Pasadena Gateway Villas (Photo – Special to Colorado Boulevard Newspaper)
Tenants at the Pasadena Gateway Villas (PGV), a 140-unit apartment complex at 290 N. Hudson Ave., are speaking out against what they describe as abusive and retaliatory practices by the property’s new owner, global real estate investment firm Hines.
By News Desk
The PGV Tenants Association, representing 34 households, says conditions at the complex sharply deteriorated after Hines purchased the building nine months ago. According to tenants, the new ownership quickly moved to coerce residents into signing new leases with significantly less favorable terms than those previously in place.
Hines, which states on its website that it manages $91.8 billion in assets across 30 countries, allegedly removed previously included amenities such as parking, pest control, package delivery access, and utilities, while introducing new fees for those same services. Tenants say these changes were imposed unilaterally and then billed back to residents, adding hundreds of dollars in monthly costs.
With the building currently at an estimated 50% vacancy rate, nearly three-quarters of remaining tenants report being negatively impacted. Members of the Tenants Association say most households are now paying an additional $400 to $500 per month in fees for services that were previously included in their rent. They argue the practice is a deliberate attempt to bypass California’s rent increase caps.
“Before Hines took over ownership and management of the building, housing here was stable and predictable,” said Terey Ross, a PGV resident of eight years. Ross said the first notice of the ownership change came in the form of a lease renewal letter posted on their door, offering no opportunity to review the new lease terms in advance. According to Ross, the new lease eliminated services such as parking and added undisclosed utility charges, resulting in a 10% rent increase not including new fees.
“I felt pressured to accept terms I would not have agreed to under normal circumstances,” Ross said. “Tenants are not asking for special treatment, we are asking for lawful rental practices, transparency, and for housing terms not to be unilaterally changed.”
Another resident, Stephanie, who has lived at PGV for four years, described a dramatic shift in day-to-day life following the ownership change.
“Prior to Hines taking over the ownership and management of our building, life here was peaceful,” she said. “After Hines bought the building they immediately started making life hell and threatened to evict residents on a daily basis.” Stephanie said she was pressured to sign a new lease under threat of eviction, lost amenities such as parking, and then faced additional charges for those same services. She also reported a 20% rent increase.
“We just want them to return things to how they were and leave us alone,” she said.
Other tenants say the changes are part of a broader strategy to push out existing residents. Vijay Venkatesh, a PGV resident, pointed to the high vacancy rate as evidence.
“It’s just a blatant money grab, they clearly want us out,” Venkatesh said. “Making every unit ‘consistent’ is code for ‘get out so we can renovate.’” He added that roughly half of the building’s units are already vacant, calling the situation especially troubling amid a housing shortage and ongoing crises affecting the region.
“This is not an accounting error. This is not a misunderstanding. This is a predatory business practice,” Venkatesh said.
Tenant advocates say such practices are increasingly common among large corporate landlords. Ryan Bell, Southern California organizer with Tenants Together, said so-called “junk fees” have become a widespread tactic.
“We see this all the time,” Bell said. “Junk fees, in particular, have become a very popular tactic for landlords to squeeze more money out of already cash strapped tenants.”
The PGV Tenants Association is calling for a return to the terms of their original leases, an end to retaliation, and restoration of what they describe as the quiet enjoyment of their homes.
Tenants, along with the Pasadena Tenants Union, are also urging Assemblymember John Harabedian and Senator Sasha Renée Pérez to continue supporting Assembly Bill 1248 or similar legislation aimed at curbing abusive junk fees. They are additionally calling on state lawmakers to support Assembly Bill 1157, which would lower rent caps in buildings where tenants are experiencing annual rent increases of 8% to 10%.
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