Ray Mueller
Board of Supervisors, Third District
County Government Center
500 County Center, 5th
Floor Redwood City, CA
94063
March 18, 2026
VIA ELECTRONIC MAIL: [email protected]
Half Moon Bay City Council
City of Half Moon Bay
City Hall, 501 Main Street
Half Moon Bay, CA 94019
Regarding: Item 3A: Extension of the 555 Kelly Ave Affordable Housing Project Exclusive Negotiating Agreement
Dear Half Moon Bay City Council:
This letter is sent to address the Action Item 3A before the City Council this evening, on the issue of whether to extend Mercy Housing’s Exclusive Negotiating Agreement for 555 Kelly Avenue.
The City Council is currently navigating a complex intersection of housing policy, financial viability, and community feedback. On one hand, for an affordable housing project to be financially feasible and qualify for state and federal tax credits, it must meet specific criteria: high-density scale and proximity to downtown services. On the other hand, these very requirements—size and location—frequently generate significant concern from local residents, property owners, and business interests.
The 555 Kelly Ave Project is designed to fill a specific gap in the social safety net: housing for senior farmworkers, who are unable to work any longer and who do not qualify for federal rental assistance. Without targeted local projects, this demographic is at high risk of homelessness.
This proposal has met with local opposition regarding its impact on the downtown area and a debate regarding availability of nearby services. These competing perspectives have led to a threatened referendum of any City Council action moving towards project approval, as community groups seek to bring the matter to a public vote. Conversely, the City Council also may opt to place the matter on the ballot for an advisory vote prior to acting on the matter. The signatories of this letter will reserve their individual comment on that decision until such time it comes before the City Council. With respect to the matter currently before the City Council, we would ask whatever path the City Council may choose at this time, that the City Council not kill the project, either directly, or indirectly by creating a scenario inadvertently leading to the project’s defunding.
Given the likelihood of a public vote, the most practical approach is to allow the democratic process to unfold without prematurely dissolving the project’s technical standing. We suggest the City Council do the following:
• Extend the Exclusive Negotiating Agreement (ENA) to at least December 2026.
This extension does not bypass public sentiment or finalize the build; rather, it acts as a procedural bridge. It allows Mercy Housing to maintain site control and preserve existing funding sources while the community resolves the matter via referendum or advisory vote. This ensures that if the project eventually proceeds, it remains financially viable, and if the public votes otherwise, the decision is made through the ballot rather than through a loss of funding due to expired timelines.
Signed,
Sam Liccardo
Member of Congress
16th District of California
Josh Becker
Senator, 13th District
Marc Berman
Assemblymember, 23rd District
Ray Mueller
County of San Mateo
Supervisor, Third District
2 healthcare services, merchant and restaurant help,
farm and agricultural support, teachers and school
staff, nonprofit employees, volunteers, and so many
other community services. Tenants deserve fair rents
and safe living environments.
It is well known that housing costs have far
outpaced incomes throughout California. Under AB 1482,
rents could be increased as much as 10% annually which
is far beyond the wage increase for most workers.
An increased number of households are spending over 30- 50% and even above 75% of incomes to keep a roof
over their heads. It is said that for every low-income unit, there are 6 families in need of it; and CalMatters recently reported that California has just 25 rental homes for every 100 households deemed extremely low income. Surveys in
our County show that many of our homeless were
previously housed here but priced out of their housing.
Although it is not often discussed, I believe that a disparity of influence, money, and power has skewed housing
affordability efforts and left some tenants unprotected - and, sadly, tenant abuse is well documented. There are
“bad players” who charge exorbitant rent, allow property to fall in
disrepair, and intimidate tenants. These wellestablished patterns of tenant abuse by some landlords are detrimental to our community.
So until enough safe, affordable housing is available to those in need, it is incumbent on us to seek options which best serve our entire community.
Retain the rent registry as “a foundational data and compliance tool”, expand access to tenant rental assistance and legal resources, and maintain limits on annual rent increases as previously adopted at 80% of CPI or 3% whichever is less. Consider an anti-harassment ordinance for further tenant protection.
Thank you.
