In response to the state’s ongoing housing disaster, the governor has introduced the implementation of a brand new $10 million tax credit score program to encourage the conversion of unused industrial property into dwelling areas.
Based on the governor’s workplace, the state’s housing scarcity continues to drive up the price of proudly owning or renting a house “for everyone,” and all of the whereas industrial properties sit vacant and unused with no potential tenants. The governor says the Industrial Conversion Tax Credit score Initiative, signed into regulation in 2024 via the Reasonably priced Houses Act, is one other step towards tackling the issue.
“Massachusetts is moving faster to create reasonably-priced housing and revitalize our downtowns,” stated Governor Maura Healey. “This new tax credit helps communities turn empty commercial space into homes – bringing people, energy and small-business customers back to main streets while tackling our housing shortage.”
The initiative will make $10 million obtainable via a single aggressive bidding spherical to be held this 12 months, with venture awards starting from $2.5 million to $3 million in tax credit for as much as 10% of “eligible costs.”
Eligibility for the tax credit score shall be statewide, however it’s restricted to these tasks which would come with 50 or extra housing items, the place the zoning required for the venture is already in place, and the place native elected leaders log out.
Housing Secretary Ed Augustus stated the initiative is targeted on “jumpstarting commercial conversion to residential use.”
“A little help for these projects can have a big impact in creating the housing we need and revitalizing downtowns,” he stated.
A report launched by the Healey Administration in February confirmed that the state must construct a further 220,000 housing items by 2035 with a view to “to stay competitive and lower costs.”
Greg Vasil, President and CEO of the Larger Boston Actual Property Board, hailed the transfer as a step in the best path.
“The state must continue to do everything it can to reduce barriers to housing creation and build more homes across all price points to address the affordability crisis. Every innovative idea helps and the Healey-Driscoll Administration should be applauded for bringing important support to projects that can convert underused commercial space into residential housing. We look forward to working with the state and our members to build on these opportunities,” he stated in an announcement.
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