Once stately properties that Caltrans bought 30 years ago to complete
the still unfinished Long Beach Freeway stand as a testament of neglect
by one of the most powerful agencies in California.
By CHIP JACOBS

Defying repeated calls to fix its properties, Caltrans
has allowed many of its rental homes along the un-built Long Beach (710)
Freeway extension to wither into perpetual neglect and battered, mothballed
shells that draw crime and a slum-like aura to their neighborhoods.
People renting state-owned housing face pest infestations, corroded
plumbing, leaky roofs, rotted floors, exposure to mold, and possibly
lead paint, among other defects. Many renters complain their houses are
unsafe and blame it on either slapdash repairs or California Department
of Transportation claims it exhausted its maintenance budget.
Altogether, about a quarter of the parcels the department owns along
the corridor remain so dilapidated they can’t be leased or languish
as empty lots, depriving local government of several millions of dollars
worth of yearly rental income, property taxes or badly needed affordable
housing, records show.
Forty or more Caltrans dwellings stand vacant in Pasadena alone, the
majority of them with landmark status within blocks of pricey Orange
Grove Boulevard. Often poorly secured, the houses have been vandalized
by indigents, would-be squatters, contractors, even devil worshippers,
according to neighbors and police.
Meanwhile, some historic homes that have undergone $500,000-plus renovations
are still faulty, so they are boarded up and left unoccupied.
From grand Victorians and Spanish-style bungalows to nondescript apartment
buildings, the dwellings are part of 587 units that Caltrans owns through
Pasadena, South Pasadena and the northeastern Los Angeles enclave of
El Sereno. The department acquired the bulk of them from their original
owners decades ago in anticipation that the extension between the Long
Beach (710) and Foothill (210) freeways would be constructed, but fierce
opposition, particularly from the city of South Pasadena, has stretched
it out into a heavily litigated, 40-year fight. Trapped in limbo, all
the state can do with the units is lease them.
Still in Caltrans’ possession are 21 homes valued at $5.7 million
that the agency formally declared outside the proposed spur’s footprint
in 1995 but have yet to sell, as state law requires. A number of groups,
including Pasadena City Hall, contend the number of “surplus” houses
or potentially unneeded ones may be dramatically higher.
John DeSoto, a Caltrans tenant from El Sereno and that community’s
former honorary mayor, believes legal action is long overdue.
“At my house, I have faulty electrical connections, plumbing that
doesn’t work, drains that spill out into the carpet and mold on
my walls,” he said. “You slide the windows and they fall
out. Caltrans attitude is, ‘If you don’t like it, move!’ Bitching
won’t make them fix it until we can get them into court as slumlords,
and that’s what they are.”
A New Look
A number of tenants praised their rental agents as hardworking, resourceful
public servants who are often frustrated themselves by management decisions.
The Weekly, for example, found one case where a renter evicted from her
Caltrans home for allowing drug-dealing there was awarded nearly $200,000
in relocation benefits.
State upkeep of its real estate is etched into the law. The July 1999
federal injunction won by South Pasadena halting significant freeway
work requires that Caltrans maintain their properties in “conditions
of good repair.” It also exhorts the department to keep them rented
to preserve “community standards” and deter vandalism.
The Federal Highway Administration’s “Record of Decision,” a
capstone document that spells out the $1 billion extension’s exact
4.5-mile route and how it will be trenched to soften community damage,
says the state must “properly maintain” its homes.
Eight years ago, after a Los Angeles Times expose on Caltrans property
lapses, local elected officials and activists implored the department
to tend to its shoddiest places or turn them over to someone who would.
Since then, the state’s progress doing that has been spotty at
best, a Weekly investigation has found. The biggest improvements appear
to be some new paint jobs, locks, and freshly mowed lawns.
Plenty have been critical. Caltrans executives have been ripped in two
state audits, one that concluded they bumbled a $20-million renovation
job of their historic houses that overhauled only 39 of 92 dwellings.
An agency-issued survey of its own renters found 170 tenants responding
they had maintenance issues, and 27 who didn’t.
Caltrans has also been tagged with health code violations in spite of
the department’s staunch immunity assertions. Pasadena code inspectors,
for example, cited eight Caltrans’ houses for problems that included
leaks, vermin, inadequate water pressure, overgrown vegetation, missing
smoke detectors and exposed basement asbestos, records show. The eight
cases, five of them deemed major violations, have since been resolved.
Some critics, including Pasadena-based attorney Chris Sutton, believe
the department would have “hundreds” of health and building-code
violations if cities got aggressive about prosecuting them.
