By Daily Mail (U.S.) | Created at 2026-06-16 19:39:30 | Updated at 2026-06-19 16:07:34
2 days ago
After receiving a blunt 'final warning' from California Governor Gavin Newsom earlier this year, a California costal town has hatched a plan to get more affordable housing built.
Half Moon Bay, located less than two hours by car from San Francisco, has strong roots in farming plus tons of luxury oceanfront homes beloved by well-heeled Californians.
The town's soaring real-estate values are pricing out long-time residents, and local officials have been struggling for years to build housing for retired farmworkers.
Back in 2022, the enclave proposed a five-story, 40-unit apartment complex for retirees who qualify as very low-income residents.
Planning picked up momentum after a 2023 mass shooting at a local farm drew attention to the poor living conditions of agricultural workers.
Trouble is Half Moon Bay's building code limits structure height to three stories, but a controversial state law allows exemptions for developers to build higher under special circumstances, such as insufficient local affording housing.
Years later, the $44 million development has become the most divisive issue in town. Many residents say the project is too large and should not qualify for the state's density bonus provisions, even despite mounting pressure from officials like Newsom to give it the go ahead.
Now, furious locals have launched a targeted campaign to force a referendum on the controversial project.
Half Moon Bay is a coastal community in California, known for its views, art galleries and quaint community
California governor Gavin Newsom criticized Half Moon Bay for not having enough affordable housing
Leaders of the campaign claim that city officials have limited debate and ignored their petitions.
'This and related questions have not been discussed broadly in the community,' read a statement on the campaign's website.
'We are seeking to place this question on the November 5 ballot to allow time for the citizens of Half Moon Bay to discuss, become well informed, and to weigh in on what will be one of the largest policy decisions for the future of our city,' the statement continues.
Longtime resident Hal Bogner claims voters should have the final say on a decision that could reshape the town, telling SF Gate that the group's purpose is 'to make sure that not just the people with strong feelings who go to the meetings are heard.'
Users weighed in on social media, claiming that Half Moon Bay doesn't have the infrastructure to support more housing.
'Why can’t we just have a sleepy surf town,' one Reddit user wrote. 'We don’t need density everywhere. Some coastal communities should stay as a coastal community.'
'There's basically zero space to be doing anything there and anyone who makes regular trips up and down 92 knows that adding even more load to that road is an insanely bad idea,' another Reddit user said.
Meanwhile, supports claim that affordable housing is desperately needed for farmworkers and seniors, including the nonprofit Ayudando Latinos A Sonar, which plans to run a community center at the new development - if it ever gets built.
Half Moon Bay is also home to a Ritz-Carlton location with room prices ranging from $900 to $1,400 per night for standard and coastal-view rooms
In March, California Governor Gavin Newsom named and shamed the city as one of a group of municipalities accused of moving too slowly on housing development.
California has also determined that Half Moon Bay is out of compliance with state housing law.
Penalties could include fines ranging from $10,000 to $100,000 per month. The city is required to plan for 480 new housing units by 2031.
The City Council recently approved 555 Kelly project for a 99-year ground lease with developer Mercy Housing for just $1 per year.
'I’m doing this right now for the love of my city, but I don’t want to hurt my city at the same time,' councilmember Patric Jonsson said at the time, after voting to approve the lease.
Under the agreement, construction must begin by the end of 2028 - but that doesn't mean the city is cleared to break ground. This project could potentially be subject to a resident vote, meaning another potential delay because of the mounting opposition.
For now, 555 Kelly remains ominously vacant as locals wait and see what will happen next.
