair market value is unsuccessful, properties would still be offered to present or former tenants at the condition-adjusted value.
- Any disputes between Caltrans and a purchaser over the final sales price would be resolved through the Office of Administrative Law, with a set timeline for requests.
- Caltrans (or the disposing agency) must provide all relevant property documents to potential buyers and purchasers without requiring non-disclosure agreements.
- For property tax purposes, homes purchased at the condition-adjusted fair market value would be assessed at that adjusted price.
Additionally, the bill includes South Pasadena-specific provisions: It authorizes the City of South Pasadena, in direct transactions with Caltrans (without the city first taking ownership), to facilitate sales to present tenants at the condition-adjusted fair market value — even if the tenant is not strictly “in good standing” on rent obligations in certain cases. Proceeds from such city-facilitated sales would be directed into an affordable housing trust fund.
AB-2329 makes legislative findings declaring the necessity of this special statute due to the unique circumstances of the 710 corridor properties in South Pasadena. The bill was introduced on February 19, 2026, amended on April 13, 2026, and re-referred to the Housing and Community Development Committee on April 14.
Partnership with South Pasadena Leadership
Much of the bill came in partnership with Mayor Sheila Rossi, the City Council, and City staff.
“The bill aims to make the purchase process less arduous, and more fair and transparent,” Assemblymember Fong stated.
This bill will result in greater transparency with the process and expedite the sale of occupied surplus residential property along what was the 710 corridor running from Alhambra, through South Pasadena & Pasadena.
“I am grateful for the partnership with the City of South Pasadena to bring forth solutions to preserve housing, prevent displacement, and help residents move forward on the path towards home ownership,” said Assemblymember Fong.
Why This Matters for South Pasadena and the Greater Pasadena Area
For residents across South Pasadena, Pasadena, Alhambra and the surrounding region — AB-2329 represents a practical step forward on a decades-old regional challenge. By accounting for real-world property conditions in valuations, the measure aims to lower barriers to homeownership for long-term tenants, reduce displacement risks, and help the City more effectively manage and repurpose these legacy assets while supporting broader affordable housing goals.
The April 22 hearing, even with the bill on the consent calendar, provides an opportunity for testimony and committee review. If advanced without opposition, it would next move to the Appropriations Committee and potentially the Assembly floor.
This preliminary article is based on the current bill text, legislative records, and direct responses from Assemblymember Mike Fong’s office. Additional perspectives, including from Mayor Rossi following the Sacramento proceedings, will be incorporated as they become available to keep South Pasadena readers fully informed. Stay tuned… more on this early next week. CLICK HERE for more information on the 710 Freeway & CalTrans Issues
