KEY POINTS
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Governor Healey announces $8.4M in tax credits to convert vacant commercial buildings into 339 new homes across five Massachusetts cities.
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$139.5M in additional funding will support 15 affordable housing projects, creating 1,008 new homes statewide.
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The initiatives aim to address the housing shortage while revitalizing downtowns and supporting local businesses.
Massachusetts Governor Maura Healey announced two major funding initiatives on February 17, 2026, totaling more than $140 million to help tackle the state’s housing crisis and revitalize communities.
The first is an $8.4 million initial investment from the 2024 Commercial Conversion Tax Credit Initiative (CCTCI), part of the Affordable Homes Act, to transform vacant or underused commercial buildings into 339 new homes in Boston, Fitchburg, New Bedford, Pittsfield, and Worcester.
The second initiative includes $139.5 million in low-income housing tax credits and subsidies through the Affordable Housing Development grant program. This funding will support 15 projects statewide, creating 1,008 new homes, including 903 affordable units and 284 for extremely low-income households.
Revitalizing Communities Through Adaptive Reuse
The announcement was made at 24-34 North Park Square Residences in Pittsfield, a former bank building being converted into housing with support from the CCTCI. These programs are designed to address the housing shortage while revitalizing downtowns and neighborhood centers, bringing new energy to local businesses and communities.
“Too many downtown buildings across Massachusetts are sitting dark and empty when they could be part of the solution to our housing shortage,” said Governor Healey.
“The Affordable Homes Act gave us new tools to move faster and smarter, and this first round of Commercial Conversion tax credits will help turn underused commercial properties into homes, bring new energy to our downtowns, and lower housing costs for residents.”
Initial Funding for Converting Commercial to Residential
The $8.4 million initial CCTI tax credit allocation will support five projects that demonstrate the potential of adaptive reuse to strengthen communities:
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150 Milk Street (Boston): Conversion of a historic office building into 18 rental homes with commercial and amenity spaces.
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Main Street Lofts @ 280 (Fitchburg): Transformation of a downtown office building into 35 rental homes with street-level retail.
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4586 Acushnet (New Bedford): Repurposing a former nursing home into 65 rental homes.
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24-34 North Park Square Residences (Pittsfield): Redevelopment of a historic office building into 23 rental homes with retail and a commercial kitchen.
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One Chestnut (Worcester): Conversion of a historic office building into 198 rental homes, the largest project in this funding round.
“These projects are about smart reuse and stronger communities — taking buildings that have been empty or underused and making them part of a downtown comeback,” said Lieutenant Governor Kim Driscoll.
“When we create housing in walkable commercial centers, we support local businesses, strengthen neighborhoods, and help more people live closer to jobs, transit, and everyday amenities.”
$139.5 Million from the Affordable Housing Development Grant Program
In addition to the CCTCI funding, Governor Healey announced $139.5 million in low-income housing tax credits and subsidies through the Affordable Housing Development grant program.
The funding will support 15 rental housing developments statewide, creating 1,008 new homes, including 903 affordable units and 284 homes for extremely low-income households.
Select Examples of Projects
The Affordable Housing Development grant program is funding a diverse range of projects across Massachusetts.
Here are some of the commercial construction projects from the Governor’s announcement:
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Merrimack Corridor Development (Lowell): A large-scale new construction project near UMass Lowell, creating 118 affordable and workforce homes.
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Parcel P-12C (Boston): A high-rise development in Chinatown featuring 111 affordable homes, including 32 for households transitioning from homelessness.
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Newton Gardens (Newton): Conversion and moderate rehabilitation of an existing market-rate development into 112 affordable and workforce homes with rent restrictions and upgrades.
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Olde Station 9/4 (Lawrence): A mixed-use development in south Lawrence, creating 100 affordable homes alongside resident services like childcare and workforce development.
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Dot Block Phase II Hancock Building (Boston): A mid-rise development in Dorchester with 84 affordable homes, including units for extremely low-income households.
What It Means for Construction
Governor Healey’s announcement creates a bevy of potential project opportunities for the construction industry, especially in adaptive reuse and affordable housing development.
Converting vacant commercial buildings into housing will require the skilled collaboration of contractors, building product manufacturers, and tradespeople to address challenges such as retrofitting structures and integrating modern amenities.
With $8.4 million in Commercial Conversion Tax Credits and $139.5 million in Affordable Housing Development awards, the initiatives not only create jobs but also drive demand for innovative building practices and sustainable materials.
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