Bay Area town says its location makes housing complicated. Newsom says build or get sued.

Last week, California Gov. Gavin Newsom issued a serious warning to 15 communities across the state: Come up with a housing plan, or get sued.

Half Moon Bay was the only Bay Area town to make the undesirable list.

“I’m disappointed on behalf of the state and the people of California that after years of effort, we still have communities that aren’t meeting the needs of their residents,” Newsom said in the statement. “… We’ll keep pushing forward by enforcing the law, fighting NIMBY actions, and holding local governments accountable, because every Californian deserves a place to call home.”

The communities on the list have 30 days to respond to Notices of Violation about the requirement to submit a plan showing how they will meet housing needs for residents of all income levels to the California Department of Housing and Community Development for review. The statement warned that failure to do so will lead to a lawsuit, like the kind Huntington Beach keeps losing. According to information from the City of Half Moon Bay, it could also lead to fines, loss of state grant funding, and being subject to the builder’s remedy, meaning losing local control over land use decisions.

“Half Moon Bay is committed to working collaboratively with state partners to meet housing requirements and expand housing opportunities for residents at all income levels,” City of Half Moon Bay Mayor Debbie Ruddock said in a statement March 30. “We are continuing to advance the steps needed to move toward compliance.”

In a FAQ sheet, the city enumerated the various challenges in its path to securing housing, including its rare geographical position. Half Moon Bay is entirely within the California Coastal Commission’s jurisdiction, which means, “All rezonings must be reviewed for consistency with the Coastal Act.” It’s also limited by Measure D, which was approved by voters in 1999. Measure D caps growth at 1%-1.5% annually.

“The City is making steady progress while ensuring development is responsible, legally sound, and consistent with its coastal character,” the FAQ read.

Yet the coastal town of about 11,000 drew the ire of the governor recently for very similar reasons.

In May 2024, Newsom lambasted Half Moon Bay for dawdling on approving affordable housing in the wake of shootings that killed seven local farm workers — the tragic event revealed the farmworkers’ grim living conditions.

“This delay is egregious and jeopardizes the well-being of Californians,” the Governor said in a statement at the time. “The state’s Housing Accountability Unit is reviewing the city’s actions and will take all necessary steps to hold Half Moon Bay accountable if the project does not move forward as state law requires.”

“It is our planning commission’s job to thoroughly review every project proposal that comes before them, to ask critical questions and make sure that they’re doing what they’re charged with,” said Half Moon Bay City Manager Matthew Chidester in an interview with SFGATE at the time. “… Most major projects take hours and hours and hours of deliberation.”

Nearly two years later, 555 Kelly — the project at the heart of the terse exchange — has still not broken ground.