By Daniel Swift
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.
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