By Robert Likes, president, community development lending and investment, affordable housing, KeyBank The nation’s housing crisis has reached a breaking point, pushing developers to rethink how and where new supply can be created. Among the most promising — and debated — solutions is the conversion of underutilized office buildings into much-needed affordable housing. On the surface, the concept seems straightforward: repurpose empty office space into homes in locations where demand is highest. In practice, however, these projects are anything but simple. Converting office buildings into livable, modern and affordable multifamily residences requires far more than reimagining floor plans. Success depends on choosing the right property, assembling a complex capital stack and deploying an experienced team capable of navigating regulatory, design and construction challenges. Done right, these conversions not only add critical housing supply but also breathe new life into urban centers struggling with high office vacancies. The Case for Conversions The United States has too much office space and not enough housing units, particularly for low-income households. Office-to-residential conversion projects help to equalize the supply-demand imbalance in both asset classes. According to the National Low-Income Housing Coalition, we are short 7.1 million rental homes for extremely low-income households. As a result, many …
