Boston proposing bold tax breaks for office-to-residential conversions.
Boston Condos for Sale and Apartment Rentals
Boston proposing bold tax breaks for office-to-residential conversions.
Office-to-residential efforts continue, city approves two new projects
Photos courtesy of View the Space Inc. and the City of Boston Planning Department
Two office-to-residential redevelopment projects received approval from the Boston Planning & Development Agency. Together, they’ll bring 155 new residential units to the city.
The projects were applicants for Mayor Wu’s Office-to-Residential Conversion Program, which aims to transform underused or empty office space into housing.
The redevelopment at 123 N Washington Street will see a five-story office building in the North End converted to 45 apartments. Seven of the units will be designated for households making 60% of area median income.
The BPDA board also approved a project at 16-18 Hawley Street, sometimes called the 31 Milk Street project. An 11-story office building downtown will be transformed into 110 new units of housing, including 22 affordable units.
Located within walking distance of Faneuil Hall, the project aims to help achieve the city’s goal of bringing more residents to the downtown area.
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Boston proposing bold tax breaks for office-to-residential conversions.
Boston proposing bold tax breaks for office-to-resi conversions
Downtown building owners could get exemption up to 75%
Mayor Michelle Wu has proposed property tax breaks of up to 75 percent over 29 years for downtown office conversions, the Boston Business Journal reported. It’s the first financial incentive the city has proposed providing to office owners.
The catch is that it will be a limited time offer. The city expects to start taking applications in the fall, but close the door at the start of the following summer. Construction on approved projects will need to start by Oct. 25 if the owners don’t want to hand back the entire tax break.
Terms of how the tax break functions would be negotiated on a case-by-case basis. They will be implemented through payment in lieu of taxes agreements with the city and the Boston Planning and Development Agency.
Design firm Gensler recently increased its estimate of the number of buildings in downtown Boston that could warrant a conversion. In a study of 90 properties, Gensler found 30 percent to 40 percent may be worth a conversion. That could yield as much as 5 million square feet of conversions.
