Updated October 20, 2026.
On October 14, 2026, the City of Rancho Palos Verdes announced that the Federal Emergency Management Agency (FEMA) had formally awarded it more than $54 million to buy 27 homes in the Greater Portuguese Bend landslide area: 22 in the first round of its Voluntary Property Buyout Program and 5 in the second. The city expects to begin purchases in the coming months, a few homes at a time, and expects buying and demolishing all 27 to take a few years.
“Our community has faced historic challenges over the past three years,” Mayor Paul Seo said in the announcement. City Manager Ara Mihranian said the city “is now able to offer the most impacted residents some notable relief and hope.”
Which homes were chosen?
The city ranked the properties by safety risk, including red or yellow tags, loss of utility service and how close each home sits to active land movement. It received 85 eligible applications by its November 8, 2024 deadline. Applicants who were not selected keep their priority ranking, and if a selected owner withdraws, the next property on the list moves up. A $19 million application for a third round, which could cover about eight more homes, is on a waiting list.
How is the price set?
Each home is purchased at its pre-disaster fair market value, appraised as of December 1, 2022, before the landslide’s major impacts. A licensed appraiser hired by the city performs the appraisal, and a review appraiser for the California Governor’s Office of Emergency Services (Cal OES) checks the method. An owner may hire a separate appraiser at their own expense to appeal, and that appraisal goes to Cal OES for review as well.
What does the seller’s 25 percent mean in dollars?
FEMA pays 75 percent of the eligible costs for each home: the purchase price, the appraisal, title work, closing costs, demolition and site restoration. The other 25 percent comes out of the owner’s payment at closing. On a home appraised at $2 million, a quarter of the value alone is $500,000, before the owner’s share of the other eligible costs. The city’s program page says the owner’s share is held in escrow to cover work such as demolition and site restoration, and any balance left at closeout is paid to the owner.
Mortgage balances and liens are paid off first and come out of the payment. Insurance money received for repairs reduces the amount unless the owner shows it was spent on repairs before closing, and other assistance for the same purpose is deducted as a duplication of benefits. Moving and relocation costs stay with the owner.
What happens to the land after a purchase?
After closing, the structures are demolished and the lot is cleared, and the parcel is deed-restricted as open space permanently. It cannot be sold to a private party or redeveloped.
Why will the purchases take years?
FEMA pays the city back after each purchase closes, so the city buys in small groups and waits on reimbursement before the next group. The program page puts the expected pace at about three properties at a time. Black & Veatch, the city’s program consultant, contacts selected owners about appraisals, documents, escrow and closing.
How fast is the ground moving now?
The city’s monitoring put the average across the active slide areas at just under one inch a week in September 2026, the first time it has fallen below that line in three years. NOAA’s Climate Prediction Center, in its October 8, 2026 discussion, puts the odds of a strong to very strong El Niño lasting through January to March 2027 above 83 percent. Our El Niño post follows that forecast month to month.
What does the award change for Peninsula owners and buyers?
For an owner selected for the program, the buyout replaces an uncertain market sale with a set formula: the December 2022 value, less the 25 percent share, liens and any duplicated benefits. For a buyer looking anywhere on the Peninsula, two facts are public before contingencies are removed: whether a property sits inside the Greater Portuguese Bend landslide area, and the city’s movement record for that area. Questions about the program go to the city at [email protected].
This is a developing situation, and the figures here are the city’s as of the dates shown. It is general information, not real estate, tax, lending, financial or investment advice, and not a recommendation to buy, sell, hold, list or price any property.
Buying, selling, or still deciding if the Peninsula is where you’ll settle down next? Neil Chhabria, Broker, 310.798.3122, [email protected].
Sources
City of Rancho Palos Verdes, Land Movement Updates, October 14, 2026 announcement and September 15, 2026 report. City of Rancho Palos Verdes, Voluntary Property Buyout Program and FAQ. City News Service via MyNewsLA, October 14, 2026. NOAA Climate Prediction Center, ENSO Diagnostic Discussion, October 8, 2026. All read October 20, 2026.
We do our very best to supply facts drawn from official sources so that the information you find here is reliable and accurate. If we find conflicting information, we report on all of it.
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