
Cruz Companies recently completed an 18-month renovation of the 110-unit Verdean Gardens affordable housing complex in New Bedford. Photo courtesy of Cruz Companies
After nearly two decades, it’s clear that our state’s 26 Gateway Cities play a vital role in supporting the broader Massachusetts economy.
And from almost any real estate development perspective – think housing production, commercial property leasing growth, derelict or underutilized historic buildings saved from demolition – this initiative has had a demonstrably positive impact on the cities themselves.
But the time has also come to think beyond these established metrics of success and ask another question: Can the real estate industry do more, more directly, for these communities? In fact, to truly support holistic, sustainable growth and wealth generation in the Gateway Cities, it’s imperative that real estate leaders prioritize local minority, and WBE workforce utilization.
There are many benefits to the homegrown labor approach – from the opportunity for developers to activate skilled workers, to the economic ripple effects of channeling wealth and purchasing power into local, historically marginalized populations – not to mention building grassroots and political good will for project teams based elsewhere.
Most importantly, this approach works, both in the short term and over time. A useful case study proving the point comes in the form of Verdean Gardens, an eight-building, 110-unit affordable housing complex in New Bedford.
Recently, Boston-based Cruz Companies, a 100 percent Black-owned-and-led construction, development and management enterprise, carried out a moderate rehabilitation at Verdean Gardens.
Over the course of the 18-month project, Cruz Companies made certain that at least 50 percent of spending occurred with local business enterprises, and more than 60 percent of workers hired were people of color. This was the highest local labor utilization rate that New Bedford officials had ever seen for a project of this size, and the most diverse and inclusive.
Workforce Matches Neighborhood
To offer some context, the neighborhood surrounding Verdean Gardens comprises 80 percent residents of color. Could Cruz Companies, as an affordable housing developer and owner with a focus on community uplift, really claim to be serving its mission if the project team didn’t reflect these demographics?
With that question in mind, as a standard best practice Cruz Companies always researches the zip codes where its projects are located, with a goal of maximizing hiring of skilled tradespeople from within those districts. Whether residents are predominately people of color or not, this approach is a data-driven way to achieve the most direct community impact.
This strategy paid off at Verdean Gardens.
While the rehab work was substantial — new exterior siding, kitchens, baths, flooring, lighting fixtures, paint and windows for all 110 units, with eight units renovated at a time and tenants relocated daily – the diverse and skilled team of local workers completed the project on time and on budget.

Justin Cruz
Everyone Benefits
Cruz Companies benefited directly from this local talent: after all, meeting project schedules is essential when using tax credit incentives, and any project which takes advantage of federal HOME funding is required to utilize workers of color.
And the local economy benefited too: Verdean Gardens provided jobs to individuals within the community, and opportunities for local residents to grow their small businesses. The total dollar figures ran well into the millions – including nearly $2 million to local MBE firms – and that money stayed in New Bedford.
Prioritizing local workforce utilization also has positive long-term implications for real estate groups working in Gateway Cities. In New Bedford, elected officials and other community leaders took notice of Verdean Gardens’ success. On the back of that project and others like it, Cruz Companies has subsequently won significantly more work in the city and across the surrounding region and has built a strong relationship with key zoning and planning officials.
Verdean Gardens also continues to benefit the local construction workforce: Cruz Companies will hire many of the same skilled tradespeople again for a new 83-unit affordable housing project starting up soon in New Bedford, with the goal of surpassing its prior numbers for local workforce utilization. When it comes to building in the Gateway Cities, there’s no doubt that directly supporting the local workforce is both the right thing to do, and the best business model.
Justin Cruz is the chief operating officer of Boston-based Cruz Companies.