This sequel broadens our New York conversion discussion (regarding 467-m and related mechanics) to other markets where incentives can materially improve office-to-residential (or mixed-use) economics. Across five programs—Washington, D.C.’s Housing in Downtown (HID), Boston’s Conversion Payment in Lieu of Taxes (PILOT) program, Ohio’s Transformational Mixed-Use and Development (TMUD) program and State Historic Tax Credit (HTC), Michigan’s Transformational Brownfield Plans (TBP) and New Jersey Aspire—the theme is the same: Benefits are capped, competitive or negotiated. Kroll helps sponsors quantify value early and execute applications and compliance with lender-grade rigor.
Washington, D.C.: HID
Washington, D.C.’s HID program provides a 20-year property-tax abatement for eligible conversions, but it is explicitly competitive and capacity-capped (FY24–26 cap $2.5 million; $1.725 mn remaining per the Office of the Deputy Mayor for Planning and Economic Development [DMPED]). The district’s first conditional awards (September 5, 2024) went to three projects, signaling that clean eligibility, affordability strategy and scoring discipline matter. Kroll sizes the abatement in the pro forma and packages a lender-ready submission.
Boston, MA: Downtown Conversion PILOTs
Boston’s Downtown Office to Residential Conversion Program is a negotiated PILOT that can reduce the residential tax rate by up to 75% for up to 29 years. As of the city’s June 25, 2024, update, only two projects had Boston Planning Department Agency board approval out of nine applications, meaning this is an underwriting and negotiation exercise, not an automatic benefit. Kroll supports PILOT term strategy, especially regarding award sizing and a financeable approvals path.
Ohio: TMUD and State HTC
Ohio’s TMUD credit is competitive and capped; in the January 27, 2025, round, the Ohio Tax Credit Authority approved $100 mn across nine projects statewide. Layering TMUD with the State HTC can be powerful for older central business district assets, but the stack succeeds only with tight sequencing and defensible economics. Kroll builds the incentive strategy, transfer approach and application narrative around scoring and underwriting.
Michigan: TBP
Michigan’s TBP can capture select state taxes (alongside local tax increment financing) to fill large gaps, but it is designed for “transformational” projects and is considered only when other Michigan Strategic Fund (MSF) assistance is not available to fill the financing gap. On December 22, 2025, the MSF board approved two TBP projects in West Michigan, an example of the program’s board-level scrutiny and selectivity. Kroll helps structure the plan, model eligible capture and support the fiscal/benefits case.
New Jersey: NJEDA Aspire
Aspire is a true gap-financing credit under the Economic Recovery Act, with underwriting controls (gap review and excess revenue sharing) that make awards far from automatic. The New Jersey Economic Development Authority (NJEDA) reported 10 projects approved for over $500 mn in Aspire awards as of November 17, 2023. Kroll supports the gap analysis, award sizing and documentation needed to clear NJEDA’s review.
Federal Stackers that Travel
Two federal tools often travel with these programs: the 20% Federal HTC (for certified rehabilitations) and the §45L energy-efficient home credit for qualifying units. Pairing them with cost segregation can improve early-year cash flow if ownership, timing and compliance are structured correctly.
A Simple Playbook (Use This on Any Conversion)
Winning conversions follow the same pattern: screen eligibility fast, model benefits conservatively and treat the application like a financing memo. Kroll also carries projects through closeout and long-tail compliance so projected value becomes cash flow.
Common Pitfalls (and How to Avoid Them)
Common misses like assuming benefits are automatic overlooking gating milestones (e.g., certificate of occupancy), overstacking conflicting programs and underbudgeting for compliance—these are issues we bake into the model and address up front.
Talk to Us
If you’re weighing a conversion or thinking about repositioning, connect with Kroll experts. We can help you identify the right programs, quantify net present value and execute negotiation, documentation and compliance.
How We Can Help
Kroll experts can screen eligibility, size benefits, optimize stacking and structure, manage applications and support closing and compliance.
Selected Sources: D.C. DMPED HID program page and September 5, 2024, release; Boston.gov releases (July 13, 2023; June 25, 2024); NJEDA press release (November 17, 2023); Ohio TMUD award descriptions (January 27, 2025); MiPlace TBP overview and MSF communications (December 22, 2025).
