Boston Financial Investment Management has announced the closing of a $290 million low-income housing tax credit (LIHTC) fund.
The fund, Boston Financial Institutional Tax Credits 56 (ITC 56), will finance more than 2,500 affordable housing units across 17 multifamily and six senior developments in 15 states.
Comprised of 23 tax credit investments, ITC 56 is the largest, multi-investor fund syndicated by Boston Financial in the last 15 years, and it represents the firm’s continued focus on equity initiatives that help new and longstanding investors execute on social impact and diversity and inclusion goals, according to the company.
The properties are in Alabama, California, Colorado, Connecticut, Florida, Illinois, Indiana, Kentucky, Louisiana, Missouri, New Jersey, Pennsylvania, Tennessee, Texas, and Washington. Most of the equity will fund the development of communities with a minority population of 50% or greater, and Boston Financial estimates that the investment and development of the resulting properties will lead to the creation of approximately 3,900 full-time jobs.
In addition, the development and operating budgets for the properties include $6.4 million for tenant-focused social services for designated locations to help close the persistent economic gap in historically underserved areas. These include, but are not limited to, adult education, after-school services, health and wellness, and skill-building classes. Notably, Boston Financial’s partnership with developer Aurora Housing Authority will provide senior veteran-specific services at the Liberty View affordable housing facility in Aurora, Colorado, including on-site coordinated access to medical care and transportation services.
“There is a continued need for affordable housing that has been exacerbated by economic factors, including rising inflation and disproportional wage growth, and ITC 56 underscores our firm’s and our clients’ continued commitment to address that need,” said Todd Jones, senior vice president, director of institutional sales. “The capital provided not only fuels the development of safe, quality, affordable housing but also supports and empowers residents in a meaningful way through the wide range of social services delivered. We are extremely proud of our syndicated platform, through which we have invested nearly $1.3 billion over the last 12 months, and are grateful for our clients’ continued confidence in us helping to build healthier and more sustainable communities.”
One-third of the institutional investors who participated in ITC 56 were new to Boston Financial, representing $100 million in investor capital. Additionally, 89% of the 21 for-profit and nonprofit developers have partnered with Boston Financial previously.
