White House unveils office-to-residential conversion guidance that could unlock billions for projects

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The White House on Oct. 27 unveiled the series of measures aimed at making it easier for building owners to convert their properties, with a special emphasis on projects that reduce a building’s carbon emissions.

Some of those guidelines could give developers the ability to leverage billions of federal dollars to make conversion projects a reality in downtowns, rural main streets and other areas across the nation.

-New guidance from the Department of Transportation on how the Transportation Infrastructure Finance and Innovation Act and Railroad Rehabilitation & Improvement Financing programs can be used to finance housing development near transportation, including conversions.

-The Department of Housing and Urban Development is releasing updated guidance on how its Community Development Block Grant fund can be used to boost housing supply.

-The General Services Administration is planning to expand its Good Neighbor Program as a way to promote the sale of surplus federal properties that may be ideal for redevelopment into residential use.

The federal government also is releasing a guidebook with information on how 20-plus federal programs can be used to support conversions.

The White House’s announcement comes at a critical time for cities and municipalities facing a mounting problem.

The U.S. office vacancy rate grew to 20.1% in the third quarter, according to Jones Lang LaSalle Inc. Sublease space continues to rise, growing by 3 million square feet on a quarterly basis in Q3, according to JLL.

The paper identified several federal sources that could be leveraged for office conversions, including the U.S. Environmental Protection Agency’s $27 billion Greenhouse Gas Reduction Act, which needs to be spent by September 2024.

https://www.bizjournals.com/cincinnati/news/2023/10/30/white-house-guidance-office-residential-conversion.html

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