The Developer’s Playbook: Lessons from Converting Historic Sites into Affordable Housing

Converting a historic structure into affordable housing is not for the faint of heart. It’s a complex exercise in respect—for the architecture, the community, the financing layers, and the lives that will inhabit it next.

At The Delaine Companies, we’ve stepped into this arena with a firm belief: that historic adaptive reuse, when done with care, can preserve the soul of a place while addressing one of our most urgent societal needs—quality, affordable housing.

Here are several lessons we’ve learned on the ground, using two real case studies to illustrate best practices: Betances Houses in the South Bronx, a public housing site revitalized through RAD and historic tax credits.

Lesson 1: Respect the Bones

Case Study: Betances Houses, Bronx, NY

As part of NYCHA’s Permanent Affordability Commitment Together (PACT) program, select buildings at Betances Houses were designated as historic resources and underwent a transformative rehabilitation using Historic Tax Credits (HTC). These 1970s mid-century structures—often overlooked in preservation circles—were acknowledged for their role in post-war public housing development.

Best Practice:Bring in a historic preservation consultant early and work closely with the State Historic Preservation Office (SHPO). Even if a site isn’t on the National Register, it may be eligible. In this case, careful documentation and a thoughtful design approach allowed the development team to secure HTC equity and reinvest in the fabric of the community.

Lesson 2: Engage the Community Authentically

Historic buildings are often community landmarks. We’ve found that the emotional ownership residents have over these sites can be either a barrier or a bridge. In both the Bronx and Philadelphia, community engagement was central to the project’s success. At Betances, resident engagement helped ensure that the modernization effort honored long-time tenants while improving building systems and safety.

Best Practice:Build in time for community engagement before design is finalized. Be transparent about your intentions. Where appropriate, partner with local nonprofits, resident associations, or service providers that can build credibility and reinforce your commitment to long-term stewardship.

Lesson 3: Design for the Next Century, Not the Last

While preserving history is important, the building must serve the next hundred years of residents. That means focusing on energy efficiency, accessibility, and flexibility in unit layout and common areas.

Best Practice:Pursue Passive House or Enterprise Green Communities certification where feasible. These standards not only reduce operating costs and tenant utility burdens but can also unlock green financing tools that strengthen the project’s capital stack.

Lesson 4: Adaptive Reuse Is a Brand Builder

There is something powerful about taking a building that had been forgotten and turning it into a space for life, family, and community. These projects are not just developments; they are legacy plays. They demonstrate what’s possible when creativity meets commitment.

Best Practice:Tell the story—through your investor communications, public relations, and community outreach. These are the kinds of projects that make mission-driven capital lean in and help cities see you as a long-term stakeholder.

Final Thoughts

In a time when both affordability and preservation are urgent needs, historic adaptive reuse is a path toward both. It’s not the easiest path—but for developers who want to create lasting value for cities and their residents, it’s a worthy one.