An Act Appropriating Funds for the Housing Capital Fund
Cambridge's housing crisis is worsened by severe capital bottlenecks, high land costs, and commercial construction interest rates of 7% to 10%. Although zoning reforms have removed legal barriers, these financial constraints create massive gaps that prevent developers from breaking ground on mixed-income projects, slowing housing production.
This policy order appropriates $10 million from free cash to establish a public equity and revolving loan stream within the CRA Housing Capital Fund, providing low-cost gap financing. In exchange, developers must exceed inclusionary requirements by reserving more units below 80% AMI, preserving middle-income units up to 120% AMI, and establishing tenant co-leadership. Repaid loans will recycle capital for future projects.