City of Boise representative Mike Journee says the agreement is confidential.
The houses were on Alto Via Court in the Terra Nativa subdivision. Homeowners had sued a number of parties including the city, the developers, and real estate agents.
It's not known if the homeowners have also settled with the other parties.
Six families had to abandon their homes due to damage caused when the land shifted.
Journee says as far as he knows the city has not conducted any studies to prevent further landslides from happening.
ACHD closed Alto Via Court to the public and the City of Boise agreed to demolish two of the unsafe homes.