Press Release: 8/27/2026
Governor Healey Announces $15.3 Million to Convert Commercial Properties Into 856 New Homes
Tax credits will advance housing production and downtown revitalization in Boston, Dedham, Springfield, Westford and Worcester
FOR IMMEDIATE RELEASE:
8/26/2026
WESTFORD — The Healey-Driscoll Administration today announced $15.3 million in Commercial Conversion Tax Credit Initiative awards to support five projects that will transform vacant or underutilized commercial properties into 856 new rental homes in Boston, Dedham, Springfield, Westford and Worcester.
Lieutenant Governor Kim Driscoll made the announcement today in Westford, where a former hotel at 219 Littleton Road will be redeveloped into 300 new rental homes, the largest project supported in this round by number of homes. The other projects will adaptively reuse historic downtown buildings, convert an office building in Boston’s Financial District and redevelop obsolete commercial buildings into new housing.
“Massachusetts has buildings sitting empty and communities that need more homes. 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,” said Governor Maura Healey. “By making smart use of the spaces we already have, we can build more housing, strengthen local economies and lower costs.”
“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,” said Lieutenant Governor Kim Driscoll. “As a former mayor, I know how important it is to have active buildings and more residents supporting small businesses in our downtowns. These projects will help communities turn long-standing opportunities into lasting growth.”
“The reality is that many commercial conversion projects are difficult to finance even when the sites are in prime locations, have community support and ready to move forward,” said Housing and Livable Communities Secretary Juana Matias. “The Commercial Conversion Tax Credit Initiative helps close that gap. This second round of awards will not only unlock another 856 homes, but will preserve historic buildings, support transit-oriented development and help revitalize downtowns across Massachusetts.”
The Commercial Conversion Tax Credit Initiative was established through the Affordable Homes Act, which Governor Healey signed in 2024. The initiative helps transform vacant or underutilized commercial properties into residential or mixed-use developments by supporting eligible construction and substantial rehabilitation costs for projects that will be primarily residential.
This is the second round of awards through the program. Earlier this year, the Healey-Driscoll Administration announced nearly $8.4 million to support five projects that will create 339 new homes in Boston, Fitchburg, New Bedford, Pittsfield and Worcester. Together, the first two rounds of awards will support 10 projects and 1,195 new homes across Massachusetts.
The projects receiving awards are:
Historic Clark Block Rehabilitation, Worcester — $2,330,406
The Menkiti Group will adaptively reuse the historic former Shack’s Clothes building in downtown Worcester to create 48 rental homes, including 43 market-rate homes. The project will help return a prominent downtown property to active use and will also include three ground-level commercial condominiums.
219 Littleton Road, Westford — $3 million
Redgate will demolish an obsolete hotel and construct 300 rental homes, including 270 market-rate homes, within Westford’s MBTA Communities Multi-Family Overlay District. The development will include a range of resident amenities and preserve a historic barn that could be used as amenity or retail space.
Main Street Redevelopment, Springfield — $3 million
McCaffery Interests Inc. will adaptively reuse four historic buildings in downtown Springfield to create 99 rental homes, including 79 market-rate homes, along with ground-floor retail space. The project is part of the Springfield Redevelopment Authority’s effort to create an active, walkable neighborhood with new housing, retail and restaurant opportunities near MGM Springfield and the MassMutual Center.
Vantage Apartments, Dedham — $3 million
Nordblom Development Company Inc. will demolish two obsolete commercial buildings and construct 154 rental homes, including 131 market-rate homes, near Legacy Place. The shovel-ready, transit-oriented development will be within walking distance of the Dedham Corporate Center MBTA Commuter Rail station.
294 Washington, Boston — $4 million
Synergy will adaptively reuse a historic office building in the heart of Boston’s Financial District to create 255 rental homes, including 204 market-rate homes, and approximately 12,000 square feet of retail space. The transit-oriented development is within walking distance of four MBTA subway lines, businesses and other downtown amenities.
Governor Healey created the Commercial Conversion Tax Credit Initiative through the Affordable Homes Act to help transform vacant or underutilized commercial properties into residential or mixed-use developments. The program supports eligible construction and substantial rehabilitation costs for projects that will be primarily residential.
About the Executive Office of Housing and Livable Communities
The Executive Office of Housing and Livable Communities was created in 2023 to create more homes and lower housing costs for Massachusetts residents. Since taking office, the Healey-Driscoll Administration has advanced a comprehensive housing strategy that includes the Affordable Homes Act, statewide accessory dwelling unit reforms, MBTA Communities implementation, Seasonal Communities designation, the Momentum Fund, the Commercial Conversion Tax Credit and expanded Housing Development Incentive Program awards to support new housing production across Massachusetts.
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