Land Movement Update Voluntary Property Buyout Program Update

At the Feb. 3 city council meeting, city staff gave an update on the voluntary property buyout program in the landslide area. The city is still awaiting a formal award of $42 million in hazard mitigation grant program or HMGP funding from FEMA for the first round of the program, which is expected to fund the acquisitions of 22 homes.

In May 2025, the city applied to join a waitlist for additional HMGP funding that could open up in the event that other statewide grant projects fell through. The application sought $29 million for a second round of the program. Earlier this week, Cal OES informed staff that additional funding indeed became available, and the city has been selected for $10.16 million, which could fund the acquisition of approximately five more homes. Staff is now revising the application based on the available funding amount and will work with Cal OES and FEMA through the process. Additionally, staff is working on another HMGP grant application for $19 million to fund a third round of the program, which could cover approximately eight homes.

As a reminder, all remaining eligible applications after the initial 22 homes will maintain their order of priority for any future rounds of program funding based on factors such as safety concerns, structural condition, and utility statuses. While there is no definitive timeline for when the first properties can be purchased, the city still anticipates being formally awarded the round one grant from FEMA in at least several months from now.