Proposed Boston Historic District Could Ease Financing for Office-to-Residential Conversions

Developers converting offices to housing in downtown Boston often rely on historic tax credits to fill financing gaps, but qualifying building by building adds time and paperwork. In September, the Massachusetts Historical Commission approved an 18-acre district called the Exchange District, drafted by the city's Office of Historic Preservation. The designation has since been forwarded to the National Park Service, which still must complete its final review.

Properties inside the boundaries would already count as eligible for the National Register of Historic Places, so owners could skip the separate listing process that projects otherwise need before receiving credits. Bisnow's analysis identified at least eight conversion projects within the district, including 31 Milk St., where a developer is turning an 11-story office building into 110 housing units after pursuing its own listing.

City figures cited at the event show 28 applications covering 35 buildings since Boston's conversion incentive launched in 2023, with more than 2,400 units proposed. Most of those projects have not started construction, and the credits remain capped and competitive.

For sponsors, the practical takeaway is that a historic credit is not guaranteed, so feasibility work should confirm eligibility early.