Just this spring the department was sued by a renter who claimed she
developed acute asthma and other ailments as a result of being exposed
to “extensive mold growth” and other toxins at her Pasadena
Avenue rental. Lizz Wolf claims in her Los Angeles Superior Court suit
that she pleaded with Caltrans to remove the growths in August 2001 but
the agency responded weakly or not all. Caltrans officials say they don’t
comment on pending litigation.
One South Pasadena tenant who previously won a judgment against the
department for wrecking her possessions with dripping hot tar during
a re-roofing job has been living for four months with improperly draining
toilets and hot water and a hungry rat on the loose.
Tired of the agency’s excuses, she finally called the county Department
of Health Services. It has issued Caltrans a notice of violation for
plumbing, cracked surfaces and rodent abatement.
“We respond to all complaints concerning residential sanitation,” said
Terrance Powell, the county’s chief environmental health specialist. “It
doesn’t matter who the landlord is.”
Douglas Failing, Caltrans’ top official in the corridor, acknowledged
improvements needed to be made when he took over the post about seven
months ago. Under his guidance, he said, maintenance has been bolstered
to ensure the houses are “safe and sanitary.”
“I think we are getting to be a better landlord,” Failing
said. “There were predecessors before me that weren’t as
focused, and didn’t have staff as focused. … That’s
why we are spending as much as we can.”
The majority of the renters’ complaints, he said, do not involve
habitability issues. His staff responded to about 4,500 repair orders
last year.
Exit strategy
Newly obtained records are shedding light on Caltrans’ real estate
finances. In 2001 and 2002 it took in $7.9 million in rent from its 710-extension
tenants, plowing back $4.49 million on maintenance such as plumbing,
carpentry and flooring. This year Caltrans is on track to earn a record
amount of rent. The differential between revenues and expenditures is
returned to state and local government coffers.
Historically, many longtime tenants have lived with the problems, spending
as much as $10,000 of their own money on repairs, because their rents
were priced in the affordable range. Some hoped to purchase the houses
at steep discounts under state law giving them that option if their place
was declared surplus or the entire project was scotched.
But when Caltrans decided to raise those rents to fair-market levels,
in some cases increasing them 25 percent a year, howls of protest arose.
Tenant activists accused the agency of employing a ham-handed eviction
strategy to “depopulate” the area so the houses would command
higher sales prices. Caltrans, they said, tried justifying their new
rents by comparing them with housing costs from upscale neighborhoods
without their chronic traffic, crime and upkeep issues.
Failing countered that the department was only doing along the corridor
what it had done throughout California: charge market rates to achieve
neighborhood parity. For reasons he wouldn’t elaborate on, Failing
said his district “fell behind” in implementing that policy,
and said even with the hike, more than half the houses would remain in
the affordable category.
Ironically, tenants’ dreams of buying their houses — affectionately
known as “the promise” in the tenants’ lexicon — may
be closer to pay dirt than it ever has been.
Caltrans executives have drafted a document called the “exit strategy” that
outlines abandoning the roadway for more feasible alternatives, be it
the recently proposed tunnel concept under the same route or a series
of street-level traffic-softening measures, multiple sources have told
the Weekly. Agency managers are purportedly waiting for the green light
from Gov. Gray Davis and Caltrans Director Jeff Morales to announce what
would amount to a delirious liberation day for many and a betrayal to
others.
Why the change? Years of bitter wrangling, lawsuits, the prospect of
having to acquire another 500-plus homes and the uncertainty of securing
a huge amount of money for such a controversial spur in a lean, post
9-11 federal funding climate have congealed into a potent deterrent.
“I had a conversation with Jeff Morales and he said let’s
either find a way to move forward or drop it …” said Mark
Pisano, executive director of the Southern California Association of
Governments. And “I have heard the rumor about the exit strategy.
Have I been able to substantiate it? No.”
Pisano cautioned that the 710-extension remains the number one unfinished
transportation project in the SCAG clean-air plan, and doing nothing
about north-south traffic and a resurgent smog problem is a nonstarter.
Whatever the catalyst, Pasadena officials have been maneuvering to buy
some of the Caltrans properties within city boundaries.
Just shameful
Pasadena Mayor Bill Bogaard, City Manager Cynthia Kurtz, Planning and
Development Director Richard Bruckner and the city’s lobbyist,
Ken Emanuels, met in Sacramento in July with state housing officials
and a lawyer from the advocate group, the Western Center on Law and Poverty,
documents show.
