Boston Financial has announced the closing of a $170 million low-income housing tax credit (LIHTC) fund.
The firm secured commitments from six institutional investors for Boston Financial Institutional Tax Credits 60 Limited Partnership (ITC 60), including a mix of regional and national banks and insurance companies.
Boston Financial will use the capital to assist 14 affordable housing developers—30% of whom are nonprofit organizations—to build or preserve 16 developments with 1,418 affordable rental homes. The properties are in 16 communities across 13 states: California, Illinois, Louisiana, Maine, Maryland, Massachusetts, North Carolina, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, and Wisconsin.
One of the developments is Pointe Common, which will bring 65 affordable units to residents earning between 30% and 70% of the area median income in Fullerton, California. It is being developed by Boston Financial’s longtime partner Meta. The two companies have joined forces on almost 20 communities, comprising nearly 2,300 affordable homes.
“At a time when more Americans than ever are facing a lack of affordable housing, it’s critical that we maintain our ongoing commitment to providing affordable housing capital solutions,” said Rob Golden, CEO of Boston Financial, in a statement. “ITC 60 is the first new LIHTC multi-fund that Boston Financial has closed since I assumed the role of CEO in May of this year, and I am very pleased at this successful closing. I am proud of my team’s hard work in building this fund and grateful for the continued support and trust that our investor partners place in Boston Financial and our platform.”
ITC 60 is expected to create more than 2,100 new jobs, bringing an estimated $250 million in wages and business income to surrounding communities, as well as over $90 million in tax revenue.
Nearly 45% of the properties in the fund will bring affordable rental homes to minority communities, and several properties will have units designated for seniors, veterans, people with physical or mental disabilities, and formerly unhoused families, according to the firm.
“We are in the midst of a protracted affordable housing crisis, with over 22 million households—half of all renters nationwide—spending more than 30% of their income on rent. This burden disproportionately affects very low-income families, seniors, and unhoused people,” added Thomas Paramore, head of housing and community investments at Boston Financial.
The firm is the largest LIHTC syndicator in the country, managing a $16.2 billion portfolio comprising almost 1,900 properties. It was founded in 1969 and acquired by ORIX Corporation USA in 2016.
