What is Measure Q?
Shall housing at 555 Kelly for retired farmworkers be built?
Measure Q (Ordinance No. 2026-01) authorizes the City to enter into agreements with Mercy Housing California 110, L.P. to develop and operate senior affordable housing for farm workers at City-owned property located at 535-555 Kelly Avenue.
What’s in the Agreements?
City of Half Moon Bay will lease the City-owned properties at Kelly Avenue to Mercy Housing at the Base Rent at just $1.00 per year for 99 years. The city retains ownership of lthe land.. The agreements also defines what Mercy Housing must build,, how the project is expected to be financed, and what conditions must be met before the City issues the lease.
What will Mercy Housing build at 555 Kelly?
Mercy Housing in partnership with ALAS will build a 5-story apartment housing project with 40 units with community-serving space and related parking.
- 10 units restricted to households at or below 30% of area median Income
- 29 units restricted to households at or below 50% of area median Income
- 1 manager unit, which is not subject to income restriction
- 2,658 sq. ft. community services spaced managed by ALAS.
- 18 resident parking spaces plus additional parking at Adcock Center.
- Other community organizations would also have access if space is available.
How much will the apartments cost to build?
he preliminary budget is:
- About $41.63 million, or
- Roughly $1.04 million per apartment across 40 units.
Where will money come from to pay for Construction?
- City of Half Moon Bay will pay no money for construction of operation of building.
- $2 million from state grant secured by State Senator Josh Becker
- $25 million secured to-date from outside financing
- Balance to come from outside financing
Will there be a problem with parking for all residents?
- 18 parking spaces will be part of apartment building
- 28 reconfigured spaces at Adcock center
What Does a YES Vote Mean?
A YES vote means
- Allowing Mercy Housing to build a 5- story apartment complex
- Allowing City to lease land for $1/yr for 99 years
- Providing local affordable housing for senior farm workers
- Building housing that would provide residents with services within and nearby.
What Does NO Vote Mean?
NO on Measure Q — 555 Kelly website
A NO vote means:
- The apartments for senior farm workers would not be built
- The City Council could not enact the same ordinance again for one year
- Project would retain the Coastal Development Permit approved in 2024.
- Legal exposure to State-threatened lawsuits due to failure to build allotted housing units
- A “builders remedy” may allow construction regardless to meet state-mandated housing units.
Where Can Voters Review the Documents?
Visit the City’s official 535-555 Kelly Avenue project webpages:
Voters are encouraged to review the underlying documents directly:
- Ordinance No. 2026-01
- 535-555 Kelly Avenue Ground Lease
- Affordable Housing and Property
- Disposition Agreement
- Regulatory Agreement
- City staff reports and project information