The city was testing the waters about modifying the landmark 1979 Roberti
Act, which governs the sale of state property no longer needed for highway
construction projects to low- and moderate-income tenants. By amending
that law so they moved ahead of other potential buyers, Pasadena officials
hoped to purchase 41 homes from Caltrans at their original price, relocate
tenants from any occupied dwellings in that batch, and then sell the
houses at market rates. Proceeds estimated at $12 million would have
then seeded an affordable-housing trust fund.
Notified of that bid, Assemblywoman Carol Liu, D-La Canada Flintridge,
and tenants contested it. Pasadena officials have since promised not
to undercut the rights of existing renters — unless they reside
in large homes the city says would saddle new owners with burdensome
upkeep payments.
Besides the 41 targeted homes, there was some nervousness that Pasadena
actually coveted all 145 Caltrans homes, and there are indications that
was in the city’s plans. The city last December, for instance,
packaged a glossy binder with digital pictures and basic information
for every Caltrans property within city limits. A city real estate agent
has also been lurking about.
“I think Caltrans acknowledges they are a terrible landlord,” Bogaard
said in an interview. “I’d hope something could be done to
move the houses out from their ownership. Some will choose to buy. Some
of those houses are suitable for affordable housing.” But, he said, “I’d
be hesitant to offer a 5,000-square-feet house to someone of modest means.”
The tenants were so rattled by the city’s actions it hired the
law’s author, former California Senate President Pro Tem David
Roberti, to represent them. Roberti is now in private legal practice.
“A lot have suffered through Caltrans ownership,” Roberti
said. “This problem has to be solved by the city as a whole, and
not finding a group of victims and achieving affordable housing on their
backs.”
Bird-dogged by Liu, Caltrans agreed to extend a rent freeze until July
but haven’t participated in a rent task force because of disagreement
over its mission. Since then, Liu and fellow Assembly member Jackie Goldberg,
D-Los Angeles, have kept pushing on the rent issue.
In October they received an opinion from the state’s legislative
counsel that concluded the agency has the discretion but not the obligation
to charge market rent for the homes in question.
Liu, unable to extract property information from the agency, also introduced
legislation, Assembly Bill 21, to put a moratorium on the rent increases
and evictions until 2005 and establish a task force to hash out the situation.
“We wrote this bill out of frustration,” Liu said. “We
ask Caltrans for information and they stonewall us. Regardless of where
this bill goes, there is a movement to take these properties from Caltrans’ control
and let the housing department or someone else manage them. I want to
give them the benefit of the doubt, but they haven’t shown too
much ability managing their property. It’s shameful.”
Down for the count
On an otherwise picturesque block of million-dollar homes, the deserted
structures on the eastern flank of Pasadena’s Wigmore Drive have
seen better days.
A vacuum cleaner extension hose serves as a makeshift downspout at one
ranch-style house and a palm tree grows between the steps of a splintering
porch with boot-sized holes in it. At least the front lawn has a purpose:
a city garbage truck makes U-turns on it.
Next door another empty Caltrans house shows the scorch marks under
the roofline from a 1997 fire — one of about a handful of blazes
that started at 710-properties. Out back, the overgrown yard is peppered
with old shoes and cast-off piping.
On the north side of Wigmore, a 1924-circa abode designed by respected
architect Wallace Neff isn’t the showpiece it once was. The windows
are boarded up. The paint is chipped. Water is pooling on the floor.
A former tenant says intruders have trashed the place repeatedly.
Nestled up against the Neff house is another empty Caltrans house. Years
after the police staged a drug bust there, a vagrant once took up residence
in a garden shed piled high with dank clothes and rubbish. Within reach
were the carcass of an old BMW and some chemicals. (Caltrans cleaned
up the yard between the Weekly’s visits there.)
South Pasadena, where officials say they have forced Caltrans to better
manage its homes, is hardly immune. A white Fairview Avenue house with
boarded French windows and dangling wires features a wide-open back door.
A Glendon Way house with peeling front steps has an easily accessible
backyard and a pool whose bottom stagnates with brackish water.
The state-owned homes a few miles south in El Sereno are a mélange
of contrasts. Most are densely packed Spanish-stucco homes that outwardly
appear tidy. Drive around, though, and there are blue tarps covering
damaged roofs, a soda machine propped on a lawn and the hulks of dead
cars tamping down tawny weeds.
There are also seemingly habitable properties that sit idle. A ground-floor
unit of a two-story apartment on Lowell Avenue has fresh paint, newer
carpeting, yet no renter. A tenant at the complex there said it’s
been empty for years.
