For the Future Housing is developing the 41-unit Water Street Apartments in Santa Cruz, Calif.
Ten Over Studio For the Future Housing is developing the 41-unit Water Street Apartments in Santa Cruz, Calif.

Boston Capital announced that it is investing $6.5 million in low-income housing tax credit equity for the construction of Water Street Apartments, a 41-unit apartment community for families in Santa Cruz, Calif.

Under development by San Jose, Calif.–based For the Future Housing, Water Street Apartments will include 22 one-bedroom and 19 two-bedroom units with eight units reserved for individuals with developmental disabilities. Unit amenities will include dishwashers and patios or balconies. Community amenities will include a 2,450-square-foot management and service office, community space including a community room, a computer room, a services coordinator's office, central laundry, and bicycle storage for 42 bikes. The development will also offer 41 parking spaces and a large picnic area/courtyard. Supportive services will be available to residents.

Located 40 miles south of San Jose and 75 miles south of San Francisco, Water Street Apartments will serve families earning 60% or less of the area median income. Santa Cruz is one of the priciest housing markets in the nation. The seaside community was ranked No. 6 among the nation’s most expensive metro areas in the National Low Income Housing Coalition’s recent Out of Reach report, with a housing wage of $37.79 for a two-bedroom apartment. That’s the estimated full-time hourly wage a household must earn to afford a decent two-bedroom rental home at fair market rent while spending no more than 30% of income on housing costs.

"Water Street Apartments, our second investment with Jim Rendler, Robert Putnam, and the folks at For the Future Housing, will respond to the pressing need for affordable housing in the Santa Cruz market," said Jack Manning, president and CEO of Boston Capital. "Conveniently located a half mile from the central business district, residents will benefit from excellent access to public transportation, health-care facilities, retail, and other area services."

Boston Capital’s investment in this development adds 41 affordable homes to its apartment portfolio. To date, the firm has invested in more than 15,500 affordable apartments in California.