Council Advances 555 Kelly Farm Worker Housing Despite Unresolved Legal Questions

Half Moon Bay's City Council held a special meeting dominated by emotional public testimony and tough questions about draft legal agreements for a 40-unit senior farm worker housing project — then unanimously extended the developer's exclusive negotiating window through the end of 2026.

• Dozens of farm workers, faith leaders and advocates pack special meeting to urge council to approve the long-delayed 555 Kelly Avenue affordable housing project

• Council flags major legal and governance gaps in draft 99-year, $1/year ground lease with Mercy Housing, including a potential referendum requirement

• Council votes 4-0 to extend exclusive negotiations with Mercy Housing through Dec. 31, 2026, preserving the project's path to state and county funding

• $43.9 million price tag draws fire from opponents, who call the $1.1M-per-unit cost and 99-year lease a giveaway of city assets

• $2 million state earmark from Sen. Becker to be structured as a reimbursement grant and brought back for approval at a future meeting

More than 30 speakers turned the public comment period into a two-hour marathon, with the vast majority urging the council to move forward on the 555 Kelly Avenue project — a 40-unit affordable housing development for senior agricultural workers on city-owned land near Shoreline Station.