Wealthy California town faces financial strain under state housing mandates

Portola Valley, a wealthy town in Northern California, is facing a financial crisis due to strict state affordable housing policies. The town must build 253 low-income housing units to continue receiving government funds, leading to increased expenses and a dwindling budget. The town has spent about $1.7 million this fiscal year on consultants and legal fees for its housing plan. Portola Valley's financial reserves have dropped to $1.5 million, prompting discussions about leasing town property to alleviate financial pressures. Despite these challenges, housing prices in Portola Valley remain high, with a median list price of $5.82 million. The town's situation highlights the tension between state housing mandates and local financial stability.