WORCESTER — A historic building on Main Street in downtown Worcester will be transformed into rental housing after the state awarded tax credits to the project developer, officials said Thursday.
The Menkiti Group received a $3.6 million award through the state’s Housing Development Incentive Program (HDIP) to rehabilitate the Clark Block at 401–405 Main St.. The project will create 48 rental homes, including five affordable units, by adaptively reusing the existing structure, according to the Healey-Driscoll administration.
What the award means for Worcester
The HDIP award is intended to help Gateway Cities like Worcester move stalled or challenging housing projects forward and bolster downtown activity. State officials said the credits target market-rate rental and homeownership projects that reutilize vacant or underused buildings and expand local housing supply.
- Project: Clark Block Rehabilitation, 401–405 Main St., Worcester
- Developer: The Menkiti Group
- State award: $3.6 million (HDIP tax credits)
- Planned units: 48 total; 5 affordable
"Every community has different housing needs, and we need to give cities the tools that work best for them to build more homes and lower costs," Gov. Maura Healey said in a statement.
Statewide, the Worcester award was part of a six-project HDIP round totaling $18.6 million that state officials said will support 662 new homes across Gateway Cities including Fall River, Lawrence, Lowell, Pittsfield and Taunton.
| Metric | Value |
|---|---|
| HDIP award for Clark Block | $3.6 million |
| Planned units at Clark Block | 48 (5 affordable) |
| Round total HDIP awards | $18.6 million (662 homes) |
Program background and local stakes
Since Jan. 1, 2023, the Healey-Driscoll administration has awarded HDIP tax credits to 52 projects supporting 3,404 new homes in 16 cities, the administration said. The program was expanded in October 2023 when the governor signed a package increasing HDIP’s annual authorization from $10 million to $30 million and adding a one-time $57 million boost for Gateway City housing production.
For Worcester, the Clark Block project represents a downtown reuse that could add residents to the core of the city, supporting retail and street-level activity while modestly increasing the supply of rental housing. The mix of market-rate and a small number of affordable units reflects HDIP’s aim to leverage private development in historic and underused buildings.
Development timelines, financing close dates and construction schedules for the Clark Block rehabilitation were not released with the award. The Menkiti Group and city officials will likely provide further details as the project moves through permitting and financing stages.
The HDIP program remains a key tool for Worcester and other Gateway Cities seeking to catalyze downtown housing projects that otherwise might face financing or feasibility gaps. Local officials and developers frequently point to adaptive reuse credits and incentives as decisive in making such projects viable.
