RANCHO PALOS VERDES, CA — More than $54 million in federal grants has been formally awarded to Rancho Palos Verdes, clearing the way for the city to begin purchasing 27 properties severely affected by the ongoing Greater Portuguese Bend landslide emergency.
The funding, announced Wednesday by city officials, marks a significant milestone in a voluntary buyout program designed to help homeowners relocate from neighborhoods where accelerating land movement has damaged homes, roads and utilities.
The Federal Emergency Management Agency awarded the grants following a federal regulatory review, allowing the city to begin acquiring 22 properties selected in the program's first round and five in its second.
However, the purchases have not yet begun. Because federal grants operate on a reimbursement basis, the city plans to acquire properties in small groups, with the first transactions expected in the coming months. Completing all 27 acquisitions and demolishing the structures could take several years.
"Our community has faced historic challenges over the past three years, with many of our neighbors showing incredible resilience," Mayor Paul Seo said. "The Voluntary Property Buyout Program allows us to offer our most vulnerable residents a compassionate path to relocate."
The program was announced in October 2024, when FEMA and the California Governor's Office of Emergency Services initially selected Rancho Palos Verdes for $42 million through FEMA's Hazard Mitigation Grant Program.
The city subsequently received notice of another $10.16 million in second-round funding in February 2026, before Wednesday's confirmation that the combined federal awards exceeded $54 million. Properties were prioritized according to safety risks, including whether homes had been red- or yellow-tagged, lost utility service or were located near active land movement.
Under the program, properties are purchased at their pre-disaster fair market value, based on a Dec. 1, 2022, valuation date, before the landslide's acceleration. FEMA covers 75 percent of eligible acquisition and related costs, including appraisals, title expenses and demolition. The remaining 25 percent is provided through a deduction from the seller's final proceeds at closing.
Once purchased, buildings will be demolished and the land permanently restricted to open space, preventing future residential redevelopment.
The city received 85 applications when the program launched in fall 2024, substantially more than the 27 properties covered by the newly awarded grants.
Officials have also submitted a separate $19 million application for a third round of funding, which could finance approximately eight additional acquisitions. That application remains waitlisted, with no guarantee of approval.
Homeowners already on the waiting list will retain their priority rankings. If a selected property owner withdraws, the next eligible property will advance according to its assessed risk.
City Manager Ara Mihranian described the funding award as a significant milestone for residents whose lives and homes have been affected by the landslide emergency.
"We will continue working to expand this program to all those patiently seeking buyouts," Mihranian said.
Selected homeowners will be contacted directly by the city's consultant, Black & Veatch, to finalize appraisal information, review documentation and coordinate escrow and closing arrangements.
Residents seeking additional information can visit the city's land movement information page or email LandMovement@rpvca.gov.
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