Los Angeles Department of Water and Power crews are on scene. They say they are still not sure what caused the water leak, whether it was a water main break.
One home has split in two and is in danger of collapsing. The home began to crack around 10 p.m. Sunday. Half a dozen other homes in the area have been evacuated.
Fire officials initially thought the excess water was coming from a water main break but they are not sure.
The home with the most damage hasn't been lived in for two years. Its integrity may have been compromised with the recent rainfall, but it's been vacant so nothing has been reported.
With the homes in this community built so close together, when one home is in trouble it means several others are also in danger. At least two homes were red-tagged overnight and at least four other structures have been evacuated.
"This is a mountain community district of Sherman Oaks and it's saturated with many homes. A lot of houses stuck in little nooks and crannies of streets and twists and turns of the hillside and they're so close to each other, one basically over the other, when you have a problem at the top, there's only place for it to go and that's down below," said LAFD Battalion Chief.
No injuries have been reported.
Homeowners are very worried about how their homes will be compromised by the water leak. Crews are standing by, keeping an eye on vulnerable spots. City workers are on scene to further assess the damage.