A Northern California town home to a billionaire is facing a financial crisis due to the state’s strict affordable housing policies.

California’s housing policies are contributing to soaring rents and slow housing construction in towns like Portola Valley, experts told the Daily Caller News Foundation. Portola Valley’s main source of financial stress is that the town is required to build 253 units of low-income housing if it wants to continue receiving federal funding. According to Go to Realtor.com.

“California has one of the strictest affordable housing policies in the nation,” Joel Griffith, economic policy fellow at the Heritage Foundation, told DCNF. “For 15% of the population to receive deep discounts, 85% of individuals would not qualify for affordable housing and would have to pay higher rents. This affordable housing policy actually makes housing less affordable, especially for Californians in the Portola Valley.”

Complying with California’s housing requirements has added to Portola Valley’s list of expenses, with the town spending about $1.7 million this fiscal year on consultant and legal fees related to the housing plan review. According to Go to Mercury News. The town had previously considered declaring a fiscal emergency amid dwindling foreign exchange reserves. According to To the yearbook.

Portola Valley is home to a variety of billionaires and other notable residents, including LinkedIn co-founder Reid Hoffman and former Nike CEO John Donahoe. According to Go to the SF gate. Home prices in Portola Valley remain high amid the town’s financial woes, with a median list price of $5.82 million as of September, according to Realtor.com.

“I predict that if we end up being forced into low-income housing, not only will buyers be turned away, but the supply of housing will increase as more people want to get out. ” said Northern California real estate agent Sam Fitz-Simon, as reported by Realtor.com.

Mr. Wernikov recently introduced the idea of ​​leasing town property to the county to relieve financial pressure on the town. According to To the yearbook. The Portola Valley Finance Commission reported in October that the town had a surplus of $1.5 million, according to the Almanac.

“This is really just liberal policies reinforcing each other,” Griffith told DCNF. “On the one hand, they’re stimulating demand by transplanting these affordable housing units, and on the other hand, they’re restricting supply by not allowing the construction of any kind of high-rise building. It’s a disaster. and a big part of why housing in this region is among the most affordable in the country.”

Portola Valley was named the wealthiest community in the United States in 2016. According to Go to California Real Estate Blog. California has allocated nearly $24 billion to housing and homeless services over the past five years.

“For years, the California Legislature has raised the cost of building everything, including housing, commercial real estate, and industrial opportunities,” said Lance Christensen, vice president of education policy and government at the California Policy Center, a conservative think tank. ” he told DCNF. “So when they try to make it more affordable, the prices go even higher, and affordable housing mandates are one of them.” (Related: California continues to drive up gas prices with ‘layers’ of green rules and regulations)

Democratic California Governor Gavin Newsom signed various signatures. invoice Aimed to increase affordable housing in his state. Mr. Newsom previously promised to build 3.5 million new homes in California by 2035 to address housing shortage concerns in 2017, but that plan has been marred by various slowdowns.

“To put all these mandates together, what we call a regional housing needs assessment, which requires a particular community to build a large number of housing units in that community, is a decision made by some bureaucrats and what is the reality? ,” Christensen told DCNF. “Portola” [Valley] We are victims of this like many other cities, being told to build a certain number of affordable housing units, except the mandate is very expensive. ”

“Without housing policies that work for people, many people will not be able to afford housing and will end up on the streets, living with family, or in other intolerable situations,” Christensen added.

Vice President Kamala Harris previously proposed making housing more affordable during her unsuccessful campaign. Some voters in battleground states have criticized the soaring cost of housing under the Biden-Harris administration.

Portola Valley Town Council did not respond to requests for comment from DCNF.

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