In an exciting development for the city of Boston, Mayor Michelle Wu has introduced a groundbreaking initiative in 2023—the Office-to-Residential Conversion Program. This innovative program provides a generous tax deduction of up to 75% for as long as 29 years, encouraging the transformation of downtown office buildings into welcoming residential spaces.
This initiative is a wonderful opportunity to breathe new life into underused office areas, turning them into homes for city residents, particularly those facing the challenges of rising rent prices. The goal is to create meaningful housing solutions that cater to various income levels, ensuring that Boston remains a vibrant and inclusive place for all.
To participate in this program, projects must align with the state’s “stretch energy code” and affordability guidelines, promoting both sustainability and accessibility in these conversions.
Fast forward to the present, and we are thrilled to see the first residents moving into their new homes at 281 Franklin Street, the inaugural building to benefit from this visionary program. In a jubilant announcement shared on social media, Mayor Wu expressed her delight at welcoming these new tenants into their living spaces.
She shared that this initial step is just the beginning—once all the units are completed, over a thousand new residents will call these revitalized office buildings home. With 15 units already finished, 126 more under construction, and an additional 683 planned, the total could reach nearly 825 units in the near future.
Boston has received 15 applications for the creation of 762 housing units across 20 buildings, aiming to convert more than 600,000 square feet of office space. By the end of 2026, this initiative is projected to welcome approximately 1,500 new residents to the downtown area.
With applications due in December, the potential for this program to expand even further is bright, with the city aspiring to convert a remarkable total of one million square feet.
As Mayor Wu stated, “Boston is building the foundation for a stronger, more vibrant downtown through our dedication to housing, public safety, and economic growth.” The city is witnessing a positive shift, with increased foot traffic and a significant reduction in commercial vacancies, thanks to a focus on safety and community engagement.
The Office-to-Residential Conversion Program is a promising response to the challenges of building vacancies, particularly in the wake of the COVID-19 pandemic, with downtown office vacancy rates hovering around 20% and expected to rise. Building owners are enthusiastic about revitalizing their properties, and this program offers them a fantastic chance to do just that.
Mark Callahan, who is working on another project within this program, expressed excitement about the opportunity to unlock the potential of previously empty buildings and create new rental units, some of which will be affordable.
The vision for the downtown area is to cultivate a lively, mixed-use neighborhood that thrives day and night, filled with diverse amenities and accessible to all.
Michael J. Nichols, the president of the Downtown Boston Alliance, shared his enthusiasm for the progress made under Mayor Wu's leadership. He emphasized how living closer to work fosters greater office visitation and boosts local businesses, enhancing the overall community experience.
With 142 of the approved units designated as income-restricted and plans for further construction underway, the program is expanding to include student and workforce housing options, making it even more beneficial for the community.
The excitement is palpable among new residents like Ernestine and George Tiongson, who are among the first to move into these developments. They expressed their joy about living in such a vibrant area filled with their favorite restaurants and cafes.
Mayor Wu personally welcomed them to their new home with a houseplant, symbolizing the importance of every new family joining the Boston community. “Every new home matters,” she remarked, highlighting the positive impact that each new resident brings to the city.
Boston is embarking on a delightful journey of transformation, fostering an environment where community and connection thrive. The Office-to-Residential Conversion Program is a shining example of how thoughtful initiatives can pave the way for a brighter future for all.
