Following months of land movement and utility shutoffs in Rancho Palos Verdes, a buyout program has been announced for impacted homeowners. Amber Frias reports for the NBC4 News at 6 p.m. on Tuesday, Oct. 29, 2024.
Rancho Palos Verdes homeowners in a neighborhood where shifting land damaged homes and roads are being offered a voluntary buyout by the Federal Emergency Management Agency and the California Governor's Office of Emergency Services.
The $42 million program was announced Monday by the Rancho Palos Verdes City Council at a special town hall meeting in the Los Angeles County coastal community.
Homeowners in the Greater Portuguese Bend landslide area affected by shifting land underneath and around their homes are eligible for part of the buyout. FEMA allocated funding for the program as part of disaster declaration stemming from winter storms between Jan. 31 and Feb. 9.
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Ancient landslides in the area have accelerated since 2023 after back-to-back heavy rain seasons. The shifting land has damaged homes, buckled roads and led to utility shutoffs for hundreds of residents.
"For the past two years, our residents have endured extraordinary hardships as a result of this landslide, with some facing the real prospect of losing their homes entirely," said Rancho Palos Verdes Mayor John Cruikshank said in a statement. "This buyout program provides a viable pathway forward for our most vulnerable community members, offering the opportunity to relocate and rebuild with meaningful compensation.
"On behalf of the entire city, I express my deep appreciation to FEMA and Cal OES for working with the city to establish this program. We understand the complexity and emotional weight of this for our residents and are committed to making the process as transparent and compassionate as possible."
About the Rancho Palos Verdes home buyout program
The voluntary property buyout program was established to help residents relocate to safer areas by offering a fair market value for their properties based on pre-disaster appraisals. Properties acquired by the city through this program will be permanently converted to open space and deed-restricted, protecting the community from future redevelopment risks in these vulnerable areas.
Property owners interested in applying must request a property inspection from the city by 5:30 p.m. Monday and submit the application by Nov. 8. Properties will be prioritized for selection based on factors such as safety concerns, structural condition and utility statuses.
If selected for a grant under the program, the city will purchase the property for a price determined by an appraisal that is based on the fair market value of the land on Dec. 1, 2022, prior to the acceleration of the landslide.
The FEMA grant will pay for 75% of the sale and property owners will contribute the remaining 25% through a reduction of the fair market value payment, city officials said. Property owners who have been selected to proceed with the purchase of their property may withdraw at any time prior to sale closing.
At closing, the property will be deed restricted as open space, and the city cannot sell it to private individuals or develop it.
Monday's announcement represents the largest grant amount in Rancho Palos Verdes' history and comes as the hillside community continues to see promising signs that the unprecedented land movement is slowing.
