City Seeks Joint Venture With Housing Agency

Seeking to stop an affordable housing agency from renting out 10 surplus state-owned houses it is purchasing, South Pasadena officials hope to strike a deal Monday allowing the city to become a partner in rehabilitating the homes so they can be sold to low- to moderate-income families.

Caltrans is selling nine houses in South Pasadena and one in Pasadena to Pasadena Neighborhood Housing Services for $636,000. The nonprofit agency planned to repair and rent the homes to low- to moderate-income families and to people with autism. South Pasadena neighbors and the city opposed the rental plan.

The housing agency has agreed to meet with the city Monday to discuss a joint venture, city officials said. In a show of goodwill, the agency agreed to delay the closing of escrow on the houses, once on the pathway of the proposed Long Beach Freeway extension, until July 18 to allow for negotiations, officials said.

City Manager Sean Joyce said Pasadena wants to have the properties rehabilitated, then sold to low-to-moderate-income families. The city also has hired a housing consultant to develop a joint venture plan.