Boston Mayor Wu Expands Office-to-Resi Conversion Tax Breaks

Boston Mayor Michelle Wu has extended the city's office-to-housing conversion program through December 2025. The initiative, aimed at transforming outdated office buildings into residential units, now includes an additional $15 million in state funding to encourage developer participation.

Early Success and New Proposals

Since its launch, the program has received nine applications for the creation of 412 housing units in older office buildings. Notable proposals include KS Partners' plan to develop 80 units at 15 Court Square and Wingate Companies' proposal for 21 units at 150 Milk Street.

Facilitating Future Developments

At a press conference, Mayor Wu emphasized that each new project would pave the way for future conversions. CIM Group, for instance, has proposed converting a building into over 100 apartments, illustrating the program's potential impact.

Funding and Project Requirements

The newly allocated state funds are directed towards larger projects, defined as those occupying 70,000 square feet or more. Developers can receive up to $215,000 per income-restricted unit, with a maximum of $4 million per project.

Projected Outcomes

Officials anticipate that the program's extension will lead to the creation of an additional 300 to 500 housing units, significantly contributing to Boston's housing supply and urban revitalization efforts.