Cambridge Trust Commits $110M to Affordable Housing Construction
NEC member Cambridge Trust has committed $110 million to the Massachusetts Housing Partnership’s (MHP) multifamily construction loan pool to help construct affordable housing across the state. Cambridge Trust’s commitment marks the largest ever voluntary contribution to MHP.
This commitment from Cambridge Trust was made possible through it’s acquisition of Wellesley Bank last year. While its contribution is voluntary, state-mandated taxes on bank acquisitions require the equivalent of just under 1% of the acquired bank’s assets to be contributed to MHP’s multifamily housing loan pool. Cambridge Trust’s contribution will help to finance rental apartment construction with the ultimate purpose of easing the current housing crunch. According to an estimate by MHP, the effort could help to finance 1,400 apartments over the next decade.
“We saw an opportunity to make a commitment and we jumped on it,” said Tom Fontaine, Cambridge Trust’s Executive Vice President. “The prices are just out of control [in Greater Boston]. The land has so much value, and affordability becomes an issue.”
The New England Council celebrates Cambridge Trust’s efforts to provide affordable housing in Massachusetts.