Wu Proposes Tax Breaks To Jump-Start Stalled Housing Projects

Boston Mayor Michelle Wu is seeking to offer tax breaks to developers of stalled multifamily projects in her latest push to bring more housing into the city.

A rendering of Fulcrum Global Investor's One Mystic Ave. in Charlestown.
A rendering of Fulcrum Global Investor's One Mystic Ave. in Charlestown

Wu, along with Boston Chief of Housing Sheila Dillon and Chief of Planning Kairos Shen, on Monday proposed $31.5M in property tax abatements for four market-rate housing developments totaling more than 1,400 units.

The projects are Fulcrum Global Investors' One Mystic Ave. in Charlestown, Hines' 22-24 Pratt St. in Allston, Nordblom Co.'s 83 Leo Birmingham Parkways in Brighton and the New England Development-led Allston Yards Building D in Allston.

The developments have all received Boston Planning Department approval, and the city said they would begin construction by 2027.

"Residents urgently need more housing now, and we can’t afford to let approved projects that are ready to build remain stalled because of today’s tough economic headwinds," Wu said in a statement.

"These targeted abatements would help put shovels in the ground within the next year, creating 1,400 new homes and over 1,500 jobs — all with no net revenue loss to the City. Boston is open for business and we’ll keep using every tool available to get more housing built for our residents."

These abatements would be used to temporarily defer a portion of the projects' property tax increases, giving the relief necessary to begin construction in the next year.

The city said developers would pay at least the same amount in property taxes as they do preconstruction.

In selecting these projects, officials said they prioritized larger developments with more than 100 units, including income-restricted housing and high energy-efficiency standards. These projects are set to generate more than $20M in inclusionary development funding and at least 185 income-restricted housing units.

The BPDA board will need to approve the abatements at an October monthly meeting before they can be rolled out. A 30-day public comment period is open, and city staff members will hold public meetings to gather community feedback.

The city had identified roughly 47 projects that would fit this program, totaling more than 10,000 stalled housing units, Banker & Tradesman reported.

Wu said other developments could receive similar tax breaks supporting up to $100M in similar agreements, B&T reported. The four selected projects were the closest to breaking ground.

Wu previously floated the tax breaks idea in 2024 but didn't go through with it, saying they were too expensive at the time.

The city has proposed other measures to bring on more housing, including a $110M housing accelerator fund.

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