CalHFA Board Unanimously Approves $5.4 Million Funding Reallocation to Support State Route 710 Affordable Housing Program

Additional funding will help low- and moderate-income families purchase homes in Los Angeles, South Pasadena, and Pasadena

SACRAMENTO – The California Housing Finance Agency (CalHFA) Board of Directors today unanimously approved the reallocation of $5.4 million in uncommitted funds to support the State Route 710 Affordable Sales Program (SR-710 ASP), a critical initiative that helps low- and moderate-income families purchase homes owned by Caltrans.

Senator María Elena Durazo (D-Los Angeles), who authored SB 51 to strengthen the program's affordability requirements, praised the Board's decision to prioritize homeownership opportunities for working families.

"This unanimous vote represents a commitment to ensuring that affordable homeownership remains within reach for families in our communities," said Senator Durazo. "The SR-710 program transforms what was once a stalled freeway project into real opportunities for families to build wealth and stability through homeownership."

The funding reallocation comes as demand for the SR-710 program has exceeded original projections. CalHFA has already preapproved 77 borrowers for nearly $10 million in loans, with an estimated additional 81 borrowers requiring approximately $10.6 million more in financing. The reallocated funds will help bridge this gap and ensure the program can serve more eligible families.

Background on the SR-710 Program

Over 40 years ago, Caltrans acquired more than 400 residential properties for a proposed freeway extension along State Route 710 that was ultimately never built. The Roberti Act established procedures for disposing of these surplus properties, prioritizing sales to current low- and moderate-income tenants at affordable prices.

Senator Durazo's SB 51 legislation strengthened these requirements, ensuring that the homes remain affordable and that current residents are not displaced. The CalHFA partnership provides crucial financing that makes homeownership possible for families who might otherwise be unable to secure traditional mortgages.

"By reallocating these funds, we're not just supporting individual families – we're investing in the long-term affordability and stability of our communities," Senator Durazo added. "Every family that can purchase their home through this program is one less family at risk of displacement."

Program Impact

Since its inception, the SR-710 program has helped dozens of families transition from renters to homeowners in Los Angeles, South Pasadena, and Pasadena. The program offers affordable sales prices and specialized financing that makes homeownership accessible to households earning moderate incomes.

The $5.4 million being reallocated comes from the Forgivable Equity Builder Loan Program, which successfully helped over 2,000 low-income Californians access homeownership before closing in November 2022. The reallocation ensures these public funds continue serving their intended purpose of expanding homeownership opportunities.

CalHFA will continue monitoring the program's needs and working with Caltrans to identify additional funding sources if necessary to serve all eligible families.

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Senator María Elena Durazo represents the 26th Senate District, which includes the communities of a diverse array of Los Angeles neighborhoods, including Boyle Heights, El Sereno, Highland Park, Eagle Rock, Glassell Park, Mt. Washington, Cypress Park, Lincoln Heights, Atwater Village, Elysian Valley, Arlington Heights, Echo Park, Silver Lake, Los Feliz, East Hollywood, Little Armenia, Thai Town, Larchmont, Koreatown, Pico-Union, Westlake-MacArthur Park, Historic Filipinotown, Chinatown, Little Tokyo, the Arts District, Civic Center, City Terrace, East Los Angeles, and the City of Vernon.