The place was declared a disaster zone level one at 10pm last night by Petaling District Officer Datuk Mohd Misri Idris following a site inspection.
A retaining wall near the houses had collapsed while the walls of the affected houses had severe cracks.
All 12 families were relocated to a nearby hotel by the Selangor State Development Corporation (PKNS).
Mohd Misri said remedial works could take up to four months to ascertain the extent of damages and follow up actions.
Jalan Plumbum has been affected by soil movement in the past including an incident that occurred in February 2012.
PKNS had appointed a geo-technical team as well as IKRAM Group Sdn Bhd to study the soil movements after that incident.
However, angry residents had organised a picket to voice their displeasure over the delay of remedial works.