The Biden Administration recently announced plans to encourage more office buildings to be converted to residential use.
The plan includes using federal money to lend to developers for conversion projects and selling government property that is suitable for conversions. “Office vacancies have reached a 30-year high from coast-to-coast, placing a strain on commercial real estate and local economies,” according to a White House news release. “At the same time, the country has struggled for decades with a shortage of affordable housing units, which is driving up rental costs, and communities are seeking new ways to cut emissions, especially from existing buildings and transportation.”
Some $35 billion is available through the Transportation Infrastructure Finance and Innovation Act (TIFIA) and Railroad Rehabilitation & Improvement Financing (RRIF) programs to finance housing development near transportation, including conversion projects. Conversion projects are eligible for about $10 billion through the Community Development Block Grant fund.
The General Services Administration will sell surplus federal properties that might be appropriate for residential conversions. The Treasury Department is reminding developers, investors, and owners about multifamily construction tax deductions.
Federal agencies have published information to spur conversions. The Department of Energy has a toolkit of technical and financial guidance for using tax deductions and credits that can apply to residential conversions. The White House also published a guidebook for commercial-to-residential conversions, which includes data on federal loan, grant, tax credit, and technical assistance programs for conversions.
Related Stories
Student Housing | Apr 12, 2024
Construction begins on Auburn University’s new first-year residence hall
The new first-year residence hall along Auburn University's Haley Concourse.
MFPRO+ News | Apr 10, 2024
5 key design trends shaping tomorrow’s rental apartments
The multifamily landscape is ever-evolving as changing demographics, health concerns, and work patterns shape what tenants are looking for in their next home.
Architects | Apr 2, 2024
AE Works announces strategic acquisition of WTW Architects
AE Works, an award-winning building design and consulting firm is excited to announce that WTW Architects, a national leader in higher education design, has joined the firm.
Affordable Housing | Apr 1, 2024
Biden Administration considers ways to influence local housing regulations
The Biden Administration is considering how to spur more affordable housing construction with strategies to influence reform of local housing regulations.
Affordable Housing | Apr 1, 2024
Chicago voters nix ‘mansion tax’ to fund efforts to reduce homelessness
Chicago voters in March rejected a proposed “mansion tax” that would have funded efforts to reduce homelessness in the city.
Standards | Apr 1, 2024
New technical bulletin covers window opening control devices
A new technical bulletin clarifies the definition of a window opening control device (WOCD) to promote greater understanding of the role of WOCDs and provide an understanding of a WOCD’s function.
Adaptive Reuse | Mar 30, 2024
Hotel vs. office: Different challenges in commercial to residential conversions
In the midst of a national housing shortage, developers are examining the viability of commercial to residential conversions as a solution to both problems.
Student Housing | Mar 27, 2024
March student housing preleasing in line with last year
Preleasing is still increasing at a historically fast pace, surpassing 61% in February 2024 and marking a 4.5% increase year-over-year.
Adaptive Reuse | Mar 26, 2024
Adaptive Reuse Scorecard released to help developers assess project viability
Lamar Johnson Collaborative announced the debut of the firm’s Adaptive Reuse Scorecard, a proprietary methodology to quickly analyze the viability of converting buildings to other uses.
Green | Mar 25, 2024
Zero-carbon multifamily development designed for transactive energy
Living EmPower House, which is set to be the first zero-carbon, replicable, and equitable multifamily development designed for transactive energy, recently was awarded a $9 million Next EPIC Grant Construction Loan from the State of California.
