State unveils office-to-housing conversion program and spotlights Chestnut Place in Worcester

State officials on a Worcester site visit outlined a new initiative to help municipalities convert vacant or underused office buildings into housing and highlighted Synergy Investments’ Chestnut Place project as a model. Governor Maura Healey, Lieutenant Governor Kim Driscoll and MassHousing leadership said the program—tied to the Affordable Homes Act’s innovation fund—will provide planning dollars and technical expertise to identify good candidates for conversion and accelerate projects once funding is available.

"We don't have a minute to waste," Governor Healey said, urging municipalities to inventory buildings and start planning changes to zoning and infrastructure to make conversions feasible. She framed the approach as preserving historic building character, adding housing in walkable downtowns and reducing materials by keeping core and shell elements intact.

Crystal Kornegay, head of MassHousing, said the agency’s mission is “to confront the Commonwealth's housing challenges” and that MassHousing has "jumped at the opportunity" to partner with cities to prioritize production and support municipalities that want to pursue conversions. Kornegay introduced program staff and encouraged attendees to talk to MassHousing representatives about local planning and technical assistance.

Developer David Green of Synergy Investments described the Chestnut Place conversion as a lengthy public–private effort that began with local engagement in 2019. Green cautioned that conversions are technically difficult—citing floor plates, unit depth and window lines—but said state and local support made the project possible. "Office to conversion housing is even more difficult," Green said, explaining the need for expert study to determine which buildings are viable candidates.

Project specifics presented at the event included nearly 200 market-rate apartments at 1 Chestnut Place and 22 for-sale condo units at 2 Chestnut Place targeted at 80% of area median income; the for-sale units were described as likely to be priced around $210,000 and allocated via lottery. Green said market-rate rental units at the project are expected to rent in the low $2,000s to mid-$2,000s per month depending on unit size.

Officials also described broader goals tied to a proposed housing bond bill that, according to remarks at the event, would support production of more than 40,000 homes statewide—including roughly 22,000 new homes for all income levels and 12,000 targeted at middle-income households. Speakers said the Affordable Homes Act’s innovation fund will supply substantial planning resources to help municipalities identify and prepare candidate buildings.

Speakers emphasized equity and contracting goals: the project team and state representatives said they expect MBE and WBE contractors to play a significant role, and the developer volunteered to include affordable condos despite not being required under local inclusionary zoning rules.

The announcement included references to pilot work with other municipalities (Fitchburg was named) and a state inventory of public assets that could be repurposed. Officials urged cities to pair state planning dollars with local zoning changes and technical study to move projects from assessment to construction. Event remarks closed with an invitation for questions and local follow-up; no formal votes or binding commitments were recorded at the event.