On nearby Maycrest Avenue, Caltrans’ eight-bungalow complex has
slid from being vacant to being brazenly vandalized in the years since
the tenants left. Gang markings adorn the sides of the houses, and someone
has sliced a hole in the chain-link fence. As with other Caltrans homes,
the plywood boards nailed over the windows haven’t repelled visitors.
One bungalow decimated by fallen stucco, a putrid toilet, reeking junk
and heroin paraphernalia was someone’s flophouse. A dazed homeless
man with some of his family was recently living in another unit.
By Caltrans’ tabulations, it owns 59 “non-rentable vacant
properties” like these, a decrease from 133 uninhabitable units
in late 2000, according to a report US District Judge Dean Pregerson
requires the agency to submit every six months. (The department was late
filing the last report.)
Asked to explain the drop in vacancies, Caltrans spokeswoman Deborah
Harris said a number of historic houses and apartments have been fixed
up and leased. The agency has a marketing program to get other homes
rented, as well, she said.
‘It’s not safe’
’It’s not safe.’
From trespassing and drug-use to gang parties and religious rituals,
unoccupied state-owned houses act as crime magnets. Some renters have
grown so frustrated about it they have written fact-chalked letters,
called the police themselves, shot videos and spoken at public hearings
to get attention.
Pasadena Police responded to 296 incidents at agency houses during a
39-month stretch ending in December of last year, records show. Many
of the calls were for false alarms or suspicious circumstances that never
merited an arrest. Still, one empty house in the 600 block of St. John
Avenue drew officers 24 times in 2001 alone.
Acting Police Chief Wayne Hiltz disputed some tenants’ characterization
of the properties as a “high crime area,” but acknowledged
empty houses invite troublemaking. “Any time you have vacant properties,” he
said, “they are potentially used for inappropriate activities,
and it doesn’t matter if it’s a Caltrans property or another.
The fact there are a number in a close proximity compounds it.”
Where the Foothill Freeway dead-ends at California Boulevard has been
a particular hotspot. Tenants have witnessed pie-eyed teenagers, prostitutes,
runaways and homeless staying in the empty houses or garages. One pony-tailed
indigent who locals call “Freeway Bob” because he panhandles
near off-ramps was blatant about his comings and goings into one of the
historic houses.
Pasadena police in January 2002 apprehended a man and his newlywed bride
who had their own keys to a Caltrans duplex on the south side of California
Boulevard. Neighbors said the couple had moved in their furniture, staying
there unnoticed by authorities for months, under the belief they could
attain squatter’s rights.
When the police arrested them for trespassing, they turned up a shotgun,
shotgun shells, ammunition for a .45-caliber handgun and a knife, said
police Commander Marilyn Diaz. She said it appeared they were in legal
possession of the weapons, adding that Caltrans gave the couple a week
to move out.
John Kvammen, a leader in the tenant group and a Caltrans renter for
30 years, said one house near his dwelling on St. John had vagrants living
there for two years despite his insistence the agency oust them. Before
they left, they created waist-high trash, did hard drugs, shattered an
antique mirror, among other damage.
Kvammen recalled stopping a homeless man in the late 1990s after the
man had tossed a chair through the living room plate-glass window of
the property, which has since been rehabbed and rented.
“My son and I told him we were calling the police and the guy
dropped his pants and crapped on the sidewalk — it was an unexpected
reaction,” he said. “There are all kinds of seedy characters
around here. It’s not safe.”
Drive-thru pharmacy
Close to his rental is a vaulting, historic three-story Craftsman that
has been vacant since March 1990. For years it was known among neighbors
as the “devil house” because the nine in the street address
had capsized to make it read “666.” Adding to its legend,
a band of youths a few years ago gained entry. Inside they did drugs,
lit candles and performed demonic rites, numerous people recall.
Caltrans officials could not confirm that report. The agency has spent
$608,000 repairing that four-bedroom house and plans on trying to rent
it this month.
“I remember being in there and being alarmed about the nature
of the graffiti because there were satanic images,” said Sue Mossman,
executive director of the preservationist group Pasadena Heritage.
“The intruders had [also] pulled out a bathtub and thrown it down
the stairs. Our fear is that after millions of dollars have been spent
in these historic houses, if they are vacant all that mayhem could happen
again,” Mossman said.
Trespassers last fall snuck into the childhood home of famed chef Julia
Child by crawling through a small entry. California Highway Patrol officers
called to the scene never arrested anyone but believe the entrants were
in the elegant brown manse for a while.
Caltrans officials say they have hired a private security to watch over
the empty residences. Until recently, the agency did not prosecute trespassers.
