Pasadena Council Faces Rent Stabilization Lawsuit, Approves Lake Avenue Housing Project

former Kaiser Permanente property at 434-470 N. Lake Avenue.

The council opened its first meeting of the year facing lawsuits and major decisions tied to rent stabilization and housing development.

By Andrew Sweet

Closed Session — Lawsuit vs. the California Apartment Owners Association over Pasadena’s rent stabilization ordinance.

Mayor Victor Gordo and Councilmember Tyron Hampton were recused on Item A due to conflicts of financial interest.

Before beginning the open session, Mayor Gordo acknowledged recent ICE sightings and actions in Pasadena. He assured residents that the City of Pasadena does not endorse Immigration and Customs Enforcement efforts. The council also marked the one-year commemoration of the Eaton Fires, honoring those impacted and reflecting on the community’s recovery.

City of Pasadena vs. the California Apartment Owners Association

During closed session, the City of Pasadena addressed an ongoing legal challenge to its rent stabilization ordinance after the California Apartment Owners Association (CAOA) filed supplemental briefs with the California Court of Appeal three months earlier.

The CAOA filed its lawsuit following the council’s approval of Measure H, which imposes city rent control and establishes a housing rental board. The association claims that reserving seven of the board’s eleven seats for tenants risks violating equal protection rights.

While the council did not discuss details of the litigation in open session, Mayor Gordo and Councilmember Hampton, recused themselves due to financial conflicts of interest related to the matter.

Housing Project at 434–470 N. Lake Ave. Approved

The council later turned to a proposed mixed-use affordable housing project at 434–470 N. Lake Ave., located on the former Kaiser Permanente property that previously housed medical offices. The discussion centered on entering into contracts with vendors to move the project forward.

The proposal initially included a $6 million contribution from Los Angeles County. Councilmembers confirmed during the meeting that the county had since withdrawn from the agreement, altering the project’s original financial framework.

Councilmember Steve Madison, District 6, said he planned to vote against the project, citing a “lack of transparency” and the absence of comparisons to alternative proposals that could have been considered for the site.

The property was purchased in 2023 with plans to relocate services and potentially provide mental health care. Councilmembers questioned whether that use remained on the table. Mayor Gordo clarified that the current agreement allows for mixed-use development but does not specify which services would ultimately be provided.

The motion was approved by a 7–1 vote, with Councilmember Madison voting no.