logo
As California community slowly slides toward ocean, not all homeowners want to leave

As California community slowly slides toward ocean, not all homeowners want to leave

CBS News27-02-2025

Sheri Hastings' property sits on a slow-moving disaster; a complex of landslides in the Portuguese Bend area of Rancho Palos Verdes, California.
For nearly 70 years, this area has shifted roughly a few inches a year, but recently that pace has surged to as fast as four inches a week.
The culprit for the spike in movement is heavy rains – and runoff from nearby canyons -- brought on by a series of recent atmospheric rivers that have soaked deep into the soil, destabilizing the area.
The landslide complex on the Palos Verdes Peninsula is more than a square mile in size and reaches hundreds of feet deep in some places. It's slipping towards the Pacific Ocean.
Mike Phipps, a geologist who has been studying the shifting landscape for nearly four decades, was contracted by the city to monitor the movement. A major part of the city's approach to slow the landslide is around a dozen deep water wells that pull water from the ground and channel it into the ocean.
"It's a catastrophe, and yet some people are still able to live in their homes up here. They're kind of riding a big raft down the hill," Phipps said.
In October, the Federal Emergency Management Agency and California Governor's Office of Emergency Services announced a $42 million voluntary buyout program for residents most impacted by the slide. The properties approved for buyouts will be acquired by the city and converted to open space. Of the 85 residents who applied, only an estimated 20 homes are expected to be covered by the initial funding round, according to the city.
But Hastings isn't interested.
"It's not a good deal. You get what the value of your home was two years ago. You get 75% of that. And then on top of that, you have to pay to demolish everything and have it hauled away," Hastings said.
The FEMA-funded buyout program only provides 75% of the funding for the city to buy affected properties at fair market value, while the remaining 25% is effectively absorbed by sellers, according to the program's guidelines.
Hastings said that insurance doesn't cover any of the damage to her property, either. Her life savings are now slipping away.
"Everybody thinks we're all millionaires up here. We're actually not. Our homes were our money, right? We can't just go out and buy another home," Hastings said.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Federal Disaster Tax Breaks Are Big, But Which Declarations Count?
Federal Disaster Tax Breaks Are Big, But Which Declarations Count?

Forbes

time2 hours ago

  • Forbes

Federal Disaster Tax Breaks Are Big, But Which Declarations Count?

