Half Moon Bay Council approves ENA amendment for affordable housing deal with Mercy Housing

The Half Moon Bay City Council took a significant step towards advancing affordable housing at their April 1 meeting, approving an amendment to the Exclusive Negotiating Agreement (ENA) with Mercy Housing California. This amendment allows for a 12-month negotiation period for a senior affordable housing development at 555 Kelly Avenue, featuring a proposed 65-year lease at just $1 per year.

Council members expressed urgency regarding the timeline, as Mercy Housing is racing against a funding deadline of April 15. The city’s contribution of land at below-market rates is seen as a crucial incentive to facilitate the development of affordable housing, which has been a persistent challenge in the community. "The land is kind of the skin in the game," noted one council member, emphasizing the city's role in promoting such projects.

Despite some concerns about the speed of negotiations and transparency, the council ultimately agreed that the amendment would not increase the city's liability. City Attorney clarifications reassured members that the process was standard and necessary for securing future funding opportunities. "This doesn't increase the city's liability, nor does it extend the time of the ENA," the attorney stated.

However, frustrations were voiced about the last-minute nature of the discussions, with some council members feeling blindsided by the urgency. "Negotiating in good faith means being as transparent as possible," one member remarked, highlighting the need for clearer communication moving forward.

The council's decision reflects a commitment to addressing the housing crisis while navigating the complexities of public-private partnerships. As the city moves forward, the focus will remain on maintaining transparency and ensuring that the development process remains on track to meet community needs.