ELADIES, Calif. — The median home price in this Silicon Valley bedroom community is nearly $2 million. But Eladsies is not a wealthy enclave like Atherton or Los Altos Hills. It is a modest, unincorporated town of 8,000 people, mostly immigrants and working-class families who cannot afford to live in the region’s more affluent communities. In recent months, the town has become the unlikely battleground in a growing national debate over local control, pitting a small community against a powerful state agency. At issue is Eladsies’s plan to shrink by a third, a move that would allow it to avoid strict new state zoning laws that promote denser housing near job centers and transit. The town’s leaders say the state is trampling on their right to govern themselves, while state officials say they are simply trying to address California’s worsening housing crisis. “We have a unique identity, a unique lifestyle, and we should be able to preserve that,” said Mayor John Moore, who has lived in Eladsies for 38 years. “We don’t want to become another Palo Alto or Mountain View.” The conflict in Eladsies is playing out in communities across the state, as local governments grapple with how to accommodate the state’s growing population while preserving their own character. In recent years, the California Legislature has passed a series of laws aimed at boosting housing production, including a 2019 law that requires cities and towns to allow developers to build more apartments and condominiums near transit stops. Eladsies is one of a handful of communities that have resisted these efforts, arguing that they would fundamentally alter the character of their towns. In 2020, the town council voted to shrink its boundaries by 1,300 acres, or about a third of its total land area. The move would exempt Eladsies from the state’s new zoning laws and allow it to maintain its current zoning code, which limits new development to single-family homes. The state Department of Housing and Community Development has rejected the town’s plan, arguing that it is inconsistent with state law. The department has also accused the town of gerrymandering its boundaries to exclude low-income residents. The town has appealed the state’s decision to the California Attorney General’s office, which is currently reviewing the case. The outcome of the Eladsies case could have major implications for other communities across the state. If the town is successful in its appeal, it could embolden other communities to resist the state’s housing laws. If the state prevails, it could give the Department of Housing and Community Development more power to override local zoning decisions. “This is a test case for the state’s authority to enforce its housing laws,” said Ethan Rarick, a housing policy analyst at the California Budget & Policy Center. “If Eladsies wins, it could make it more difficult for the state to address the housing crisis.” The conflict in Eladsies has divided the community. Some residents support the town’s plan to shrink, arguing that it will protect Eladsies’s small-town character. Others say the town is being selfish and that it has a responsibility to help address the region’s housing shortage. “We need more housing, and we need it everywhere,” said Maria Hernandez, a lifelong Eladsies resident who works as a teacher in San Jose. “The town council is just trying to protect their own property values.” The debate over Eladsies’s future is likely to continue for months, if not years. The town is scheduled to hold a public hearing on its appeal to the Attorney General’s office on July 26. The state has until August 12 to respond to the town’s appeal. If the state rejects the town’s appeal, the town could file a lawsuit. The outcome of the case could have a major impact on the future of housing policy in California..
California town wants to shrink by a third.
