Three housing projects have become the first to receive conditional tax reductions under the District’s Housing in Downtown program. Mayor Muriel Bowser announced the support for the commercial-to-residential conversion projects on Thursday, September 5.
During the announcement, she emphasized the significance of these conversions in bringing more people into the vibrancy of downtown DC. “We have a beautiful Downtown, it is a place that people like to visit, it is walkable and accessible by public transportation, and we’re excited about what it will mean for our entire city when we have more housing and more people living Downtown,” she said.
The first project is located at 1625 Massachusetts Avenue NW. This building, which formerly housed the Air Line Pilots Association International, covers 114,000 square feet and will be transformed to provide 157 residential units, including a minimum of 15 affordable units.
Another significant project involves two adjacent buildings at 1825 and 1875 Connecticut Avenue NW. Together, these structures encompass approximately 1.08 million square feet and are set to deliver 525 residential units, with at least 69 designated as affordable.
The third project is at 615 H Street NW, where a commercial rowhome and parking lot will be redeveloped into 72 residential units, including at least 8 affordable units.
The downtown program, introduced in Mayor Bowser’s Fiscal Year 2023 Budget, offers a 20-year tax abatement for projects that convert commercial spaces into residential units.
Allocated up to $41 million, the program is expected to support the creation of approximately 8,400 new housing units across 6.7 million square feet of space, contributing to the DC Comeback Plan’s target of adding 15,000 new residents to Downtown.
Katie Hartley, Director at National Real Estate Development, expressed enthusiasm for the project: “We are excited to repurpose commercial spaces into much-needed housing. This initiative meets community and market demands, supports sustainable development, and contributes to Downtown’s revitalization. We appreciate the city’s support and the tax abatement program that makes this possible.”
Deputy Mayor for Planning and Economic Development Nina Albert highlighted the program’s impact, saying, “These developments mark a major step in our efforts to expand housing and make Downtown a true residential neighborhood.”
Currently, there are 10 commercial-to-residential projects either announced or underway in Downtown DC, with two of them actively leasing. The Downtown Action Plan, released earlier this year, outlines various innovative approaches for reimagining Downtown’s future, including these conversions. To make the housing accessible and aafordable, beneficiary projects must allocate at least 10% of the units to be affordable at 60% of the Median Family Income (MFI), or 18% at 80% MFI.
