Massachusetts Program Converts Unused Government Space to Housing Units

Last fall, more than three years removed from the arrival of COVID-19, many government offices still sat empty or underutilized. In October 2023, the Biden administration unveiled a plan designed to encourage states and cities to convert these buildings (and unused corporate spaces) into housing units.

Massachusetts lawmakers were apparently listening.

Massachusetts Gov. Maura T. Healey recently announced the Commercial Conversion Initiative, a new planning program “that will revitalize downtown and other commercial areas and spur housing creation” throughout The Bay State, according to a statement from Healey’s office.

Healey recently joined state leaders including Massachusetts Lieutenant Gov. Kim Driscoll and MassHousing CEO Chrystal Kornegay to share details on the initiative at Worcester’s Chestnut Place, an underutilized commercial property that’s set to redeveloped into 198 new market-rate apartments, according to Healey’s office.

“Buildings like One Chestnut Place were home to bustling offices when going to work meant going to an office for many people,” Secretary of Housing and Livable Communities Ed Augustus said, in a statement.

“While offices remain a vital part of our cities, they simply don’t use as much space as they once did. With the Commercial Conversion Initiative, we can fill them with people who, instead of leaving our cities at 5:00, will live here, shop her and infuse our communities with energy.”

Based at MassHousing, the program will aid municipalities outside of Boston in advancing the redevelopment of vacant and underutilized commercial buildings, and will position properties to take advantage of new capital funding proposed under Healey’s Affordable Homes Act, according to the statement. MassHousing has allocated up to $1 million in planning funds for technical assistance funding under the program.

The initiative “addresses gaps in opportunity, capacity and funding by offering new planning resources that will accelerate the reuse and redevelopment of underutilized commercial buildings across Massachusetts,” according to Healey’s office. The planning program will work with participating municipalities to identify the best candidates for commercial-to-housing conversions, in addition to conducting floor plan and feasibility analyses for well-positioned buildings, and assisting in lowering regulatory barriers to redevelopment and reuse.

“One of the most effective ways to make housing more affordable is to convert vacant or underutilized office space into housing. This new initiative from MassHousing will be transformative for our downtowns and communities,” said Healey, in a statement.

“Combined with the proposed investments in our Affordable Homes Act, we can make it easier for first-time homebuyers, renters, seniors and everyone to find affordable places to live.”