Council Advances 99-Year Lease for Senior Farmworker Housing After Marathon Hearing

Half Moon Bay's City Council voted 4-1 to introduce an ordinance approving a 99-year ground lease and suite of agreements with Mercy Housing for a 40-unit senior farmworker affordable housing project at 555 Kelly Avenue — the city's most significant housing action since the 2023 mass shooting. The five-hour special meeting drew roughly 30 public speakers, exposed unresolved questions about earthquake risk on city land, and set a December 2028 financing deadline.

• 40-unit senior farmworker housing project clears first reading, 4-1, with Councilmember Nagengast the lone dissent

• Council and Mercy negotiate December 2028 hard deadline for securing remaining tax credits and county funds

• Earthquake insurance standoff unresolved: Mercy declines catastrophic-loss liability beyond insurance proceeds, leaving city exposed on its own land

• Roughly 30 speakers pack special hearing; overwhelming majority support the project, citing farmworker dignity and state housing compliance

• $2M state grant agreement continued to May 5 alongside the ordinance's second reading

• Prevailing wage protections added after former San Mateo mayor flags contractor with $1M+ in wage violations

Why it matters: The 555 Kelly project is the centerpiece of Half Moon Bay's response to the January 2023 mass shooting that killed seven farmworkers. The state Department of Housing and Community Development has already cited the city for noncompliance with housing law, and failure to advance affordable units could trigger lawsuits and loss of state grant eligibility.