On Pasadena’s Hurlbut Street, a two-bedroom Craftsman built in
1911 and unoccupied for years sports a tangled yard, paint-splattered
hardwood floors and a dicey history. The woman who sold it to Caltrans
later rented it back from the agency. By the late 1990s, Pasadena police
knew it well. They responded four times for outstanding warrants, public
intoxication and a domestic dispute.
In June 1998, armed with a search warrant, police launched a SWAT-style
raid, arresting the mother, one of her sons and another person for selling
methamphetamines, among other charges, Commander Diaz said. One source
said residents there used to sell narcotics out the side window like
a drive-thru fast-food restaurant until the arrests.
Citing that incident, Caltrans evicted the woman from the property.
However, because she’d been renting prior to 1981, she was entitled
to relocation benefits for homeowners displaced as a result of federal
projects that benefit the public. The woman, whose name the Weekly agreed
not to reveal, received $195,967 — the difference between what
she originally sold her house for and what it would cost for her to buy
a replacement in the market at the time of the eviction.
A neighbor who had previously complained to Caltrans about the drug
pushing there, as well as an earlier shooting he claimed was “hush-hush,” said
the state slapped a new roof on that house before the woman left. His
house, meantime, has been bedeviled by poor water pressure, a multiple-layer
roof cracking the walls and a wood-rotted back porch his wife’s
foot recently fell through. In his years there, this tenant said he has
stomped out two fires set by vagrants at nearby Caltrans properties,
chased away scores of rats and witnessed a series of “Mickey-Moused” repairs,
including one where rain-gutter downspouts were installed upside-down
so they splashed anyone sitting on his back porch during rains.
“The problem is that Caltrans’ management is inept,” said
the tenant, who spoke on the condition his name not be used because he
feared possible retaliation by the agency. “It seems every time
you get a decent right of way agent, they’re promoted or moved
to another department and replaced by somebody who doesn’t know
what they’re doing or doesn’t seem to care. Nothing that
is important seems to get done. What can you do? The state is the landlord.”
A re-emerging issue is whether that landlord is sitting on property
it doesn’t need anymore to build the extension. Selling unneeded
land was supposed to be a priority. A May 9, 1995 directive from former
Caltrans Director James W. Van Loben Sels obtained by the Weekly said: “It
is imperative that Caltrans divest itself of any property not absolutely
required. We should be looking at reasons to dispose, rather than retain
property.”
But how many can be disposed? Caltrans itself has conflicting data depicting
between 21 to 38 unneeded properties, including four houses on Pasadena
Avenue that were supposed to be relocated during construction that are
now up for sale, freshly released records show. A reason for the variation
could be the compression and slight shifting of the freeway footprint
that the agency agreed to in the Record of Decision. Unchanged by that,
though, are three Caltrans houses north of California Boulevard in Pasadena
that appear outside the pathway. The agency asserts those structures
will be demolished for a realigned access road should the spur go through,
but the maps don’t signal that.
State law requires that Caltrans offer properties for sale within a
year of the time they are declared surplus; of the 56 parcels they announced
in 1995 weren’t needed anymore,
35 have been sold. Assemblywoman Liu and others have grumbled agency
officials have dragged their feet selling what they must.
The Pasadena Weekly published a nearly identical version of this story,
the first in a three-part installment called “Corridor of Shame.” Jacobs
and Richard Winton co-wrote that L.A. Times story mentioned above.
copyright Pasadena Weekly
TRANSIT COMMISSION AUDITORS CAST
EAGLE EYE ON TUTOR’S
COSTS, Los Angeles Business Journal
http://chipjacobs.com/a_transit.html
Transit commission Auditors Cast Eagle Eye on Tutor’s
Costs, published in Los Angeles
Business Journal. Los Angeles County Transportation
Commission auditors are questioning tens of thousands
of dollars in overhead expenses that powerhouse Metro Rail
contractor Tutor-Saliba Corp. submitted
two years ago, according to a preliminary audit obtained by the
Business Journal.
September 28, 1992
METRO RAIL COST-OVERRUN TAB ADDS TO CITY HALL FISCAL WOES, Los Angeles
Business Journal
http://chipjacobs.com/a_metrorail.htm
Metro Rail Cost-Overrun Tab adds to the City Hall Fiscal
Woes, published in Los Angeles
Business Journal. The City of Los Angeles is
on the hook to pay $100 million in Metro Rail Red Line
construction overruns under a little-known cost-sharing
deal with the Los Angeles County Transportation Commission.
March 16, 1992