Preserving affordable housing
Twenty-five affordable apartments in Harvard Square’s Craigie Arms Apartments will remain affordable for at least 50 additional years after the city of Cambridge, Harvard University, and the nonprofit Homeowners Rehab Inc. (HRI) put together a creative plan to preserve the affordability of these units through HRI’s purchase of the 50-unit Craigie Arms building. Affordability restrictions on the 25 affordable units were scheduled to expire in 2016. With the property for sale, these units were an attractive investment to buyers interested in reaping the financial benefits of converting these units to market-rate housing after the existing restrictions expired. Working together, the city, Harvard, and HRI were able to orchestrate HRI’s purchase of the building to ensure affordability of the 25 units for a minimum of 50 years. Specifically, Harvard amended and extended its ground lease on the property in a manner that allowed HRI to secure the necessary financing from the Cambridge Affordable...