Menkiti receives $3.6M tax credit for Shack's downtown apartment conversion. July 13, 2026 The Menkiti Group has received a $3.6-million state tax credit to help convert a 171-year-old Downtown Worcester building into 48 apartments. The Washington, D.C.-based developer was awarded the tax break as part of the state's Housing Development Incentive Program, the Gov. Maura Healey Administration announced Thursday. HDIP aims to increase housing opportunities in Massachusetts' 26 Gateway Cities. Menkiti Group is redeveloping the site's upper floors of the building at 401-409 Main St. into apartments, including five affordable units reserved for households earning no more than 60% of the area median income. Menkiti had previously done work on the building's exterior and built out a Bank of America branch location on the first floor. The project previously received a 10-year tax increment exemption from the City of Worcester, which will see the property save $613,211 in taxes over the life of the deal. Obtaining a municipal tax break is a requirement for receiving HDIP tax credits from the state. The Worcester tax exemption was approved by the City Council on a 6-4 vote, with opponents expressing concern about alleged wage theft by subcontractors used by Menkiti on other projects. The project is estimated to cost around $27 million. Known as the Clark Block, the building dates back to the 1850s and was the former longtime home of Shack's Clothes before the business closed in 2017, according to the Worcester Telegram & Gazette. Menkiti's development was the lone Central Massachusetts project to receive a tax credit in this round of funding. Since 2023, the state's Executive Office of Housing and Livable Communities has awarded HDIP tax credits to 52 projects representing 3,404 housing units. Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries. - Digital Partners -

Gov. Healey awards $18.6 million to six cities for new housing. USA TODAY NETWORK - New England July 13, 2026, 11:26 a.m. ET * Gov. Maura Healey announced her administration is awarding $3.6 million to the Menkiti Group to transform Clark Block into 48 rental homes. * It's one of six projects receiving a total of $18.6 million in Housing Development Incentive Program (HDIP) tax credits to make 662 units of new housing. * The other housing developments set to receive funds are in Fall River, Lawrence, Lowell, Pittsfield and Taunton. Clark Block in Worcester is set for a makeover - with help from the state government. On July 9, Gov. Maura Healey announced her administration is awarding $3.6 million to the Menkiti Group to transform Clark Block, a historic building located at 401-409 Main St. that was most recently home to Shack's Clothes, into 48 rental homes. Five would be affordable homes. It's one of six projects receiving a total of $18.6 million in Housing Development Incentive Program (HDIP) tax credits to transform historic and underutilized buildings into 662 units of new housing. The other housing developments set to receive funds are in Fall River, Lawrence, Lowell, Pittsfield and Taunton. "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," Healey said in a press release. "These awards will create 662 new homes, strengthen downtowns and help make Massachusetts more affordable." Housing is a major issue in Massachusetts: a June 30 poll from the University of New Hampshire Survey Center found that a majority of Massachusetts residents believe housing or the cost of living is the most important problem facing the state. In another poll released July 7, 70% of those considering leaving Massachusetts said it was due to the cost of housing or living. Which cities are getting money for housing? In addition to the Clark Block Rehabilitation, five other projects, all located in gateway cities, are set to receive development earmarks. * Durfee Block Apartments, Fall River: $1.5 million to Monte Ferris Jr. to support the adaptive reuse of a historic building in downtown Fall River into 22 rental homes. * 216 Canal Street, Lawrence: $2.5 million to 216 Canal LLC to support the adaptive reuse of a mill building in Lawrence's canal district into 99 rental homes. * Franco American School Phase III, Lowell: $3.2 million to TMI Property Management to support new construction of 80 rental homes and commercial space. * 24-34 North Park Square Residences, Pittsfield: $4 million to Allegrone Companies to support the adaptive reuse of a historic office building in Pittsfield's Park Square into 23 rental homes, with street-level retail and a commercial kitchen. * Whittenton Mill Apartments, Taunton: $3.8 million to Greystar to support the demolition of a former mill and new construction of 390 rental homes. What is HDIP? Gateway cities? The money is coming from the Housing Development Incentive Program (HDIP), which aims to create housing in gateway cities by providing tax credits to advance housing projects that "strengthen downtowns, reuse vacant or underutilized buildings and help communities expand their housing supply." There are 26 gateway cities in the state. These cities are municipalities with populations between 35,000 and 250,000 that have a median household income and a rate of educational attainment of bachelor's degree or above that are below the state's average. According to the press release, 52 projects, supporting 3,404 new homes in 16 cities, have received HDIP tax credits since January 2023.