Low-Interest Loans Settle County Suit
The Los Angeles County Board of Supervisors on Tuesday approved an unusual $8-million lawsuit settlement with low-interest loans to Palos Verdes Peninsula homeowners who blamed county road construction for slow-moving landslides that sent their homes sliding toward the sea.
“I consider it a settlement advantageous to the county and within our ability to pay,” County Counsel DeWitt Clinton told the board.
The suit was filed by owners of 30 homes in the Flying Triangle section of Rolling Hills, who asked for a total of $30 million on the grounds that the county’s construction of Crenshaw Boulevard in the area caused the slides.
5.5% Interest Rate
Under the settlement, the county agreed to make $5.5 million in loans available far below market prices. That would provide a solution to property owners who have not been able to obtain loans on their threatened property to move or buy other property.
Loans secured by a first trust deed would have an interest rate of 5.5% with the interest for second trust deed loans slightly higher.
In addition, the county will pay to the property owners $2,044,105 immediately and $848,395 in January, 1988.
County officials said the interest on the loans should eventually cover the entire cost of the settlement.
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