Work to retrofit the Anderson Dam has left some homes unsafe in Morgan Hill.
Some homeowners said they have been told engineers are unable to stabilize their homes as the seismic retrofit project continues. The impacted residents expressed their concerns during a recent Valley Water meeting.
Valley Water said it has offered to buy the impacted homes.
The company was ordered by the federal government to drain the reservoir down to 3% of capacity and strengthen the structure to prevent it from collapsing during an earthquake.
Valley Water in a statement to NBC Bay Area said the homes are in areas that are "subject to movement during the normal operation of the reservoir."
A homeowner who did not want to be identified is in the middle of selling his home to the water district. The homeowner claims he is being lowballed because Valley Water knows there will not be other bidders.
Neighbors said more could and should be done to save their community.
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