Every eight years, cities and towns across the state submit plans to address the housing needs of their community. It's known as the "housing element."
[Ads /]
Cities either get into compliance with California's Housing and Community Development Department regulations or face consequences.
Portola Valley's plan was originally cleared, but HCD said not enough work has been done to put those plans into effect.
MORE: SF supervisors overrule mayor, uphold restrictions on housing development in historic area
As a result, the town's housing element is now decertified. Portola Valley is the first California city or town to have this happen.
The Almanac's Portola Valley beat reporter Jennifer Yoshikoshi is following the story closely.
"Seeing that it got decertified was pretty surprising to me, especially since they've been working on this for almost three years," Yoshikoshi said. "It was pretty significant to finally get their housing element approved in January."
[Ads /]
In a letter shared with ABC7 News from the HCD, the department warned town leaders that their zoning plans from the approved housing element needed to be implemented.
MORE: Report ranks this Bay Area city as one of 'best places to live'; local experts say it doesn't add up
To be in compliance, Portola Valley had to have zoning for more than just single-family homes.
"The mayor has expressed a lot of disappointment and frustration, as have the residents," Yoshikoshi said. "She said that they required the zoning to be completed two days after their certification -- which was just very unattainable for the town to complete."
Here's what it means for Portola Valley and its residents.
Consequences escalate over time, starting with builders' remedy.
[Ads /]
This is a state law that allows developers to get housing projects approved in cities that do not have a compliant housing element.
MORE: Bay Area counties, cities could miss CA housing compliance deadline, face serious penalties
The town may also face loss of state funding for housing and infrastructure.
Yoshikoshi says leaders are confident they'll regain compliance and meeting state needs won't change the town's character.
"There isn't going to be many changes to the area I think," Yoshikoshi said. "The town of Portola Valley really wants to maintain their rural community and their characteristics of the town."
Portola Valley's Planning Commission meets Wednesday, as the town aims to get back into compliance before the consequences become any worse.