Boston will launch a new “Downtown Office to Residential Conversion Pilot Program,” developed to incentivize converting underutilized office buildings to residences, Mayor Michelle Wu announced this week.
Applications for the public-private partnership program are expected to begin in the fall and will be jointly administered by the Boston Planning & Development Agency (BPDA), the Mayor’s Office of Housing and the city of Boston’s finance cabinet. The goal, according to a press release, is to create more downtown housing and bring more foot traffic to support downtown businesses.
“We must take every possible action to create more housing and more affordability so that Boston’s growth meets the needs of current and future residents,” Wu said. “This program will help us take advantage of the opportunity we have to rethink Downtown as a space where people from all over come together to collaborate, create, live and play.”
Boston’s planning chief Arthur Jemison said the program seeks to incentivize lenders, property owners, downtown stakeholders and the state to partner with the city to increase the production of much-needed housing in Boston’s downtown core.
“This public-private partnership opportunity is the right tool to unlock new housing and shape a new, mixed-use neighborhood Downtown,” Jemison said.
Sheila Dillon, Boston’s chief of housing added: “By converting office space into residential homes, we can fulfill the housing needs of our thriving City, while revitalizing and stabilizing our downtown neighborhood. “New residents will enjoy the advantages of living in a neighborhood with many amenities, including shopping options, recreational spaces and multiple transportation hubs. This initiative aligns with this administration’s dedication to creating accessible and equitable housing in every neighborhood, strengthening our small businesses and commercial centers.”
The benefit to owners of downtown commercial office buildings will be reduced property tax rates in return for the immediate conversion of their buildings to residential uses, according to the mayor’s office.
The program is planned to be time-limited and will only accept applications through June 2024.