NEARLY 860 NEW rental homes could be created in Boston, Dedham, Springfield, Westford, and Worcester with the infusion of $15.3 million in tax credits to overhaul vacant or underutilized commercial properties into residential units, the Healey administration said Wednesday.
Developer Synergy Investments secured $4 million from the Commercial Conversion Tax Credit Initiative to “adaptively reuse” a historic office building in Boston’s Financial District. The property, at 294 Washington St. and in close proximity to public transit, will be transformed into 255 rental units — including 204 market-rate units — and roughly 12,000 square feet of retail space.
Lt. Gov. Kim Driscoll announced the second tranche of commercial conversion credits, established through the 2024 Affordable Homes Act, at a former hotel in Westford. The developer, Redgate, was awarded $3 million to demolish the “obsolete” hotel and build 300 rental homes, including 270 that will be market rate. The project is located within Westford’s “multi-family overlay district,” which was created to comply with the MBTA Communities Act.
“Commercial conversions can solve two challenges at once: They create homes where people want to live and help communities breathe new life into properties that have been vacant or obsolete,” Driscoll said. She added, “These projects will help communities turn long-standing opportunities into lasting growth.”
The administration also awarded about $2.3 million to the Menkiti Group for an adaptive reuse project in downtown Worcester, where the former Shack’s Clothes building will feature 48 rental units. In downtown Springfield, McCaffery Interests Inc. secured $3 million in tax credits as part of a project to repurpose four historic buildings into 99 rental units and ground-floor retail space. Nordblom Development Company Inc. got $3 million in Dedham as it demolishes two “obsolete” commercial buildings and constructs 154 rental homes, the Healey administration said.
Gov. Maura Healey in February announced nearly $8.4 million in initial tax credits to support commercial conversions in Boston, Fitchburg, New Bedford, Pittsfield, and Worcester.
