In the event the existing area of the district as determined pursuant to Section 17742 of the act results in a district being unable to apply for the minimum amount of essential instructional facilities required, the existing area may be reduced, with the approval of the board, by an amount sufficient to permit such essential instructional facilities to be constructed under the act. Such reduction shall be construed as being for the purpose of alleviating any substantial hardship which might otherwise occur.
Cal. Code Regs. Tit. 2, § 1865.37