In June, Mayor Wu announced the extension of the City of Boston's Office to Residential Conversion Program with $15 million in additional funding from the state. The program, which formally launched in October of 2023, aims to support owners and developers by incentivizing office-to-residential conversions and by expediting approvals and providing a property tax abatement of up to 75 percent for 29 years.
The $15 million in state money is available for larger-scale conversions of at least 70,000 square feet and is intended to subsidize the affordable units required by the program. Consistent with the City's new Inclusionary Development Policy that takes effect on October 1, 17% of new units created under the program must be available at 60% AMI, with an additional 3% available for voucher holders. The state will provide up to $215,000 per affordable unit with a cap of $4 million per project. In connection with this new state support, the City has extended the program's application deadline to December 31, 2025.
Key program considerations:
- Location Flexibility: Projects in the 121B
Demonstration Project Area are prioritized, but others in the City
may be considered on a case-by-case basis.
- Affordable Housing Requirements: Follow
Inclusionary Zoning Standards by making 17% of units affordable for
households earning up to 60% of Area Median Income and 3% available
at Fair Market Rent for voucher holders.
- Regulatory Compliance: Projects must comply
with the Stretch Energy Code, where applicable, and not conflict
with other regulations.
- Project Scope: This program excludes complete
demolition and new ground-up construction but allows up to 20%
micro-units, excluding them from income-restricted units.
- Abatement Conditions: After the permit is
issued, the City can cancel tax abatement and claw back taxes if
the developer does not pursue construction diligently.
- Transaction Charge: A 2% transaction charge on
gross sale proceeds applies for five years post-abatement, waived
if the Transfer Fee Home Rule Petition passes.
- Eligibility Considerations: Projects not meeting requirements may still be considered for eligibility based on the City's program goals.
Additional information on the program, including full project eligibility requirements and application instructions, is available on the Planning Department's website.
To date, the Planning Department (formerly known as the Boston Planning and Development Agency) has received 11 applications to create a total of 523 residential units across Downtown Boston – two of which have been formally approved.
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