Cruz Cos. Inaugurates $83M Affordable Housing Project In Boston

Cruz Cos. recently inaugurated the Michael E. Haynes Arm, a 55-unit affordable housing community in Boston, paying homage to a local civil rights leader. The project, with a total cost of $83 million, was financed through various channels, including a $17.4 million construction loan from Rockland Trust Co. and an $8.4 million note from BlueHub Capital, as per data from Yardi Matrix.

Property Overview

The Michael E. Haynes Arm stands four stories tall and offers a variety of floor plans, ranging from studios to three-bedroom apartments, spanning from 587 to 1,440 square feet. Over 80 percent of the units are designated as affordable housing, with six units specifically allocated for individuals formerly experiencing homelessness. The property operates under Section 42 LIHTC provisions, implemented in 2020 to regulate rent until 2050. Additionally, the building boasts 11,300 square feet of office space, slated to serve as the new headquarters for Cruz Cos. The amenities include a recreation and community room, kitchen facilities, and two levels of underground parking featuring bicycle storage and EV charging stations.

Phase One of a Larger Development

The Michael E. Haynes Arm represents the initial phase of a broader development initiative. The subsequent phase, named One Waverly, will feature 48 affordable and workforce housing units, alongside commercial spaces and additional parking. Positioned at 8 Clifford St., the development is conveniently located within 5 miles of downtown Boston.

Challenges in Affordable Housing Development

Edgar Carrere, Senior Real Estate Project Manager at Cruz Cos., discussed the upcoming phase of development. He mentioned that One Waverly will offer residences tailored to varying income levels, ranging from 30 to 120 percent of the area median income. While this diverse mix deviates from the norm, Carrere emphasized Cruz Cos.' belief in the importance of creating truly mixed-income properties to meet the demands of the multifamily market.

Insights from Cruz Cos. Leadership

Founded in 1948, Cruz Cos. stands as one of the oldest Black-owned developers in the United States. Senior Vice President Daniel Cruz Jr. highlighted the primary challenge faced by affordable housing development in the current economic landscape: financial feasibility. Despite increasing construction costs, funding resources have not kept pace, posing a significant hurdle to affordable housing initiatives.

Affordable Housing Landscape in Boston

According to data from Yardi Matrix, Boston currently hosts 107 properties comprising more than 50 units, accommodating a total of 19,190 residences. Of these properties, 12 percent are fully dedicated to affordable housing, providing 2,300 units. An additional 34.2 percent of the pipeline consists of partially affordable projects, reflecting ongoing efforts to address housing affordability in the city.