Boston Financial Investment Management has closed an $83 million low-income housing tax credit fund, its first California-focused fund in almost 30 years.
Comprised of eight investors, Boston Financial California Fund II (BF CA II) will finance more than 600 affordable housing units in six multifamily properties and two senior living communities for residents earning up to 60% of the area median income. The developments are located throughout the state, including Brawley, Gilroy, Lindsay, Los Angeles, Oroville, and San Diego.
BF CA II attracted four new investors to Boston Financial. In addition, the six developers included several new partners, including one of the largest nonprofit housing organizations in the Western U.S, according to the firm.
The development and operating budgets for the properties include $6.2 million for tenant-focused social services for designated properties to help close the persistent economic gap in historically underserved areas. The programs include adult education, health and wellness, job training and placement, tutoring services, and civic-involvement initiatives.
“We believe that combining permanent supportive housing with robust social services helps foster economic and social well-being and growth. BF CA II will continue this mission and support underserved communities across California’s major cities,” said Tom Pereira, senior vice president, director of institutional sales, at Boston Financial. “Our ability to attract new investors and developers underscores not only the strength of our company and the quality of our existing development and investment partnerships, but also a collective commitment to positive and tangible social and economic impact for these communities.”
Boston Financial estimates that BF CA II’s investment, creation, and rehabilitation of the properties will create approximately 180 permanent and 730 temporary jobs.
“California developers already account for a significant amount of Boston Financial’s business, and BF CA II enables us to better service this market and onboard local investors eager to join in-state funds that directly support the community,” said Sarah Laubinger, executive vice president and chief production officer. “Working with top West Coast developers to build high-quality affordable housing and providing an extensive range of social services creates greater impact in this region, and we aim to make California-focused funds a part of our annual offering moving forward.”
