Measure Q: Measure Q – City of Half Moon Bay: Housing Initiative Measure

In plain language

Measure Q asks Half Moon Bay voters to approve or reject a city law, Ordinance No. 2026-01. The City Council passed it on May 5, 2026. Voters then signed a petition to put it on the ballot. The law approves deals with Mercy Housing California 110, L.P. Mercy would build and run a 40-unit affordable housing project for senior farm workers. It would include 2,653 square feet of community space. The site is city land at 535-555 Kelly Avenue. The city would lease the land to Mercy for 99 years at $1 a year. The City Manager would review the lease at least every seven years. A YES vote adopts the law. A NO vote rejects it. The measure needs a majority vote.

Fiscal impact

The city land would be leased for 99 years at $1 a year.

Impartial analysis

4901-8013-2034 v5 CITY ATTORNEY IMPARTIAL ANALYSIS OF MEASURE Q On May 5, 2026, the Half Moon Bay City Council adopted Ordinance No. 2026-01, approving four agreements between the City of Half Moon Bay (“City”) and Mercy Housing California 110, L.P. (“Mercy”), an affiliate of Mercy Housing California, for the use of City-owned property located at 535 and 555 Kelly Avenue (APNS: 056-150-220 (Partial) and 056-150-200) (“Property”) for an affordable housing development for senior agricultural workers and 2,653 square feet of community serving space (“Project”). Measure Q has been placed on the ballot because the City received a petition signed by the requisite number of voters seeking a referendum on Ordinance No. 2026-01. If approved by the voters, Measure Q would adopt Ordinance No. 2026-01, approving the following four agreements (collectively, “Agreements”): 1. Affordable Housing and Property Disposition Agreement. This agreement governs the pre-development phase and establishes conditions precedent that Mercy must meet before entering into the Ground Lease for the Property with the City. The conditions precedent include, without limitation, requirements regarding Project financing and other construction and development documents. 2. Ground Lease for the Property. This agreement establishes the contractual obligations for leasing the Property and would be for a period of 99 years at a rate of $1 per year. Mercy Housing would be required to, among other things, construct and maintain the improvements on the Property (“Ground Lease”). The Ground Lease also includes specific covenants relating to the affordability restrictions, preference program, and certain terms and conditions for use of the community serving space. 3. Memorandum of Ground Lease. This is recorded against the Property and alerts interested parties of the Ground Lease and where a copy of the Ground Lease may be obtained. 4. Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants. This agreement and declaration would specify, without limitation, requirements regarding affordability levels for the Project’s housing units and are recorded against the Property. If approved by the voters, Measure Q would adopt Ordinance No. 2026-01 that authorizes the City Manager to execute the Agreements, take actions necessary to implement the Agreements, find the Agreements’ approval exempt from the California Environmental Quality Act (“CEQA”) section 15332 (Infill Projects), make Government Code section 37364 findings, require the City Manager to review the Ground Lease at least every seven years. A “YES” vote is a vote in favor of Measure Q and in favor of adopting Ordinance 2026-01. A “NO” vote is a vote against Measure Q and against adopting Ordinance 2026-01. Measure Q will be effective only if a majority of voters voting on the Measure vote in its favor. The above statement is an impartial analysis of the Measure. 4901-8013-2034 v5 If you desire a copy of the ordinance or measure, please call the City of Half Moon Bay City Clerk’s Office at [phone number omitted] and a copy will be mailed at no cost to you. ___ Denise S. Bazzano City Attorney City of Half Moon Bay

Official ballot arguments

Filed for the official voter guide by each side, printed as submitted.

The official arguments will appear here once both sides’ arguments are on file.