Rancho Palos Verdes FEMA Buyouts: 27 Homes, $54M+ Explained

by Kevin Scott

Rancho Palos Verdes Gets Over $54 Million in FEMA Grants to Buy Out 27 Landslide Homes

Pacific Ocean and dry-grass coastal bluffs seen from Point Vicente Lighthouse in Rancho Palos Verdes, California — Photo: Ken Lund / Flickr, CC BY-SA 2.0 (cropped)

Rancho Palos Verdes announced Oct 14 that it was formally awarded over $54 million in FEMA grants for voluntary buyouts of 27 homes in the Greater Portuguese Bend Landslide Area. That is 22 homes in Round 1 and 5 homes in Round 2.

For families up there, this has been a long, hard wait. Here is what the city says, in plain words.

Where the money comes from

The grants come from FEMA's Hazard Mitigation Grant Program, run with Cal OES. The award came "following a federal regulatory review period," the city said.

Which homes are in it

The 27 properties were picked ahead of time by safety risk: red- or yellow-tag status, loss of utility service, and how close a home sits to active land movement. The city got 85 applications when the program opened in fall 2024. Applications are CLOSED.

How the RPV voluntary buyout works

Participation is voluntary.
Homes are bought at pre-disaster fair market value. The city's program page sets that value "as established on December 1, 2022."
FEMA covers 75% of eligible acquisition, appraisal, title, and demolition costs.
The other 25% comes out of the seller's own sale proceeds at closing. The city is not paying that share. The city covers certain in-kind costs, which it estimates at "approximately $330,000 or less than 1% of the total grant program."
After purchase, every structure is torn down, and the land is permanently deed-restricted as open space.

When the buyouts happen

No purchase has started yet. The grants pay out as reimbursements, so the city plans to buy homes in groups of a few at a time, "expected to start in the coming months." Buying and tearing down all 27 homes "will likely take a few years," according to the city.

Round 3 and the waitlist

The city has a $19 million application that could fund about 8 more homes. It is WAITLISTED, not approved. Waitlisted applicants keep their priority rank. If a selected owner pulls out, the next property moves up by risk priority.

What the city said

Mayor Paul Seo called the program a "compassionate path to relocate." City Manager Ara Mihranian called the award "a significant milestone."

Who to contact

The city's consultant, Black & Veatch, will reach out to selected owners directly about appraisal, forms, escrow, and closing. Questions about the buyout go to the city at LandMovement@rpvca.gov. For legal questions, talk to an attorney. For tax questions, talk to a tax advisor.

If you own nearby and are thinking about selling

California sellers give buyers a Natural Hazard Disclosure statement, which notes whether a home sits in a state-mapped landslide zone. Owners with questions should talk with a real estate attorney.

FAQ: Rancho Palos Verdes FEMA buyouts

How much did Rancho Palos Verdes get for the FEMA buyouts?

The city announced Oct 14 that it was formally awarded over $54 million in FEMA Hazard Mitigation Grant Program grants for Rounds 1 and 2, covering 27 pre-selected homes (22 in Round 1, 5 in Round 2) in the Greater Portuguese Bend Landslide Area.

Have any buyout purchases started?

No. The city says purchases will go in groups of a few homes at a time, "expected to start in the coming months," and that buying and demolishing all 27 homes "will likely take a few years."

How are buyout homes valued, and who pays?

Homes are bought at pre-disaster fair market value as of Dec 1, 2022. FEMA covers 75% of eligible acquisition, appraisal, title and demolition costs; the 25% match is deducted from the seller's proceeds at closing. Structures are demolished and the land is permanently deed-restricted as open space.

Is Round 3 approved, and can owners still apply?

No. A $19 million Round 3 application for about 8 more homes is waitlisted, not approved. Applications are closed. Questions go to the city at LandMovement@rpvca.gov.