In an effort to revitalize the downtown neighborhood that has been negatively impacted by the pandemic’s drain on office occupancy, Boston Mayor Michelle Wu is proposing a property tax break of up to 75% for as many as 29 years for office building owners willing to convert their properties to multifamily buildings.
As currently proposed, the city is expected to accept applications beginning in the fall of 2023 through June 2024, with project construction required by October 2025. Eligibility for the program requires at least 20% of on-site residential units to be income restricted as well as adherence to a new municipal code that requires high levels of energy efficiency. The tax breaks would be implemented through a payment in lieu of taxes (PILOT) agreement with the city and the Boston Planning and Development Agency. When a building in the program is sold, the city would collect a payment equal to 2% of the transaction.
Office property owners will have a short window to apply and qualify for this program. Ryan’s local property tax experts are uniquely positioned to help organizations understand the complexities of this conversion program. We encourage you to reach out to us now with questions.
TECHNICAL INFORMATION CONTACT:
Daniel Swift
Principal
Ryan
857.288.1224
daniel.swift@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.