As significant landslides continue to worsen, many affluent neighborhoods in Los Angeles are facing severe financial losses, with homes precariously situated near cliffs. Residents in the upscale coastal city of Rancho Palos Verdes are expressing frustration towards Governor Gavin Newsom for not supporting critical legislation that could protect their properties, which lies about 30 miles south of downtown Los Angeles.
Peter Pettler, an 83-year-old resident, reported a drastic drop in the value of his sizable ranch-style home, which fell from $2.5 million to just $515,000. He shared that at one point, he was offered a mere $5,000 for a four-bedroom mansion.
“No one would buy this house now,” Pettler lamented, reflecting on his 37 years of construction work in the neighborhood. “They couldn’t secure loans or insurance.” He recounted a past incident where a couple attempted to buy a home for just $5,000, representing a staggering 99.8% discount.
Residents are holding Newsom accountable for vetoing Assembly Bill 986, which aimed to allocate funds to address the ongoing crisis. This bill, introduced by Rep. Al Muratsuchi (66th District) in February 2025, sought to revise the California Emergency Services Act to include landslides as a reason for declaring a state of emergency.
After an especially wet season, landslides have become more frequent in areas like Avalon Cove and Portugal’s Bend.
The bill aimed to hasten governmental response to these disasters, but Newsom vetoed it last October 1. “This is a disaster,” Pettler said. “He should have passed the bill. I wish he could have done something to help.”
Residents have also criticized Democrat Rep. Ted Lieu, asserting he has done “absolutely nothing” to secure their homes.
Currently, some homes in the area are facing power and gas outages, while water supplies have been unreliable, necessitating the relocation of pipes above ground. Pettler and other homeowners have resorted to solar panels and costly repairs as the hillsides continue to slide.
Decades-old underground wells, designed to manage water in the landslide zones, have fallen into disrepair due to lack of proper maintenance.
Elsewhere, a multi-million dollar mansion at risk of collapsing into the Pacific Ocean is being leased by George and Jennifer Elias for $11 million. Jennifer’s father, Bob Leach, recently witnessed a substantial part of the cliff giving way. “When I came down in the morning, it was gone,” he stated, noting the destruction of two patios in a matter of months.
The breathtaking cliffside home was initially listed for rent at $70,000 monthly, but Leach mentioned that they managed to negotiate a higher rental price.
Next door, a massive seven-bedroom mansion suffered significant loss, with reports of three acres collapsing in September. Oscar-winning visual effects supervisor Eric Barba, who moved into a nearby property in 2021, decried the ongoing chaos as a “nightmare.”
Barba mentioned that his property currently lacks natural gas, pushing him to rely on solar panels. He criticized authorities for not taking more action, expressing frustration over FEMA’s slow process to assist residents in funding to buy damaged properties at 75% of their value.
“They will demolish the land and the land will revert to the city,” he explained. “At least you can walk away with some money. People will take it soon, but right now, no one has received anything.”
Homeowners, like Barba, have invested in costly steel beams to reinforce their foundations. He pointed out the city’s negligence in failing to install drainage systems to direct water away from the hillside.
“This is such a beautiful place to live that no one wants to leave,” Barba said in closing.
The California Post has reached out to Newsom’s office, the Palos Verdes City Council, and Rep. Ted Lieu’s office for additional comments.
