Boston: Office to Residential Conversion Program Extended as it Surpasses 1,500 New Homes

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Mayor Michelle Wu today announced the extension of the City's successful Office to Residential Conversion Program ahead of its scheduled expiration at the end of this month. The program, which formally launched in October of 2023, has received 22 applications to convert 1.2 million square feet of office space across 27 buildings into 1,517 new homes, including 284 income-restricted units, far exceeding initial city goals. Four projects totaling 236 units are currently under construction, and one of the first buildings to apply for the program at 281 Franklin Street with 15 units has already been fully tenanted. A total of 251 units are either under construction or completed. The Planning Department officially recommended and received approval for the extension of the Program at the December BPDA Board meeting.

"As Boston continues to take action to drive down housing costs, the Office to Residential Conversion program is critical to building a more affordable Boston for all residents," said Mayor Michelle Wu. "By expanding the program and building a pipeline of over 1,500 new units of housing, we are building the foundation for a stronger and more vibrant downtown and neighborhoods."

"This program has proven to be extremely successful in removing vacant office space from the market and breathing new life into older, pre-war office buildings," said Chief of Planning Kairos Shen. "By extending the program, we hope to attract another thousand units to the program in the next year, and continue to catalyze a more vibrant, residential community in our Downtown with thousands of new residents in the heart of our city."

The recently updated zoning for Downtown, as well as the updated zoning for the Groundwater Conservation Overlay District, enables these conversion projects to begin construction more quickly, and allows them to move forward without needing to seek relief from the Zoning Board of Appeal.

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"We are happy to see the program extended. Office to Residential conversions – putting homes close to jobs – is just good policy," said Synergy CEO Dave Greaney. "Less vacant office space and more residents Downtown will help stabilize the office market, lessen the burden on transportation, and support downtown restaurants and retail.  We look forward to working with the city and state on future projects."

"As one of the first developers to recognize the opportunity that vacant office buildings present, I've seen firsthand how much untapped value these properties hold. The Downtown Conversion Pilot Program has allowed my company to breathe new life into underused office assets and turn them into real housing for real people," said Founder of Boston Pinnacle Properties Adam Burns. "Extending the program is a huge win for the city, for residents, and for anyone who believes Boston's future depends on a vibrant, lived-in downtown. We're proud to be helping lead the way and look forward to announcing our next project that is being made possible by this extension."

Projects in the conversion program have been able to take advantage of an expedited review process. By creating a new streamlined process that coordinates city and state agencies, the Planning Department has helped conversion projects complete their review in just six months.

"Dinosaur Capital Partners is a strong proponent of the continuation of Mayor Wu's successful Office To Residential Conversion Program. The Program offers a unique combination of financial incentives and fast track permitting which made approval of our 110 apartments, including 22 affordable homes, the fastest and most efficient approval process I've seen since I started working in the City of Boston in 1987," said Managing Partner of Dinosaur Capital Partners LLC Scott Oran. "The conversion program is unique in remedying our dire housing shortage, reducing an over-supplied downtown office market, and creating a vibrant 24/7 Financial District for Boston's residents and visitors. It's a triple win and a great example of public private partnership. Dinosaur looks forward to completing its next project under the extended program."

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"The Downtown Boston Alliance (DBA) applauds the Wu Administration and the Planning Department for supporting a reauthorization of the Office to Residential Conversion Program for 2026," said President of the DBA Michael Nichols. "Extending the program for another year is the right move to give developers the time and clarity needed to structure additional proposals. We have already seen the delivery of new units in the downtown core, and we view this step as vital to maintaining the momentum. As we continue to reshape the neighborhood and the balance between our mix of uses, the creation of new housing remains one of the DBA's highest priorities."

"Our neighborhood has a long and vibrant history of mixed uses, with historic warehouse and light-industrial buildings being thoughtfully converted to residential use since artists first began settling our community in the mid-1970s. The conversion currently underway by Boston Pinnacle Properties at 263 Summer Street perfectly illustrates the tremendous opportunity the Fort Point building stock offers developers looking to participate in the City of Boston's Office to Residential Conversion Program," said Tom Ready of the Fort Point Neighborhood Association. "We are genuinely excited by the extension of this program and look forward to seeing many more properties city-wide take advantage of the benefits it provides.

The Office to Residential Conversion Program provides a 75 percent tax abatement for 29 years as an incentive to developers to convert vacant office space into residential units, including student and workforce housing. The goal of this program is to support owners and developers of older commercial office buildings in converting them to housing, and to help stabilize the office market downtown while also increasing the housing stock in Downtown Boston. The program is also designed to respond to post-pandemic economic shifts that will prioritize expanding housing options Downtown, creating an 18-hour, mixed-use neighborhood.

The application will remain open through December 31, 2026 with approvals given on a rolling basis. Applicants during this extended period must commit to pulling a full building permit and starting construction by December 31, 2027 to benefit from the program

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