TOPSHOT - A home burns during the Palisades Fire in Pacific Palisades, California, on January 8, ... More 2025. At least five people have been killed in wildfires rampaging around Los Angeles, officials said on January 8, with firefighters overwhelmed by the speed and ferocity of multiple blazes. (Photo by AGUSTIN PAULLIER / AFP) (Photo by AGUSTIN PAULLIER/AFP via Getty Images) Disaster victims get big tax benefits from federal disaster declarations. In fact, it can make your wildfire settlement tax free. As such, you might logically assume that it is always 100% whether your particular disaster gets the helpful federal nod from FEMA. But in the case of wildfires, is it always so clear? The tax law defines a Federally declared disaster as 'any disaster subsequently determined by the President of the United States to warrant assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act,' commonly known as the Stafford Act. It has three principal types of disaster relief declarations for wildfires: Only two wildfires appear to have obtained their FEMA disaster declarations as Declared Emergencies since 2019, the 2020 Oregon Wildfires (designated EM-3542-OR) and the 2021 California Caldor Fire (designated EM-3571-CA). Declared Emergencies are less common for wildfires, perhaps because there is a separate avenue for wildfires, Fire Management Assistance Declarations under Section 420 of the Stafford Act. Some wildfires are given Major Disaster Declarations, including the recent 2025 LA fires. Historically, so were the 2015 California Butte Fires (DR-4240-CA), the 2017 North Bay Fires (DR-4344-CA), and 2018 Woolsey Fire and Camp Fire (DR-4407-CA). Major Disaster Declarations qualify victims for the widest scope of direct federal assistance through FEMA via Any wildfire with a Major Disaster Declaration clearly qualifies as a Federally declared disaster for tax purposes. Section 1.165-11(b)(1) of the IRS Regulations says a Federally declared disaster 'includes both a major disaster declared under Section 401 of the Stafford Act and an emergency declared under section 501 of the Stafford Act.' These two types of declarations are specifically included within the definition of a Federally declared disaster for tax purposes. How about the third category? Section 1.165-11(b)(1) is silent about Fire Management Assistance Declarations, the third major type of declaration for wildfires. But the statutory language suggests that a Federally declared disaster means any declaration under the Stafford Act. Plainly, Section 420's Fire Management Assistance Declarations are federal relief so seem to be covered. Fire Management Assistance Declarations usually do not provide or authorize the same scope of direct federal assistance to wildfire victims as Major Disaster Declarations. However, Section 165(i)(5) of the tax code only requires that the disaster be determined by the President to 'warrant assistance by the Federal Government' under the Stafford Act. Providing money, equipment, supplies, and FEMA personnel to a State or local government to assist in wildfire containment and recovery efforts appears to fall within the definition of 'assistance by the Federal Government' under the Stafford Act. Many recent major wildfires received disaster declarations under Section 420's Fire Management Assistance provisions. The LA fires in 2025, including in Pacific Palisades were not originally Major Disaster Declarations, but Federal Management Assistance Declarations. However, on the day after they were granted relief under The Fire Management Assistance provisions of Section 420, they were then also the subject of a Major Disaster Declaration under Section 401. This supplemental disaster declaration is important for victims for non-tax reasons, but the Fire Management Assistance Declaration was arguably already sufficient to qualify the fire as a Federally declared disaster for tax purposes. Many wildfires remain disasters declared only under Section 420's Fire Management Assistance relief provisions without a Major Disaster Declaration, and this is arguably enough to unlock the tax benefits. Fire Management Assistance relief under Section 420 of the Stafford Act appears to often be granted for wildfires for the same purpose that a Declared Emergency declaration would be used outside of the wildfire context. There have only been two wildfires nationwide that have been identified as Declared Emergencies since 2019, compared to 305 fires that received a Fire Management Assistance Declaration. There are differences between the two types of declarations. However, both are usually granted to help state and local governments deal with emerging disasters that need to be contained, or to help with rescuing and immediate medical treatment of victims. The regulations under Section 165 of the tax code suggest that Declared Emergencies under Section 501 of the Stafford Act are considered Federally declared disasters for tax purposes, regardless of whether they later result in a Major Disaster Declaration. It would be unusual if similar federal assistance usually provided in the wildfire context, and also under the Stafford Act, would not be treated similarly as a Declared Emergency for income tax purposes. Some devastating wildfires are not designated as disasters by FEMA under any provisions of the Stafford Act. For example, the Mountain View Fire of 2020 burned for nearly a month, consuming nearly 21,000 acres in California, destroying 80 buildings (damaging many more) and killing at least one person. This fire was not large enough for FEMA to consider it outside of the combined capability of the California state and local governments and relief organizations to address without federal involvement. Therefore, the Mountain View Fire was designated by California as a state disaster, but not a federal disaster by FEMA. A disaster declaration by a state is NOT sufficient to qualify a disaster as a Federally declared disaster for federal tax purposes. It is easy to get confused, but no state-declared disaster that is not a federally declared disaster has a disaster description and designation on the FEMA website. There is no FEMA disaster declaration page for the 2020 Mountain View Fire, under the EM, DR, or FM prefixes. For state-declared disasters that are not Federally declared disaster, the main federal recognition of the disaster is not by FEMA. The SBA way offer relief, but that is not sufficient to make a state-declared disaster a Federally declared disaster for income tax purposes.

Gen II Announces General Availability of Funded, Best-in-Class Digital Subscription Platform for Private Capital Funds
Gen II Announces General Availability of Funded, Best-in-Class Digital Subscription Platform for Private Capital Funds

Business Wire

time3 hours ago

  • Business Wire

Gen II Announces General Availability of Funded, Best-in-Class Digital Subscription Platform for Private Capital Funds

NEW YORK--(BUSINESS WIRE)-- Gen II Fund Services, LLC ('Gen II'), a leading global private capital fund administrator, today announced the general availability of Funded, the firm's proprietary digital subscription document platform that streamlines fund subscriptions with investor-friendly onboarding workflows. A Trusted Platform, Strengthened by Gen II Funded is a proven and trusted platform for private capital fundraising, that has facilitated over $350 billion in capital raised across 500 funds and more than 25,000 subscriptions. Building on this strong foundation and following Gen II's acquisition of the platform from a leading fund formation law firm in 2024, Funded now operates on Gen II's highly secure cloud infrastructure and is backed by dedicated 24/7 support. Gen II has expanded Funded's capabilities to support all sponsors and their legal counsel, while also integrating additional Gen II services. 'Funded represents a major step forward in how private funds approach the subscription process. The platform simplifies investor onboarding while maintaining the highest level of security,' said Robert Caporale, President, Strategic & Digital Solutions, Gen II. A Superior Experience for Sponsors, Investors, and Attorneys Sponsors: With Funded, Sponsors can move beyond the time-intensive, error-prone paper-based subscription process. Working closely with their fund formation attorney, they can leverage an intuitive, digital, and smart subscription process integrated with DocuSign ®, while gaining real-time visibility into the status of investor subscriptions and readiness to close. Investors: Funded enhances the investor experience by streamlining the subscription process with an intuitive and intelligent on-screen questionnaire. Investors can leverage the 'Investor Passport' feature to autofill previously submitted profile data, saving time and ensuring consistency across investments. Fund Formation Attorneys: Funded empowers fund formation attorneys to build subscription books on their own in just a few hours. The platform facilitates collaboration with multiple team members and stakeholders to get a subscription completed and signed within a single, streamlined system, enabling attorneys to complete closings efficiently and send out closing emails. End-to-End Investor Servicing Funded expands Gen II's comprehensive investor-servicing suite, which now includes: Virtual Data Room for pre-marketing and due diligence Funded Electronic Subscriptions for investor onboarding Global AML/KYC Services for a complete onboarding solution from a single provider Sensr ® Investor Portal for investor reporting and communications By digitizing subscription data at inception, Funded enables easier integrations with downstream systems and processes. About Gen II Fund Services Gen II is a leading independent fund administration provider for private capital asset managers and investors. Distinguished by its bespoke service offerings and robust technological infrastructure, the company has grown to become one of the largest independent private capital fund administrators since its inception in 2009, and now oversees $1 trillion+ of private fund capital. Gen II's transatlantic operational reach is redefining excellence in the fund administration sector, enabling it to provide unparalleled service capabilities to fund managers and investors globally. The company helps GPs to navigate complex international markets and regulations whilst effectively managing their operational infrastructure, financial reporting, and investor communications. For more information, please visit

