Caltrans defends handling of SR-710 "Roberti" property sales as tenants press eligibility concerns

Caltrans told the California Transportation Commission in Merced that it is administering the State Route 710 sales program under the Roberti Act and described progress selling properties to housing-related entities while acknowledging continued tenant disputes over eligibility and repair funding.

Carolyn Dabney, the program manager for the SR-710 sales program, told the commission the Roberti Act requires properties in the 4.5-mile corridor to be offered first to tenants at affordable prices if they meet statutory eligibility—including occupancy, income limits and limits on housing expense. Dabney said the agency follows Department of Housing and Community Development guidance to calculate affordability and that the law limits monthly housing costs to a percentage of household income (25% for lower-income households, 30% for moderate-income households).

Dabney described three outcomes the agency encounters when calculating eligibility: a tenant may qualify to purchase at an affordable price; a tenant may qualify but must 'bridge' the gap between the calculated affordable price and the minimum state sales price; or a tenant may be ineligible because projected housing expenses exceed the statutory fraction of income. Dabney said roughly 250 occupied single-family residences are in the corridor and that, to date, fewer than 10% of tenants have been deemed ineligible under the statutory test.

She told commissioners the program faces a "greater challenge" with limited funds to complete lender-required repairs. Caltrans maintains a State Route 710 rehabilitation account to pay repairs for affordable transactions; Dabney said the rehab account is capped at $1,200,000 and that more than $3.3 million has been swept from the account to the State Route 710 fund to be used for transportation allocations, leaving repair funding at risk as affordable escrows complete. She said about 100 affordable transactions are in escrow and the average repair estimate exceeds $100,000 per home.

Several tenants spoke during public comment. Sean Salazar, a tenant in the corridor, said Caltrans' expense estimates were overstated in his case and that the agency refused to accept updated utility bills after Caltrans-contracted plumbers fixed an ongoing leak that had inflated his bills. Roberto Flores, speaking for a tenant association, said long delays after an earlier lawsuit and COVID closures had raised home prices and interest rates and warned that additional litigation could again delay sales.

Caltrans and staff emphasized they are following the Roberti Act and its implementing regulations, which have been reviewed by the Office of Administrative Law. Dabney described additional administrative policies Caltrans has used to help tenants, including allowing deferral of delinquent rent payments until the property sells, setting properties aside to let tenants build 12 months of on-time rent payments required by a state loan program, and granting time extensions when requested.

Caltrans highlighted sale activity: 58 properties have been sold to housing-related entities (HREs) in recent years, 96 affordable transactions are in escrow, and municipalities in the corridor have purchased properties to create or preserve housing. San Gabriel Valley Habitat for Humanity rehabilitated and sold six homes to eligible buyers, and other HRE projects are advancing rental and homeownership units.

Caltrans staff warned commissioners that repeated litigation could again pause sales and extend delays that make rehabilitation and affordable transactions more difficult. The program manager asked for continued understanding that the process is complex, includes lender-required repairs, and will take years to complete.

The item was presented for information; no Commission action was required.