Biden Administration Launches Initiative to Convert Vacant Office Spaces into Affordable Housing

Plan includes over $35 billion for low-interest loans, encouraging conversions near transit hubs to reduce transportation costs, identifying surplus federal properties for development, and releasing a guidebook for federal programs that support conversions.

The Biden administration announced a new plan to convert empty office buildings into housing to address the current housing shortage, with the initiative backed by over $35 billion for low-interest loans.
The transformed properties are envisioned to be affordable, energy-efficient and located near transit hubs to minimize transportation costs, potentially reducing greenhouse gas emissions by 30% from the building sector.
The plan incorporates financing, technical assistance, surplus federal property sales, and a guidebook detailing over 20 federal programs across six agencies that can support conversions.
The Department of Transportation is releasing new guidance on how infrastructure funding with $35 billion lending capacity can finance housing developments near transportation, including converting office blocks.
The initiative follows a change in the relationship between workers and office spaces due to the COVID-19 pandemic, which has led to a 30-year high in office vacancies and a critical housing shortage.

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