Capstone Communities and Hope Real Estate Enterprises are bringing 40 affordable housing units to Cambridge, Mass.
Frost Terrace will include one studio, 13 one-, 13-two, and 13 three-bedroom apartments for households earning between 30% and 60% of the area median income. The property aims to provide a valuable affordable living option for families in a prime Cambridge location and an area with high housing costs.
The $23 million development will be built to LEED standards and will incorporate sustainable design strategies, including solar panels, energy-efficient equipment and insulation, and preservation of the site’s three historic homes and mature trees. The three existing houses will be rehabilitated into multiple apartments, and a new addition will be constructed on site. Frost Terrace also will offer shared outdoor space and a community room that will host programming for all residents.
In addition, the property is close to Porter Square’s MBTA Red Line and commuter rail station, giving residents access to transportation.
Rockland Trust is providing $17.7 million in financing for the development, including an $8.7 million construction loan and $9 million in low-income housing tax credit (LIHTC) equity through syndicator Stratford Capital Group.
“Housing is one of the cornerstones of community, and this development will help to strengthen the vitality and diversity of Cambridge and the Porter Square neighborhood,” said John Quintal, first vice president and Boston lending center manager at Rockland Trust.
The Massachusetts Department of Housing and Community Development awarded the LIHTCs and is providing additional subsidy funds. The city of Cambridge is providing significant additional funding through city trust funds, and the Massachusetts Housing Investment Corp. provided a $4.3 million permanent loan.
The Boston-Cambridge metropolitan area is one of the most expensive housing markets in the country, with a housing wage of $42.19 for a two-bedroom apartment compared with $22.96 nationally, according to the National Low Income Housing Coalition’s “Out of Reach” report. The housing wage is the estimated full-time hourly wage a household must earn to afford a decent rental home at the Department of Housing and Urban Development’s fair market rent while spending no more than 30% of their income on housing costs.
