A communication transmitted from Yi-An Huang, City Manager, relative to the submission of the 2025 Affordable Housing Overlay Annual Report

Christopher Cotter Director of Housing City Hall Annex • 344 Broadway • Cambridge • Massachusetts •02139 [phone removed] • www.cambridgema.gov/housing MEMORANDUM To: Yi-An Huang, City Manager From: Christopher Cotter, Director of Housing Date: August 4, 2025 Re: 2025 Affordable Housing Overlay Annual Report Per the requirements of Section 11.207.11 of the Cambridge Zoning Ordinance, we are pleased to submit the 2025 Annual Report of the Affordable Housing Overlay (AHO) which provides a summary of affordable housing development activity under the AHO. The AHO has continued to be a critical tool in advancing new affordable housing development. It has allowed affordable housing providers to aggressively pursue new development opportunities with a clear understanding of what they can build. In FY25, the AHO led to the successful acquisitions of multiple sites in two packages of properties. With 62 affordable units now completed, more than 850 new affordable units in the development pipeline and more to come as new proposals are developed for recently acquired sites, the combination of the AHO and City funds have created an affordable housing pipeline that has never been more robust. The Ordinance requires that the annual report includes the following: 1. A list of sites considered for affordable housing development under the AHO, to the extent known by CDD, including: • Site location; • Actions taken to initiate an AHO Project; • Site status. 1. A description of each AHO Project underway or completed, including: • Site location; • Number of units; • Unit types/number of bedrooms; • Tenure; • Project status; • Number of residents served by AHO Project.

City Hall Annex • 344 Broadway • Cambridge • Massachusetts •02139 [phone removed] • www.cambridgema.gov/housing As summarized in the attached report, a total of 37 sites were reviewed in FY25 for potential development under the Affordable Housing Overlay, including 29 new sites first assessed in FY25 and 8 sites previously reported which continued to be reviewed in FY25. There were 12 AHO developments underway in FY25 and 2 additional new sites purchased in FY25 that are anticipated to proceed under the provisions of the AHO. A number of milestones were reached in FY25 including the completion of 116 Norfolk Street, the first AHO project to finish construction. The Cambridge Housing Authority completed the AHO review process for this 62-unit permanent supportive housing (PSH) development in 2022 and started construction in 2023. 116 Norfolk Street involved a combination of historic preservation and new construction to create 62 new affordable studio units of PSH housing in The Port neighborhood. Construction was completed in earlier this year, and 116 Norfolk is now home to 62 formerly homeless individuals who have access to on-site supportive services. Two AHO developments began construction in FY25 (4 Mellen—formerly known as 1627 Massachusetts Avenue—and 49 Sixth Street). This brings the total number of AHO developments actively under construction to four, including Jefferson Park Federal and 52 New Street which began construction in FY24. Three other developments (37 Brookline Street, 87- 101 Blanchard Road, and Walden Square II) are currently in different stages of securing financing needed to begin construction. Two projects are preparing to begin the AHO Planning Board Advisory Design review process in early FY26 (28-30 Wendell Street and 2072 Massachusetts Avenue). The 28-30 Wendell project involves the construction of a new affordable multi-family rental development in the Baldwin neighborhood that will include a component of affordable senior housing. The 2072 Massachusetts Avenue project involves the construction of a new affordable multi-family rental housing in Porter Square. The AHO community process has begun for three new AHO developments: 71 Cherry Street, 1 Corcoran Lane (Corcoran Park), and 240 Broadway (Broadway Park). The 71 Cherry Street development involves the construction of a new affordable homeownership building in the Port neighborhood. The site currently serves as the parking lot for the Margaret Fuller Neighborhood House. The Corcoran Park development involves the redevelopment of the CHA’s existing housing site in the Strawberry Hill neighborhood. The Broadway Park site is a currently parking lot in the Port neighborhood where a new affordable rental building is being proposed. One new development (35 Cherry Street) is no longer proceeding under the provisions of the AHO and is instead now moving forward as an as-of-right project under the new Multi-Family Housing (MFH) zoning adopted in February 2025. The attached report lists the sites which have been assessed as potential AHO developments, to the extent known by Housing staff. The AHO report does not include other sites, such as existing multi-family buildings, which were assessed during this time period as potential opportunities to create affordable housing through means other than the AHO zoning provisions. We are pleased that there are currently 12 active AHO developments underway in FY25 which

City Hall Annex • 344 Broadway • Cambridge • Massachusetts •02139 [phone removed] • www.cambridgema.gov/housing together will create more than 850 affordable units, and that there are at least 2 other new sites where additional new affordable housing will be proposed. Housing Staff will continue to work with affordable housing providers to advance existing AHO developments and to identify, assess, and secure additional sites for development under the AHO provisions.