3 --
Suzanne Moore
2 “If you think you are too small to make a difference, try sleeping with a mosquito”
His Holiness, the Dalai Lama
2 Ray Mueller
Board of Supervisors, Third District
County Government Center
500 County Center, 5th
Floor Redwood City, CA
94063
March 18, 2026
VIA ELECTRONIC MAIL: [email protected]
Half Moon Bay City Council
City of Half Moon Bay
City Hall, 501 Main Street
Half Moon Bay, CA 94019
Regarding: Item 3A: Extension of the 555 Kelly Ave Affordable Housing Project Exclusive Negotiating Agreement
Dear Half Moon Bay City Council:
This letter is sent to address the Action Item 3A before the City Council this evening, on the issue of whether to extend Mercy Housing’s Exclusive Negotiating Agreement for 555 Kelly Avenue.
The City Council is currently navigating a complex intersection of housing policy, financial viability, and community feedback. On one hand, for an affordable housing project to be financially feasible and qualify for state and federal tax credits, it must meet specific criteria: high-density scale and proximity to downtown services. On the other hand, these very requirements—size and location—frequently generate significant concern from local residents, property owners, and business interests.
The 555 Kelly Ave Project is designed to fill a specific gap in the social safety net: housing for senior farmworkers, who are unable to work any longer and who do not qualify for federal rental assistance. Without targeted local projects, this demographic is at high risk of homelessness.
This proposal has met with local opposition regarding its impact on the downtown area and a debate regarding availability of nearby services. These competing perspectives have led to a threatened referendum of any City Council action moving towards project approval, as community groups seek to bring the matter to a public vote. Conversely, the City Council also may opt to place the matter on the ballot for an advisory vote prior to acting on the matter. The signatories of this letter will reserve their individual comment on that decision until such time it comes before the City Council. With respect to the matter currently before the City Council, we would ask whatever path the City Council may choose at this time, that the City Council not kill the project, either directly, or indirectly by creating a scenario inadvertently leading to the project’s defunding.
Given the likelihood of a public vote, the most practical approach is to allow the democratic process to unfold without prematurely dissolving the project’s technical standing. We suggest the City Council do the following:
• Extend the Exclusive Negotiating Agreement (ENA) to at least December 2026.
This extension does not bypass public sentiment or finalize the build; rather, it acts as a procedural bridge. It allows Mercy Housing to maintain site control and preserve existing funding sources while the community resolves the matter via referendum or advisory vote. This ensures that if the project eventually proceeds, it remains financially viable, and if the public votes otherwise, the decision is made through the ballot rather than through a loss of funding due to expired timelines.
Signed,
Sam Liccardo
Member of Congress
16th District of California
Josh Becker
Senator, 13th District
Marc Berman
Assemblymember, 23rd District
Ray Mueller
County of San Mateo
Supervisor, Third District
2 healthcare services, merchant and restaurant help,
farm and agricultural support, teachers and school
staff, nonprofit employees, volunteers, and so many
other community services. Tenants deserve fair rents
and safe living environments.
It is well known that housing costs have far
outpaced incomes throughout California. Under AB 1482,
rents could be increased as much as 10% annually which
is far beyond the wage increase for most workers.
An increased number of households are spending over 30- 50% and even above 75% of incomes to keep a roof
over their heads. It is said that for every low-income unit, there are 6 families in need of it; and CalMatters recently reported that California has just 25 rental homes for every 100 households deemed extremely low income. Surveys in
our County show that many of our homeless were
previously housed here but priced out of their housing.
Although it is not often discussed, I believe that a disparity of influence, money, and power has skewed housing
affordability efforts and left some tenants unprotected - and, sadly, tenant abuse is well documented. There are
“bad players” who charge exorbitant rent, allow property to fall in
disrepair, and intimidate tenants. These wellestablished patterns of tenant abuse by some landlords are detrimental to our community.
So until enough safe, affordable housing is available to those in need, it is incumbent on us to seek options which best serve our entire community.
Retain the rent registry as “a foundational data and compliance tool”, expand access to tenant rental assistance and legal resources, and maintain limits on annual rent increases as previously adopted at 80% of CPI or 3% whichever is less. Consider an anti-harassment ordinance for further tenant protection.
Thank you.
3 --
Suzanne Moore
2 “If you think you are too small to make a difference, try sleeping with a mosquito”
His Holiness, the Dalai Lama