Boston’s first office-to-residence conversion project has been approved.

The Boston Planning & Development Agency approved the first conversion of a downtown office building to residences this week.

The 281 Franklin St. project is the first project under the city’s Downtown Residential Conversion Incentive Program, which encourages developers to convert underutilized offices into residences. The program was approved and officially launched last October. 

The existing office building will be renovated to create 15 residential apartment units, three of which will be income-restricted. The existing ground floor retail space will be retained and will also include on-site bike storage. 

The Downtown Conversion Program’s goal is to create more downtown housing and bring more foot traffic to support downtown businesses. It was designed to respond to post-pandemic economic shifts and put more priority on expanding downtown housing options.

The Franklin Street project was the first program applicant.