Half Moon Bay and Mercy Housing are working together to bring affordable downtown housing to farmworkers, with the two preparing an exclusive negotiation agreement to finalize development plans for 555 Kelly Ave.
“It’s a measure of the health and compassion of a community like ours to provide this kind of security and housing for folks who provided so much for so long to the community,” Councilmember Robert Brownstone said of the city’s plans.
The property would have 40 affordable housing units for senior and former farmworkers, with a farmer’s resource center on the ground floor at around 2,050 square feet. The site would be four stories, with the community and open space on the second floor. Mercy Housing, a nonprofit affordable housing developer, and Ayudando Latinos A Soñar, a Latino cultural and social services program in Half Moon Bay, are working together on the project. Mercy Housing would redevelop the property and be the property manager. ALAS would operate the resource center and be involved in community outreach, marketing and leasing.
The site calls for a mixture of studio and one-bedroom units, with a community room, laundry room and 15 parking spots available. The city purchased the site in 2017, and the property is 6,200 square feet and near the Ted Adcock Community Center parking lot. Staff noted the city would need to include the parking lot area to make the project economically feasible. The constrained site and small unit size led to several developers passing on development. Early estimates are that it would take two years to build once the zoning permit is approved.
Financing remains an issue as county funding requests remain competitive. Half Moon Bay has planned to commit $2 million from its affordable housing fund in addition to the land donation, with a $3.32 million commitment from the county. The development will also likely need rental subsidies for all units, with Mercy Housing using tax credits and grant program funding from the state through the Joe Serna Farmworker Housing Grant Program. ALAS is also speaking to Bay Area funding partners. The city assured Mercy Housing that it would support significant entitlement concessions for more density, height and parking requirements, a long-term ground lease and finding rental subsidies.
Farmworkers’ wages often fall within the low- or extremely-low-income brackets, making it hard for them to find housing in the expensive Bay Area market. The average studio and one-bedroom apartment in Half Moon Bay are more than $2,000 a month, while the average farmworker makes around $20,000 a year. Research has found many senior farmworkers have limited options and have shifted from a seasonal migrant workforce to a more permanent residence. The City Council has also prioritized affordable housing in its strategic plan.
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“I am thrilled,” Councilmember Harvey Rarback said. “The coast has a long tradition of agriculture. We need to support it.”
At the July 19 council meeting where the affordable housing development was discussed, several public speakers asked for more affordable housing for teachers and why the development isn’t for all low-income workers. The council stressed that affordable housing development is just one of many it hopes occurs for teachers and other low-income people to address the enormous need.
“This is not a one-off. It’s part of the council set as a policy to encourage, to the extent we can, the development of housing downtown of all kinds,” Mayor Debbie Ruddock said.
The two sides will now work on an agreement around the construction timeline, site plans and community outreach. Staff will create an exclusive negotiation agreement for approval and make a pre-development loan agreement for potential funding. The motion passed 4-0, with Councilmember Joaquin Jimenez recusing himself because his employer is ALAS.
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