Jumpstarting Office Conversions

A Biden administration effort to funnel funds toward the conversion of empty office buildings into affordable housing units was greeted with praise by real estate industry groups, including the National Association of REALTORS®. The influx of federal funding, annouced in October, will spur development near transportation hubs such as bus terminals and subway stations.

“Even relatively modest steps will reduce the underbuilding gap while unleashing tremendous economic activity into our communities,” said NAR President Tracy Kasper in a statement.

The multiagency effort will support office-to-residential conversions through new financing, technical assistance and sale of federal properties. Through the Department of Transportation, for example, local governments and developers can access over $35 billion in lending capacity for commuter-friendly projects at below-market interest rates.