Governor Healey Allocates $140 Million to Transform Vacant Massachusetts Offices and Create 1,300 New Homes

Governor Healey awards $140 million for Massachusetts housing. New funding targets office-to-residential conversions in Boston and 1,300 affordable units.

By: AXL Media

Published: Feb 25, 2026, 8:17 AM EST

Source: The information in this article was sourced from Bisnow

Statewide Housing Initiative Targets Urban Revitalization and Affordability

Governor Maura Healey has officially committed more than $140 million in state subsidies and tax credits to accelerate housing production across Massachusetts. The funding, announced during a visit to Pittsfield on February 17, 2026, is distributed through two primary channels: the Affordable Housing Development grant program and the inaugural Commercial Conversion Tax Credit Initiative. According to Governor Healey, this investment is a critical component of the state’s strategy to lower living costs by increasing the supply of both market rate and deeply affordable homes. The projects are specifically designed to breathe new life into downtown districts that have struggled with high vacancy rates in the wake of shifting post-pandemic work patterns.

Inaugural Tax Credits Jumpsart High Profile Office Conversions

A significant portion of the announcement includes the first-ever awards from the Commercial Conversion Tax Credit Initiative, a program established by the Affordable Homes Act. Roughly $8.4 million has been earmarked to transform vacant or rundown commercial structures into 339 new homes across five major cities. In Boston’s Financial District, the historic office building at 150 Milk Street will receive nearly $1 million to create 18 rental units while maintaining street level commercial space. According to state officials, these conversions are strategically important because they utilize existing infrastructure and utilities, allowing for faster development timelines compared to traditional ground up construction projects.

Major Affordable Projects Receive Substantial Financial Backing

Beyond office conversions, the state is directing $139.5 million toward 15 large scale rental housing developments through the Affordable Housing Development grant program. These awards are set to create 1,008 units, with a vast majority—903 homes—reserved for low income households. Among the primary beneficiaries is the Parcel P-12C project in Boston’s Chinatown, a high rise development that will provide 111 affordable homes. According to the Executive Office of Housing and Livable Communities, these projects prioritize the most vulnerable residents, including 284 homes specifically designated for extremely low income families and individuals transitioning from homelessness.