Massachusetts Awards $15M in Tax Credits to Support 856 New Homes

The Healey-Driscoll Administration has announced $15.3 million in tax credits to spur five projects that will convert vacant or underutilized commercial properties into housing throughout Massachusetts. Supported by the Commercial Conversion Tax Credit Initiative, the projects will bring a total of 856 new rental homes to Boston, Dedham, Springfield, Westford, and Worcester.

Among the newly announced projects, Synergy will adaptively reuse a historic office building at 294 Washington Street in Boston’s Financial District, creating 255 rental homes along with retail space. Other projects include the adaptive reuse of the historic former Shack’s Clothes building in downtown Worcester, the redevelopment of an obsolete hotel in Westford, the adaptive reuse of four historic buildings in downtown Springfield, and the redevelopment of two obsolete commercial buildings in Dedham.

“Massachusetts has buildings sitting empty and communities that need more homes,” said Gov. Maura Healey. “These awards will put underused properties back to work, create 856 new apartments and help bring more residents, customers and energy to downtowns and commercial districts across the state.”

The new tax credits awards represent the second round of awards through the Commercial Conversion Tax Credit Initiative, following the state’s announcement of nearly $8.4 million earlier this year to support five projects that will develop 339 homes. The program was established through the Affordable Homes Act, signed by Gov. Healey in 2024.