The federal government plans to give Rancho Palos Verdes $42 million to finance buyouts for homeowners most affected by ongoing landslides in the Portuguese Bend area, allowing properties to eventually be converted to low-risk open space.
The program, part of the Federal Emergency Management Agency's Hazard Mitigation Assistance Grant, provides one of the first long-term solutions for residents of the landslide-ravaged region, which has been going through a period of increased land movement for decades — although the scale and speed The movement in recent months has been unprecedented.
Officials estimate they will have enough money to buy out 20 property owners in the Portuguese Bend area, most of whom are facing increasing property damage and indefinite utility shutoffs due to land movement. Applying for a buyout is voluntary; No one will be forced to sell their house in the city.
Homeowners can expect to receive offers equal to 75% of their property's pre-disaster fair market value, before persistent winter heavy rains cause the area's ancient landslides to start a new one. . With the goal of reducing future disasters and related damages, the city will demolish the homes and ensure that no future development occurs.
“This buyout program provides a viable path for our most vulnerable community members to relocate and rebuild with meaningful compensation,” Rancho Palos Verdes Mayor John Cruikshank said in a statement. He said the recent land movement has caused unimaginable losses to dozens of residents, “with some facing the real possibility of losing their homes altogether.”
The announcement comes months after residents pleaded for state and federal aid amid escalating land movements that have left homes in ruins, required near-constant road repairs and forced utility providers to shut down. However, only a portion of the damaged and threatened properties in the area may be approved for purchase. About 260 homes have been affected by landslides in three Rancho Palos Verdes neighborhoods in recent months.
Mike Hong, who designed and built his Portuguese Bend home on property he purchased in 2014, is hoping the purchase will make it affordable for him and his wife.
“What they're offering is lifesaving for most people, and for us too,” said Hong, 65, although he is concerned about how much the offer will cost. “It's bittersweet – it gives us a chance to save our family's financial situation, but you're watching a labor of love go away.”
Hong estimates his home would have been worth about $3.6 million two years ago — perhaps on the higher end of the neighborhood's property values because it's relatively new — but he said he'll wait and see what's offered. , if any.
The announcement of the buyout program comes after the first positive news in months about the landslide. City officials reported this month that land transfer rates had dropped by as much as 80% in some places compared to the previous month, largely due to new, deeper dewatering wells that the city installed from August to October. The wells have pumped out millions of gallons of groundwater which increases the rate of landslides in the area.
Hong said that even though he has not been accepted for the purchase program, the slow land movement — which makes his home one of about two dozen that have recently had power restored — is welcome news.
“We can still face it, if it doesn't work we can take advantage of our opportunity,” Hong said. “Nevertheless, we will go ahead and submit the application.”
However, not everyone is taking advantage of this opportunity. Sally Reeves and her husband, who have lived in their Portuguese Bend home since 1982, have decided not to apply.
“We are determined to stay,” Reeves, 81, said. “We are now quite committed financially.”
They have been undergoing a massive renovation for several weeks after a crack in their house caused rooms to separate. Like many others in the area, they have built their house on steel beams and adjustable supports, which they are confident can now withstand any land movement in the future.
But Reeves said she understands why some people might be willing to take a reasonable offer to leave and start over, especially those with young children.
“There are people here who feel trapped,” he said. “I'm excited for those who can take advantage of it.”
Marianne Hunter, 75, is in a similar situation to Reeves, though she noted that thankfully there was very little damage to her home. But cracks continue to appear in its walls, floors and outer courtyard.
Still, she and her husband aren't going anywhere, especially now that they've installed solar power — which is a big investment.
“We can't afford to move to any place that's anywhere near this,” Hunter said. “There's no way we could find a property that's so quiet – when it's not shaking. “We love our community, we love our home.”
And for those who plan to stay or have not received approval to purchase, city officials said the program will not impact any ongoing landslide mitigation or winter preparedness work.
Rancho Palos Verdes City Manager Ara Mihranian said, “The Council does not want anyone to feel that this program that is being proposed to you is any indication that the City is moving away from its winterization or stabilization efforts. ” The city has installed 10 new dewatering wells and approved more than $13 million in recent weeks to prepare roads, drainage systems and other infrastructure for the rainy season.
For the buyout program, the city will prioritize eight homes that have been red- or yellow-tagged — officially deemed unsafe for entry or uninhabitable, respectively. Next on the priority list will be properties with significant damage that officials believe may soon require residents to evacuate. Then, according to city officials, about 250 additional homes that are cut off from power will be considered.
If selected, the city will purchase the property at 75% of what the appraiser determines will be the fair market value of the land and improvements on December 1, 2022, minus certain transaction and demolition costs. .
Although the buyout program has historically been used for property owners in flood-prone areas, FEMA, the California Governor's Office of Emergency Services and the city worked together to adapt it for this landslide situation, Mihranian said. Said.
According to FEMA's website, there is hazard mitigation funding for areas prone to landslides or mudflows – however, the focus of the programs is on mudflow disasters, particularly those occurring after fire. The agency also lists grants as an option to provide “funding for eligible long-term solutions that reduce the impact of future disasters” after earthquakes, hurricanes, droughts and other emergencies.
Officials said the properties acquired by the city will be converted into open space. The city will be in charge of demolishing any structures or improvements on the property, including driveways.
“It's all going to have to be taken down, re-upgraded and deed-restricted to open space forever,” Mihranian said.
Interested property owners must request a property inspection from the city by Nov. 4.
FEMA and Cal OES will check whether homes interested in purchasing meet all eligibility criteria, including a particularly thorny point for many in this landslide area: The structures must still be in the place they were built for. was legally permitted. As houses have moved hundreds of feet away from their original locations in recent years, it was not immediately clear how many homes would no longer be eligible.
Another issue that has vexed some residents is that upon receiving approval for purchase, the property owner must release the city and all other agencies of liability. This is an issue for many people who have sued or are planning to sue for damages related to land movement.
Although city officials were pleased that FEMA and the state supported the new buyout program – approved through a federal disaster declaration for Los Angeles County following the devastating atmospheric river storms in February – Rancho Palos Verdes turned to outside help. Struggles to secure funding to pay for increasingly expensive efforts to stabilize landslides.
Mihranian said at a town hall this week that the city is losing money, and FEMA recently rejected most of its $61.4 million request to reimburse it for costs related to the storm and landslides. This fiscal year, the city is expecting to spend $32 million on landslide-related projects, which is more than it spent on them in the last two years.
Mihranian said the city plans to appeal FEMA's decision, and is still exploring other funding sources.