Boston: Mayor Michelle Wu Proposes Targeted Tax Abatements to Jumpstart Construction on 1,400 New Homes

Mayor Michelle Wu today proposed targeted, time-limited tax abatements for four previously approved market-rate housing developments that could unlock 1,400 homes, including more than 180 income-restricted homes, and support an estimated 1,582 jobs across Boston. The proposal is the latest step in the City's broader effort to accelerate housing production and move approved projects into construction amid high interest rates, rising construction costs, and other economic headwinds impacting development nationwide.

The proposed abatements would temporarily defer a portion of property tax increases for projects that can clearly demonstrate that the relief will enable them to begin construction within the next year. The City would experience no net revenue loss, and developers would continue to pay at least the same amount in property taxes that they pay today.

If approved, these first four projects are currently estimated to receive approximately $31.5 million in total temporary tax relief, or roughly $22,500 per unit to move 1,400 units into production in the next year. These abatements would be contingent on each project beginning construction within the agreed-upon timeframe. The City will continue working with other developers to determine whether targeted tax abatements are a viable option to help move additional projects into construction in this challenging national economic climate.

The BPDA Board will consider moving these proposed abatements into formal negotiations at its monthly meeting in October. A 30-day public comment period is now open, and City staff will hold public meetings in the coming weeks to gather community feedback on the use of tax abatement tools for each project.

"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," said Mayor Michelle Wu. "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."

The City is prioritizing projects with more than 100 new units that include income-restricted housing and meet high energy-efficiency standards. The four projects currently under consideration meet those criteria and are positioned to begin construction within the next year if provided relief.

"Acknowledging and responding to the economic headwinds affecting development today is paramount to ensure housing production can proceed at a time when it is critically needed," said Chief of Planning Kairos Shen. "This is one targeted tool that is part of a much broader City strategy to get stalled projects moving. By structuring these abatements around projects that can start construction quickly, we can deliver much-needed new housing for residents and generate new economic activity without reducing valuable tax revenue. We are open to working with any developers who believe this tool may enable them to rapidly advance their project into construction."

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"The developments under consideration will contribute to our housing supply and provide critical resources to advance our income-restricted pipeline," said Chief of Housing Sheila A. Dillon. "As economic conditions make development more challenging and the prospect of securing significant federal funding remains unlikely, it is important that local governments develop reasonable solutions to support housing production, preserve affordability, and continue to meet the needs of our residents."

The four projects under consideration for abatements—One Mystic Avenue in Charlestown, 22-24 Pratt Street in Allston, 83 Leo Birmingham Parkway in Brighton, and Allston Yards Building D in Allston—have already been previously approved by the BPDA Board. Taken together, these projects would create 1,400 new homes, including at least 185 units of income-restricted housing, and provide over $20 million in IDP funding, while delivering significant public realm, climate, and transportation investments across several neighborhoods.

• One Mystic Avenue in Charlestown would create 408 homes, including 45 income restricted units, in a new 16-story, transit-oriented building across from Sullivan Station. This project will also make a $14 million IDP contribution. The project would convert underutilized warehouse and industrial space into a new residential tower, become one of the largest Passive House buildings in the City, and significantly improve public realm connections between the neighborhood and the MBTA station, consistent with PLAN: Charlestown and the Rutherford Avenue Transportation Plan.
• 22-24 Pratt Street in Allston would transform an underutilized industrial site into a new 16-story development with 318 homes, including 27 income-restricted units. This project would also make an $8.1 million IDP contribution, and be located near the MBTA Green Line, Commuter Rail, and multiple bus routes.
• 83 Leo M. Birmingham Parkway in Brighton would convert the former site of various radio stations into 333 new homes, including 52 income-restricted units. This project would make various public realm improvements, including a new connection between Leo Birmingham Parkway and Soldiers Field Place, a new public plaza, better sidewalks, and 100 new trees across the site to mitigate the heat-island effect.
• Allston Yards Building D in Allston would create 341 homes, including 61 income-restricted units, along with retail and entertainment uses. It is the second residential building planned for the vacant parking lot at Allston Yards. The project would meet a number of high green building standards and provide significant public realm, transportation, and infrastructure investments.

"These proposed tax abatements are a sensible, proactive tool that will help spur housing production in the midst of Boston's ongoing housing crisis and broader economic challenges," said Council President Liz Breadon. "Projects under consideration will bring nearly 1,000 housing units to Allston-Brighton and will deliver income-restricted housing, public realm improvements, and transportation benefits."

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"In a time of economic uncertainty, tax abatements are a key to unlocking much-needed housing, jobs, and investment in public spaces and transportation," said Kate Dineen, President & CEO, A Better City. "These four projects are poised to enhance our urban fabric and to help build a more vibrant, equitable, sustainable, and competitive city for all. We applaud the Mayor's leadership and encourage the BPDA Board to approve these measures and to consider additional ways to drive development across the city more broadly.

"Across the country, builders are struggling with high interest rates, rising construction costs, and other economic headwinds. That's why it is so important that Boston is taking real action to help developers get moving on much-needed new housing," said Josh Zakim, Executive Director of Housing Forward MA. "These proposed tax abatements will not only help make projects financially feasible and get more housing built, but also send an important message to the entire real estate industry: Boston is open for business and committed to working with the private sector to support new residential development."

The proposed abatements are one part of the Wu Administration's broader strategy to accelerate housing production. For instance, the City is also deploying the $110 million Housing Accelerator Fund, which is moving hundreds of units into production, and working with the State to designate income-qualified census tracts as Opportunity Zones to encourage investment and housing production in areas with shovel-ready projects.

"The impacts of the Housing Accelerator Fund can be seen right now in Charlestown, where rapid construction is underway on a building which will provide 266 new homes, including 58 deeply-affordable replacement public housing units," said Kenzie Bok, Administrator of the Boston Housing Authority. "Using the Accelerator Fund, we're getting homes built in Boston with high labor standards, inclusive affordability, and excellent sustainability, even under today's challenging market conditions, and the invested dollars will revolve in the future into producing further additional homes."

Under the leadership of the Mayor's Office of Housing, the City is regularly advancing a robust pipeline of new affordable homes creating more than 3,000 new income-restricted homes, including more than 1,200 that were permitted since the start of 2025 and almost 2,000 that have completed construction in the same time period.

The Planning Department also continues to reform Boston's Zoning Code to make it easier to build new housing, and is currently pursuing the Neighborhood Housing Zoning Initiative. Updating the zoning will allow homeowners to adapt their properties over time by allowing things like renovations, additions, ADUs, or new units. Updated zoning has also gone into effect in Charlestown, Mattapan, Roslindale, East Boston, and Downtown.

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