New $42M Buyout Program Offers Homeowners Cash to Relocate Permanently

According to The Sun, City officials in Rancho Palos Verdes, California, have announced a new $42 million voluntary buyout program aimed at helping homeowners whose properties have been affected by ongoing landslides. The program is funded by the Federal Emergency Management Agency (FEMA) and the California Governor’s Office of Emergency Services.

Eligibility for Impacted Homeowners

Homeowners are eligible for the buyout if their properties have been impacted by shifting land due to landslides in the area. Over the past two years, hundreds of properties in this southern California city, located near Los Angeles, have suffered damage from landslides, resulting in buckled roads, shutoff utilities, and structural risks to homes.

Fair Market Compensation for Properties

Eligible homeowners can apply to sell their properties to the city for “fair market value based on pre-disaster appraisals.” This ensures that the value is based on the state of the property before the landslide impact worsened.

“This buyout program provides a viable pathway forward for our most vulnerable community members, offering the opportunity to relocate and rebuild with meaningful compensation,” Rancho Palos Verdes Mayor John Cruikshank stated.

Funding and Structure of the Buyout

FEMA will cover 75% of the eligible expenses for the buyout program, while the remaining 25% will be the responsibility of the property owner, except for specific in-kind costs covered by the city.

The program emphasizes that the buyout operates as a voluntary, typical real estate transaction where the city acts as the buyer. While compensation aims to be fair, it may not fully restore homeowners financially.

Also read: Salsa Recall Alert: Products May Contain Glass Fragments

Open Space for Future Safety

Purchased properties will be converted to open spaces, helping to protect the community from future risks in these vulnerable areas.

Optional Property Inspection

Homeowners interested in applying for the program can request a property inspection by Monday, November 4. The city clarified that inspections are not required to participate but can help prioritize applications. Properties with red- or yellow-tagged structures, which signify more severe damage or risk, will be prioritized.

How to Apply for the Program

Homeowners wishing to apply must submit a completed application by November 8. The property’s fair market value will be based on December 1, 2022, valuations, set before the landslide accelerated.

For residents ready to leave their properties behind, this program offers a pathway to relocate to safer areas while receiving compensation for their land.