$42 million buyout program announced for Rancho Palos Verdes landslide area

Rancho Palos Verdes officials, the Federal Emergency Management Agency and Gov. Gavin Newsom’s Office of Emergency Services on Monday evening, Oct. 28, announced a $42 million voluntary buyout program for property owners in the Greater Portuguese Bend area where land movement has damaged homes and forced the shutoff of gas and electricity to scores of homes.

Rancho Palos Verdes officials announced the program at a special town hall meeting Monday evening, with FEMA and Cal OES representatives on hand.

Related: Landslide is the big issue in Rancho Palos Verdes City Council candidate forum

Land movement on the Palos Verdes Peninsula has accelerated over the past year because of heavy winter rains, leading to damage to some homes in Rancho Palos Verdes, along with roads and other infrastructure. Indefinite gas and electricity shutoffs have impacted hundreds of property owners in the area. Power has been restored to just a handful of homes.

Gov. Gavin Newsom declared a state of emergency in the area last month.

The Voluntary Property Buyout Program, fueled by dollars from FEMA’s Hazard Mitigation Grant Program, is intended to help eligible homeowners relocate to safer areas by “offering a fair market value for their properties based on pre-disaster appraisals,” according to a city statement. Properties purchased by the city through the program will be turned into open space — and subsequently deed-restricted, preventing future development risks in the vulnerable areas.

“This is a voluntary program, I’m going to reiterate this is voluntary,” said RPV City Manager Ara Mihranian at the town hall. “We’re not using any form of eminent domain or anything like that. If you want to, you can start to proceed with the process. If you’re not interested, you don’t need to.”

Mihranian said there will be a priority order since the $42 million might not cover all the interested homeowners.

“The highest priority If you own a lot that has a structure that’s been red tagged, you will move all the way to the top of the the eligibility or prioritization,” said Mihranian. “if it’s a yellow tag structure, you come next.”

There are two red-tagged homes in RPV, Mihranian said, and “six have been yellow tagged.”

“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 in the press release. “This buyout program provides a viable pathway forward for our most vulnerable community members, offering the opportunity to relocate and rebuild with meaningful compensation.

Cruikshank added, “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.”

FEMA officials said the funding for this program was sparked by federal disaster declaration that followed the winter storms from Jan. 31 to Feb. 9..  Additional program cycles may become available in the future.

The fund represented the largest grant in the city’s history, officials said.

According to a city statement, property owners who apply must request a  property inspection from the city by Monday, Nov. 4 at 5:30 p.m. and complete an application by Friday, Nov. 8 at 4:30 p.m. Properties will be prioritized “based on factors such as safety concerns, structural condition, and utility statuses,” the statement said.

The city will purchase selected properties “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, according to the press release. 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.

Residents with questions about the program can contact the City at LandMovement@RPVca.gov or visit RPVca.gov/LandMovement. Residents can also email the city at landmovement@rpvca.gov.

Earlier this month, RPV residents affected by land movement were told they could expect waivers and refunds on fees this week for installing alternate energy sources, including propane, solar and energy storage systems under a motion approved by the county Board of Supervisors.

Supervisor Janice Hahn introduced the motion that waived county Fire Department inspection and permitting fees. The motion notes such fees can range up to $1,000.

The motion calls for the waivers to be in effect until the end of 2025.

“The impact of these landslides has been devastating to cities on the Peninsula,” Hahn’s motion said, “which have seen land movement as rapid as 1 foot per week, causing homes to be torn apart and infrastructure to be compromised.”

City News Service contributed to this report