Voluntary buyout program announced for Rancho Palos Verdes homeowners impacted by land movement

State and city leaders on Monday announced a massive $42 million voluntary buyout program for Rancho Palos Verdes residents who have been impacted by the ongoing land movement in the area since 2023. 
The program, which comes through the Federal Emergency Management Agency and the California Governor’s Office of Emergency Services, will provide money to property owners in the affected area that have had homes damaged or threatened by land movement. 
Funding comes through FEMA’s Hazard Mitigation Grant Program, and is intended to help eligible residents relocate to a safer area. They will be offered “fair market value” for their properties, a statement from Rancho Palos Verdes city leaders said. 
“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,” said the statement. 
Rancho Palos Verdes has been severely impacted by continual land movement over the last two years, which has caused severe damage to roads, homes and utility services — eventually leading to the region’s major natural gas and electricity providers to shutoff their services to hundreds in the area. 
“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 John Cruikshank, Mayor of Rancho Palos Verdes. “This buyout program provides a viable pathway forward for our most vulnerable community members, offering the opportunity to relocate and rebuild with meaningful compensation.”
Related: Rancho Palos Verdes residents affected by land movement to receive emergency funds
FEMA allocated the funds for the program after President Joe Biden issued a disaster declaration in LA County for the powerful storms in early-2024, between Jan. 31 and Feb. 9, that impacted thousands of residents in the form of landslides, flooding and mudslides. 
Interested property owners are advised to apply for the buyout program by first requesting a property inspection from Rancho Palos Verdes by Nov. 4 at 4:30 p.m. They must also submit a completed application by Friday, Nov. 8 at 4:30 p.m. All applications will be reviewed  by Cal OES and Rancho Palos Verdes to ensure that they meet FEMA’s eligibility criteria. 
If approved, 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 statement said. Properties will be selected based on a number of factors, including safety concerns, structural condition and utility status. 
FEMA’s grant money will pay for 75% of the sale, while property owners contribute the additional 25% through a “reduction of the fair market value payment.”
They say that additional program cycles may become available in the future as well.