About 340 new housing units will be created in Boston, Fitchburg, New Bedford, Pittsfield and Worcester through the transformation of former commercial properties, the governor said.
Speaking inside a former bank building in downtown Pittsfield, Gov. Maura Healey announced Tuesday the first tranche of funding awards — nearly $8.4 million — from the Commercial Conversion Tax Credit Initiative (CCTCI).
In addition to Pittsfield, the Healey administration gave $3.6 million in office conversion tax credits to a historic office building in downtown Worcester that’s being redeveloped into 198 homes, and $1.1 million to a former New Bedford nursing home that will be revamped into 65 homes. Officials also awarded $970,000 in tax credits to a historic office building in Boston’s Financial District that will become 18 homes, and $1.3 million for a historic office building in downtown Fitchburg that will be turned into 35 homes.
Launched through 2024’s $5 billion housing policy and borrowing law, the initiative is designed to support projects that turn underused or vacant office buildings into new housing units as the Healey administration aims to speed up housing production and close the state’s estimated 220,000-unit deficit. The funding stream can also help rejuvenate downtown and commercial areas by refurbishing blighted properties, officials say.
“It looks like this is going to move really quickly, and in no short time you’re going to see 23 modern, safe housing units along with street-level retail and a commercial kitchen right here in this space,” Healey said, referring to the Pittsfield building that was awarded about $1.4 million in CCTCI credits.
“It’s a win for housing access, it’s a win for economic development, it’s a win for the city of Pittsfield,” the governor continued.
Reps. Tricia Farley-Bouvier of Pittsfield, Leigh Davis of Great Barrington, Tara Hong of Lowell and Rodney Elliott of Lowell joined Healey’s western Mass. press conference.
Those projects are backed by a blend of other financing, including historic tax credits and support from the Housing Development Incentive Program.
Housing and Livable Communities Secretary Ed Augustus framed housing as an economic development strategy, as he highlighted the new foot traffic he hopes will soon come to Pittsfield due to the office conversion.
“You’re going to take a building that has been empty for a number of years, you’re going to turn it into your housing and some commercial space,” Augustus said. “And the people who live here are going to go across the street to the Beacon Cinema and see a movie, and then they’re going to have something to eat or grab a coffee after, or walk and support the shops and the restaurants, and bringing back vitality and energy to the streets.”
Gateway Cities like Pittsfield were historically affordable communities, but now residents are being priced out, Lt. Gov. Kim Driscoll said. She said the state’s housing programs hinge on collaboration with local officials.
“We need more housing, and not everyone puts their hand up for more housing,” Driscoll said without invoking specific municipalities.
“We want more Pittsfields in terms of setting policy at the local level, creating a culture that is housing-forward – recognizing that when we build housing, we’re helping the very people in the community that we rely on, we’re helping support our local economy, we’re helping support our tax base,” Driscoll added.
The Healey administration also announced recipients of a separate funding bucket Tuesday: $139.5 million from the Affordable Housing Development Grant Program to support 15 rental projects across the state. Those projects translate into 903 affordable homes and 284 homes for extremely low-income households.
In Lowell, funding will support 118 affordable units near the UMass Lowell campus.
In Pittsfield, the Linden Street Apartments will offer 47 affordable units to households at or below 60% of the area median income — with eight for households at or below 30% AMI, the Healey administration said. The project is a partnership between Hearthway, a regional housing provider, and Causeway Development.
“This is a great win for Pittsfield and the Berkshires; and a perfect example of how state and local government can work together with the private sector to improve our communities,” Farley-Bouvier said.
Alison Kuznitz is a reporter for State House News Service and State Affairs Pro Massachusetts. Reach her at akuznitz@stateaffairs.com.
