Boston’s Office-to-Residential Conversion Program gets $15M funding boost MABA MassachusettsRealEstate MaBuyerAgent MaBuyerAgent

A year after it launched, Boston’s Office-to-Residential Conversion Program has been extended, thanks to an influx of money from the state Mayor Michelle Wu and Governor Maura Healey announced that the state will offer fifteen million dollars to incentivize the conversion of larger-scale office buildings in Boston into housing. These projects are often more costly due to their complexity. The funding aims to address housing shortages by repurposing existing office spaces, thereby creating more residential units.

 Last July,  Wu announced the launch of the program’s pilot, and that applications for the public-private partnership would begin in the fall and be jointly administered by the BPDA, the Mayor’s Office of Housing and the city of Boston’s finance cabinet. In October, the Boston Planning & Development Agency officially approved and launched the city’s Downtown Residential Conversion Incentive Program, which encourages developers to convert underutilized offices into residences.

 The program’s goal is to create more downtown housing and bring more foot traffic to support downtown businesses. The pilot launched and the application process opened in October and was designed to respond to post-pandemic economic shifts and put more priority on expanding downtown housing options. The fifteen million dollars in funding will provide up to $215,000 per affordable housing unit, with a cap of four million dollars per project. This initiative aims to facilitate the conversion of office buildings into affordable housing by covering a portion of the costs, making these projects more financially viable for developers.

 With this announcement, the application deadline is extended until Dec. 31, 2025. An additional three hundred to five hundred housing units are expected with the program extension. So far, the program has exceeded initial goals, Wu said. To date, the city has received nine applications to create four hundred and twelve housing units across thirteen buildings, converting four hundred and three thousand square feet of office space to residences. Two of the projects were approved by the BPDA board and construction is expected to begin later this summer.

 “As we work to make Boston a home for everyone, our office-to-residential program will create more housing and more affordability in Boston,” said Wu. “This investment from the state will support our efforts to incentivize lenders, property owners and downtown stakeholders to increase housing production in our downtown area. I’m thankful to Gov. Healey and all of our partners for their efforts in ensuring Boston’s growth meets the needs of current and future residents.”

 “Our administration is committed to supporting municipalities in their efforts to convert underutilized office space into housing, which is a critical tool for increasing housing availability and lowering costs,” said Healey. “We are proud to support the city of Boston’s Office to Residential Conversion Program with an investment that we expect will create hundreds of new housing units.”

The post Boston’s Office-to-Residential Conversion Program gets $15M funding boost appeared first on Boston Agent Magazine.

FIRST TIME HOMEBUYERS