Exclusive: Trump administration may hit S.F. with a $140 million bill. Here's why
Exclusive: Trump administration may hit S.F. with a $140 million bill. Here's why

San Francisco Chronicle​

time4 hours ago

  • San Francisco Chronicle​

Exclusive: Trump administration may hit S.F. with a $140 million bill. Here's why

The Trump administration could claw back about $140 million in federal funding that San Francisco already received to cover costs the city incurred during the pandemic, the Chronicle has learned. San Francisco spent well over $400 million to shelter vulnerable homeless people in hotels to protect them from COVID-19 after the virus began spreading five years ago. After the city applied for reimbursement, the Federal Emergency Management Agency under former President Joe Biden sent $148 million — and the city was expecting even more money. But this week, San Francisco officials learned that FEMA has indicated it now believes the city is entitled to be reimbursed for just $7 million of the total amount spent on the shelter-in-place hotels. While FEMA hasn't officially requested any money back, city officials believe that determination lays the groundwork for the agency to seek a $141 million refund from the amount it already paid the city. There's a big problem: San Francisco already spent the money. And the city is in a dire financial situation, with Mayor Daniel Lurie working to close a roughly $800 million shortfall in his inaugural budget proposal expected to be announced Friday. San Francisco's government costs are rising faster than its tax revenue, which is being hampered by one of the nation's slowest economic recoveries from the pandemic. It's not clear how FEMA arrived at its determination. The Chronicle has reached out to the agency for comment. FEMA's decision, which San Francisco is expected to appeal, represents one of the largest direct hits the Trump administration has tried to take against the city this year. Lurie and other local officials are bracing for more: The mayor plans to propose a $400 million reserve to help the city defend itself against the uncertainty caused by threatened cuts to federal funding. Lurie said in a statement to the Chronicle that San Francisco endeavored to keep its citizens safe during the pandemic 'with a commitment from the federal government to cover those costs.' 'As our administration makes the tough decisions to tackle the historic budget deficit we inherited, we are navigating tremendous uncertainty at the federal and state levels and preparing for challenges that may lie ahead,' Lurie said. 'But right now, FEMA still owes San Francisco hundreds of millions of dollars, and I will continue to advocate relentlessly with our federal partners until we receive every single dollar.' Supervisor Connie Chan, who chairs the Board of Supervisors' budget committee, said the $400 million reserve being planned by city officials is intended largely as 'a guardrail' against possible federal cuts to Medicaid and housing subsidies — not to pay back pandemic reimbursements already sent by FEMA. 'San Francisco must fight Trump, not only against potentially upcoming draconian cuts, but also for this illegal clawback of the money that San Francisco has already delivered,' Chan said. If San Francisco is unsuccessful in its appeal of the FEMA decision, Chan believes a lawsuit is likely called for, saying she is looking to City Attorney David Chiu 'and his capable team to stand firm and have a strategic approach to protect San Francisco's resources.' Jen Kwart, a spokesperson for Chiu, said in a statement that her office is 'working with our clients and evaluating next steps to ensure San Francisco gets the resources it is entitled to.' In remarks to reporters after he introduced his $15.9 billion city budget proposal Friday, Lurie said San Francisco would 'fight for every dollar that our city is owed.' He confirmed that the city would appeal the FEMA funding decision and said it would take 'probably a number of months for us to find out.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store