Berkshire Savings Bank Redevelopment Receives $4M From State
PITTSFIELD, Mass. — The former Berkshire County Savings Bank redevelopment has been boosted by $4 million from the state.
On Thursday, the Healey-Driscoll administration announced $18.6 million in Housing Development Incentive Program tax credit awards to six housing developments — one in downtown Pittsfield.
Allegrone Companies received $4 million for the adaptive reuse of 24-34 North St. into 23 mixed-income apartments, "Park Square Residences," with street-level retail and a commercial kitchen. The historic former office building with a view of Park Square has been vacant for about two years.
Lt. Gov. Kim Driscoll made Thursday's announcement at the Durfee Block Apartments in Fall River, which received $1.5 million in tax credits. The $18.6 million in HDIP tax credit awards will help create 662 new homes in six Gateway Cities: Fall River, Lawrence, Lowell, Pittsfield, Taunton, and Worcester.
Pittsfield received the largest award.
"Gateway Cities are critical to Massachusetts' housing future, and they know better than anyone what their communities need to grow," Driscoll said.
"These investments build on strong local partnerships to create more homes, lower costs, revitalize downtowns and ensure these communities continue to thrive for generations to come."
In February, Gov. Maura Healey stood inside 24-34 North St. with Anthony and Louis Allegrone, overlooking Park Square, as the developers described their vision for residential units. Healey, that day, had announced state housing initiatives expected to bring more than 1,300 units online, including a Commercial Conversion Tax Credit Initiative.
Allegrone's project is supported by the commercial tax credit and was awarded $1.8 million from the MassWorks Infrastructure Program.
HDIP, administered by the Executive Office of Housing and Livable Communities, provides tax credits to advance market-rate rental and homeownership projects in Gateway Cities that strengthen downtowns, reuse vacant or underutilized buildings and help communities expand their housing supply.
Since the beginning of 2023, the administration has awarded HDIP tax credits to 52 projects, supporting 3,404 new homes in 16 cities. The expanded reach of HDIP follows the tax relief package Healey signed in October 2023 that increased the annual HDIP authorization from $10 million to $30 million and provided a one-time $57 million increase to help advance housing production in Gateway Cities.
The redevelopment of the former bank building has also received local support. In March, the City Council approved a tax increment exemption agreement for the project and redevelopment of the abutting 30-34 North St.
The 10-year tax increment exemption freezes the current value of the property, the base value, and phases in the increased property taxes that result from the redevelopment. The increased property taxes will be phased in over 10 years, with 100 percent forgiveness of the incremental increase in residential property taxes in the first year, decreasing by 10 percent each subsequent year over the term.
Late last month, the state's new secretary of the Executive Office of Housing and Livable Communities, Juana Matias, toured the former St. Joseph's High School on Maplewood Avenue and the near-complete Wright Building Block on North Street.
Allegrone's renovation of the Wright Building has received more than $4 million from the HDIP and $1.37 million for streetscape infrastructure improvements and the conversion of the rear vehicular alleyway into a pedestrian way behind the building.
In total, the $20 million project has added 35 units, 21 two-bedrooms and 14 one-bedrooms, with rents between $1,800 and $2,400. Seven of the apartments are designated affordable with rents between $1,400 and $1,600, and all but two affordable units are leased.
The Allegrones walked Matias and other officials through a ground-floor unit with an enclosed patio area at the front door and an upper-level unit with views of Bousquet. The project also transformed the former Jim's House of Shoes building and has commercial space fronting on North Street.
Healey, in Thursday's announcement, said every community has different housing needs, and the state needs to give cities the tools that work best for them to build more homes and lower costs.
"When we expanded HDIP, we did it because we knew Gateway Cities had strong projects ready to move forward and needed a partner to help get them across the finish line. These awards will create 662 new homes, strengthen downtowns, and help make Massachusetts more affordable."
Tags: housing, state grant, tax incentive,
