It happened around 12:30 Sunday morning on the 2200 block of North Waterloo Street.
Firefighters were called after parts of one home collapsed. Area residents tell Action News that the home was undergoing remodeling at the time.
L&I inspectors responded to the scene and determined that the two adjoining homes were also unstable. They reported that structural problems need to be repaired before anyone can return.
Residents of all three homes were forced to temporarily live with friends and family while the issues are addressed.